Strategic Group Map Of Tesla Samples †MyAssignmenthelp.com

Question: Discuss about the Strategic Group Map Of Tesla. Answer: Mentioning how the rivals in the automobile industry are positioned and drawing a strategic group map for the industry rivals The automobile sector is certainly one of the growing industries despite the downturn in worlds economy. With its innovative electronic models such as Tesla Model 3, Model S and Model X, Tesla runs its operation as a strong signal about the direction of the sector. In this context, Mangram (2012) argued that Tesla Motor is pushing its competitors to embrace electrification. Here, this argumentative statement can be supported with the recent state of global automobile industry, in which worlds environmental department mentioned the nations should put a ban on the sale of all fossils and fuel-burning vehicles by 2040. Likewise, the automobile giant Ford mentioned that it would stop selling gas-only cars. Cheong, Song and Hu (2016) for example, mentioned that GM could beat Tesla by releasing its proposed mass market EV. In addition to this, Tesla might have to be prepared for the competition with its rivals like General Motor, Ford Motor, Federal Signal Corp and Oshkosh. Here, these competitors are positioned based on the revenue, quality of products and market share. The overall revenue of Tesla in 2017 was 11.7 billion, which is more than 4 billion higher than revenue gained in 2016 (Cheong, Song Hu, 2016). Nonetheless, the revenue of General Motor was 166.4 billion in 2016 and Ford Motor reported 151.4 billion in 2016 (Rawlinson Wells, 2016). On the other side, when it comes to market share, automotive sales of Tesla increased by 0.37%, whereas the General Motor reported the increase of 15.93%, Ford Motor reported its growth of 15.56%, Oshkosh and Federal Signal Corp report the increase of 0.69% and 0.09% respectively(Cheong, Song Hu, 2016). Thus, it can be asserted that even though the competitors like GM and Ford Motor are few steps ahead in terms of revenue and market share, Tesla is moving fast with its electronics models. Thus, in terms of quality of products Tesla beats its competitors. Additionally, the consumption rate of Teslas electronic motor vehicles is also higher compared to its competitors. Figure 1: Strategic Positioning mapping of Tesla and its competitors (Source: Self-Made) As discussed above, Tesla has been positioned based on two variables Quality of products and customer preference. According to the data presented above, Tesla holds a top position in terms of quality and customer preference, whereas General Motor and Ford Motor have high revenue but the customer preference rate is low compared to Tesla. On the contrary, the position of General Motor and Ford Motor has been notified with a wide circle respectively, which indicates that these two firms hold a top position with respect to market share and revenue. However, Oshkosh and Federal Signal Corp has observed a poor growth in revenue; thereby, it has been notified with a tiny circle. Assigning firms occupying the same map location to a common strategic group Figure 2: Firms falling under a common strategic group (Source: Self-Made) The above-mentioned map indicates that General Motor and Ford Motor occupy the same map location as they use a common strategy, which is product diversification. This means that the competitors General Motor and Ford Motor pay attention to multiple categories of products. In order to maximize the market share, both in domestic and international market, Ford and GM launches different categories of vehicles such as GM produces Hummer H2, Pontiac GTO and Chevrolet Volt (Luthra, Garg Haleem, 2015). On the contrary, Tesla only focuses on manufacturing high quality electronic cars. References Cheong, T., Song, S. H., Hu, C. (2016). Strategic alliance with competitors in the electric vehicle market: tesla motors case.Mathematical Problems in Engineering,2016. Luthra, S., Garg, D., Haleem, A. (2015). Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry.Production Planning Control,26(5), 339-362. Mangram, M. E. (2012). The Emperor's New Clothes: A Framework for Market-Based Management at Tesla Motors.Journal of Strategic Management Education,8(3). Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis.Journal of Strategic Marketing,20(4), 289-312. Rawlinson, M., Wells, P. (2016).The new European automobile industry. Springer. Singh, K. (2007). Predicting organizational commitment through organization culture: A study of automobile industry in India.Journal of business economics and management,8(1), 29-37.