Internal Environment Of Tesla

1053 Words 5 Pages
To analyze Tesla we will begin with the internal environment of the company. The internal environment is a combination of the company’s strengths and weaknesses. In the following section the advantages and disadvantages of Tesla’s business strategy will be identified and explained.

Tesla is built upon its largest core competency, its largest strength, innovative engineering and design. The company is led by innovative thinker Elon Musk, who has helped build a team of world class engineers, researchers, and designers at Tesla. The company’s strength in design and engineering is Tesla’s largest differentiation from its competitors. The company has used its advanced engineering and design to build the foundation for its strategy,
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One example of Tesla’s revolutionary design is the battery pack, which is strategically located in the center of the car directly under the chassis. This allows the car’s weight to be more evenly distributed. It also allows for an emergence of new channels of business and customer service. Tesla has a service where the battery packs are removed from the vehicle and replaced for a cost. This eliminates wait times for charging, but also allows for easy service and repair to the car's’ batteries.
Of the three models that Tesla has produced, each has been more successfully designed than the previous. Not only has the team out designed themselves they have out designed their competition. With world class efficiency and aesthetics, the design team has differentiated their product. Engineering and design is not the only way that Tesla has differentiated themselves from the competition. Customer service is another facet of the business that allows the company to propel itself beyond the competition. Tesla’s customer service is geared towards the absolute satisfaction of every customer. The company has customer service policies that cannot be rivaled in the
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The company refuses to use car dealerships to sell cars. They have integrated vertically towards the customer and handle all sales and distribution operations internally. To accomplish this Tesla has designed a network of service centers, galleries, and showrooms around the country tailored towards maintaining a luxury market position, provide high levels of service to customers, and encourage or complete sales. The showrooms and service centers that Tesla has built are there to sell cars. Although, due to the current political regulations surrounding the automotive industry, it is illegal in most states for a car manufacturer to sell directly to consumers. Therefore, Tesla has made online purchasing the primary means of selling vehicles. In states that the company cannot legally sell, in they can discuss the possibility of a sell to a customer at one of their facilities in state. The customer can then place their order online and Tesla will deliver the finalized product to either the Tesla facility near them or deliver directly to the consumer’s

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