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Tesla Case Study Examining The Functionalities And Business Process


Task: Discuss the different functionalities of Tesla and provide the clear understanding of their business process.


It is discussed in this Tesla case study that understanding the requirements of the business is considered one of the most essential tasks that should be performed by companies in order to sustain in their operational market. They can understand their business requirements and focus on implementing strategies that will provide them with profitable business outcomes. The study will focus on the different strategies used by Tesla for enhancing their growth and development in the market. With the help of this, one can clearly understand the importance of their business elements and focus on using the same to achieve greater returns. Tesla is one of the leading car manufacturing companies located in California, America. The study will emphasise on the different functionalities of Tesla and will provide the clear understanding of their business process.

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Business model description
The following is a business model canvas for Tesla:

Tesla case study

Figure 1: Business Model Canvas of Tesla
(Source: created by the learner)

Value proposition development
In order to operate in a successful manner, it is mentioned in this Tesla case study that it is important for the management of the company to ensure that they are being able to provide appropriate value proposition to their potential customers in the market. With the help of this, it becomes easier for them to gain the attention of the customers and conduct their business flawlessly. One of the biggest value propositions offered by Tesla is their manufacture of electronic vehicles. This has created a significant position for the company in the competitive market. They have provided sleek designs for their customers and their focus in one the creation of energy efficient cars for the betterment of the customers (Karamitsios, 2013). The advanced technologies used by the company helps them to provide some of the best quality cars to the customers. Several automatic options are provided such as autopilot and software can be updated in a hassle free manner.

Business operations development
It is important for Tesla to ensure that they are able to focus on the development of their business operations. However, it becomes important for the management authority of the organization to ensure that they are deigning their services and products in such a way that it suits the need of their customers. Apart from this, it is imperative for the higher officials to ensure that quality management is being done in the right manner. This helps to develop the quality of their products and excel in a competitive market scenario (Monsellato, 2016). Besides this, their supply chain management is important, as it provides them with access to quality raw materials that are needed to develop their products. The role of the human resource department is quite important, as it helps them to gather skilled and talented employees for accomplishing their business objectives in the right manner and engage in their business development. However, inventory management is necessary, as it allows the higher authorities to focus on the appropriate usage of materials for manufacturing their goods and services. Moreover, proper maintenance of their departmental operations enables them to meet with the market trends and function in a required manner.

Supply chain development
One of the most important tasks performed by the management authority of Tesla as discussed in this Tesla case study is the management of their supply chain. With the help of this, they can focus on managing the supply of raw material within the organisational premises. One of the biggest reasons for the increased productivity of Tesla is their supply chain and supply of raw material within the workplace. As a result, the company is able to make enough progress to evolve as one of the biggest manufacturers of electric cars, globally (Dana, 2018). Successful management of the supply chain mentioned in this Tesla case study allows the organisation to make important and strategic decisions in the right manner and ensure the smooth operations of their business.

Financial value capture
In order to conduct their business in a successful manner, it is important for the company to implement important strategies in the workplace to increase their profitability in the market and develop their competencies. In the year 2018, the total revenue generated by Tesla was about $21.4 billion. This was possible with the development of electronic vehicle by the company and its brand recognition in the competitive market. This was considered a record for the company and it helped to develop their business in an authentic manner. Due to this, the year 2018 was regarded as a pivotal year in the history of the company. Due to the manufacture of their mid-range cars, it becomes easier for them to reach out to a large population and conduct their business authentically.

Tesla case study

Figure 2: Profit and Loss of Tesla
(Source:, 2019)

Competitive advantage
Ideally, competitive advantage is one of the most important things that a company does in order to sustain in the market. However, it is important to ensure that the strategies are being used in the right manner. The Tesla case study focuses on analysing the other companies in the market and understands the differences in the strategies used by them. The focus on competitor’s strategies has helped Tesla to ensure that they are impose serious threats to the other automotive companies (Bilbeisi & Kesse, 2017). The main reason for their intense competitive advantage is that they focus on using software in terms of manufacturing their cars. However, other companies have yet not been able to develop their competencies in terms of manufacturing software-driven cars. As a result, it could be clearly understood that their innovation and implementation of ideas have provided prime support for their success in the market.

Strategic fit
In order to achieve success in a competitive market, it is significant for companies to ensure that they are being able to develop their strategies in a profitable manner. With the help of this, it becomes easier for them to develop a competitive advantage over other companies operating in the similar sector (Schowalter, 2017). Tesla used wide range of management strategies in their workplace to ensure that they are being able to control the functioning of their staffs and departments simultaneously. Another crucial thing applied in Tesla’s business is the enhancement of operational effectiveness. It allows them to reduce the intensity of mistakes and develop the overall quality of their products. Besides this, they focus on thinking in a completely different mechanism.  This provides them with enough ability to conduct things differently. As a result, it allows them to make proper and apt use of their strategies.

Identification and assessment of assumptions and uncertainties
The most important thing is to ensure that the uncertainties associated with the business do not affect the overall functioning of their operations. As a result, the management authority of the company ensures that they are being able to focus on reducing the level of mistakes being performed. The leaders and managers perform this assessment for understanding the market trends and functioning in a similar manner. Therefore, it becomes easier for the managerial staffs to develop their stronghold in the competitive market and focus on the process of gaining more and more customers for increasing their profitability in their business.

Phased development plan to address uncertainties in this Tesla case study
The higher authorities of Tesla focussed on developing their products in a phase development manner to increase their profitability and revenue generation. Some of the phases of development applied by the company have been listed below:

  • Create an expensive and low volume car (, 2016)
  • Develop a medium value car of low price using the money generated
  • Use the same money to develop high volume but affordable cars

With the implementation of these phases in the workplace, it became easier for the organisation to develop their business in the right manner and enhance their level of growth in the competitive market. As a result, the gradual success of Tesla was a result of proper selection of the strategies and implementing them in the most precise manner.

Selection of innovation tools and techniques
Competencies in the market can be developed with the selection of appropriate innovation tools and techniques that could be used for developing the quality of their products and performing better than the other companies could. Two of the biggest innovations were the use of software and Artificial Intelligence (AI) in the process of developing their fuel-efficient and energy saving cars. This has resulted in their steady growth and progress in the market and allowed them to develop their business in the right manner. However, another important part of the plan was their implementation of the selected techniques in the workplace. Moreover, they were successful in implementing the techniques successfully and provides high quality to their customers.

Candid and critical self-analysis
After analysing the different facts, it could be understood that the use of strategies and innovation tools in the workplace have resulted in their success and manifestation in the operational market. They focus on gaining the attention of the customers with the help of their sleek designs and vibrant colours. However, the brand is well recognised in the market and therefore, it becomes easier for them to grow their consumer base and focus on increasing their level of profitability in the market. Despite the level of intense competition in the market, the company has not failed to evolve as the market leader over other companies. This clearly justifies their class and position in the market within this Tesla case study. They have enough market shares that could be used as a positive influence in terms of developing the overall competencies in the market.

Conclusion and recommendation
Tesla is one of the better-known companies in the automobile market sector. This has happened because they are capable of selecting the right strategies and ensuring that the workforce is always prepared for accepting new trends in the market. Besides this, the study identifies the way in which innovation methods and tools have helped them to gain sustainable growth in the business. Besides this, they focus on using software and AI technologies in terms of developing their products in the business and it helps them to increase their sales and revenues in the competitive market. Therefore, they can easily implement ideas in the workplace for enhancing their business and gaining lucrative business returns.

The following recommendations could be provided to Tesla in terms of operating in the market:

  • They should keep developing their competencies in terms of using software and technological advancements in the workplace.
  • Besides this, the management should focus on monitoring the performance of the employees almost regularly to reduce the level of mistakes and allowing them to enhance the product quality.
  • They should perform intense market research to ensure that they have knowledge about all the trends existing in the market. This will enable them to understand the requirements of the potential customers.

Exclusive summary
The study of Tesla case study is based on extensive research performed on the car company giant named Tesla that is known for manufacturing high quality cars and self-driven cars. The idea behind the process of developing such unique products is to make sure that they are being able to gain a strong command over the market and ensure their increase in profit margins. The study helps to understand the ideas behind their innovation and the desire to use technologies have helped them to become what they are, today. It is evident that other car manufacturing companies should slog for getting to Tesla’s standards. The study helps to understand the correct usage of the strategies for developing their business in the competitive environment.

Bilbeisi, K. M., & Kesse, M. (2017). Tesla: A Successful Entrepreneurship Strategy. B> Quest. Available at: <>

Dana, C. (2018). A Strategic Audit of Tesla, Inc.: Electrifying our Future or About to Run out of Energy?. Available at: < >

Karamitsios, A. (2013). Tesla case study Open innovation in EVs: A case study of Tesla Motors. Available at: < >

Monsellato, A. (2016). Tesla Motors: a business model innovation in the automotive industry. Available at: <>

Schowalter, J. (2017). Determining the Effectiveness of Tesla's Strategy. Available at: <>, (2016). Retrieved 3 October 2019, from, (2019). Retrieved 3 October 2019, from


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