Tesla Motors: Revolutionizing the Automotive Industry

The future of transportation is the electric vehicle. Electric cars are an option that is more eco-friendly than our traditional cars. Electric cars are significantly cheaper to fuel than traditional cars. Tesla Motors is an American electric car company selling electric cars and parts. Martin Eberhard and Marc Tarpenning, two engineers founded the company in 2003. In 2004, Elon Musk, founder of PayPal and Space X invested in the company due to financial crisis and took charge as the CEO and chairman of the company. The headquarters of Tesla is in California, USA. The company has more than 45,000 employees. The main goal of Tesla is to make electric cars on the road affordable. One of their products is the electric car which is powered by battery packs. Battery packs are manufactured from their own company. Their primary target markets are eco-friendly, tech savvy, luxury car buyers. Their activities include in home services and assistance to customers, increasing the network of superchargers. They have opted for the form of selling cars, through no dealerships. They have been doing direct and also online sales Operations managers keep targets based on style of products and services.

However the organization's merchandise influence prices, quality objectives and resources. Tesla Inc. addresses this concern through coincidental innovation, which involves in varied components of the automotive, battery and electrical device business. Tesla addresses quality management through regular quality checks, quality improvement initiatives, and analysis on the automotive/transportation and energy solutions market. Tesla's operations managers often conduct quality reviews and implement enhancements to producing processes. In response to quality problems with suppliers of automobile components, Elon Musk shifted the corporate toward producing additional of its vehicle components rather than sourcing from components makers. This shift will improve internal control and overall product quality. Tesla promotion and marketing include utilization of social media and that they try this all by not spending cash on direct advertising campaigns. They use blogs and hashtags to direct folks to their web site and stores.

Through social media they style a message, making awareness, interest, need and action (AIDA). The marketing is face to face, phone, e-mail, and websites like Facebook, LinkedIn or Twitter. Non-personal selling is completed by the media and special events. Their selling is no-hit as a result, they use credible sources and collect client feedback for recognition and behavior measures. Innovative products such as electric cars and solar panels are produced by Tesla. Tesla uses an electric motor and superior battery which gives their electric cars more acceleration and more mileage than any other available in the industry. Tesla solar panels are low-profile and durable, converting sunlight into clean energy. Tesla currently uses social media and direct sales as their only promotional techniques.

As for social media, Facebook and Twitter are the most commonly used sources. Direct sales via online website, showroom owned by a company and service centers. As Tesla electric cars are based on electric motors, making them an Eco-friendly choice. Electric cars in an attempt to help reduce gas emissions and improve air quality. Our current internal combustion engine is much less efficient. 40% of the total energy we are going to produce. Energy loses are very high. But we can use at least 85% of the total power in electric cars. By using the electric cars, we can reduce sound Pollution as they are much quieter compared to traditional engines. Tesla Autopilot is an advance driver assistance system with safety and convenience features such as self-driving, automatic emergency braking, and the ability to summon the car from the parking spot. The Tesla supercharger network has made it easier and faster to charge. These supercharger stations can charge Tesla electric cars just in 75 minutes to 100%. The electric cars from Tesla get regular software updates. These software updates adjust and upgrade various functions to allow it to function properly. Process innovation is defined as a way to improve or enhance the existing product or service by implementing new ideas and methods.

One of the main reasons why Tesla has become successful is because of their thought processing, the processing of innovation which reflects on their products. The innovative processing of product gives a company a competitive edge. There is a process based contingency of innovation that is used by Tesla for process innovation. The effective management of process innovation requires an “innovation manager” that leads and directs the operations and processes.

• Technology push – Tesla has slight changes from the linear model where their marketing and sales is added before production, which attracts the customers before any new car has been launched in the market.
• Market pull – This suggests the research and development according to the response of the market, resulting in the enhancement of technology push idea. Process innovation is one of the crucial aspects of innovation that makes their value chain more effective and efficient, by value chain we mean the activities that a firm operates to deliver a valuable product. Tesla operates on three innovative ideas to make a product more innovative and customer attractive.
• Inventing the future- This point itself explains the motive and long term objectives of Tesla that is to bring the gasoline, petrol and diesel to an extinct, and to introduce EV’s electric vehicles that reduces the smoke emission which is produced from cars which run on fuel. This will make a huge difference in the environment we are living in we shall see a decline in sound and air pollution that will give automobile industry a new image and set an initiative of environmental friendly approach towards the environment.
• Tests – Products, after going through all the innovative processes and changes the product is brought into the phase it has to face its tests and has to succeed all the hurdles which it was meant and designed for. For example the new Tesla cyber truck which took the class of trucks to a whole new level.
• Implement – Once the process attributes are set the organization can make changes in their recipe here and there by launching different products by keeping the same innovative process idea and by adding a fresh touch to the product.
• Improved productivity and reduced cost – Process innovation is about reducing the cost of each unit and to improve the capacity of production by implementing the idea of economies of scale. • Better quality – Here, by the word better quality we mean that Tesla must produce products that make the customer feel that superior quality and the difference between them and other competitors by effectively marketing that must reflect on higher sales and profits.
• To handle environmental issues- Tesla has always considered environment as an integral part of their plan before planning any product. They have based their vehicles on electric automation that leaves no chances for pollution of any sort unlike other vehicles which runs on gasoline like petrol and diesel.
• More added value - Tesla design their product in such a way that they always provide added value to the customers for example – the semi windshield which protects it from having any cracks while off-roading.

Tesla needs to strike the balance in R&D costs and the other operational costs. Despite R&D advantage being at the core of company strategy, the existing industry and stakeholders demand to advise them to focus more on business growth and revenue generation. Tesla needs to revisit their business model and be more open to the franchise and co-owned sales and service store across the world. Partnering with like-minded ventures and properly training them would make the sales and service infrastructure viable. Any disruptive technology product needs good investment in the marketing and advertising strategy as it lies in the awareness, accessibility, and education around the product. Tesla has not given importance to this area so far an integrated and culture-based marketing campaign is extremely critical for the company `s growth and acceptability. Elon Musk does not promote communication hierarchy. Problem solving is based on effective communication, and hierarchies can prevent the proper flow of information.

Therefore, he has implemented this method in business. Immediate action has an effect on the competitive advantage of Tesla. The talents and skills of employees to respond quickly to market changes highlights the importance of this advantage. Tesla encourages its employees to have innovative and creative behavior towards their work to maintain innovative organizational culture in the company. It also motivates its employees to see from owner’s perspective to support business development. This helps the employees to keep track of strategic objectives. It also unifies the employees into different teams to maximize efficiency and effectiveness. It also ensures that employees are encouraged to think outside the box by their corporate culture. This creates new opportunities for Tesla to improve the performance of its business. In conclusion, for many years, the electric car manufacturer has been around, the company has already developed itself as a pioneer in luxury electric vehicles. The company’s progress and growth are based on technological innovation.