Tesla Motors News - Photos and Videos Business Description

Question: Discuss about the Tesla Motors News, Photos and Videos for Business Description? Answer: Introduction: In this assignment the business description of the chosen product will be given. The assignment has two sections regarding the business operations of Tesla motors. In the first section of the assignment, the background details of Tesla motors and the product i.e., the electric cars will be discussed. After that, the development strategy of the electric cars will be discussed followed by the 4Ps of marketing. After the descriptions of the business and the chosen product of the company, the offshore manufacturing process of the company will be analyzed in the second section of the company. In this section, the impact of the governmental rules and regulations and the economic environment of the country will be analyzed for understanding the overall environment of the business of the company with the chosen product (ABC News, 2016). Background of the company: Tesla Motors is one of the most famous automobile industries in the global market. They have launched various types of cars in the global market. Electric cars are the most famous products of the company they are developing new models of the electric rechargeable cars for the customers. The cars are ready to be used by simply charging the battery of the cars. These are able to minimize the environmental harm due to the vehicles that are used by other fuels. They have selected as the best plug and play car suppliers in the year of 2015 (Tesla Motors, 2014). Description of the business: The electric cars of the company are run by the batteries which are able to be charged by just plug in the cars. They have different models for the electronic cars such as model 3, model X and model S. Model S is the latest version of the electric car manufactured by the company. At present, the environmental development is a serious issue for the companies which are working in the car manufacturing industry. The RD activities of the company have their focus in the development of pollution free cars. The electric cars of the company are pollution free and the rechargeable facility is ability of providing economic handling of the cars (Tesla Motors, 2014). 4Ps of marketing: Product: The product is the electric cars which are able to be operated with the rechargeable batteries in a pollution free way. The latest versions of the electric cars have the autopilot facility. The cars have inbuilt front cameras, sensors and radars through which the cars are able to run automatically. The latest technological use is the best feature of the electric cars of this company. They are conducting their business through the uniqueness of their products i.e., the electric cars (Tesla Motors, 2014). Price: The Company is mainly targeting the high-end customers of US. Hence, they can set the price of electric cars higher. However, the company is trying to reduce the price of electric cars so that middle end customers can also get access to their products. Place: As most of the peoples of US are high end, customers it is profitable for the company Tesla to conduct business in various cities of US. The company is conducting their business within the area of US. The company is doing business in cities like New York, Washington, Chicago. In future, the company has the plan to expand its business in various European and Asian countries. Promotion: They are using the online platform for promoting the products of the company. They have their display showrooms in the areas where they do not sale the electric cars for developing the awareness about the electric cars of the company in the areas. The company takes part in various campaign activities to promote their electric cars. They also take part in various racings like Formula 1. It increases the popularity of electric car globally. Product development strategy: Manufacturing team of Tesla Motors is using aluminum to reduce the overall weight of the vehicle. Extra weight is always critical and unnecessary for any type of car. For electric vehicles, it is even more critical as it will offset the extra weight of large battery packs. A large coil made of aluminum and 20,000 pound is unfurled and sized into rectangular shapes with a blanking machine. Then those parts are formed into 3D shapes using a hydraulic press and huge dies. After this process, the parts are assembled in the next section of the manufacturing factory (Forbes.com, 2016). Tesla teams are now trying to improve the functions of their cars and are trying to manufacture a new generation electric vehicle with unique options. It is assumed that the next model of Tesla Motors will include a auto pilot option and automatic radar function. Batteries are the most important parts of Tesla vehicles. The cell capacity of batteries are about 85% of rated capacity. A 90kWh battery is locate d inside Tesla cars which is manufactured by Panasonic includes 3.4 Ah 18650 cells (Tesla Motors, 2016). Detailed construction outline of Tesla motors is quite difficult to get as the bond between Tesla Motors and Panasonic is a confidential one. Both of the companies have never released any information related to their constructional procedures. All the cars of this company are produced in Northern California, Fremont factory with all the required manufacturing operations. Manufacturing procedure is extremely innovated and automated, multi-function robots are used for these operations which are able to produce almost 83 cars per day and easily reprogrammed for using in the productions of different car models (Forbes.com, 2016). Offshore manufacturing of the product: At present, the company is operating their main manufacturing unit in California. They are also expanding their business in the global market by developing offshore production units. They have developed their service center units and showrooms in Canada, Europe, Asia and Australia. Impact of economics and government on the business: Economic factors incorporate economic development in the alternative energy industries and raise in the price of using the cars mainly because of the increase in the fuel prices over a short time period. The demandofmore-efficientcarsisalso increase like never before. Recovery of GDP and increase rate in the developed countries from the recessionaryperiodinbetween 2008 to 2009hasa majorimpactuponthecustomerpurchase intention (BBC News, 2014). Tesla Motors needs for managing unmistakable political factors affecting the business operations. One of the important political factors influencing the business is the Ecological Assurance Laws for actuating generation of more natural autos to meet strict emanation levels. The second essential fact is the US government advance projects for innovative work of new advanced cars (Environmental-protection.org.uk, 2014). Impact of the laws on the business operations: Laws and regulations regarding the green developments includes importance of advance projects and influencing the development of environment friendly cars. Tax assessment to consolidate the new strategies for green business, increased carbon tax and some other green arrangements are affecting the business of the company. Another important is establishment laws in US that make sure that the car merchants including Tesla to test the carbon emission of their cars. Various components that may influence the development of the electronic cars are affecting the purchase decisions of the customers also (Energy.gov, 2014). Value Creation in the global market through the business operations: Business model is Tesla Motors is considered as the most unique business model of all times. Being a comparatively new vehicle manufacturing company other organizations do not expect that Tesla would go this far (Hanley, 2016). Their business model and strategies has helped them to compete with companies like Mercedes, Lamborghini, Porsche and BMW. However, their business is very simple which includes, No dealers of Tesla vehicles There are no commissioned sales people Tesla authority mostly focus to market their cars when other companies try to sell their carss aggressively Transactions with Tesla are done via online There is no negotiation in price Tesla authority does not have any warehouses for their cars. The manufacturing starts to build a car only after a customer places a order for that. Test-driving Tesla vehicles is not free. Consumers will have to pay $5000 for a test drive (Tesla Motors, 2016) In most of the places, unless a customer buys a Tesla car, he cannot not even see the vehicle These factors have helped the company to increase their market value in several countries in the world. Those business models of Tesla have helped the company to build their cars in such a way that it can compete with other existing vehicles in the market (Forbes Welcome, 2016). In spite being an electric vehicle, Tesla cars are as fast as Porsche and gets the equivalent of 100 miles per gallon. Besides, it is the only sports car with a seating capability of seven people (Tesla Motors, 2014). Tesla handles their products personally. Tesla optimized its sales model and decided that they will sale their cars only online. However, people who want to see the Tesla cards can go to the kiosks made by the Tesla authority in several shopping malls. Some states like Michigan, New Jersey and Massachusetts do not allow Tesla to sell cars in their locality. Therefore, the company has established Tesla galleries in those states so that people can visit those galleries in order to gain knowledge o n Tesla vehicles (Edelstein Voelcker, 2016). Conclusion: Unique manufacturing idea of using electrical technology for building a car has helped the company to turn the weakness of the industry into the strengths of the company. Diesel cars are known for getting dirty, becoming complex, unreliable and difficult maintain because of the function of diesel in it. However, as Tesla vehicles do not use diesels, there is no way that those problems will occur in their vehicles. Another business strategy of Tesla motors that has increased their brand value enormously is their decision not to develop a traditional car provider network. References: ABC News,. (2016). Tesla Motors News, Photos and Videos - ABC News. ABC News. 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