Introdu?tionTesl? su??eeded. Some ele?tri? ??rs su?h ?s

Introdu?tionTesl? is ? rising ?h?mpion in the ?utomotive industry ?nd this p?per fo?uses on ?n?lyzing wh?t m?kes Tesl? grow so signifi??nt in the short ?mount of time ?nd its str?tegy to ?ompete in the very ?ompetitive m?rket.?utomotive industry is ? red o?e?n filled with strong ?ompetitors. Tesl? whi?h is ? new?omer in the industry ?nd just founded in 2003 entered ? ni?he ele?tri? ??r m?rket whi?h h?s big potenti?l in the future ?utomotive Industry.In the ?urrent ele?tri? ??r industry some of the strong pl?yers su?h ?s BMW, Toyot?, Volksw?gen h?ve the upper h?nd due to the long experien?e in the ?utomotive industry, ?omp?red to them Tesl? is still very new.Huge ??r m?nuf??turer like Volksw?gen h?ve ?lso st?rted produ?ing ele?tri? ??r whi?h is E-Golf, ?n ele?tri? version of VW Golf. Volksw?gen ?nnoun?ed th?t it is going to double their produ?tion ??p??ity in the VW f??tory in Dresden. Produ?tion will gr?du?lly in?re?se from 35 to 70 vehi?les ? d?y st?rting in M?r?h 2018, the ?utom?ker ?lso ?nnoun?ed. The pl?nt in Dresden will ?dd ? se?ond shift to ???ommod?te this ?h?nge. (L?mbert ?nd L?mbert, 2018)???ording to Voigt, Bulig? ?nd Mi?hl (2017), until the ye?r of 1990s, most big pl?yers in ?utomotive industry s?w no big need to develop ele?tri? vehi?le te?hnology, l?rgely due to low oil pri?es ?nd f??ile environment?l poli?ies. By the turn of the millennium, some ??r m?nuf??turers, for inst?n?e GM, m?de initi?l ?ttempts to introdu?e environment?lly friendly vehi?les, su?h ?s the ?hevrolet S-10 Ele?tri?. Su?h proje?ts mostly f?iled, due to ? l??k of m?rket driving f??tors.The most signifi??nt ?mong them w?s the l??k of good perform?n?e b?tteries ?nd re?h?rging st?tions. However, some of those proje?ts su??eeded. Some ele?tri? ??rs su?h ?s the Niss?n ?ltr?, ?nd hybrid ??rs su?h ?s the Toyot? Prius ?nd the Hond? Insight found ? good position ?s the e?rly ?dopters. The higher s?les numbers of hybrid ??rs ?omp?red to purely ele?tri? ??rs were l?rgely due to the higher perform?n?e of the hybrid’s intern?l ?ombustion engine, these were ?ble to redu?e the biggest dis?dv?nt?ge of ele?tri? vehi?les whi?h is its short tr?vel r?nge on one ?h?rge.4During ? short period of time ?omp?red to its ?ompetitors, Tesl? h?s done mu?h more th?n ?ny other ??r m?nuf??turer h?s. One of the proofs ??n be seen from ? d?t? obt?in by M???rthy from St?tist? (2017) ?bout Tesl? domin?ted the United St?tes ele?tri? vehi?le s?les sh?re b?sed on unit in the period of J?nu?ry until June 2017.Figure 1. US Ele?tri? Vehi?le S?les Sh?re; Sour?e: M???rthy, 2017In November 2017, Tesl? l?un?hed its new gener?tion two ro?dster. Tesl? w?nted to ?re?te ?n ele?tri? ro?dster whi?h ??n be?t g?soline sports ??r. He ?l?imed the b?se model will do ???eler?te from 0 to 60 in 1.9 se?onds ?nd the top speed will be ?bove 250 miles per hour. The Ro?dster h?s ? 200kWh b?ttery p??k ?nd ? 620-mile r?nge every ?h?rge, or over 1,000 kilometers. (J. H?wkins ?nd W?rren, 2017).2. Tesl?’s Se?ret for its Tremendous Growth in ? Short TimeThe Tesl?’s ?o-Founder, M?rtin Eberh?rd noti?ed th?t people did not buy hybrid ??rs su?h ?s the Toyot? Prius just to s?ve money on g?s, but it is be??use they ??re ?bout positive environment?l imp??t by using the ??r, they ?re shifting to more the e?o-friendly lifestyle. Tesl?’s founders ??me to believe th?t they ?ould begin by ?ddressing this potenti?l in the ni?he m?rket segment ?nd only subsequently ?ddress the m?ss m?rket through more ?fford?ble ele?tri? ??rs. If5?ny Tesl? ?ould h?ve ? ?h?n?e on the m?rket, it first h?d to re??h e?rly ?dopters, in order to m?ke ele?tri? vehi?les desir?ble to the m?instre?m. Tesl?’s business model w?s therefore prim?rily triggered by ?n emergent dem?nd for high-perform?n?e ele?tri? vehi?les. ?t the s?me time, the founders envisioned the ?omp?ny’s evolution tow?rds m?ss-produ?ing ?ost-effe?tive models. (Voigt, Bulig? ?nd Mi?hl, 2017)2.1Tesl?’s Growth Driver ?n?lyzed with VRIO Fr?meworkWh?t ??n be s?id, however, is th?t during short period of time ?omp?red to its ?ompetitor, Tesl? h?s done mu?h more th?n ?ny other ??r m?nuf??turer h?s.Tesl? is ? promising new ?omp?ny in ele?tri? vehi?le industry. We ??n prove it by looking ?t its uniqueness ?nd its ?ompetitive ?dv?nt?ges by using the VRIO fr?mework. VRIO is used to ?ssess the situ?tion inside the ?omp?ny ?nd its resour?es,?nd whi?h p?rt of it h?s possible potenti?l for improvement. The tool whi?h is ??lled VRIO fr?mework w?s origin?lly developed by B?rney, J. B. (1991). VRIO fr?mework is one of m?ny fr?meworks or tools whi?h ??n be suit?ble to identify wh?t m?kes su??essful growth of the ?omp?ny.Resour?e TypeV?lu?bleR?re?ostly to Imit?teOrg?nized?ompetitive ?dv?nt?ges?Produ?ts (Ele?tri? ??r & B?ttery)YesYesYesYesSust?in?ble ?ompetitive ?dv?nt?gesProdu?tion Pl?ntsYESYesYesP?rti?llyPotenti?l ?ompetitive ?dv?nt?gesS?les Te?m ?nd Pro?edureYESNoNoP?rti?llyPotenti?l ?ompetitive ?dv?nt?gesM?n?gement of TESL?YESYESYesYesSust?in?ble ?ompetitive ?dv?nt?gesT?ble 1: VRIO Fr?mework on Tesl?’s Resour?e; Sour?e: ?uthor’s own illustr?tionV?lue: Tesl?’s resour?es ?re ?ll v?lu?ble. Tesl?’s produ?tion pl?nts ??n produ?e high te?h ele?tri? ??r ?nd effi?ient b?ttery. This b?ttery whi?h is produ?ed with the help of P?n?soni?’s te?hnology ?re ?ble to ?h?nge the w?y of ?urrent ?ommon industry whi?h still he?vily rely with fossil fuels, its ?le?n energy produ?ts ??n be?ome perfe?t with improved te?hnology ?nd solve energy6dem?nd problems for the entire world. Their s?les pro?edure is sell ?nd produ?e by order. Due to high dem?nd, they need to in?re?se the produ?tion pl?nt ??p??ity.R?rity: Tesl?’s high end te?hnology su?h ?s b?ttery whi?h is p?tented ?nd ongoing R ?nd ?lso produ?tion pl?nt to develop innov?tive ?nd improved ?ltern?tive energy produ?ts su?h ?s ??rs ?nd b?tteries ??n be ?onsidered r?re.Imit?bility: It is ?ostly ?nd diffi?ult to imit?te Tesl?’s unique te?hnology,m?nuf??turing strength, R&D ??p?bilities ?nd it is not e?sy to find the ?EO whi?h h?s le?dership skill like Elon Musk. Tesl? h?s spent huge ?mount of resour?es ?nd effort to re??h this ?urrent st?ge whi?h is going to be diffi?ult to ?opy by other ?ompetitor in the ?utomobile industry.Org?niz?tion: Tesl?’s utiliz?tion of its b?ttery effi?ien?y ?nd the int?ngible resour?es like the ?orpor?te ?ulture le?d by the ?EO ?re good enough however the produ?tion pl?n ?nd s?les te?m ?re not fully org?nized yet, ?s we ?ll know they h?ve problems with supply ?nd dem?nd of the ele?tri? ??rs. In the future when they ?re ?s big ?s Volksw?gen or Toyot?, they ??n be ? re?l gi?nt in this industry ?nd they ??n m?ss produ?e their ele?tri? ??r. Tesl?’s strong le?dership, org?niz?tion?l ?ulture ?nd pr??ti?es indeed m?ke the ?omp?ny ??p?ble to obt?in sust?in ?ompetitive ?dv?nt?ge by exploiting opportunities in the ?ltern?tive energy segment. To sum up, their produ?ts ?nd m?n?gement ?ulture ?re sust?in?ble ?ompetitive ?dv?nt?ges but their produ?tion pl?nts ?nd s?les te?m need to be improved.2.2 Tesl?’s Business ModelV?lue Proposition : Tesl? offers something more th?n the ?ompetitor ??n offer whi?h is Luxury ele?tri? ??r with high perform?n?e (high speed, long b?ttery life, f?st ?h?rging, infr?stru?tures su?h ?s ?h?rging st?tions distributed in v?rious lo??tions.Key P?rtner ?nd ??tivity : P?n?soni? ?nd Tesl? h?s p?rtnered sin?e the beginning of 2017, the p?rtnership ?ims to produ?e new b?tteries whi?h ?re slightly l?rger size in size th?n the ones it h?s been using in order to in?re?se effi?ien?y ?nd lowering the ?ost. (Fehrenb??her, 2017)Resour?es : Tesl? Gig?f??tory, Tesl? with the help of P?n?soni? pl?nned produ?tion r?te of 500,000 ??rs per ye?r by 2018, High Te?h Rese?r?h ?nd development in Sili?on V?lley.?ustomer Rel?tionship: Person?l ?ssist?n?e, strong eng?gement7?ustomer Segments: Ni?he m?rket for the ele?tri? luxury ??r?h?nnels ?nd Revenue Stre?ms: Tesl? h?s Online store in the tesl? website for the ?ustomer in order to pur?h?se the ??r, ???essories or even ?pp?rels. Tesl? g?ined the revenue stre?ms for these.2.3 Tesl?’s Str?tegy Observed by Porter’s Generi? Str?tegyPorter’s Generi? Str?tegy des?ribes how ? ?omp?ny pursues ?ompetitive ?dv?nt?ge ??ross its ?hosen m?rket s?ope. There ?re ?ost le?dership (n?rrow/fo?us or bro?d), ?nd differenti?tion (n?rrow/fo?us or bro?d).Figure. 2 Porter Generi? Str?tegy; Sour?e: ?uthor’s own Illustr?tion (using Porter’s Generi? Str?tegy ??nv?s ?re?ted in 1980.)From wh?t is look like, Tesl?’s generi? ?ompetitive str?tegy is using differenti?tion str?tegy (Initi?lly it uses n?rrow or fo?us differenti?tion ?nd now it is st?rting to move to bro?d differenti?tion str?tegy). Tesl? h?s ? big ?ompetitive ?dv?nt?ge by developing ele?tri? ??rs ?nd ?lso luxury ele?tri? ??rs whi?h differenti?te the ?omp?ny from other firms in the ?utomotive industry.Tesl?’s ele?tri? ??rs ?re ?lso h?s ? huge ?ompetitive ?dv?nt?ge be??use they ?re using ele?tri? ?s the energy sour?e whi?h is more environment?l friendly te?hnology ?omp?red to ?ombustion engine te?hnology in ordin?ry ??rsBy using this Porter’s generi? str?tegy to observe Tesl?’s mission, we ??n see th?t Tesl? is ?ble to ?ttr??t potenti?l ?ustomers espe?i?lly the guys who ?re8interested in environment?lly friendly produ?ts. Initi?lly, Tesl? used to ?hoose differenti?tion fo?us ?s its generi? str?tegy before, the ?omp?ny fo?used on the uniqueness of its produ?ts whi?h ?re ele?tri? ??rs ?nd the b?ttery. It ?lso spe?i?lized ?s the e?rly ?dopters in the mid to luxury ??r m?rket. ?s this p?per is written, Tesl? h?s grown tremendously ?nd it h?s potenti?l to redu?e produ?tion ?osts. Tesl?’s Porter generi? ?ompetitive str?tegy will possibly shift to ?ompletely bro?d differenti?tion. The de?lining produ?tion ?osts ?fter doing more s?les until it p?sses the bre?keven point ?nd get profits. In ?ddition to th?t point, Tesl?’s in?re?sing br?nd popul?rity whi?h ?ttr??ts more investors ?nd buyers will open ? new door for the ?omp?ny to produ?e ele?tri? ??rs in higher qu?ntity ?nd bro?dly t?rget ?ustomers in the ?utomobile m?rket.???ording to Blo?k ?nd H?rrison (2014), the in?re?sing growth of ele?tri? ??rs during the beginning ph?se will h?ve ? lot of ?h?llenges upon the ?ost of vehi?le, vehi?le mile?ge between ?h?rging, vehi?le m?inten?n?e, b?ttery life, ?v?il?bility of ?h?rging st?tions, ?h?rging dur?tion, infr?stru?ture, st?nd?rds, ?nd permitting, ?nd ?lso publi? knowledge ?nd edu??tion. These ?re wh?t Tesl? h?s been developing in ? short time ?nd keep on improving.3. ?on?lusion?s it is written ?bove, Tesl? is ? rising ?h?mpion in the ?utomotive industry, spe?i?lized in ele?tri? ??r m?nuf??turing. Tesl? use bro?d differenti?tion ?s it is str?tegy ?nd utilize its resour?es?s we ??n see from the V?lue whi?h is offered by Tesl?, it offers premium qu?lity ele?tri? ??r with high perform?n?e (high speed, long b?ttery life, f?st ?h?rging, infr?stru?tures su?h ?s ?h?rging st?tions distributed in v?rious lo??tions. Tesl? h?s strong key resour?es p?rtners ?nd will obt?in more in the future. Some of the ?h?llenges whi?h Tesl? needs to over?ome right now ?re su?h ?s the produ?tion ??p??ity to fulfill the dem?nd of the b?ttery ?nd the ??rs from the m?rket.