Sukkur IBA

University
Business Strategy

Submitted To
Dr. Adnan Kehar

Submitted By
Safi Ullah
BBA-8 (B)

Review of Article for chapter#4

How Tesla Sets Itself Apart

Dated:29/10/2021
AboutITesla
TeslaIwasIfoundedIinI2003IbyIaIgroupIofIengineersIwhoIwantedItoIproveIthat
IpeopleIdidn'tIneedItoIcompromiseItoIdriveIelectricI–
IthatIelectricIvehicleIcanIbeIbetter,IquickerIandImoreIfunItoIdriveIthanIgasolin
eIcars.
1. MissionIStatement:
ToIaccelerateItheIworld'sItransitionItoIsustainableIenergy
2. VisionIStatement
ToIcreateItheImostIcompellingIcarIcompanyIofItheI21stIcenturyIbyIdrivingIthe
Iworld'sItransitionItoIelectricIvehicles
BusinessIStrategies:
 Differentiation
 Innovation
 CostIleadership
TeslaIcompanyIcameIwithIaIvisionItoIcreateIelectricIcarsIasIanIalternativeItoIt
heIgasolineIcarsIwhichIwereIpollutingItheIenvironment.IInImidIofIJanuaryI202
0,ITesla’sImarketIcapitalizationIhadIreachedItoI$107Ibillion,IlackingIbehindIth
eIworldIgiantIautomakerIVolkswagenIandIbecameI2ndIvaluableIcompanyIinIth
eIworld.IInItheIauthorsIpointIofIview,ItheItraditionalIautomobileIcompaniesIar
eInotIpreparedIforItheIsoftware-
orientedIworld.ITheIchairmanIofIVolkswagenIconsidersITeslaIaIseriousIcompe
titorIforIthemIbecauseItheyIlackIinItheIexpertiseIofIsoftware-
orientedIcars.ITheIoldIautomobileIindustryIwasIupsideIdownIinIjustI16IyearsI
byITeslaIandIFlamboyantIinnovatorIElonIMusk.I
InnovationIinITeslaIisIsoIfastIforIhighIendIvehiclesImoreIthanIgoogleIorIAma
zon.IInIShipley’sIperspective,ITeslaIisIdoingIfourIthingsIbetterIthanIallIotherIc
ompetitorsIinItheIautomakersIindustry.I
3. SoftwareIorientedICarsIProduct
TeslaIdevelopsIuniqueIsoftwaresIforIhardware’s,IsameIasIwhatIAppleIdevelop
sIforIiPhone.ITheIsoftwaresIgetsIupdatedIeveryIweekIbyITeslaIunlikeItheItradi
tionalIcarsIwhichIisItheIsameIproductIforIoverallIlife.ITheIownershipIofITeslaI
carIisIlowerIthanIaItraditionalIgasolineIcar.
4. SimplificationIinIbuyingIprocessIbyIputtingIcustomerIinIcontrol
ITheyIhaveIgoodIunderstandingIofIbuyer’sIjourney.ITheyIdoInotIneedItoIadve
rtiseIonITVIorIonIradioIinsteadIofIthatItheyIuseIinboundIsalesImodel.ITheIbuy
ingIprocessIisIonlineIwhereIoneIgoesIthereIandIaIpickIaImodelIdoesIonlineIpa
ymentIandIscheduleIaIpickup.
5. ExpertiseIinIbatteryItechnologyIforIloweringItheIoverallIcostIofIve
hicle
TeslaIcarsIrunIonIbatteryIwhichImeansItheyIhaveIdifferentIpartsIthanIaIcombu
stionIengine.IAccordingItoIsomeIestimates,ITeslaIcarsIhaveIfewerIparts.ITesla
IhasIacquiredInewIbatteryImanufacturingIcompaniesIandIincorporatingInewIba
tteryItechnologyIinItheirIcars.I
6. EnvironmentalIprotectedIproductsIinIreductionIofIglobalIwarming
TheyIhaveIputIthemselvesIinItheItrendIonIenvironmentalIprotectedIcars.ITheyI
areIonIedgeIinImarketingIpointIofIview.IPeopleIareImoreIfocusIonIenvironme
ntalIprotectedIproductsIjustIlikeITeslaIcars.I
Conclusion
TeslaIisIofferingIelectricIcarsIwithIsoftwareIembeddedIinIit,IbutIotherIelectricI
manufacturingIcompaniesIareIprovidingIcarsIwithIonlyIelectricImotorsIfitIinIit
.IThereIareIdifferentIrisksIwithItheseIsoftwares,IandITeslaIcanIbeIaIleaderItoI
manageIthoseIrisks.ITraditionalIcarIcompaniesImustIdoImoreIresearchIandIdev
elopmentItoIbecomeIaIsoftware-
orientedIcar.ISo,ItheyIareIfarIbehindIinItheIsoftwareIelectricIcar.IIfItheyIgoIfor
IsoftwareIorientationIcarItheyIwillInotIfocusIonItheirIcoreImarkets.