Tesla's Strategic Decisions
CHERRIANNE SCOTT (4324333)
What are the key Elements of Tesla Motor's Strategic Decisions?
The key element of Tesla Motor’s strategic decision is that they are the driving force behind technology and product development and a prime innovator for electrical vehicles. For decades, Tesla have been investing a large share of their earnings towards research and development in order to develop car models and technologies that were more affordable for their customers and to gain a competitive edge over their competitors. The following are strategies that Tesla Motor uses in all its functional areas:
Human Resource: Human resource is also a key objective in Tesla’s strategic decision. They strive to …show more content…
Tesla’s strategic decision is to make use of its proximity to the markets in terms of resources. Their marketing mix includes establishing global company owned stores and galleries in key locations in order to capitalize on sales and productivity and access to the target market. Tesla’s distribution strategy was also to sell vehicles directly and also to provide them with after sale service through their sales galleries and service centers.
Research and Development: Tesla is one of those companies that do not hesitate to invest on research and development. This is one of the company key strategic decision to constantly conduct research activities to test, develop, design and refine the company systems in order to ensure that they are producing top quality electric vehicles.
Administrative/Management: The Company uses operations management best practices to minimize cost while maximizing productivity. These strategic decisions enables Tesla to sell its product at reasonable …show more content…
Tesla has differentiated its brand from other companies by adding luxury to its car in terms of utility. Tesla focuses on making its brand more environmentally friendly by offering sustainable alternative models of vehicles that are energy efficient. For example, The Model S is a sports vehicle that offer a unique combination of luxury in terms of styles, safety, convenience, to name a few features. On the other hand, the Model X was more advance in terms of luxury in that made the car more sophisticated such as a falcon wing door system and touch screen driver interface. However, these features did not compromise the vehicles performance and energy efficiency. The company also strive to develop another generation of vehicles that are at a lower price in order to expand to a larger segment of the markets. In a nutshell, Tesla Motor’s uses the differentiation focus for competitive advantage by emphasizing on the uniqueness of their