Tesla Motors Case Solution
Blue Ocean Strategy and Tesla competitive Edge
Since the company has been active in innovating its operations and functions to in corporate technology and achieve cost effective solutions for the production, it has also been elevating its operational capacity and in-house production of the car parts.In doing so, Tesla has been integrating the backward supply chain functions which allowed it to develop the car batteries in-house rather than out sourcing from other business partners.This strategy offered the company to manage its supply chain effectively, and this not only reduced the cost of supply chain but also allowed it to develop the efficient and technologically smart batteries for its cars according to the market demand.
This allowed the company to pursue the Blue Ocean Strategy by developing its in-house supply chain that allowed it to reduce the cost of the operations while on the other hand enabled it to produce high performance cars, which increased its market share and thus the overall image in the market. (RIMMER, 2015)
Moreover, the company developed its own super charger networks which resulted in reducing the dependency on other suppliers.The particular strategic move allowed the company to enter into the fuelling industry giving it control over forward and backward supply chain. Moreover, it allowed the company to offer supper fast charging to its customers while maintaining the quality and efficiency of the service. This gave company a competitive edge over the other players in the market,since the other players like Porsche and Ford depend on outside suppliers for recharging facilities and services. (Muoio, 2016)
Also, in the recent year under Model 3 cars, Tesla developed highly functioning computerized cars that can be managed through a software, hence it diverged the car industry from being totally mechanical in nature to technological. In doing so, the company developed such software that connected the car with phones or tabs of the customers and offered an in-depth analysis of the car performance and the recommendation for the occurred problem.This gave ease to the customer since it reduced the dependency on car service providers to correctly identify the right problem in the car and offer a substantially right solution to it. The particular service gave company the competitive advantage, since no other player offered the similar service and technology to its customers hence it allowed Tesla to pursue its Blue Ocean Strategy, gaining more market virility and share. (Zach, 2014)
Competitors Move to counter Tesla Competitive Moves
So far no direct competition has been stood against Tesla Roadster and Model S in the market.However, Porsche, and Nissan are expected to enter into the electric car sector by the end of 2017 followed by Honda and General Motors. Apart from that no other players have been seen making an effective and yet serious move to counter the comparative position of Tesla electric cars in the market. (Shahan, 2014)
Though these players like Honda and Porsche have substantial market share in hybrid cars production and render a great sale in US, however, the full level of operations and competitive strategy to compete with electric cars of Tesla have not been incorporated.The reason found is the reluctance of the success of the electric car model in the US and in other region. However,Tesla being the first mover in the electric car industry has opened up the gate ways for other players to possibly develop the same technology in near future.
Audi with its ‘R8’ model is analyzed to be the electric car model with fast and efficient battery, however the clear reports on such strategic move have not been addressed.The remaining players are still competing in the hybrid model category in US and European region, however, the chances for these players to enter the electric car industry are eminent after the implementation of European LAW 7 that restricts the carbon emission in the environment.Until then Tesla has the opportunity to pursue its Blue Ocean Strategy in US market and expand it to other European regions, developing market leadership and strong competitive position in the market. (Wahlman, 2017)………………
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