6) What short-term objectives are required for Tesla to survive?

7. What are the primary elements of Tesla's internal and external environment that need to be addressed for it to achieve a sustained competitive advantage?

6. What short-term objectives are required for Tesla to survive?

The policy on which the company plans to reach the market seems to be with the top end, which means healthy finance clients. As such, they will be able to pay an immense premium. To build more reliable and reliable vehicles, this money accrued will be used.

This suggests that the margin gained from the sales of high-performance vehicles will be spent in the research and development of more cost-effective automotive manufacturing. It is a loop in which consumers who purchase luxury Tesla cars from the high end implicitly finance the generation of low-cost cars. Therefore, as the company's hidden ingredients go, making luxury sports vehicles, using the money to develop affordable family cars, and then using the money to produce cost-effective cars and holding a watch on alternatives for zero emission electric power.

7. What are the primary elements of Tesla's internal and external environment that need to be addressed for it to achieve a sustained competitive advantage?

Although Tesla has a particular draw for its clients, the fact that the business and its products also have to cope with what the composition sells creates undressing for the business to use better tactics to get an edge on the market. Three primary components will sum up what Tesla wants, namely:

1. OPERATIONS EFFICIENCY AND SUPPLY CHAIN STANDARDIZATION

Its supply chain has always constrained Tesla. In recent years, the slack has been swept up by Eben to a point where operations have become profitable. As far as margin perception goes, regardless of its supply chain inefficiency, Tesla's goods will still be priced higher. Knowledge of investment in improved operation methods, the use of economies of scale, and spending more on standardizing processes, such as horizontal or vertical integration, will ensure adequate continuity in both commodity prices and operations.

2. GLOBAL EXPANSION

Tesla is also not a brand that is national. Investing in other countries benefits from economies of scale, especially those with lower labor and material costs. It also opens access to an untapped marketplace where the notion of alternative-powered cars is only in its infancy. India is a prime example.

3. DIVERSIFICATION

Tesla's urgent need is to strengthen its own ability to lower its costs by diversifying into the market, creating a stronger distributor, offering better quality, and growing its position in the market. Price cutting only takes us to a certain threshold, beyond which it is the willingness of the brand to separate itself from the rivalry that carries the greatest importance.

Both the structural vulnerabilities and external risks comprise these three aspects. Tesla also needs to invest regularly in talent, being that it is the primary factor behind its attraction. Tesla should continue to achieve commercial growth by expanding operations, diversifying, and enhancing the supply chain and operations.

Step-by-step explanation

Tesla, especially given its size, is one of the world's most vertically integrated car companies. In comparison to the franchise scheme used by just about every other major car producer, it not only holds all its sales in-house but most significantly, Tesla has built much of its key technologies in-house and depends less on foreign vendors than most of the other major automakers, which can often be best represented as assemblers of auto parts. Although the rest of the automobile industry relies heavily on outsourced technologies from manufacturers such as Bosch, Magna, Continental, Denso, ZF, and Johnson Controls, in their Nevada Gigafactory, Tesla has ensured that it manufactures the battery, electric motor, on-board charger, and the electronics itself (click on the picture to enlarge). That means it regulates how this technology's growth progresses. It also implies that they will sell or license the technologies on this framework to other car manufacturers or especially new entrants who do not have the capacity to build this on their own, again to design their own body, interior, and software. For starters, Apple and Google are operating according to their own vehicles, attempting to challenge the established order; by using the available Tesla platform and batteries to create their own cars, they might save a lot of construction time and expense, allowing them to focus on whether what separates them from their competition: throughout the case of Apple, the architecture, marketing, and user experience, throughout the case of Google, the autonomous interface In order to start making electric vehicles, it will lower the entry barrier for non-automakers so that others could follow suit.