Tesla is a large worldwide company that provides people with electric vehicles and solar energy processes. Its CEO, Elon Musk, is one of the world’s most famous, influential, and wealthiest people. Although the company is young, it is highly successful and well-known around the globe. Tesla is a multifaceted company with elaborate processes of manufacturing and developing products; however, it has to improve its delivery service and build its strategies according to the client’s feedback.
Tesla’s Value Chain Model
The first stage in the value chain model is inbound logistics. Tesla company, it involves storing raw materials, energy, solar panels, and developing electric cars. The business uses many materials like aluminum, lithium, nickel, steel, copper, and cobalt (Dudovskyi, 2021). To store them, Tesla uses three 1.3 million square feet in total warehouses in California. The second step in the value chain is operations, which is divided in the company into two segments: automotive and energy generation and storage. The first includes vehicle design and development; the company produced approximately half a million cars in 2020 (Dudovskyi, 2021). The second includes storage, lease, manufacture, sale, and installation of solar energy systems and electricity; the company “deployed 1584 MWh storage and 86 MW solar energy” in 2020 (Dudovskyi, 2021). The following stage is outbound logistics, which includes warehousing, shipping, and delivering electric vehicles and solar energy systems. Tesla provides its service to the USA and 35 other countries; it prefers to sell goods directly without re-sellers.
The next step in the value chain model is marketing and sales. The company does not concentrate on this stage; it spends minimum money on promotion: the quality of service has to attract people, not advertisements. The last stage is the service, with which Tesla had some problems. This includes customers’ complaints about waiting too long to receive feedback from the company when there were any problems (Dudovskyi, 2021). However, Tesla improved its service over the past several years and now strives to meet every client’s needs. Furthermore, the company has such operational sub-processes as stamping, sub-assembly, paint, general assembly, and quality testing. At the value chain and sub-process levels, the business has to monitor some fundamental metrics. For instance, it has to implement cost control measurement; reducing costs at the stage of the supply process will improve the company and benefit it. Quality control measurement will help monitor the quality of batteries and vehicles to make them work longer and more appropriately. Furthermore, customer satisfaction measurement is a crucial metric for every company. Tesla has to shorten the time between customers buying a car and getting it due to its influence on people’s trust and attitude toward the company.
To analyze and understand that the improvement of the processes does not work, it is essential to look at the situation from different angles. For instance, the increased level of materials costs, time, and resources spent on manufacturing a vehicle will signify poor management. Furthermore, customer feedback is a valuable resource that measures a company’s success. Analyzing clients’ opinions and satisfaction levels will show the company’s current situation and what it should focus on. That is why measuring all these metrics is highly valuable. Nowadays, Tesla has to focus on its customers and build its strategies based on their feedback. It has to provide people with high-quality services in a short time. Due to the absence of the re-sellers, the company’s delivery may last for weeks. This has to be solved; clients have to receive vehicles in a short time.
In conclusion, Tesla is a highly successful company that is known in every country in the world. Although it provides its clients with high-quality products and has an elaborate process of developing its products, it has to improve its delivery services. Due to the absence of re-sellers, the company’s delivery may last for weeks, which makes clients dissatisfied. The business has to consider people’s needs and build its strategies according to the client’s requests and needs.
Dudovskyi, J. (2021). Tesla value chain analysis. BRM. Web.