Tesla, Inc. is the company chosen by me for doing the strategic business plan. In 2003 Tesla became the first car company to produce a fully electric vehicle which run solely on batteries and not using any internal combustion engine for traction purpose. Tesla is the only company to sell a zero greenhouse emission cars in successive production. In comparison with the hundred years old internal combustion vehicle industry, Tesla remains a budding and promising industry. In terms of future of Tesla, the Analyst and Investors have remained divided (Mangram, 2012). A SWOT analysis and the strategic priorities helps us to perceive the upgrades that Tesla can take to reap the goals planned in the close to future. Introduction of Enterprise (Business Insights) I have chosen an American company whichfocuses in manufacturing of Electric vehicle named as Tesla Motors. It wasfounded by 2 Americans named Martin Eberhad and Marc Tapenning in the year 2003who were researching on making a sports car which runs on electricity (Erik Gregsen, 2018). Various sources gave funds to the Company as it was a promisingstart to a new era of vehicle running on electricity instead of gasoline. ThePaypal company co-founder Elon Musk in 2004 become one of the biggest stakeholder in Tesla Motors by contributing a huge amount of $30 million dollar to TeslaMotors. It was in 2008 that the company launched its first electric sportsvehicle named as Roadster. A distance of 394 km could be travelled by thevehicle in one full charged battery. Roadster had a very fast acceleration andcould go up to 97 km per hour in less than 4 seconds. Elon Musk took over the TeslaMotors as CEO in 2008 because of the resignation of the founding members. In2012, Tesla launched its Model S sedan which became popular because of its highperformance and design. The first electric SUV launched by Tesla was model Xwhich came out in 2015 becoming one of the luxurious electric vehicles in themarket. The demand for an economical car led to the launch of model 3 series in2017 which could cover a range of around 354 km with a fully charged battery.Elon musk had a wide vision of growing the company into different sustainablesectors and recognized that for homes and businesses there is a need forproducts run by Solar energy. In the year 2016, Tesla took over the charge ofSolar city. In 2017, the company changed its name to Tesla, Inc. to make asustainable energy ecosystem as they were no longer only into manufacturingelectric cars. Tesla has a goal to create agiga manufacturing facility by 2018 at Nevada to produce cheaphigh-quality lithium ion batteries annually (Tesla, 2018).VisionThe Vision statement of a company is theroadmap of the company, indicating the future aims and objectives of company bysetting defined steps and directions that will be taken to achieve thesespecific goals. The vision statement is the inspiration for that company andthe agenda for the strategic planning to achieve the goals desired by thecompany. Tocreate the most compelling car company of the 21st century bydriving the worlds transition to electric vehicle is the visionstatement of Tesla Motors inc. The statement clearly depicts the goal of Teslais to shift focus of community to a more green and clean environment by usingrenewable and sustainable methods majorly in the field of transportationindustry. The words in vision statement depict goals, aim and method or direction taken to achieve the future objectives of an organization. The vision to have enterprise excellence and management traits in the agency by using integrated advance technology in cars run on electricity and related sustainable products is depicted by the word most compelling. The 21st century in the statement refers to the current environment conservation around the globe. The worlds transition to electric vehicle indicates their goals of expansion in future (Hirtenstein, 2017). In whole Teslas future goal and objectiveis to be the leading company in the car industry by using their renewable andsustainable methods and technology to improve the future.Mission statements The mission statement is a sentencedescribing the footsteps taken to achieve the goals and objectives described invision of a company. It also describes the companys role, philosophy, marketsand competitive advantages. This can be referred to as small vision of companyto achieve the bigger picture. The mission statement is kept in mind whiletaking decisions by the employeeto Accelerate The WorldsTransition To Sustainable energy. Is the mission statement of Tesla Inc.The statement can also depict an issue that isfaced globally. In this statement Tesla refers to the transition towards asustainable future with increase in use of renewable sources. Tesla aims to usepresent resources efficiently without hampering the needs of future generation.Their motive is to shift the reliance of people from fossil fuels to a moreclean, green and renewable sources. The world is slowly transitioning towardssustainable energy but the process is taking a lot of time hampering more ofnatural resources. Tesla in their mission statement is intending to speed up oraccelerate the process of transition by implementing faster sustainable energyecosystem. They not only want to change transport sector but also enable houseowners and companies to manage their resources in an environment friendlymanner.Competitor AnalysisThe electric car industry is on a boom and by theend of third quarter, the global trend in sales of electric vehicle have seen arise of around 63% all over the world. The below figure depicts the trends ofglobal electric car sales.The manufacturer of Tesla has faced operatinglosses every year as reported by the business outlook of Tesla form start. Teslabeing the major player in electric car sales has shown tremendous growth overyears in car sales but the company is still not making any profits. Tesla hasbeen the dominant force in the field of luxurious and high end electric carmanufacturers and is now looking to take over the market for cheap electriccars also. There is a big competition in this field but Tesla ambitions arevery high and have a future vision to lead the electric car industry. Tesla isnot only focused in electric car industry but is also selling new sustainabletechnologies to bring the transition to a more sustainable world. The companyhas great ideas and future vision to make possible a sustainable living infuture and would be exciting to see how people invest in this organization. The SWOT Analysis is a great tool to assess thefuture of company by looking at their strength, weakness, opportunities andthreats faced by the company (Dalvagas, 2016). TheSWOT Analysis helps us in finding the best way for upcoming expansion of acompany (Bernroider, 2002). StrengthsThe 1st company responsible for the development of a 100% electric car Dedicated Research and Development facilities and manufacturing facilities for vehicles internally within the companyTechnological superiority in electrical and electronic technology for the development of energy efficient products.Teslas Model-3 set forward to multiply the production of the company 5 folds.Parts and equipment supplies to other companies.As a result of the ecological awareness withinthe population and an increase in demand in the market for environmentallyfriendly solutions, the company has seen a significant growth in production,achieving good pace simultaneously. As it can be observed from the followingillustration, there has been a drastic increase (about 75%) of Teslas Model Sdeliveries in Quarter 4 in comparison to the Quarter 1 of the year 2015. Thissteadily accelerating growth of sales could be accredited also to the establishmentof higher numbers of supercharging stations as well as service centers allacross the globe.With the recently introduced, economicallypriced Model-3 it is expected that Teslas production growth is estimated tomultiply five or even tenfold in the near future. The above graphicalillustration represents the quarterly growth trends of Model X and Model S. TheModel 3 is expected to be a game changer for the profits of the company as itis coming out as an economically priced car in the sedan section that has beendesigned to be sold in the mass market.WeaknessesNew innovations in technology lead to higher costs thus higher prices of products.Higher costing Spare parts.Market Competition with newer innovations.Weaker distribution network.The market is pretty niche with both positive and negative outcomes.Maintenance of the fueling network.With innovations in sustainable living becomingthe latest market trend, Tesla has made huge investments in its research anddevelopments sector. Higher investments have also led to the automakers vastexpansion that too in a very small period of time. The most recent investmenthas been made for the development of its Giga-factory for the manufacturing ofbattery packs and lithium cell batteries in the state of Nevada USA. This hasled to the company showing a negative free cash flow and earnings since itsIPO. The company was forced to sell some of its sales as of March 2006 becauseof 2.5 billion dollars worth of long-term debts. The payment of interests onthe debt is higher in comparison to the cash flow that is currentlyinsufficient thus leading to a very volatile growth trend at present.The current distribution of Tesla is quite weakas they dont have their own car dealership and therefore sell directly tocustomers which in turn leads to the higher costing vehicles.In comparison to other hybrid vehicles, themanufacturing costs for the spare parts of these vehicles are significantlyhigher.The installation of High-speed chargers for thequick charging of vehicles with their own maintenance unites proves to beanother challenge (Kissinger, 2018).Due to the transition towards sustainabledevelopment, the competition between various electric vehicle or hybrid vehiclemanufacturing companies has become immense as well as making it difficult fornew companies to compete with well-established automobile manufacturersTherefore, to predict the market trend of afully electric vehicle is quite a difficult task knowing that the electricvehicle market is still in a very niche sector.OpportunitiesTechnology is InnovativeIncrease in oil prices leading to rise in theuse of electric vehiclesThere is a vast potential in internationalmarketPeople are supporting the idea of going fullelectricThe only company to provide full energysolutions for domestic and transport use is TeslaTo begin with, Tesla built the first sports carrunning on electricity in 2003 named Roadster. The next step was to make aluxury sedan and SUVs which are reasonably priced. Tesla built Model S andModel X in 2012 and 2015 with the help of constant research and investments.The selling price of model S and model X was high around $100,000 and model 3with a price of $35000 is much cheaper than the other two. The other luxury carbrands like Mercedes Benz and BMWs have quite competitive prices with Tesla.The model 3 is the only available option in this price range, and with thisfeatures and company is targeting to manufacture around an estimate of 80,000cars.The battery manufacturing giga factory of Teslaat Nevada will increase the profits of company more by using those batteries inelectric vehicles. By using these batteries in manufacturing electric vehicleswill reduce the battery cost by 30% which will add to more earnings for company.The model 3 will have greater space for manufacturing because of theGigafactory. The Gigafactory will help in reducing the price of model 3 infuture because of increase in efficiency of manufacturing. The communitysupports the company which brings innovation by using clean energy methodswithout harming the environment.The need for increase in innovation insustainable products has happened because of the increase in international oilprices. Tesla is leading the market of innovative sustainable products fortransport and domestic use because of increase in the global demand ofinexpensive energy price. The trend of sustainable energy market is showingpositive results.ThreatsGovernment around the world is not supportiveenough for encouragement of electric vehicle.There is a lot of competition from alreadyestablished car companies.There is uncertainty for sources of funding formanufacturing 5,00,000 cars.The car marketis exceedingly aggressive for Electric cars. There isimmense competition from enterprises like BMW, Audi however lower pricecompanies like Nissan leaf and chevy bolt are also in competition. They allhave been in this field for a long time with higher producing and marketingcapabilities. Tesla needs tobe successful in competing withthese car organizations on massive scale production. Another danger that Teslais facing is funding for its formidable design toproduce 500,000 vehicles. As of March 2016, Tesla was reported with $1.5billion of funding which was way less than the total amount needed for theproject. Equity offering and debt funding are some suggested ways to increasefunds for the company.Identify Key strategic prioritiesThe strategic priorities are the universal archingthings to do that help guide the group within the organization. By placing thepriorities, the personnel can invest time for a purposeful project instead ofwaste time. Subsequently, the organization will move onward in the right path.In their 13 year of existence, Tesla has launched only four cars. The preorderof Tesla model reached massive number of at least 400,000 cars by mid-May 2016 (Thompson, 2016). To meetthe targets of preorder, A strategic priorities were announced for next twoyears, They are as below:By 2020, complete building the Gigafactorywhich will help in decreasing the battery cost by 30%.Ensuring the timely production of forthcomingmodel 3.To increase the distance covered by a car in asingle charge of battery to 1000 kilometers in next three years.By 2018 Tesla aims to produce fully autonomousvehicles.In order to match production of 400,000 cars by2020 Tesla kept a target of producing 50,000 cars per year by 2018. The CEO of Teslaaims to increase the production of Tesla cars to 5-fold over the next 2 years.The high demand of model 3 lead the company toreconsider their targets. They kept goal of producing 1 million cars by the endof 2020.Strategic Goals Initiatives Market expansion has become a crucialrequirement for further progress of Tesla Motors in the automobile industry.Targeted customer should be mid 20s and early 40s aka Y generation.Key investment should be placed in improvementof existing services and innovating new products through heavy emphasis uponresearch and development (R&D) for gaining a competitive edge. The luxury car segment will gain attractionfrom the younger professional, for being a symbol of their sustainablestature. Comparatively lower entry-level prices of theproducts will ensure an enhanced share of customer in the current market place.With the introduction of lower pricedelectronic vehicle, the Tesla Motors will witness 5% increment in the marketshare within the next 5 years. The Tesla Loyalty Program provides theopportunity of putting your family in the Tesla vehicle, with all theassociated bonuses while already being a customer of Tesla.For retaining their present customers, we willbe introducing Amplify Your Ride program. In this program customers can tradetheir current vehicle for our new Tesla generation 3 product.For focusing on states where automobileindustry has shown exponential sales growth, we will be introducing Test DriveAmerica. For enhancing organizations communication withits current as well as future customers, potential media sources will beutilized. These sources include Googles Ad Words, significant newspapers,social media outlets, magazines, company sponsored events etc.For exploiting the growth of renewable energyindustry globally, substantial expansion operations are required to beimplement in foreign markets. Diversification is required to be introduce incurrent supply chain for reducing the supply associated risks.DiscussionThe process of defining the vision of companyin future and fulfilling the objectives of a company is called as the strategicplan of an enterprise. It defines the future or long-term goal that should beachieved by the company. The timeline of the goal can vary anything sometimesit can be 5 years to some time it can be 80 years (Kennedy, 2016). Itdefines the center of business.The individual step taken by the enterprise toreach the future goal is called as mission. Vision is a long-term goal whereasmission is short term goal taken to achieve the vision. It instills theexistence of company in minds of employee and define ideal organization state.Vision and mission are turned into specific determinate goals by the objectivesof company. It also helps in ensuring that goals are accomplished within thetime limit. The plan is based on the approach taken by company to achieveobjectives also called as strategy. Basically, strategy are the approachestaken in order to achieve specific goals.Peoples trust in products or services of anenterprises is created only by using different organizational strategy like Marketing,Digital, branding, communication and reputational strategies. These strategiesare an indispensable success component for investors. A good reputation of acompany helps in retaining and motivating their enterprise workforce.ConclusionWith its innovation and effective marketstrategy, Tesla has established its stature as a leader in electronicautomobile market. Albeit started its manufacturing by venturing into sportscar category, the companys vision is entering the sustainable automobile industryas a whole. Even after due contemplation of all the strategies Tesla isexpected to have an unpredictable growth pattern in the automobile industry,particularly after introducing the Model 3. The SWOT analysis conductedrevealed the need of the company to incorporate various factors to maintain itscompetitive edge and enhance overall profitability. Application of moremarketing strategies specific to the companys scenario will assist the companyto excel in the near future. As a prominent manufacturer in the genre ofelectric vehicle, Tesla plans to to regain its expansion in the internationalmarket. This further ensures stable inflow of revenue for the company.ReferencesBERNROIDER, E. 2002. Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large Software Enterprises:: an Austrian Study. European Management journal, 20, 562-573.DALVAGAS, I. 2016. SWOT Analysis: Tesla Motors, Inc. [Online]. Value Line. Available: http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Tesla_Motors,_Inc_.aspx#.W3-pougzbIW [Accessed 22/08/2018 2018].ERIK GREGSEN, B. A. S. 2018. Tesla, Inc. [Online]. Britannica. Available: https://www.britannica.com/topic/Tesla-Motors [Accessed 19/08/2018 2018].HIRTENSTEIN, A. 2017. Global Electric Car Sales Jump 63 Percent [Online]. Bloomberg. Available: https://www.bloomberg.com/news/articles/2017-11-21/global-electric-car-sales-jump-63-percent-as-china-demand-surges [Accessed 21/08/2018 2018].KANE, M. 2016. Tesla Motors Has Sold Over 120,000 Model S/X. North America Still Largest Market [Online]. Inside EVs. Available: https://insideevs.com/Tesla-motors-sold-120000-model-sx-north-america-still-largest-market/ [Accessed 21/08/2018 2018].KENNEDY, S. 2016. Automotive Products: Expanding a Key Industry to TPP Countries [Online]. International trade administration. Available: https://blog.trade.gov/2016/01/27/automotive-products-expanding-a-key-industry-to-tpp-countries/ [Accessed 20/08/2018 2018].KISSINGER, D. 2018. Tesla Inc. SWOT Analysis & Recommendations [Online]. Panmore institute. Available: http://panmore.com/Tesla-motors-inc-swot-analysis-recommendations [Accessed 18/08/2018 2018].MANGRAM, M. E. 2012. The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of strategic marketing, 20, 289-312.TESLA. 2018. Teslas mission is to accelerate the worlds transition to sustainable energy. [Online]. Available: https://www.Tesla.com/about [Accessed 21/08/2018 2018].THOMPSON, C. 2016. Tesla has big, big plans for the next 4 years [Online]. Business Insider. Available: https://www.businessinsider.com.au/everything-Tesla-promises-to-accomplish-by-2020-2016-7#/#complete-its-giant-gigafactory-1 [Accessed 20/08/2018 2018].Get Help With Your EssayIf you need assistance with writing your essay, our professional essay writing service is here to help!Find out more
