Case study: Analyzing such issues as: 1) your understanding of the case in regar
ID: 414038 • Letter: C
Question
Case study:
Analyzing such issues as: 1) your understanding of the case in regards to what managers are doing correctly to lead this business to success, or what they should be doing differently to make the business more successful; 2) identifying the strengths and weaknesses of the company; 3) identifying strategic issues that need to be addressed, if any; 4) if the strategy of the business is NOT working, formulate a plan of action to get the business on the right track; 5) discuss how this case assists you in running “your own” simulation business. This should be written as a paper, and not as an itemized roster bullet points.
Explanation / Answer
1. From the case study I understand that what the managers are doing correct to make the business a success is that they are trying to compete in the market by introducing ideas and working on products that are new to the market. Analyzing the market demand and planning the production accordingly makes it a profitable approach. For example, Musk had an idea that the roadster would have 400 volts of electric potential and lithium cooled ion batteries. Musk focused on bringing a car in the car that would be worth the price and give maximum features and comfort to attract the customers. This different approach of bringing in a product that could over shadow all the other products ( electric roadster in this case) lead the company to the success in less time.
2. The strengths of Tesla company were that The CEO Elon Musk had a good history of successful businesses in companies like PayPal and SpaceX. His worked on innovative ideas to bring a car in the market that can overcome issues that have been faced by electric cars in past. They are focusing on only one type of production which is electrcial cars and hence can ehance in that market to the maximum working on all the technical aspects of the production. They owned their own charging stations, superchargers, which were 16 times faster than the normal charging stations. They have their own battery building factory which can allow them to work independently and efficiently. They cannot cheat on the exhaut being used by the cars which is common in this type of production.
The weakness of this company can be Elon Mask is managing the ownership of Tesla along with Space X, and after the exit of Martin Eberhard, he did not hire any person in palce and instead managed the whole work alone himself. This can be a overburden on him and not allow him to give better results in performance. They are limited to only producing electric cars which is not common in the mass market. Common people are still unsure about the usage of electric cars which does not make it a demand in that market. It is a difficult task to charge these cars where superchargers are not avalaible hence the infrastructure is limited of such cars. The performance of the batteries will have to be kept improving to make the cars a success all through. The car market is competetive hence focussing just on one type of production can make the profitability stagnant.