Tesla is a revolutionary car manufacturer, hence it faces inordinate problems that differ from those of other car manufacturers. Among these unique problems is the issue of Tesla over-the-air updates that have become the subject of controversy. As with most marketing problems, the over-the-air updates controversy has two sides. Each of the two sides has support from a segment of the current and target customers of Tesla (O’Kane, 2018). The marketing department at Tesla needs to decide whether the over-the-air updates issue is beneficial or detrimental to the marketability of its cars. Further, Tesla may need to determine if it can alter the over-the-air updates program to eliminate opposition and augment support. The key to solving this controversy lies with the market (Malhotra, 2012). Tesla needs to establish how the market perceives the over-the-air updates then find a way of controlling the narrative with or without altering the program.
Overview of the Issue
Tesla vehicles have highly advanced inbuilt computers running on a combination of specialized hardware and software. Whereas the concept of computerized cars precedes Tesla, the company has advanced the concept to the point of transformation. For example, the same Tesla car can have a price difference of thousands of dollars, depending on software alone. A car with auto-drive capabilities can cost as much as US$ 8000 more than an ordinary Tesla of the same class and model (O’Kane, 2018). Further, Tesla maintains substantive control of the software through programs such as over-the-air updates. The manufacturer can make substantive changes to the car through these updates, including the performance of the cars. The available commentary shows that some customers are happy with the software capabilities of Tesla and the company’s ability to upgrade and improve their cars regularly (Howden et al., 2020). However, other customers feel that Tesla is breaching their right of ownership for cars that they have bought and fully paid for. Some customers express concern that their cars can undergo an extreme metamorphosis without their consent or knowledge and to their detriment (O’Kane, 2018). Based on the above, over-the-air updates could be a source of competitive advantage for Tesla. However, this technology could also be a reason for customer displeasure and negative publicity to the detriment of the company. Perhaps the biggest problem for Tesla’s marketing team is not knowing of their revolutionary over-the-air updates that are favorable or detrimental to their marketing campaigns.
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Available Options
Every available solution for Tesla depends on what customers want and how they perceive the over-the-air updates. Marketing research is the most effective way for a marketer to attain the opinion of the market about the product (Malhotra, 2012). Since the issue involves information technology, online research would be the most viable option. Tesla needs to know what the market feels about its over-the-air updates and what percentage of the market holds which opinion. Based on the results of the research, Tesla has three main options. If the favorable opinion of the program is overwhelming, the company can proceed with the program. If there is a substantive negative opinion based on a lack of proper information, the company can proceed with the program, accompanied by advertising to sway the negative opinion. Finally, if the substantive majority of the marketing is vehemently opposed to the program, Tesla can alter or transform it.
Conclusion
Market dynamics are complicated, as reflected by the problem Tesla faces regarding its over-the-air updates. The updates program is a sign of monumental progress in information technology and could be a source of competitive advantage. However, the same scandal can also precipitate a scandal and be termed as breach of contract due to changes in the characteristics of the cars. The solution for Tesla begins with gathering data about the opinion of the market through marketing research.
References
Howden, J., Maglaras, L., & Ferrag, M. A. (2020). The Security Aspects of Automotive Over-the-Air Updates. International Journal of Cyber Warfare and Terrorism (IJCWT) , 10 (2), 64-81.
Malhotra, N. K. (2012). Basic marketing research: Integration of social media . Pearson.
O’Kane, S. (2018). Tesla can change so much with over-the-air updates that it’s messing with some owners’ heads. Vox Media: The Verge . https://www.theverge.com/2018/6/2/17413732/tesla-over-the-air-software-updates-brakes
