Factors That Influence The Sustainability Of A Company

Two parameters define Tesla’s industry competitive environment: what Tesla is today and what Tesla hopes to become in the near future. Today Tesla delivers an EV in the high-end luxury market ($70k+), but plans to deliver an affordable ($35K) small sized sedan in the next few years (Kaufman, 2015). The differences between Tesla’s current and future plans affect the threats and opportunities for potential entrants, industry competitors, and buyers in the near term and long term.

Their slogan is, “Burn rubber, not gasoline.” This is extremely beneficial for the company because it gives them a brand image and a concentration, as well as the ability to focus all of their efforts on being the best at electric vehicles. They’ve entirely ignored alternatives like diesel, ethanol, and hybrids. They’ve strayed from the known gas-electric hybrid, and plug-in hybrid to focus on their initial goal; zero-emissions, zero fuel. Competing companies like Ford, Chevrolet, and Toyota are famous for the combination car, that can’t be considered a true electric vehicle without the plug-in and charge feature, and by still being partially fuel driven. On top of that, the Tesla Model S uses about half the energy of a Toyota Prius per mile, and achieves double the range. By focusing exclusively on the true electric vehicle, with a mindset that oil could run out one day, Tesla is unique and far ahead of the game.

Opportunity: The electric automotive industry and Tesla should decrease both the costs of its batteries and in renewable energy to attract more purchasing customers.

Tesla Motors are noted to have personnel with a unique expertise in their field of work. These individuals help in carrying out activities that lead to the great performance of the company. The various innovations applied by these people is what led to the better performance of the company. Elon Musk along with taking over the leadership of the company brought about his experience in the firm and this was to influence the future performance of the company. Elon masterminded the designing of the Roadster and also included the marketing of the ordinary vehicle in the goals of the company (Hunger, 2010). This was something which had not been done by those who were there before him and thus his

According to Peter Theil, one of the most important reason for the success of Tesla Model S is its technology. "Tesla 's technology is so good that other car companies rely on it: Daimler uses Tesla 's battery packs; Mercedes-Benz uses a Tesla powertrain; Toyota uses a Tesla motor. General Motors has even created a task force to track Tesla 's next moves." (Peter Theil)

The American engineers that formed Tesla Motors wanted to prove that electric cars could be better than gasoline powered cars. Tesla’s products would be cars without compromise and the mission was “to accelerate the world’s transition to sustainable energy”. Since they launched their first car, they have only improved their products and today Tesla have three electric cars on the market

We design, develop, manufacture and sell high-performance fully electric vehicles and advanced electric vehicle powertrain components. We have established our own network of sales and service centers and Supercharger stations globally thus creating a unique business model in the automobile industry. We

It is important that they meet these standards to avoid major setback while tarnishing their brand reputation. The second variable to consider is the U.S. energy loan programs for research and development of new vehicle technology. Those were a few political factors Tesla has to face in order to remain successful in the market. Tesla has the chance to grow in the alternative energy industry to degree where they can begin to maximize profits. Because of the consistently rising gas prices, the demand for more efficient cars are more pronounced than before. Another factor is the recovery made by countries as a result of the 2008/2009 recession, simply because it plays a pivotal part on a customer’s purchase power. Increased environmental concerns are swaying people towards a more eco-friendly lifestyle. Society is now associating electric vehicles with an improved social status. Having said that, our ageing population is more likely to spend the necessary money for a premium car. Tesla has the advantage of owning the first all-electric car created through the use of innovation and technology. Features stem as significant as a fully electric car, to computerized safety and prevention. This not only improves the safety of these vehicles but also the convenience for present day cars as well as cars in the future. The automotive industry is very competitive and as time goes by, car manufacturers are being forced to use innovation to produce an

Tesla Motors Incorporated, an American company that designs, produces, and sells electric vehicles and their electric components, has become one of the fastest growing car companies in recent history. The company’s main goal was to start creating electric vehicles that were accessible and affordable to the public. Founded in 2003 and taking off successfully by 2009, Tesla Motors started selling the first mass-produced vehicle to use lithium-ion battery cells and hold a range of greater than 200 miles on just one charge. Along with building their own electric vehicle models, Tesla also builds electric powertrain components for vehicles from other automakers including cars such as the Toyota RAV4 electric vehicle. Tesla has begun to maximize

We can see that Tesla expanded their product line to target multiple consumers in different price range. The company started with high-end luxury sports car targeting early adaptors. On the second stage, Tesla has introduced Model S sedans that help them pass from difficult line from early adaptors to early majority. Moving forward, Tesla is introducing new Electric Vehicles (EV) cross over and many more affordable EV to target a larger majority. This strategy is helping Tesla move from one stage to the next one. The company is planning to release Model X in summer of 2015 and there are possibilities to introduce more affordable EV in the range of $30,000 dollars to compete with BMW 3 series in the fall of 2015.

Tesla Motors based in Palo Alto California, was founded in 2003 by Jeffrey B. Straubel, Elon R. Musk and Marc Tarpenning. This American company designs and manufactures electric-powered automobiles and operates as an Original Equipment Manufacturer (OEM), manufacturing electric-based power plant components for other automakers. Tesla is currently investing in the design of battery-efficient, cheaper, mass-market electric car models.

One of the main political factors facing Tesla in the US are the incentives offered by different states and cities to Tesla owners. They must co-ordinate with these policy makers and inform the consumer. In China, the key political factor is that “the Chinese government wants to put around 5 million electric or plug-in hybrid vehicles on its roads by 2020, but to date reports have confirmed that there are a mere 70,000 electric vehicles plying on China’s roads. In order to promote EV sales, the government has set a target that 30% of government vehicles purchased by 2016 should be EVs. To reach the target set for 2020, the Chinese government is ready to fund nearly $16 billion to build electric charging stations. To further promote EVs among Chinese car buyers, the government is looking to impose a new tax on gasoline engines and has renewed the private-buyer subsidies for electric-powered vehicles for another three years.” (GuruFocus. 2014.

How can Tesla Motors continue to sustain its competitive advantage in not only the electric vehicle industry but also as a leader in sustainable lifestyle?

Tesla now has been recognized as a unique company in a general car market. It’s the first and only car industry that introduced electric car to the consumer in the very early stage. Nevertheless, it is still facing the problem called competition. Tesla just came to the market for over 10 years with the successful of only three models and there are still hundreds of other luxury car companies have been there for a decade such as Mercedes-Benz, Audi, BMW and even middle or lower income class as Toyota, Mazda, Mitsubishi ect. With the market where majority of the consumers are currently using gasoline cars, Tesla will have to strive hard to get consumers to start thinking and get used to the new innovation and technologies. Tesla has very limitation on their type of cars where other company cars having different type of models. Mitsubishi has recently announced that they have introduced a hybrid car called Outlander PHEV where their system can be run either by gasoline, petrol or electric. This car was introduced as the ultimate in intelligent motion and can represent the next generation of hybrid and electric vehicles (Mitsubishi). More importantly, Tesla will be facing directly with Ford company who is reviewing its plans for introducing out autonomous vehicle by 2021 said Chief Executive Jim Hackett. Overall, even though Tesla Inc

Tesla is not the innovator of electric car. The technology has already existed since 1959, but due to the factor related to the timing, the company had to cease its operation. The factors involve timing such as, low oil price, supplies of oil, global warming, people awareness regarding eco friendly or green environment.