What I’ve learned from analyzing Tesla business strategy..
Tesla’s autopilot technology has gained its fame for its safety and convenience. Making it trustworthy by consumers, through this persistent innovation Tesla is promoting cleaner and smarter way of living, and this is just what the market really looking for, environment friendly cars as consumers are becoming more environmentally conscious, the need for more electric vehicles is growing along with the need to minimize fuel-driven cars.
As the time for fossil fuel era is slowly being left behind by the globalist, Tesla has given a new alternative for the ordinary people in the ordinary household to use more benefits from the use of batteries. Tesla is planning on manufacturing its battery cell in-house. This can be a game-changer as it will help the company lower its production cost. And will also create many jobs, in turn, helping the economy.
But, through Tesla good deeds, some company take advantage of Tesla’s free patent use for its battery manufacturing. More and more private companies copy Tesla technologies. Increased competition especially by the heavy research is being done for automobiles powered by renewable energy and many big companies like BMW and Volkswagen are becoming more ahead of the electric race. These innovative ways that are being used in vehicles is getting more competitive and the pressure can lead to high operational costs and decreased profit margins. Also don’t forget about the unstable manufacturing conditions and very limited electric vehicle’s infrastructure support from the governments in North America and several parts of Asia.
Tesla is all about revolutionizing the whole industry and the way people live, It believes that wasting too much energy is not a great way of living. Tesla is a leading pioneer when it comes to energy efficiency especially in electrical usage such as vehicle. To do this, Tesla founder Elon Musk has made a clear culture that the only way to lead in innovative industry and significant breakthrough is to be able to make mistakes, calculated and smart mistakes to be exact. Just so happens that this kind of culture that embraces mistakes is really suitable with the challenges that the world is facing in terms of energy reusability. The market trusts and expects the company to develop clean energy and profitable products. It has gained immense fame.
But, on the other hand, Tesla is working on establishing themselves in a hypercompetitive automobile market while trying to expand globally. Tesla also is trying to paint an image of established premium clean energy brand. One of the setbacks they can face is in terms of affordability and consumer’s trust when it comes to electric vehicles. Then there’s also doubt on the future of the company when it is no longer handled by Elon Musk, Elon has become the brand face of Tesla and it is accepted as a one-man-show. Although Elon Musk himself has a lot on his plate.
One of the most factors that should be considered to re-evaluate Tesla’s strategies in winning the competition in the renewable energy sector is to keep on focusing on gaining people’s popularity globally just like Apple.
Keep continue and increase research for renewable energy sources. Work on establishing consumer trust and long-term confidence in the company. Expand overseas and work on securing production globally.
Finally, Tesla has a very high rate of innovation, not to forget the recent developments of world’s first fully electric semi-truck and new sports car. Therefore, the market trusts and expects the company to develop competitive and profitable products which of course leads to substantial financial gains. In short, the naive innovation factor is Tesla’s greatest recipe of success.
