Overcoming barriers to entry in an established industry tesla motors

Final Capstone Project

Capstone Final Project and Presentation
Overview
This assignment consists of two sections: a final capstone project plan and a closing process PowerPoint presentation. You must submit both sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for.

Instructions
Section 1: Final Capstone Project Plan
You are now in the final stage of the capstone project development. All previous documentation should be combined into one document that will serve as the statement of work for the project. Your goal is to have the CEO of your chosen company and the leadership team approve your strategy recommendations. The presentation should be very detailed in order to address potential concerns and provide support for your recommendations. However, the executive team is only interested in a 30-minute summation. Therefore, you also must create a compelling executive summary that is supported by details that convince the executive team that it should move forward with your recommendation.

Develop a 20–30 page project plan in which you:
Write a 2–3 page executive summary in which you provide a high-level technical overview of your project where you address the following from the case study:
Strategy Development.
Innovation and Competitive Analysis.
Exploiting Innovation.
The Organization’s Response to Change.
Combine all previous documentation for Project Deliverables 1–4 in which you provide all aspects of the strategic management process into the project plan.
Compile all the quality resources from the previous deliverables. Note: Wikipedia and similar websites do not qualify as quality resources.
Section 2: Closing Process PowerPoint Presentation
In addition to your detailed executive summary, you must present your findings to the executive team and the venture capital group that along with the executive summary will convince everyone that your solution is optimal.

Your PowerPoint must have speaker notes and these speaker notes must be written as if you were presenting this project to your client. A template is provided for your use. You can modify the template based on your professor’s instructions. Do not omit any information from the template because the information aligns with the rubric. Note: Use the Capstone Project Presentation Template [PPTX].

Prepare a 9–15 slide presentation in which you:
Include a title slide and a slide in which you provide the purpose and objectives of the presentation.
Examine your chosen company’s competitive environment.
Determine your chosen company’s main strengths and weaknesses.
Determine and evaluate two to three strategies to exploit its innovation breakthroughs.
Recommend a strategy for your chosen company.
Advise a key strategic implementation approach.
Include a summation slide in which you provide the key takeaways for the CEO.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Synthesize project deliverables into an executive summary and presentation of a strategic management process recommendation.

TESLA MOTOR: DISRUPTING THE AUTO INDUSTRY 6

Tesla Motor: Disrupting the Auto Industry

Harvey Allen

Strayer University

MGT 599 Capstone

Professor: Yemer, Hassan

January 21, 2021

The motor vehicle industry has been among the oldest industry in the global market as well as one of the most competitive. Over the years, the number of companies joining the industry has been on the rise and this has compelled investors to upgrade creativity and innovative levels for the purpose of remaining relevant. More so, the society and the government have increased demands that the industry companies must meet. Tesla Motors is one of the automobile companies that compete in the global market. The company is headed by Elon Musk realized that the company was facing massive competition challenge and failure to make a fast and calculate move would negatively affect overall company operations. By 2006, Musk came up with creative ideas that would eventually disrupt the entire motor industry. For instance, the company CEO announced that the following changes must be implemented in the following order; building of sport cars, manufacturing affordable cars, and producing electric vehicles with zero emission.

Tesla Motor Strategy and how it fits company’s situation

A strategy is an approach that a company or business may opt to use to boost its overall performance or attain certain desired goal. In this case, Tesla chose a strategy meant to increase consumer satisfaction, increase market share, and competitive advantages. The company combined a number of moves that would make the consumer change the attitude towards the company and its products and with creating a better brand image, the company was able to get strategically positioned in the market. The strategy fits the company current situation because it is designed in a manner that suits the current company needs. For instance, the strategy works towards preventing the company from being overpowered by competing brands and instead makes the company stand out.

Company management main strategies taken that led to the recent development

According to the case study, Tesla Motor management team took a number of strategies that led to the current developments at the company. The first and main strategy used by the management is to design unique sport cars. This is a great strategy that helped the management to manage and direct the company towards introducing new products in the market. The second strategy that the management adapted is the use of available resources with the help of technology to design affordable vehicles. This is a great strategy that made the management to manage the company in a manner that innovation would be embraced so that the company can end up with great, unique, and low-priced vehicles.

The management also compelled by the idea of global warming embraced the electric vehicles and this is a great strategy that has led to the current state where Tesla is known for producing the best and reliable electric vehicles (Ahmad & Khan, 2019). Moreover, the world was fighting against global warming and encouraging companies to embrace safe production strategies and production of products that would not harm the environment the more. According to Stringham, Miller, & Clark, (2015) the management also embraced the idea of conducing sales in the self-owned showroom as well online to reach the global target market. The strategy has led to the current times direct dealing with clients instead of depending on sales agents and distributors.

Selected company industry, competitors, and competitors strategies

Tesla Motors is in the automobile manufacturing industry which deals in the production and selling of vehicles and its spare parts. Nevertheless, Tesla does not operate alone in the industry as there are many other companies that compete for the same clients. Some of the Tesla’s direct competitors include; Aston Martin, a luxury sports car manufacturer, BMW, Toyota, GM, Nissan, and Volkswagen among many others.

As demonstrated in the case study, these competing brands have specific strategies that they use to compete against Tesla. For instance Aston Martin prices target the wealthy in the society that prefers quality over quantity and this means Aston is more focused on quality of the product as compared to the price (Stringham, Miller & Clark, 2015). This strategy works for Aston because it has a specific class of clients that the company targets and the good thing is that its products have all the features and elements that the people from this socioeconomic class seek for in a vehicle.

BMW and Toyota motors makes use of the diverse products strategy and in most cases, BMW focuses on the wealthy class and thus ensures that the products are flashy. The strategy works for the company because many young and wealthy people find BMW vehicles suitable to the class in the society. Volkswagen on its part focuses in producing high quality vehicles that are affordable and attracts a low maintenance. The strategy also works because Volkswagen vehicles are known to be durable and able to withstand harsh climates and terrains (Stringham, Miller & Clark, 2015). It is also important to note that competitors makes use of a common strategy which is targeting a global market and this works for them since they are able to market and sell the products to a wide range of clients.

Industry analysis and current company standing in the industry

The motor vehicle industry in the United States and the world has undergone intense changes over the last five decades and currently, it appears that clients are seeking for efficient yet quality vehicles. According to Stringham, Miller, & Clark, (2015) the industry have over the last ten years recorded a consistent growth of approximately 7.5% annually. This is especially because of the increasing rate of advanced technology use in the industry that has led to the production of higher quality and better vehicles than ever before and at the same time the companies are able to sell the products at an affordable rate.

The industry is also protected in terms of threat of new entrants due to the high cost of investing in the industry and this is a major assurance to the already existing companies. Nevertheless, like never before, competition is getting stiffer each passing day as the companies national and global market share keeps on fluctuating and this means that companies have to remain focused on sharpening their competitive edges.

Currently, Tesla is the leading motor vehicle brand when it comes to hybrid vehicles and this makes Tesla to have a major competitive edge. In the hybrid unit, Tesla occupies 18% of the market share. Nevertheless, in the global market where all companies are involved, Tesla only occupies 16% by 2019 which is much higher than the 12% in 2018 (Singh, 2019). The company has other major brands to compete with for instance GM and Toyota which are known as the leading brands in the global motor vehicle industry.

Performance goals of Tesla Inc

In the next one year, the company expects to have attained the following goals

i. To have the company’s customer base increase by over 8%

ii. To develop sophisticated software for highly technological car designs.

iii. To continue taking part in corporate social responsibilities as a way of maintaining a healthy relationship with the consumers.

It is also in the strategic plan of the company for the following goals to be attained in next five years

i. Achieve double financial figures in terms of profit margins

ii. To have all products under the hybrid version

iii. To have attained a leading position in the global motor vehicle manufacturing industry

References

Ahmad, S., & Khan, M. A. (2019). “Tesla: Disruptor or Sustaining Innovator”. Journal of Case Research, 10(1), 12–24. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=137371346&site=ehost-live

Singh, S. (2019, February 11). “Top Automotive Trends In 2019: A Year Of Wows And Woes”. Retrieved from https://www.forbes.com/sites/sarwantsingh/2019/02/11/top-automotive-trends-in-2019-a-year-of-wows-and-woes/#189480f01be8

Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). “Overcoming Barriers to Entry in an Established Industry: TESLA MOTORS”. California Management Review, 57(4), 85–103. https://doi.org/10.1525/cmr.2015.57.4.8