Offshoring
Gordon and Rutt (2008) attribute the rise of globalization to cheap gas, but that is only part of the story. Cheap gas makes shipping around the world competitive, but does the high cost of doing business in the U.S. relative to other countries. For simple tasks like manufacturing, many countries around the world are capable of leveraging their cheap land and/or cheap labor to produce at a level of quality similar to that of the U.S., but with much lower costs. The cost differential is so great that even the goods are cheaper, even with the additional shipping cost.
Bringing manufacturing back to the U.S. depends on understanding why it left in the first place. The tasks that were offshored, and to a large extent this is still true today, are routine tasks. Grossman (2006) notes that there is a fundamental difference between tasks that are routine and those that are not, and one of the manifestations of this difference in that routine tasks can often be done remotely where non-routine tasks cannot. He used the example of Mattel -- the company's design (a non-routine...
Tesla Motors became a public traded company, (NASDAQ stock quote code: TSLA), earlier this year. You are the Channels Manager for Tesla Motors. How do you think Tesla has developed its distribution strategy, i.e. what were the most important things to have been considered? With the launch of the model S. sedan due in 2012, how would you further develop the distribution strategy over the next five years, and why? Tesla
Tesla Motors has a cash flow problem, which makes it vulnerable to the many larger competitors who want into the electric vehicle business. The advantage Tesla has is with its battery technology, which is vastly superior to anybody else's, and in its brand name and leadership. The in-house distribution is unique to the industry but it might be too early to determine whether this is helping Tesla or hurting it.
Tesla Motors was founded in 2003 "by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars." The company's first car, the Roadster, was launched in 2008 and the second car, the Model S, was launched in 2012. The company has been a major success since its inception, and while it still is not turning a profit, its revenues are
Tesla Case Analysis General Environment/Industry Analysis The automobile industry is changing quickly with more and more competitors entering into the EV market. Jaguar is introducing its I-Pace, a premium EV with a base model price under $70k. Audi is introducing its E-Tron Quattro E-SUV this year and an E-Tron Sportback next year. Porsche is bringing its Mission E Cross as its second EV. Mercedes plans a 2018 EQC Electric SUV. And then
Summary There are certain aspects of Tesla' s business model that distinguish it from other automakers. These manifest either in its accounting policies, or in the ways in which those policies will affect Tesla (but maybe not its competitors, even if they utilize the same policies). The direct-to-consumer sales model in particular holds influence over some policies, while the company's youth handcuffs it with respect to how it handles things like
SWOT Analysis: Tesla Motors Tesla Motors was founded in 2003 and it specializes in high-end electric vehicles. The company operates out of Palo Alto California and it has over 2000 employees. It was founded by Elon Musk who has prior success in SpaceX and PayPal. The company's goals is to accelerate the transition to electric mobility with a full range of increasingly Despite the fact that it has received loans from
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