CASE STUDY 2 TESLA

Synopsis: Tesla, the leader in electric vehicles, has managed to become one of the most valuable car makers in the United States without any traditional advertising and an Internet-focused downstream distribution strategy. Tesla also leads with an extensive corporate social responsibility strategy that includes focusing on the safety of both employees and consumers, supporting a diverse work environment, sourcing responsibly produced materials, and contributing to education.

Themes: Ethics and social responsibility, sustainability, distribution strategy, promotion strategy, product strategy, pricing strategy, competitive advantage, innovation, leadership, global business, premium pricing, new product introduction, advertising, publicity, distribution strategy, supply chain.

Case Summary

Tesla, an all-electric vehicle and energy generation products company, is widely admired for its industry-altering innovation built around its core vision of moving the world toward sustainable energy. Though Tesla got its start with electric vehicles (EVs) in 2003, the company has branched out to create a variety of renewable energy technologies from solar roof tiles to clean energy storage. Today, Tesla is the most valuable carmaker in the world. Remarkably, the automaker reached this status with a $0 advertising budget. Tesla has a gift for attracting publicity due to its promotion tactics, such as its launch events, and headline-worthy achievements. Despite the company's success, Tesla has attracted both skepticism and criticism from the public as well as investors, largely due to CEO Elon Musk's outspoken nature, which has damaged the company's reputation and stock price more than once. Tesla's corporate social responsibility (CSR) strategy addresses stakeholders' interests by monitoring and reporting on the company's product and operational impact, emphasizing consumer safety and responsible sourcing, and focusing on its employees and building a strong organizational culture.

Problem/Decision Statement

Despite the company's success, Tesla has attracted both skepticism and criticism from the public as well as investors. Not all of Tesla's publicity has been positive. Tesla's history of leadership challenges has followed it in the media. Though many companies have benefited from having a celebrity CEO, Tesla has had to reign in CEO Elon Musk, who has been both an asset and a liability for the company. Additionally, Tesla now faces more competition than ever as mainstream automakers invest heavily in EVs. Musk believes that Tesla's competition is not the small percentage of EVs being produced but rather the large number of gasoline-fueled vehicles saturating the market. .

CASE STUDY 2

Discussion Questions

1. In what ways does Tesla address the interests of its stakeholders "namely: employees and customers" through its CRM system?

2. How would you describe Tesla's marketing program?

3. Provide a comprehensive explanation on Tesla's distribution strategy which makes it different from other automakers?

Please answer each question in detail.