Sukkur IBA

University
Business Strategy

Submitted To
Dr. Adnan Kehar

Submitted By
Safi Ullah
BBA-8 (B)

Review of Article for chapter#1

How Tesla Sets Itself Apart

Dated:09/10/2021
How Tesla Sets Itself Apart
[ CITATION Lou20 \l 1033 ]
About Tesla
Tesla was founded in 2003 by a group of engineers who wanted to prove that
people didn't need to compromise to drive electric – that electric vehicles can be
better, quicker and more fun to drive than gasoline cars.
1. Mission Statement:
To accelerate the world's transition to sustainable energy
2. Vision Statement
To create the most compelling car company of the 21st century by driving the
world's transition to electric vehicles
Tesla company came with a vision to create electric cars as an alternative to the
gasoline cars which were polluting the environment. In mid of January 2020,
Tesla’s market capitalization had reached to $107 billion, lacking behind the
world giant automaker Volkswagen and became 2nd valuable company in the
world. In the authors point of view, the traditional automobile companies are
not prepared for the software-oriented world. The chairman of Volkswagen
considers Tesla a serious competitor for them because they lack in the expertise
of software-oriented cars. The old automobile industry was upside down in just
16 years by Tesla and Flamboyant innovator Elon Musk.
Innovation in Tesla is so fast for high end vehicles more than google or
Amazon. In Shipley’s perspective, Tesla is doing four things better than all
other competitors in the automakers industry.
3. Software oriented Cars Product
Tesla develops unique softwares for hardware’s, same as what Apple develops
for iPhone. The softwares gets updated every week by Tesla unlike the
traditional cars which is the same product for overall life. The ownership of
Tesla car is lower than a traditional gasoline car.
4. Simplification in buying process by putting customer in control
They have good understanding of buyer’s journey. They do not need to
advertise on TV or on radio instead of that they use inbound sales model. The
buying process is online where one goes there and a pick a model does online
payment and schedule a pickup.
5. Expertise in battery technology for lowering the overall cost of
vehicle
Tesla cars run on battery which means they have different parts than a
combustion engine. According to some estimates, Tesla cars have fewer parts.
Tesla has acquired new battery manufacturing companies and incorporating
new battery technology in their cars.
6. Environmental protected products in reduction of global warming
They have put themselves in the trend on environmental protected cars. They
are on edge in marketing point of view. People are more focus on environmental
protected products just like Tesla cars.
Conclusion
Tesla is offering electric cars with software embedded in it, but other electric
manufacturing companies are providing cars with only electric motors fit in it.
There are different risks with these softwares, and Tesla can be a leader to
manage those risks. Traditional car companies must do more research and
development to become a software-oriented car. So, they are far behind in the
software electric car. If they go for software orientation car they will not focus
on their core markets.