Customer Needs and Business Opportunity 3 Operational Plan 4 Management and Key Personnel 7 Marketing Plan 8 Tesla Financial Projections
Essay by tecan03 • March 18, 2018 • Research Paper • 4,295 Words (18 Pages) • 1,092 Views
Essay Preview: Customer Needs and Business Opportunity 3 Operational Plan 4 Management and Key Personnel 7 Marketing Plan 8 Tesla Financial Projections
Executive Summary 1 SWOT ANALYSIS 2 Porter 5 Forces 2
Customer needs and business opportunity 3 Operational Plan 4 Management and key personnel 7 Marketing plan 8 Tesla financial projections 9
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Executive Summary
Companies are big and complex, especially Tesla. Inside a company we can find an Internal environment composed by social entities and outside it we can find an external environment. To pursuit its goals a company has to have a valid strategy and respect both of them. The business strategy is the process by which business governance plans economical commercial and operative decisions, according to many factors such as the external environment.
Tesla Motors Inc. only produces and sells extremely advanced electric cars. The objective this company has while producing each car is to create a product that will have zero petroleum consumption ,without sacrificing autonomy, and great driving performance and this will generate a win/win situation
Tesla was founded on the 1st of July 2003 by JB Straubel, Martin Eberhard, Marc Tarpenning, Ian Wright and it’s based in Palo Alto
Elon Musk is the CEO and owner of Tesla Motors Inc. However it also has many shareholders that own parts of the company. Jb Straubel is the CTO of the company and Deepak Ahuja is the CFO. Tesla Motors has 33.000 employee and operates world wide .
Tesla is a socially and ethically responsible company that respects both the inner and outer environment. Our cars don’t have emissions and create zero pollution and even the battery adopted in our cars are no toxic and easily recyclable and can be found all around the world. Tesla is known worldwide and it’s products are highly requested. On the other side the working environment is always respected by all managers and employees.
SWOT ANALYSIS
Strength
● Unique position of Tesla in the market ( there is no company like tesla) and it is
revolutionizing the way we drive. In addition to this Musk has a good track record and it is based in the San Francisco bay area and really popular between young people on the social media
Weaknesses
● The big weakness of Tesla are the great investments this company has to do to keep
up with the expansion of the market. This investments make tesla full of debts in its first period. Last year, for example, we had a revenue of about 7 billions but a profit of -674m9 millions. The target market of Tesla is small because of the price of our cars. nevertheless customers are generally not really confident in technologies that have just been launched. Another weakness that has to be considered is the fact that the infrastructure in many county is not yet developed for supporting electric cars.
Opportunity
● Opportunities: Nowadays climate change is becoming undeniable so people’s
sensibility towards the environment is increasing and this could be seen as a big opportunity.
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● New model 3 coming out soon could create great profit opportunities: it will cost 65% less and will have a larger target market in which tesla can enter.
Threats
● Tesla has basically one big threat: finding money ( in form of investments) for actually
actuating the business plan developing new technologies, marketing operation and even launch a new model.
Porter 5 Forces
Let us now have a look to some key factors that Porter first recognized to be so.
Rivalry
Automobile’s market has always been one of the most aggressive ones. Despite this
Tesla created an innovative product that has very few rivals
Bargaining power of suppliers
Suppliers are very important for this company, but tesla doesn’t subscribe really long
term contrivers and this limits their power. limiting suppliers influence is very important to expand the company
Bargaining power of customers:
people like our product and buy it. As customer buys one of our cars he becomes one
of our customer and we really care about our customers in a proactive way
Threat of new entrants:
Tesla Motors, Inc. is a difficult company to compete with especially for the elevate
brand cost. New entrants can’t really compete with Tesla because the brand development is really expensive.
A piece of the Panmore Institute’s article best describes our mission statement, “Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.” However, in mid-2016, the company changed it to “to accelerate the world’s transition to sustainable energy.” This new mission statement indicates a slight but significant shift in the company’s business, to address market opportunities for renewable energy. Tesla’s mission statement has the following notable components:
1 Acceleration
2 The world’s transition
3 Sustainable energy”
Tesla Vision statement is:’To create the most compelling car company of the 21st century by driving the world's transition to electric vehicles’
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Customer needs and business opportunity
Customer needs:
Tesla is providing full elec cars in sport (Tesla S), Luxury (Tesla X) and affordable (Tesla Model 3), that’s also what customers wanted. Customer age are around 45-65 and over 80% are male. Most People income over 100,000$ can afford a Tesla, but Tesla are bringing out a New model this end of the year (2017) the Model 3 that will only cost around 35,000$ so people that has lower income can also afford a Tesla
We Know that Tesla has auto pilot system, that is a system where the car can drive by his own and bring you to the destination where you wanted that we can use on the road but the autopilot
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