Brief history of Tesla

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Tesla Company is an American based corporation that is specialized in producing the small electric vehicles with innovation and creativity. The company has got specialization in developing the energy storage, electric vehicles and solar panel etc. the company was founded in the year 2003 by the two engineers. The additional product company is serving is tesla Powerball batteries, solar panels, and solar roof tiles. It is the dream of the owner that is the Elon Musk to develop a car which is run on electricity. Elon accomplishes its dream in the year 2003 by introducing the electric car at a very affordable price in the market (Forbes, 2018a). The company has made the success in the initial two years after that get a failure in the business with a bankruptcy of 60 million. But the company survive in that difficult situation too and at present become the leader in the automobile sector of the electric car.

The company has few competitors which are trying to copy the technique and material used by the Tesla, but is failing to do so. The technology used by the Tesla us the innovation of Elon which have the attitude to produce something which will be an advantage to the society. Elon always thinks as like the entrepreneur in which he always takes the risk to produce and develop which is unique a differentiated from others. Because of the innovation of Elon and his belief in employees, the company is able to achieve this position in the market (Forbes, 2018b)

 The company is using the various strategies to remain competitive in the market. These strategies include the satisfying the employees at its best by giving the exceptional services. The use of distribution and promotion strategy in the business makes Tesla different from its customers (Forbes, 2018c).

The primary objective of the Tesla is to create demand and drivers sales for the small Motor’s electric car. Company is trying to build the long-term brand awareness and managing the corporate reputation by maintaining the huge customer base and loyalty and referrals (Tesla Motors, 2018a).

The secondary objectives of Tesla are to increase the marketing share of the company and educate the customer about the Tesla aims and goals to improvise the future (Tesla Motors, 2018b).

The last objective of Tesla is to overarching. This includes inspiring, motivating and empowering the customer as well as the company. The aim of increasing the target market and educate the customer about the innovation is the aim of the Tesla (Tesla Motors, 2018c).

Tesla’s success in the automobile industry

Tesla is ranked in the 4th position in the world in the field of innovativeness and creativity. The company has achieved a sale growth of 67.98% annually due to its new inventions and innovativeness sin its day to day business operations. The journey of the tesla starts from the bankruptcy. In the year 2003, the company has been incorporated by two engineers named Martin Eberhard and Marc Tarpening. In the year 2006, Elon Musk published a blog titled ‘ The Secret Tesla Motors Master Plan(just between you and me)’ in which he made clear the things related to tesla that company had the mission to increase the use of solar electric economy, so that the natural resources can be utilised in other purpose also. Company has managed to bring the Roadster into the manufacture. This will be done  on time and the first vehicle was delivered in March 2008. The costing of this roadster is around $109000 until January 2012 and in total company able top sold around the 2450 roadsters (Forbes, 2018d).

Company also has faced the bankruptcy in the year 2008 which was set of by taking the financing of $40 million. After these huge losses in the business, company cannot stop its innovation. In the year 2009, tesla came up with the Model S prototype in the market. This model has a range of more than 300 miles per charge. This could  go from 0 to 60 mph in 5.5 seconds. After this the success and the innovation of the company have been started, introducing the Model S beta, Model X (Okuta and Dawha, 2014).

In the year 2015, Tesla has reveals the power wall, a giant rechargeable battery for the home purpose and the power pack also for the commercial use. Another innovation tesla began is rolling out its 7.0 software update. It is used to activate the Autopilot features in cars prepared with the hardware (Forbes, 2018e). This update includes the ability of the car to self- Park and many more features. In the year 2015, the company reveals its new plans in establishing company another master plan that is focusing on the four key goals. These goals include:

• Developing the solar roofs that can able to perform with the Tesla’s battery storage.
• Develop the vehicles which are affordable to major segment of the society.
• Advancing the car to the self-driving technology. It will be a safer than physical driving.
• Move out a car sharing program so that company can earn money by renting pout their autonomous cars.

An entrepreneur is a person who is taken the action and highly innovated and motivated to take the risk in the business to achieve the certain goals and accomplishment. The entrepreneur is working as the economic agent in which he analyse and summarise the need of an individual and then make the idea to produce something innovative which will be working as the problem solver for the individual (Alexy and Reitzig, 2012).

Tesla’s unique technology

Entrepreneur is the one who take the risk by sacrificing their comfortable live to start the risky ventures. In the case of Tesla also, musk has left his PhD program and take the risk to make the electric cars by investing his all the earnings of his life (Bae,  Qian,  Mia and Fiet, 2014).

Company like Tesla preferred to have the vertically integrated product so that in the naear future company can able to expand its business operation without any issues. The company can able to expand the retail and distribution stores and can able to earn huge amount of profits from them (Kuratko, Hornsby and Hayton, 2015).

Control of production chain from the start to finish gives the control to the company only. For example Tesla is not producing only the electric cars but also that educate the people about their cars via tesla showrooms (Amit  and Zott, 2012).

The entrepreneur has the stubbornness to do the new task and achieve new goals. Entrepreneur must be self-driven and motivated. In the tesla also, elon has failed to achieve the production deadline for its first roadster and was near to the bankruptcy but then also they performed and get the company flourish in the market and at present company is performing at a level which no one can beat (Tesla, 2018d).

In this the entrepreneur finds the pattern of the needs and requirement of the environment. For example in the company like Tesla, its co-founder martin sent and mail to the musk, who had already participated in the foundation of the car Space X, ask for the interview to invest in the production of the electric car company. Involvement of musk generated the $7.5million of funding easily from the market (Mangram, 2012).

The presence of faith in owners of tesla and the faith in the workers working in the company shows a significant role in the success of the entrepreneurs. It is one thing to have the visionary idea. Like Musk in the tesla has believed that he can make the small electric cars company and he can able to do it with the faith in him and with the faith in his team (Bodde and Taiber, 2014).

The entrepreneur should have the guts to celebrate their failure also. As after the failure success will come. In Tesla also, the Elon first faced the failure in the business by the bankruptcy and nearly the die of his dream of making the small electric car company. Entrepreneurial leaders rejoice the failure openly. This is because that they want to cheer the culture of experimental and fault, this will be also considered as the key for innovation in the business (Stringham, Miller and Clark, 2015).

Tesla’s business strategies

Entrepreneur is existed in the environment to analyse the needs of the people and finds the right solution for them. They are always works in the good faith of the society by innovating new things and services which will make the work and life of the people simple and easier. Company in automobile sector that is Tesla CEO has made travelling exponentially more efficient and comfortable by doing various innovations. Elon also identifies the need of small electric car in the country so that the use of our natural resources should be reduced and natural resources will be saved for the future use (Entrepreneur India, 2018).

Instead of managing the ideas that people get on to work on, entrepreneurs try to create an environment which supports the serendipity. These leaders are those who listen to the advices and ideas of their employees and use them in the organisation the entrepreneur has the spirit to do the work according to the objectives set by the entrepreneur when he is starting the business. Elon use the leadership strategy of lassiez faire in the organization to have the innovative ideas in the organisation. Employees ideas are maintained and being tested for feasibility with customers and markets (Bohnsack,  Pinkse,  and Kolk, 2014).

For an entrepreneur, it is must to know what they can do. One of the most remarkable things about Musk is that he is the self-learner. He learns all the things from the books only and a rocket scientist also. Musk has faced the bullying because of that he isolates himself and become a bookworm and educate himself on all the scientific technological and business fundamentals related to the visionary objects. All this made the Elon self-sufficient and can grab the idea of small electric car that he can make it. At present also him belief in the self-analysis and think about what extra can be done to have a great piece (Naicker,  Chikoko  and Mthiyane, 2014).

Elon put his eyes on mars and still remains on the earth that means he never get his success converts into the arrogance. Developing a car which is pollution free is a great work for the society and inspires the other to create the future like this only. In terms of leadership, he is the leader who doesn’t tell the staff to do the work only but he insists on doing the work with excellence. He himself work 100 hours per week and expects the same to be given by the staff members. So success comes after the hard work only. Entrepreneurs are the ones who bestow this hard work to achieve the success in their lives (Forbes, 2018d).

Tesla’s Primary and Secondary objectives

Competitive advantage can be defined as the condition or circumstances that put the company in the positive or larger business position. Tesla enjoys the competitive advantage and tries to do the activities and innovations which are vital to maintain the competitive advantage. The strategic advantage company is having in the marketing is methods used by the Tesla to control the cost. Tesla is trying to position itself in the markets the cost leader and then also providing the innovative products that is the small electric cars in the environment. These cars are sufficiently the advantage in the market. The control over the cost on production is done by the Tesla using the gigafactory, distribution and use of motors in the production (EV Obsession, 2018).

Another way of tesla to position itself in the market is giving the exceptional services to its customers. The Tesla also provides the super charge network to the customer. The exceptional customer service is provided by the Tesla by introducing fast free charging stations for the user of Tesla’s car.

In this strategy, tesla is developing its business sin the new market while offering the existing product. Company can expand its business in the countries like India to expand its market as there is huge customer to buy the product.

In this type of strategy, the company will offer the new product in the current market and it is operating its business. This is done by the business to experiment the new product in their home country so that if it is not acceptable there, the production will be stopped at the initial stage only (Quora, 2018).

Diversification is the stage where the business is starting from the base root. In this type of strategy the introduction of new product is done in the new market by the tesla. This strategy is considered to be the risky in nature (Robinson, 2012).

 In this type of strategy, the current product is offered in the current market. This strategy is considered to be the safest in nature. Tesla is using this strategy in its business.

Innovation is nothing but developing something new in the market which other has not offered till yet. It involves the utilization of the new idea and brings that ideas into the practical use which will help to solve the problems. Innovation can be defined as the ones ideas which are generated due to assessing a particular situation or it can be a problem of some one. There are several ideas generated in the mind but there is need to select the one with the particular need arises of that thing in the market. In other words, innovation is the translation of the new ideas into processes products or services. There are various innovation done in our existence one of which the innovation of the small electric car by the tesla company. The innovation can be done for the commercial purpose, military purpose or social reasons (Ivanov, 2015). Innovating the idea of developing the electric car is the dream of tesla owner.

Tesla’s four key goals

There many innovations which are dine by the Tesla. Innovation in the automotive industry is done by the tesla by introducing the desirable electric vehicle. Tesla has made a car which looks like a toy car. These vehicles are small, basic and quite frankly. Car developed by the Tesla is considered to be the quickest cars which accelerate from 0-60 in just 1.9 seconds. It has the capacity of a 250+mph top speed. The designing of the vehicle is done in such a way that the cost involves in making is also too low, it can be affordable to a large mass.

The innovation of tesla in making this car is that company is trying to look at the initial problem of energy that how it will be useful in making the car. Tesla innovate the superior battery that allows the greater speed more than any other car is having. The mileage offered by the company is also too high that was not compatible in the whole automobile industry (Ivanov, 2015).

Identifying the problem of infrastructure in surrounding, tesla has introduced a network of its own charging points across North America, China and Europe. Tesla has able to speed up the free nation-wide charging network, 20 minute quick repower (Denning, 2014).

Marketing done by the company is also an innovation in Tesla. Elon convince their customer in such a manner that their cars are the most tech logically advanced and innovative vehicle on the planet.

Company is providing the variety of the batteries to its customer according to the cost and design of the car available. The range of battery offered by the tesla roadster has a maximum range of 265 miles which is two times more than its competitors (Mayer, Aquino, Greenbaum and Kuenzi, 2012).

Tesla provides the safety of battery to its customers. Electric vehicles are found to be at the risk of the fire, the kind of the energy it stores. Other cars go for the smaller range to reduce the risk, but tesla has made a highest power back up by using the innovation in making the cylindrical batteries too. Tesla made its battery by distributing it in the all over the car to reduce the energy intensity in the vehicle. It also reduces the risk of fires (Tesla, 2018).

The time involve in Chevy Volt takes an entire night to get 40 miles of driving whereas tesla promises to do 7 times that range in 30times shorter time range. Recharging in tesla vehicle car is not much longer than refilling the gasoline in regular car.

Entrepreneurship and Elon Musk

There are very few competitors of Tesla available in the market. And majority of the competitor’s lies below the Tesla, as the technology and innovation used by the Tesla is unique and different from everyone. Very less technology used by the Tesla can be copies by the other competitors. The competitors are as follows:

Like the tesla cars, the ford also made the electric car. This car range starts at $29,120 in 2011. This company is using the strategy to grab the large share of the market, as it is offering the electronic vehicle at very low cost to the consumers. Ford wants to become the cost leader in the market (Forbes, 2018).

Another example can be taken of the company is Nissan. Nissan has also developed a car which is remaining competitive in the market. The design of the model is not flashing the design of Model S, but then also its reasonable pricing made it the highest selling electronic vehicle in 2016. At that time the cost of the tesla model 3’s is $35,000 and Nissan leaf starts from the $35,000 as base price (Business Insider, 2017).

This company has come up with the new model which is offering more spacing in the car as compared to the others present in the market. The model name is Soul EV, in which some parts of the model are not available in U.S. and it’s relatively range of 93 miles per charge put this car in a separate category from the Model 3.  This is suitable for that customer who is requiring more headroom for driving around (CNBC, 2017).

This company has made design similar to the Toyota Prius with a price tag of $37,495. This may not be in the budget similar to the model 3. But has good pick up an d average compared to the other cars (Entrepreneur India, 2018).

Conclusion

From the above discussion it can be concluded that the Tesla Company has the strategic advantage in the market. Tesla is considered to be one of the largest innovation enterprises in the automobile sector. The innovation and creativity shown by the CEO of tesla can be seen to everyone.  From the start of the company in 2003, elon has the capability to understand and make a dream of producing the small electric car for the individual and which can also be affordable to them. The development of small electric car is innovation as it save the natural resources and is more powerful and useful for the people. Elon try to develop the new and new technologies all the time, failures cant able to stop him to make the electric car. The company is enjoying the cost advantage in the market. Musk has all the characteristics of the successful entrepreneur. Musk has the ability to take the risk in the business with the confidence in him. His never to refuse attitude will make it true the dream of small electric car.

Innovative strategies of Tesla

The company is also enjoying the competitive advantage in the market. Tesla is positioned itself in the market as the low cost provider by giving the option of gigafactory, motors and high level of distribution and promotion strategy. Company is giving the exceptional services to its clients in the field of network and charging channels. These charging points are free for the users of tesla electronic car. There are few competitors of Tesla present in the market which are producing the same kind of electric vehicle in the market. But no competitor is there which is able to challenge the tesla in its product, design and cost factor. Nissan and Ford providing the electric cars but the features and compatibility are not matching the Tesla cars which are found innovative in their design and cost patterns. So in the last, it can be said that the tesla is the enterprise with full of innovation and creativity.

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