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Business Case Study Problem Summary Tesla is an electric vehicle…
Business Case Study Problem Summary
Tesla is an electric vehicle (EV) manufacturer located in the United States. It was established in 2003 by a group of businesspeople headed by CEO Elon Musk. The corporation was a pioneer inthe development of the contemporary electric car sector, and its goal is to hasten the transition to more environmentally friendly forms of energy worldwide. The Model S, Model X, and Model 3were the first successful models produced by Tesla, which led to the company’s early success in the automotive industry. The firm is currently the industry leader in the manufacturing of electriccars and has moved into the production of electric semi-trucks.
In recent years, Tesla has seen a decrease in its market share. In 2018, Tesla has the greatest market share of all electric vehicle manufacturers in the United States with 17.7% of the total market. In 2020, however, Tesla’s market share was just 12.1%, a significant reduction from the previous year. This drop in market share might be due to a variety of various sources.
Increasing rivalry from other electric vehicle (EV) manufacturers is one of the factors that is leading to the reduction in Tesla’s market share. More and more businesses have joined the electric vehicle sector as the demand for EVs has expanded. This has led to a rise in the amount of competition that Tesla faces, as an expanded number of firms have started to provide electric vehicle models that are equivalent to those offered by Tesla. As a result of the heightened level of competition, Tesla’s share of the market has decreased.
The price approach that Tesla has adopted as a corporation is another aspect that is contributing to the reduction in the firm’s market share. In general, the price of a Tesla car is more than the price of a similar model produced by another manufacturer. As a consequence, prospective buyers will find Tesla’s automobiles less appealing, which will lead to a reduction in the company’s market share.
The length of time it takes Tesla to fulfill an order is another contributor to the company’s fallingmarket share. Customers have been forced to wait a significant amount of time due to Tesla’s inability to meet the high demand for the company’s automobiles. Because of this, buyers have been purchasing electric vehicles (EVs) from other manufacturers, who often have more expedient delivery timeframes.
In addition, Tesla’s reliance on a direct-to-consumer sales model and limited dealership network has made it difficult for the company to expand its market reach, particularly in countries with strict dealership laws.
TASK
Recommendations & Outcomes Explained
The first sentence will be the problem statement identified in the above business case study problem summary. (Question: What is the problem with Tesla from a business point of view? Answer: Telsa is losing shares in the EV market.)
Make and explain your recommendation to solve, reduce, increase, mitigate, etc. the stated problem from your summary. That is the only problem you are addressing.
Be sure to include in-text citations from your research and provide source information and link if possible.
Solution(s) identified and applied with critical thinking toward future impact and outcomes. In other words, it easy to make a judgement statement on what to do, but how will that decision impact in the micro and macro.
Include:
Micro Perspective – tactics in the short term
Macro Perspective – meaning of recommendations & outcomes in the long view
Discuss the cost benefit analysis of you solution(s) as applied with critical thinking toward future impact and outcomes.
