Team 1 FIP Strategic Management Process

FIP: Strategic Management Process
Team 1
Amit Panda, Amit Srivastava, Anil Kulkarni, Adhiraj Ray
Tesla Strategic Analysis
Industry Automotive, Battery, Energy Storage, Solar Energy generation
Founded July 1 , 2003.
HQ Palo Alto, California, US
Products Electric cars, Power cells, Solar panels & roofs
Services Vehicle servicing, software, Insurance, charging etc
Revenue USD 31.5 B FY 20 Mission
Mission
“to accelerate the world's transition to sustainable energy”
Vision
“to create the most compelling car company of the 21stst century by driving the
world's transition to electric vehicles.”
Value Proposition
aims to provide some of the best-in-class EV models
Core values
Always do best, No forecast is perfect but try, respect people, learn , respect
environment
External Analysis : PESTEL
Political Economic Social
 Incentives by Govt  Declining material cost  Eco –friendliness

 Tax credits  Economic stability  Renewable Energy
 Trade Agreements  battery cost  Wealth distribution
 Political Stability  Social status
Technological Environmental Legal
 Innovation and R&D  Emission norms  International regulation

 Automation  Climate change  Energy loan
 Changes in Technology  Waste management  Dealership regulations
 Online segments  Energy consumption
Stakeholder Analysis
Communities
 Brand Image
Customers
 Environment
 Satisfaction
Employees
 Innovation
 Compensation Investors
 Training
 Leadership  Funding Govt
 Capital
 Allowing patent
sharing  Legal
 CSR
 Controls
External Analysis : Porter’s model
Threat of New Entrant
 Too big to enter
 Breakthrough barrier entry
 Technology superiority
 Continuously updated
 Network effect
Bargaining power of suppliers Competitive rivalry Bargaining power of Buyers

 Vertically integrated   Lots of customers
EV Industry growing
 Independent   Model 3 pricing
Better and cheaper
 Easy substitution   Charge premium
Legacy Automobile Market
 Component based   B2B –(Pepsi, Walmart)
Nio
 Single source
 Panasonic, Mercedes
Threat of Substitutes
 ICE automobile
 Public transport
 Ride Sharing
 Fuel cell cars
 Robo-taxi, hyperloop
 Teleportation
SWOT
Strength
 Brand Image Weakness

 Face value
 Quality
 First Mover  Little Profitability
 Diverse product Opportunity
 Lack of Volume
 Integrated line  Debt Liability
 Technology  Increased Assets
 Global expansion  Ecofriendly avenues Threat
 Single sources  Cost tailoring
 Innovation
 Climate improvement  Competition
 Supplier base
 Exchange rate
 Law suits
 Raw material price
Assessing position :Figures and stats
Competitive : Figures and stats
Findings, goals , strategy , trend feasibility
Findings & Challenges Present goals Strategy
 Battery cost  New cars  Focus technology

 Raw Material cost  Gigafactory  Fundamentally different
 Innovation  Dealership & Repair  Single Integration
 Mass Production?  Charging network  Upgradation
 Tech change  Solar Power  Solutions
 Supply source  Self Driven cars
 Safety
 Cyber Security
 Debt
 Rapid growth company
 Hacking
 Pandemic
 Global expansion
 Ride sharing
Strategy Formulation- Creating Strategy
Business Corporate Functional
From
 Focused Differentiation  Diversified  Training of employees
 Specific Customers  Debt liability
 Few or nil dealership Marketing
 Production of few models
To
 Integtated Cost & Differntiation  Long term JV for stability  Hiring experts
 Core Competency  Value Creation  Cash generation
 Necessary Resources  Market entry globally  Explore dealership
 Mass production wayforward
Strategy Implementation – Plan into Action
• Leadership
• Decisions
• Value Maximising
• Government controls
• Corporate Governance
• Diverse product
• Integrated line
• Technology
Recommendation
 Focus on low cost battery manufacturing which will help its network system while expanding market
horizon
 Expedite manufacturing of Tesla 3 model and attract more customer in middle income segments.
 High scale Automation with increased testing of autopilot and safety norms
 Cybersecurity and prevention of hacking of system
Conclusion
Although organisation like Tesla have kept foot in energy and renewable sources but at the same time
every resource harnessed has also a life . Hence resources for hardware like battery , car parts are also to
be taken into consideration.
In Business Aspect Tesla is in growth stage and the goals are logical yet aggressive. The early decision is
required to get cash rich

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FIP: Strategic Management Process

Political Economic Social

 Incentives by Govt  Declining material cost  Eco –friendliness

Technological Environmental Legal

 Innovation and R&D  Emission norms  International regulation

Bargaining power of suppliers Competitive rivalry Bargaining power of Buyers

 Brand Image Weakness

 Battery cost  New cars  Focus technology

 Cybersecurity and prevention of hacking of system

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