Strategic Plan Part II: SWOTT Analysis

Running Head: TESLA COMPANY 0

New Division at Tesla Company

Brandon Lee

BUS/475

Professor Dariush Ershadi

June 17, 2017

Introduction

New businesses are always introduced daily into the market where the existing ones strive to cultivate and perfect their productivity and services in relation to invention and innovation to maintain its competitiveness in the market. Hence, businesses seek to produce a new product or services or improve what it offered in order for it to become more lucrative and more satisfying to customers and its stakeholders (Mukerjee, 2013). This paper proposes a new division in Tesla that will provide enhancements for the already lucrative Tesla vehicle and improved services to the company’s customers. The new division is bound to cater for all the needs of customers for the company to attain a competitive advantage over its market rivals.

Additionally, there will be a description of the new division’s business model and vision predicting the future of the business. The paper will also explain the way the mission, vision, and value of the division aligns with the vision and mission of the company. Lastly, there will be a summary of how the strategic direction of the division is guided by the mission, vision, and values as well as the division’s guiding values and principles in relation to culture and social ethics and responsibility.

New division

With the rise in the price of gasoline, comsumers would opt for something that help them to achieve better mileage during their commute . There also vehicles that contribute to greenhouse effect by emitting the substances that negatively contribute to global warming. The new department seeks to contiune to address this problem collectively with other problems like congestion and reduction of accidents. This is by introducing vehicles which use solar energy, electricity, and state of the art technology. Along with installing inteligent technology within the vehicles, such the the vehicle communicates with other vehicles and smart high ways.

Firstly, the department would like to implement the development of vehicles that are solar enabled. There are important facts about solar panels fitted on a car; about nine solar panels can provide enough electricity that can power 12,000 miles of driving annually. Solar based cars that are independent of gasoline don’t produce pollution in the environment unlike the traditional cars (Rinkesh, 2015). Having already an all-electric car line up we have produced a noiseless vehicle hence they help in the reduction of noise pollution. Solar rechargeable cars could have a longer life span since it can live for decades and be affordably inexpensive. It requires general cleaning of the solar panels and hence has low maintenance cost. Solar panels are naturally friendly and they can be the source of renewable and unending source of energy. The power from the solar panels is derived from the natural sun. In this case the solar energy is converted to electric energy in order for it to recharge the batteries in the car. The solar panel contains photovoltaic cells that help to yield electricity by converting sunlight. This will act as a backup charging system to already amazing Tesla vehicle line up and future vehicles.

Solar cars that come solely without any other option have disadvantages that will deny them some of the target market. These factors include the fact that solar cars have lower speed as compared to regular cars and also in instances of lack of sunlight they will lack have power. The fact that the solar cars rely on sunlight is the key reason why many people do not rely on solar cars. Primarily, this leads us to the need for an option when it comes to this case of the cars that have installation of solar panels. Equipping our Tesla vehicles with solar panels will solve the problem of unreliability in solar panels. Electrical vehicles are environmentally friendly since they have electric motors that requires no fuel consumption and safeguards energy usage. All electric cars have no reliant on fossil fuel hence are cleaner at the same time the vehicles enjoys much incentives from the government (Future, 2015). The Tesla vehicles have high resale value due to more customers preferring to use the electric option due to the rise of gasoline prices and the desire to go green.

Secondly, this being an era where there is need for vehicles that have been installed with intelligent technology interconnected electronically and are fueled by variety of sources. Breakthrough battery technology help people to realize this electrification of the vehicle. Advanced vehicle safety can be enhanced through electrification. This is done by integrating cameras, sophisticated sensors and radars, intelligent technologies can be implemented through electrification for instance crash eminent braking, systems that warn against collision, the vehicle fitted with the ability to detect blind spots and issue alerts and also adaptive cruise control. Connectivity among cars is very important and it is one of the most thrilling trends in the vehicle industry. By the use of 4G wireless connectivity Tesla cars can be enhanced to act like Wi-Fi hotspot whereby several cars can be connected at a time. Connectivity will enable the vehicle to vehicle-to-vehicle communication; the vehicles will communicate together sharing information on the weather changes, road conditions, traffic and direction of travel. This is through a Wi-Fi band that is dependable. If a car stops suddenly or is avoiding collision with another vehicle it will alert the other vehicles instantly. The vehicle-to-vehicle connection will link vehicles allowing your car to detect other vehicles behind barriers, over hills, and around corners from which the driver’s vision is blocked (Barra, 2016). In case of an accident the systems can take control of the vehicle through the brakes and/or the steering in order to respond quickly and support the driver in when driver error could lead to greater harm. Accidents cost countries billions of losses annually, this is over 3 percent of the gross national product, according to the U.S. Department of Transportation Vehicle to Vehicle communication will reduce over 80 percent of the total accidents, which costed 33,000 lives in 2014.

Thirdly, vehicle-to-infrastructure communication is another enhancement we would like to introduce in the new department. Congestion in urban traffic no matter where you are in the world is a common problem that needs to be solved. Traffic congestions costs a lot of resources affecting productivity and wasting senseless time, yet the problem is growing significantly. According to the UN the urban population will be 6.3 billion in the whole world (Barra 2016). In this case, we expect a rise in congestion and its related predicaments which can be addressed by introducing vehicle-to-infrastructure communication. The vehicles interact with the smart highways and can get updates concerning the real time traffics occurrences, jams and navigation systems thus helping not only in the safety of drivers but also in saving time by avoiding traffic jams. Through the intelligent and connection technologies that will be utilized in the new department we make driving more safe and efficiency than before. Introducing an automated driving technology that leads to the endless stop-and-go traffic in driving.

There are many factor advantages of electric vehicles such as its carbon footprint is low. They help to save many when powered by the solar electric system. The power of the sun will help in creating energy independence. Electric cars are safer compared to other forms of cars. According to The National Highway Traffic Safety Administration (NHTSA), there has never been any reported roadway crashes as a result of battery problems (NHTSA, 2011). As the cost of solar electric systems reduce, we notice also electric cars becoming more efficient than ever before. The new department focuses on moving from semi-autonomous to completely autonomous vehicles that can drive themselves. We will start the test of the fleet of completely autonomous vehicles and market it to reach to the people globally.

In conclusion, the above technology is vitally important in value addition to auto production in the company. It will happen through the new department, in order to address the changes in customer interaction with cars as a result of the changes in social factors like urbanization. The vehicle short comings of the solar energy are solved by the advantages of having the electric batteries as a source of energy. This will create a demand in the public and the marketing activities will be done to the public. The customers are interested in reducing the cost incurred due to gasoline and in order to bridge the gap caused by the inconsistency of sun light they have the electric power in place. This will make the unique new Tesla car lineup which uses electricity, solar panels, and combined with state of the art technology the wave of the future.

References

Barra, Mary. The next revolution in the auto industry. 2016. https://www.weforum.org/agenda/archive/davos-2016 (accessed 5 17, 2017).

Future, Conserve Energy. Hybrid cars. 2015. http://www.conserve-energy-future.com/advantages-and-disadvantages-of-hybrid-cars.php (accessed 5 17, 2017).

France, C., Merrilees, B., & Miller, D. (2016). An integrated model of customer-brand engagement: Drivers and consequences. Journal of Brand Management, 23(2), 119-136. doi:http://dx.doi.org/10.1057/bm.2016.4

Rinkesh. pros and cons of solar energy. 2015. http://www.conserve-energy-future.com/pros-and-cons-of-solar-energy.php (accessed 5 17, 2017).