Case Study for Tesla Paper Example

Tesla, Inc. was previously named as Tesla Motors. It is a car maker based in the United States. It also involves itself with solar panel manufacturing and energy storage. Tesla is based in Palo Alto, California. The corporations specialty mainly revolves around electric cars, household solar panels through their SolarCity subsidiary, and Lithium-ion battery energy storage.

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There are several ways in which Chevy, Toyota, and Ford are competing with Tesla. The first way in which these three car manufacturers are competing with Tesla electric car models such as the Tesla S is through the making of electrical car models themselves. Ford Motor Company has come up with the Ford Focus Electric car while Chevrolet has engaged in the manufacturing of Chevrolet Bolt Electric Car (Chaston, 2012). Thirdly, Toyota has been making the Toyota Prius Prime Plug-In Hybrid. All these models are competitive enough, but for some reason, Tesla remains unbeaten when it comes to electric-car consumer preference. But brands like Prius from Toyota have been doing fairly well in the markets, with acceptance in Europe and the United States. It is also worth mentioning that Chevrolet and Ford are offering manufacturer incentives on some of its brands while Toyota is still using its traditional low pricing strategy. Chevrolet is according customers a 2-month money back guarantee while Chrysler is giving its customers three months delayed financing plan.

Tesla is a classic example of a disruptive innovator, and GM/Ford are classical instances of old-guard competitors locked into sustaining improvement. The above mentioned financial incentives are fashioned to make customers want to buy a car when they really do not want to buy one. The reason why they have not yet beaten Tesla when it comes to electric car manufacturing is because they are lacking in innovation when it comes to electric car manufacturing. Besides when it comes to matters revolving around the manufacture of electric cars, Tesla started the trade long ago.

Chevrolet, Toyota, and Ford have the financial viability to compete with Tesla, and if it were upon me to manage any one of them, the first thing I would do is put an end to manufacturers incentives (Mangram, 2012). Manufacturers incentives are basically a way that a company sells itself short. In addition to that, better vehicle designs and more engine power would be a much better way to compete with Tesla without imitating its brands. My manufacturing plans as a manager would revolve around six sigma; this would improve quality and lower production cost.

On the flip side, Tesla can stay ahead with further innovation and commitment. Tesla as a unit is already diversified. To better its competitive advantage, the company should diversify laterally and increase the number of vehicle brands it is making. When customers have a variety of brands to choose from, they definitely can spend more.

California Governor Gray Davis made it official that employees can retire at 50 and get 90% retirement benefits and this makes employers at all different disposition. It would be really hard to make an employee change his mind if he or she wants to retire and the first thing that companies based in California such as Tesla should do is to make employer-employee agreements with their workers; that they should at least retire at age 65.

References

Chaston, I. (2012). Strategy for sustainable competitive advantage: surviving declining demand and China's global development (Vol. 7). Routledge.

Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289-312.