Strategic Management: A Competitive Advantage Approach Concepts and Cases 17th Edition Instructor ma
Tesla in unique in the effort in providing a direct customer experience. However, this also slows down the process of delivery and timely vehicle assistance. Therefore, to counter this weakness, Tesla should focus on improving the logistic process with suppliers by forming a long-term strategic partnership that will secure the timely distribution of high quality materials. Tesla should also improve the logistic process with customers by setting up additional Tesla stores in each metropolitan area. The company is impressive in product development, which results in high revenue generation. However, Tesla should evaluate the capital allocation strategy to avoid incurring profit loss and excessive use of debt.
SWOT Matrix (Proposed Strategies)
| SO Strategies | |
| 1 | Host events in major cities worldwide with celebrity advocates to increase brand awareness and introduce Tesla’s most recent tech features (S10, O1). |
| 2 | Hire three financial planning and investor relationship personnel to network with a Wall Street banker to bring in more funds from institutional investors (S1, S4, O6). |
| 3 | Organize six environmental awareness campaigns in industry districts of Asia, Europe, and U.S. to promote electrification of transportation (S10, O1). |
| ST Strategies | |
| 1 | Expand the electric vehicle product line by five new and affordable models, including family SUVs and trucks, to maintain a strong, competitive position in the market (S2, T3). |
| 2 | Research and develop second-to-none safety features in autonomous cars to ensure the customers’ confidence in our products (S3, T3). |
| 3 | Implement a wellness program offering appealing work benefits for Tesla employees to attract workers, enhance performance, and maintain a strong, positive reputation (S8, T10). |
| 4 | Offer timely and excellent customer service by setting up at least one customer service center in a major city in each state to maintain a strong customer base and loyal customers (S10, T3). |
| WO Strategies | |
| 1 | Build a new Gigafactory in China to decrease delays and increase overall manufacturing efficiency in the growing EV market (W2, W6, O2). |
| 2 | Increase the number of Tesla Superchargers worldwide by 50% to facilitate the use of electric vehicles (W5, O10). |
| 3 | Increase marketing and promotion expenditures by 45% through implementing a marketing strategy targeting millennials and early adopters (W9, O7). |