Tesla Case Study Model

1678 Words 7 Pages
Risk is something that all companies take on when trying to launch a new product. Why is risk such a large factor? Think about all the man hours, testing, research, consultants and other tangible assets that it takes to launch a new product. Tesla already has two fully electronic models that they currently offer. Tesla once launched a sports car model but stopped producing it after the determining that the Model S (sedan) sales were so much better than that of the sports edition. Having two models in separate categories allows for a third. Think about a company like Honda. How many vehicles does Honda currently offer? Honda currently offers 15 different models, across different categories. Tesla has one luxury sedan and one luxury SUV. What …show more content…
As a CEO it also takes risk to do nothing. A competitor can come from the bottom and eventually steal away your market share. Innovation and risk allow companies to sustain pressure and market presence. The biggest risk associated with the Model 3 is in regards to the amount being produced. Tesla never made this many cars in such a short time before. What happens if they fail? Will Tesla and Elon Musk’s reputation be ruined? Usually Tesla has yet to deliver when they “claim” that they are going to. The Model 3 is the biggest risk that Tesla has ever taken on, but it is necessary in order to further the electric car market. Credibility is an aspect that a company may never be able to recover from. Look at Blackberry, this company was once a dominant smart phone producer. Blackberry may now have to change the entire dynamic and earn their credibility back as a software company. Would Tesla have to do the same if the Model 3 flops? Would Elon change shift their focus to battery production only? There are many complications involved in this one product launch. Bloomberg claims that 373,000 Model 3’s have been pre-ordered (Joseph, 2016). What if they are all delivered late? Companies today pride themselves on their customer service and convenience, Tesla must not only have a successful vehicle created, the car also must be delivered on time. The timing of the vehicles is just as crucial as the vehicle …show more content…
This individual would have an electrical engineering background with more than 10+ years’ experience, management consulting experience and have a Project Management Professional Certificate (PMP). Due to the nature of this launch, the chief PM will report directly to Elon Musk. The Chief PM would be hired by Elon Musk himself. He would not have to be a full time employee but could be a contractor. The reason that Elon would have to hire is due to their ability to work together and bounce ideas off of one another. These two will work very closely and their relationship will have a lasting impact on Tesla forever, good or bad. The CPM and Elon Musk may also meet with JB Straubel and Jason Wheeler where necessary ("Management | Tesla Motors," n.d.). The team will be made up of 8-10 internal employees and 2-5 external management consultants from high ranking firms. The 10-15 internal employees will come from areas such as engineering, sales, process improvement and finance. This team would be cross functional in that it would include all imperative departments and areas of the company for a successful launch. All the main areas would be represented by the smartest and most innovative from each area. The stakeholders from these areas would meet in person to discuss the project from every angle to produce optimum results. These stakeholders would meet in person regularly (no matter the

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