Business Strategy for Tesla Inc Company- myassignmenthelp.com

Question: Discuss about theBusiness Strategy for Tesla Inc Company. Answer: Introduction Business strategy means the working plan of a firm put forward by an organization with the view of attaining its long-term goals and objectives. This assignment aims at carrying out an analysis of various concepts of strategic competitive advantage, capabilities and core competencies that are employed in Tesla, Inc Company. Every business is obliged to coming up with unique capabilities and competencies that will enable it to cope with competition from its opponents. The fundamental purpose of this report is to identify and describe different concepts related to core competencies, strategic capabilities, and competitive advantages. The report will involve correlation and evaluation of this concept as used in organizations. When a business formulates and implements good strategies, it enjoys success regarding good competitive positions, strong financial performance and future business growth(Sandberg, 2014). However, if the reverse happens, the business fails and is left with two opti ons, either to make attempts at changing the strategies and adopting new functional ones or merely quitting the business. Internal strategy analysis Internal strategy analysis is critical in laying out the pathway that will lead to the achievement of the business long-term goals. In strategic management, the internal capabilities are efficiently converted to competitive advantages of the company as well as core competencies. Internal skills, resources, and capabilities that are unique in every organization are some of the factors that lead to organizational growth. Another critical component of any business is resources which may be classified into physical, technological, intellectual, human, tangible or intangible. Proper utilization of resources brings about competitive strengths while the reverse brings about business weaknesses. The utilization of the company's resources determines its competitive position about its rivals. In addition to that, strategic capabilities are also used towards creating competitive advantages. Business performance requires the combination of strategic capabilities uniquely, the concept of core competencies which act as competitive advantages. Each company has its way of doing things which distinguishes it from its rivals. Core competencies are based on strategic capabilities and ate built up over time through commitment and experience. Core competencies and strategic capabilities are interlinked so that many strategic capabilities make a core competence. The combinations of a firms core competencies result into its strategic competitive advantage often known as its competitive position in the market. Overall, strategic competitive advantages must be valuable, rare, costly and non-substitutable so that they only uniquely belong to the firm to enable it outcome its rivals. Strategic competitive advantage and core competencies are primary indicators of effective use of resources about their rivals. Conclusively, the internal environment of an organization determines what it c an do. The concept of resources, core competencies, strategic capabilities and strategic competitive advantages show how well positioned a company is and its ability to make use of the opportunities and reducing threats to be in a position to improve profit margins. Case study, Tesla Inc. Company Tesla, Inc is a company located in the United States dealing with manufacturing, designing, development and the sale of electric vehicles and energy generation and storage systems. The company has a reputable brand known for its innovativeness(Chen, 2016). In spite of the competitive pressure from its rivals, its innovativeness has supported the global growth of its business. However, the company is recently experiencing limited global interactions, and it, therefore, must address this weakness and make efforts to maintain global competitiveness and growth. Tesla, Inc has various internal strategies that empower it to outcompete other companies and ensure profitability in the long run (Mosey, 2015). These factors are innovativeness, reputable brand image and proper control of the production process. This big and trusted brand enables it to attract new customers and retain the existing ones(Sia, 2015). The company exercises secure control of the production process by ensuring that it manufactures both the products and their components on their own to prevent loopholes created by the third party. It also has weaknesses that have to be addressed to maintain its competitive advantages and enable it to reach its long-term goals successfully. These weaknesses can be overcome trough reforms, initiatives, and strategies aimed at maintaining the supremacy of the brand and ensuring that the company remains the best and in a position to reach its long-term goals(Wieland, 2016). These weaknesses are high prices, limited market presence, and limited supply chain. The company sells most of its products in the USA and this limits business growth. The company is not rapidly increasing its market and thus growing slowly. The diagram below shows its strengths and weaknesses. Strengths Weakness Innovativeness Selling products as high prices Having a renown brand Limited supply chain Proper control of production process Lack of market diversification References Chen, Y. (2016). Business strategy and auditor reporting. Auditing. A Journal of Practice Theory, 6 (8), 34-50. Mosey, S. (2015). Entrepreneurial strategy. Building an Entrepreneurial Organisation , 3 (6), 76-90. Sandberg, J. (2014). Understanding human competence at work: an interpretative approach. Academy of management journal, 4 (9), 67-87. Sia, S. (2015). How DBS Bank Pursued a Digital Business Strategy. MIS Quarterly Executive, 7 (5), 54-87. Wieland, H. (2016). Business models as a service strategy. Journal of the Academy of Marketing Science, 5 (7), 54-77.