Set the Stage for Change
Set the Stage for Change
I will discuss how companies in general need to change or evolve with the technology and the market. I also will also discuss Tesla Motor Inc. in detail about the necessary changes they made and will be making to evolve with the competitive market.Organizations and businesses need to adapt and change with the economy and market demand. Change is good for personal and professional life, but it is not always easy to do. I am a Tesla enthusiast and I admire them for talking the lead into converting the world from oil to sustainable energy. Furthermore, Tesla has open patents for other companies to use for free in the attempt to accelerate transitioning to sustainable energy.
Overview/Company Background
Tesla Motors Inc. founded by Elon Musk is global enterprise that designs, produces and markets all electric zero-emission cars. Starting any car company is extremely difficult let alone starting an all-electric car company. The established gas car and oil industries have enormous amounts of money to spend in trying to sabotage and end electric car startups because it is a direct threat to their existence. Despite many barriers, sabotages, and bad press Tesla managed to set up themselves as the builder of the future car today. Elon Musk started Tesla with a couple of friends with the aim of converting the world into sustainable energy. First, the team build a small electric car show the world that electric it is better than a gasoline car in every way. Tesla has a strategy called “master plan”. The master plan included to first build a few small cars called roadster and sell them at a high price. Then take that profit and put it back into building the next car model X and sell it at high price as well. Then take the sales profits from that and build the next car model S at mid-price range. Than take the sales profit from that and build huge factories that can support production of the affordable car model 3 aimed for the masses.
Identification of the Needed Change
With better battery and range technological advantages from other car producers such as, Lucidair, Audi, Volkswagen, etc. Tesla motor needs to change its battery strategy to hold its current number one spot in the EV industry. Tesla currently uses lithium-ion batteries who buys them from Panasonic which get a 200-350-mile range with less than 600,000 miles lifespan. There are better batteries now on the market that can double the current lifespan and range.
Therefore, tesla needs to change their strategy.
Why the Change is Required
Number one enemy that businesses, organizations, or companies have is technology. Technology itself can either be the enemy or the best friend of an organization. Advances in technology can put companies out of business but it can also help companies stay competitive on the market. Organizations who experience innovation success believe that it is their secret to a long-lasting success (Aaslaid, 2018). A strong innovation strategy that includes evolving with the market is the key to a companies’ success. There are many examples of companies that innovated but still failed to evolve with the market. For instance,Kodak invented the first digital camera in 1975 but did not sell it due to the fear of disturbing the film photography industry. In other words, management of kodak fell short on seeing digital photography as disruptive technology (Aaslaid, 2018).Companies wanting to survive within the market must be flexible and ready to adapt and change as needed. Bureaucratic regulations also known as red tape sometimes make it harder for organizations to make fast and necessary changes. The smaller and the younger the company is the easier it is to make changes. For example, Tesla motors Inc. started out small by converting a lotus Elise vehicle into a full electric tesla roadster. As its chief executive Elon Musk admitted that it was a terrible idea. With his vision and a lot of guts he transformed the industry into a major player in automotive industry.
A Diagnosis of why the Change is Needed
The Tesla master plan is in motion and it is working out great for tesla. With the first Gigafactory build and the delivery of model 3 rollout Tesla’s net worth is more than a billion dollars now. Besides designing and producing luxury electric cars, tesla also produces its own
ultramodern self-driving software.However, Currently Tesla is not considered a profitable by analysts because of its strategy of putting the profit back into the company. This strategy is helping Tesla build the infrastructure it needs to be able to produce cars and batteries for the masses. In addition, other electric vehicle companies are building batteries with faster charge and longer-rangecapabilities. Tesla needs to find a way to produce better batteries than it currently is to stay competitive.
Defense of Chosen Organization
The major developments within the electric vehicle ecosystem have created a unique market environment for tesla(Mangram, 2012). From a strategic marketing perspective Tesla’s strategy is like Apple’s iPhone new technology marketing model making it a great candidate for my project. Similarly, what apple is doing with the iPhone by remotely pushing new software updates and controlling all the accessories that go with it, tesla is doing it with cars. It is now expanding its technological advantages to the luxury vehicle sedan market. Tesla’s cars are sleek, smart, eco-friendly, have self-driving capabilities hardware built in, get free software updates, and differ from our usual car companies who now are starting to struggle trying to keep up with the increasing EV demand. Compared to gas combustion well established vehicle companies Tesla is incredibly young, it only started in year of 2003 and its net worth more than some car companies that have been in business for hundreds of years. Tesla’s technological strides have been ground breaking and will continue to be in the future. The company has a chief executive who is on a mission to save our planet from carbon dioxide emission. Elon Musk plan is to transform the world into sustainable energy by first, making electric cars, solar panels or shingles, and battery packs for storage. The idea is to get the energy from the sun, catch it with solar shingles than, store it in power wall battery then, use it for your house utilities, and fill up your tesla car. Even though Tesla is shaking up the gas car and oil industry by producing and delivering an affordable fast electric car for the masses, it is still being viewed as nonprofitable company. Tesla investors and analysists remain deeply divided on the future of tesla (Stringham et. al 2015). There is good reason to believe that the analysists and bad press are bias and are being paid by the oil industries.

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