Tesla Motors Research Meaning of Business Success - 3850 Words

Tesla Motors Research: Meaning of Business Success (Research Paper Sample) Content: Tesla MotorsName:Institutions name:Date:TESLA MOTORSIntroductionTesla Motors Inc. is a vehicle manufacturing company founded by JB Straubel, Marc Tarpenning, Ian Wright, Martin Eberhard and Elon Musk in the year 2003 (Marcovici, 2013). Elon Musk is the CEO of the company, a visionary leader who co-founded PayPal and he amazed people by being the main product architect with the incredible vision of Tesla Motors ("About Tesla | Tesla", 2017). The company has created a niche in the automobile industry by manufacturing energy efficient electric cars. Headquartered in the Silicon Valley in Palo Alto, California, the companys first set of electric cars was in 2008, where the Tesla Roadster car was unveiled. Therefore, Tesla is one of the most successful enterprises.Meaning of Business SuccessIn business, the answer to defining success varies. So what is the meaning of business success? Success can be defined in form of monetary rewards but other entrepreneurs define success as having a positive impact on others. Financial reward is very crucial to the continued longevity of a business. It gives entrepreneurs the motivation to work hard and even take more risks. Furthermore, if a business has substantial return on investment for shareholders, it is deemed successful. Business owners are able to create wealth and live an affluent lifestyle with their families; assured of future financial security Nevertheless, success in business can be viewed in different angles (Sant, 2008).Firstly, on the personal level of entrepreneurs, satisfaction is derived from the process of creating and building something from an idea. Moreover, the knowledge gained after struggling to build a start-up enriches entrepreneur with skills that become their strengths in the long run. Therefore, the attribute of personal success expounds further on the meaning of business success. Secondly, companies measure their success based on their accomplishment in the society. This is an exa mple of the social aspect of business success. Different companies have unique social goal and objectives like providing educational opportunities or improving the environment. For instance, in the quest of pursuing electric vehicles, Tesla Motors was in pursuit of green and efficient energy as compared to gasoline that has an incredible negative impact on the environment, like air pollution from exhaust fumes. The corporate social responsibilities are an aspect of giving back to the society that companies pursue for them to be successful in all aspects (Sant, 2008).Customer satisfaction is the third aspect of business success. The ability of products and services to make customers live better and solving their problems is the joy of entrepreneurs. That is the reason why businesses work tirelessly on developing incredible solutions to their customers. Satisfied customers imply brand loyalty which increases sales that further translate to financial rewards after deducting all the cos ts. On the other hand, the forth aspect of business success is employee satisfaction. Satisfaction in terms of competitive salary, good work environment, training and company policies that favor employees promote employee motivation, performance and hard work. A company with satisfied saves on money used in legal battles when employees feel that they have been harassed, for instance, sexual harassment in the work place. Therefore, employee satisfaction illustrates the success of a business (Sant, 2008).The Success of Tesla MotorsIn the month of June 29, 2010, Tesla Motors surprised many by being the first American Company to launch an IPO since the 1956 Ford Motor Company initial public offer. Tesla offered 11.8 million shares at the price of $1 which less than the initial offer of $17. The company offered an additional equity of 20% increasing the shares to $13.3 million after the IPO turned out to be a massive success. Through the IPO, Tesla Motors Inc. raised $226 million. On the other hand, the market Capitalization for the company has doubled in recent months to over $22 billion as of 2016 data. It is important to note that the profit value of a business is dependent on the production or future profits, and in the process, increases the ownership wealth. Tesla Motors estimates to produce 20,000 cars double the output of 2014. Therefore, as of 2016, it implied that each vehicle produced by Tesla was worth a stock price of $1.1 million (Stringham, Miller, Clark, 2015).Tesla Motors is the only company that has appealed the environmental friendly market by being the only company to sell sports cars that have zero-emission. The company has set a unique and new premium performance standard. The company continues to create an impressive picture with regards to efficiency, superior design and first class performance. For instance, the Roadster car unveiled in 2008 met an impressive acceleration record from 0 to 60mph in 3.7 seconds. This was earlier unheard of i n the electric cars milestones. Moreover, in 2013, the company unveiled the Tesla S Model which hits 60mph within 5.4 seconds without any input of gasoline. Besides, the Tesla S Model has a top speed of 125mph setting a new milestone in the electric cars industry. The S Model is equipped with an 85 kilowatt-hour battery for maximum performance in the market (Krebs, 2016). To achieve this optimal energy efficiency and density, Tesla uses automotive-grade lithium ion battery cells new in the concept of electric automobiles. Furthermore, Tesla had planned to create Supercharger Stations accessible to 98% of the United States population and Canada as of 2015.The success of Tesla never ceases to impress. The company unveiled an innovative distribution strategy that was unique in the automobile industry. Tesla implemented a plan to sell their vehicles directly to consumers by bypassing dealers via the use of accessible stores close to malls and the use of the internet. Another aspect is t hat Tesla does not mass-produce their vehicles but builds them by order to completely eliminate the middlemen. Tesla believes that direct customer interaction and satisfaction will help them deliver even better products, build trust and establish a long lasting business relationship with their clientele base (Marcovici, 2013).In my view, Tesla is with no doubts a successful company. In August 2013, the company achieved the best rating for safety which was a truly fabulous accomplishment for the company. This means that the products produced by the company are recognized and more so energy efficient. Furthermore, exceling in the production of solely electric automobiles is an achievement beyond that of hybrid cars. Moreover, the elimination of middlemen is an interesting strategy for the company to gain and build consumer trust and boost sales. Financially, the company has been doing good over the years by receiving return on investments and gaining increasing profits. On the interna tional front, Tesla has achieved the big league status by producing luxury cars that compete with other automobile manufacturers such as Mercedes, Ford, Audi and BMW. Tesla has been able to distinct itself as a market leader, hence, gaining a part of the market share formally dominated by other companies. Last but not least, the Success of Tesla Motors can determined by the ability to invest the manufacturing plants outside the US. The company had unveiled a plan to open a production plants in Netherlands and other parts in Europe (Mangram, 2012).Business Reasons for the Success of TeslaTechnologyThe adoption of new and emerging technologies is crucial for business success. Tesla has conquered this field of technology in the electric vehicle industry by inventing high performance energy batteries that are self-rechargeable such that other companies rely on their tech. for instance; Daimler uses battery packs manufactured by Tesla. Similarly, Mercedes-Benz uses their powertrain while the Tesla motor is used by Toyota (Fleming, 2013). Tesla cars are also installed with the latest and sophisticated computer processors for navigation, safety, entertainment etc.MonopolyTesla invested heavily in a small submarket that it knew it would dominate in the long run. That is, the high end market for luxurious electric vehicles (Birk, n.d.). For example, the Tesla S Model performed very well in terms of market demand and performance, setting milestones in the electric automobile industry, that Tesla decided to expand its concept. Elon Musk stated that the Model 3 would form the third generation car, which would hit the market by storms.Team work and LeadershipElon Musk the CEO of Tesla is an outstanding salesman and engineer. He is a motivator and thrives to achieve what he focuses on. He has inspired many people even in his company SpaceX. In Tesla, he has assembled a team that is very good at both engineering and sales (Doeden, n.d.). The company has employed fresh minds to add to the innovations and inventions to steer the company further to success. According to Thiel, the team work experience at Tesla is like special forces, because the employees are highly motivated, efficient and they coordinate incredibly well with tasks to meet the set goals and objectives of the company.DistributionTesla took the notion of distribution very seriously as compared to other companies. The company has by-passed middlemen to deal directly with consumers. In addition, Tesla strengthened its e-commerce sector to promote online sale of its products. Besides, the company stores are strategically located at proximity to shopping malls to boost sales. The company is also expanding its Gigafactory to increase the volume of sales of its cars (Mangram, 2012).DurabilityTesla was awarded the best safety rating by NHTSA (National Highway Traffic Safety Administration) which was a trust winning...