Tesla Motors is a U.S based company specializing in the manufacture of electric cars, lithium-ion batteries, and residential solar panels . Despite stiff competition in the industry, the company has enjoyed enormous success in the past ten years. In this paper, two specific reasons for the company’s success will be identified. Likewise, the paper will give two recommendations for improving the firm’s international business.
Tesla’s success has been driven by several factors. The first factor is the company’s leadership team. This is mostly attributed to Elon Musk, the company’s Chief Executive Officer (Wu, 2016; Baer, 2014). Apart from being passionate about his work, Musk has built a highly qualified team around him, making it easy for the company to achieve its goals. Prior to his appointment, Elon Musk had managed reputable companies such as Zip2, X.com, and Space X (Wu, 2016). Thus, Musk’s vast managerial experience makes him a force to reckon with in the industry.
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The second factor that has significantly contributed to Tesla’s success is technology. The company’s founding engineers, Martin Eberhard and Marc Tarpenning, were convinced that there was a technological gap in the auto manufacturing industry. They also believed that electric cars could perform better than gasoline-powered cars (Wu, 2016). Currently, the electric car market is enjoying unprecedented growth ( Mangram, 2012) . Prominent companies such as Mercedes Benz and BMW are joining the bandwagon while others such as Toyota and General Motors depend on Tesla for different levels and types of technology.
Despite its current success, Tesla’s international business can be improved. Firstly, the company could consider venturing into the manufacture of solar powered electric vehicles. Since the company has a stint in the manufacture and sale of solar panels, incorporating the same technology in auto manufacturing would significantly increase the company’s international market share. This is especially due to the widespread adoption of renewable energy and related products. Secondly, the company could consider expanding its market beyond America and Europe. The idea of electric vehicles has been welcomed by consumers not only in the two areas but also in other parts of the world ( Mangram, 2012) . Hence, expanding the company’s market segment is likely to increase the company’s success.
References
Baer, D. (2014). The making of Tesla: Invention, betrayal, and the birth of the roadster. Retrieved from http://www.businessinsider.com/tesla-the-origin-story-2014-10?IR=T
Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing , 20 (4), 289-312.
Wu, A. (2016). The story behind Tesla’s success (TSLA). Retrieved from http://www.investopedia.com/articles/personal-finance/061915/story-behind-teslas-success.asp
