Chapter 3: Ethics and Social Responsibility

Chapter 3: Ethics and Social Responsibility

In order to be a top tier company, one must not only create or sell a product that is attractive to the consumer. They must uphold standard business ethics and responsibility. This includes advertising the truth as oppose to false advertising that will ultimately lead to unhappy customers, and an unsuccessful business. Social responsibly plays a big part in any business. One example is the way the company treats their employees. They must comply with basic laws and regulations that any successful company follows. A company can also be successful without having ethics & social responsibly, but they will not last.

"With great power comes great responsibly" 

This quote applies directly to teslas business model. They claim that their car is beneficial for the environment, which is true. in order to uphold this they have to test all their cars to make there there is no flaws that will hurt the environment. 

Additionally, Elon Musk, and the Tesla organization are currently working on stations with the same goal as a gas station, to add power to the car. In order to uphold Teslas business model ethically they have to make sure that everything that goes into this is eco friendly, and in no way can harm the environment. 

Chapter 2: Strategic Planning For Competitive Advantage

Chapter 2: Strategic Planning For Competitive Advantage

Tesla is an premium electric vehicle company. Their goal is to provide their customer  a luxurious car that doesn't hurt the environment. They currently have only one model out and, one model in production. This luxurious car comes with a luxurious price starting at about $71,000. A huge competitive advantage that Tesla holds over other cars in the same price range is that the consumer will save about $250/month on gas.

Tesla models

1. Model S- Classic 4 door
2. Model X- (Available fall 2015)- 4 door with hatchback to give it the space of a SUV

When Tesla was founded it did not have many competitors due to the fact that Tesla was in its own class due to the price. This was a big plus for the company making it unique in its felid. As we know when there is an unique product doing well there will always be competitors ready to jump on the boat. BMW, Cadillac, Porsche and Audi are a few of the luxury brands that are starting to promote new plug in models aimed to get the attention of Tesla customers.

Target Market- Teslas target market is not just for people who are looking for an upscale car. The target market focuses on people who are envoiroemal friendly and also want a elegant car that drives very well. Due to the price of the car, the consumer must have an above average income.

Place-  Just the the car is unique, the way they sell it is unique. Tesla strives to sell their car in their own store, and online. They have almost 50 stores, and they make it very easy to customize online. The main difference between the way Tesla and other companies sell their cars is that tesla cuts out the middle man. They sell the car directly to the customer rather then letting a dealer sell it for them. This is an competitive advantage that all companies should adapt. Cutting out the middle man will help the customer save money in most business.

Tesla Strengths:
1. Well established & proven brand
2. Elegant & luxury car
3. Helps the environment
4. Saves gas so we can use it for other reasons

Tesla Weaknesses:
1. Not a practical car for most middle & lower class workers due to the high price

Threats:
1. Other electric cars are priced in a lower tier
2. New Wave of similar cars are currently in production
 

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Tesla

Chapter One:  Overview & History  

Tesla Motors was incorporated in July 2003 by Marc Eberhard and Marc Tarpenning, who financed the company until the first round of funding. Both men played active roles in the company's early development prior to Elon Musk's involvement. Musk led the Series A round of investment in February 2004, joining Tesla's Board of Directors as its Chairman. Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts.

Since the Model s went into production in 2012, there have been over 250,000 gasoline car explosions in the us alone. 400 people died as a result to this. In the same time there was only 3 tesla fires due to high speed chases. Tesla doesn't only help the environment by not polluting the air with gas, it is also a much safer car to drive.