Company History and Description & Proposed Strategic Adaptations
Company History, and DescriptionAccording to the information on the official site Tesla Motors, Inc. was founded in 2003 by the people, who had a dream of electric automobile superiority over conventional gasoline-powered automobile (Teslamotors.com, 2015).
The dream of the founders has been articulated and fixed in the company’s mission statement, which is the following: “To accelerate the world’s transition to sustainable transport” (Teslamotors.com, 2015). Nowadays there are more than 50 000 Tesla automobiles in the world; and the company is preparing to launch its crossover vehicle, which will make their product mix even more diverse to meet the demands of the customers. With its outstanding effort in technology and design, the company makes the transition to electric car effortless for people around the world.
As argued by Collins and Porras the sustainable companies are always adapting to the changing environment, while maintaining the ideological core of their business (1996). Thus it is necessary for Tesla, Inc. to maintain the mission of their company connected with the quicker transition of people around the world toward electric cars. Besides, this system of values corresponds to the environmental trends in the society, which can be very beneficial (Hrebiniak and Joyce, 1985).
On the other hand, the company needs to be flexible in order to develop more dynamically and increase its share on the automobile market. It is necessary for the company to introduce their products in the mid-cost and low-cost segment of the market. The company can set a long-term objective of getting 5% of the global automobile market for the next ten years. This will not contradict with the core purpose of acceleration the transition to environmentally friendly cars.
This strategic adaptation will enable to extend the target market and foster development of electric automobile industry. ConclusionTesla Motors, Inc. is an innovative company, which has been dynamically developing in the market of electric automobiles. This company has a very sustainable ideological core based on the mission statement. The company should not change its values, but should focus on reducing the price for its products, making them available to wider group of people. In this way, the company can fulfill its mission with more efficiency.
Teslamotors.com, (2015). About Tesla | Tesla Motors. Retrieved 11 June 2015, from http://www.teslamotors.com/about
Collins, J. C., & Porras, J. I. (1996). Building your company's vision. Harvard business review, 74(5), 65.
Hrebiniak, L. G., & Joyce, W. F. (1985). Organizational adaptation: Strategic choice and environmental determinism. Administrative science quarterly, …