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Introduction Tesla Motors is an electric car and energy company that produces and sells electric cars, solar panels and energy storage devices. It is headquartered in Silicon Valley. In 2004, Elon...

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Introduction
Tesla Motors is an electric car and energy company that produces and sells electric cars, sola
panels and energy storage devices. It is headquartered in Silicon Valley. In
2004, Elon Musk manages the company and leads a round of funding. Cu
ently,
Tesla has opened its market around the world.
Key Partners
As for the key partners, Tesla has signed many agreement with many partner in automotive
and battery manufacturing industry. The most famous one can be Daimer, a German
Automaker who own
and Mercedes-Benz. Daimer already adopted the battery
technology into some of their car model. This cooperation is aim to develop the
attery technology together. Same as Daimer Tesla also cooperates with Toyota.
They shared the battery technology and using it into their own car. From both alliances,
Tesla took many knowledge from those two players which been used in developing its
future implementations( Karamitsios, XXXXXXXXXXTesla also cooperate with battery manufacturing industry Panasonic Corporation, they manufacturing battery cells and packs for automaker industry( Motors, T XXXXXXXXXXGovernment can also be an important partner for Tesla, for example United States
government who provides policy supports for Tesla’s innovation. Another important
partner can be a technology company called NVIDIA, it provide infotainment,
navigation and instrument-cluster system for many Tesla model(Tesla 2018).
Key Activities
Tesla start its business as traditional carmaker, but there are more activities within its portfolio. Manufacturing electric cars and most of the components can be the core activities for this company. Another activity is associate with its directly sale system, it runs their own car dealerships(Chen & Perez XXXXXXXXXXInnovation is an important theme in Tesla, in order to achieve this goal, it built a Research and Development center in England in 2014. This new R&D center will cooperated with main one try to develop technologies and material for their future product. Tesla also built Gigafactory in Reno, Nevada, a huge battery plant that has been working to solve production bottlenecks(Tesla XXXXXXXXXXThose battery and cells will be sold to those carmaker industry such as Toyota and Mercedes. Building and developing charging station can be another key activities for Tesla. The network already well developed in America, Canada and part of Europe. The plan is to develop those infrastructure in other strategy country(Tesla 2018).
Key resources
As for key resource, those technology patents that Tesla has can be consider as most important resource. The technology team of Tesla is also part of key sources. Moreover, the battery technology can be adopted in many different areas. Tesla share this technology with other peers which create a knowledge share relationship with other automaker industry. Those knowledge form different peers can be consider as key resource. (Monsellato 2016) The action of technology share made Tesla earned reputation, which become its resource as well. In addition, Tesla has more than 1190 supercharge station with 9,184 Superchargers across North America, Asia, Europe, and the Middle East.( Logan 2018) This charge station is another key resource for Tesla.
  
Value Proposition
Unlike gas-powered vehicles, Tesla produce the full-electric vehicle that will not exhaust air-polluted gas and environmental friendly. Moreover, the materials used for the vehicles can last longer. It can run over 200 miles, of which, the accelerations and technologies adopted are very advanced. It means electric cars can last longer than the traditional gas-based vehicles. The vehicles that produced by Tesla are eco-friendly, its plant process using sustainable operations.( Pressman 2016) Safety can be the other value proposition for Tesla, Tesla Model S has been tested independently by the National Highway Traffic Safety Administration, through which, its safety performance is rated 5-star.(Weisenthal 2013) The given result is not based on the overall perspectives, but based on all the subcategories. In addition, Tesla offers different type of car in different price, which meet the demand for different buyers and expand the customer base. The supercharge station of Tesla help EV overcome the limitation of short distant. At the same time this service is free for every Tesla owner which became two value propositions.
Customer Relationship
Customer relationship is a significant part of Tesla's long-term commitment. There are four beneficial measures for the customer. First, the Over-Air Auto recall software update is free and standard for all S models. Second, Tesla set up charging stations for customers around the world to pay attention to the battery's charging range. Third, Tesla has established 47 service centers worldwide, including 36 in North America, 8 in Europe, and 3 in the Asia-Pacific region. Fourth, in order to make up for the shortage of fixed service centers, Tesla has also established a number of mobile service centers to meet customers' maintenance needs.
Channel
The channel is a key part of Tesla's external sales. Direct sales through Tesla's global network of own-owned car dealers is the easiest way for Tesla. Besides, experiential marketing and e-commerce sales model is different from the traditional car dealer network, Tesla adopts Apple-style experience shop sales model. Furthermore, these experience stores are directly managed by Tesla and have nothing to do with dealers. In Tesla's experience shop, customers pay the deposit and Tesla will deliver the car to the door. More importantly, Tesla is the first
and to rely on Internet sales in the sales model, these channels are from the perspective of customers, in order to better customer satisfaction.
Customer Segments:
The customers are the most important part of an organization and the same thing goes for Tesla. The business model of Tesla emphasizes on producing and designing innovative sleek and eco-friendly designs, sold on high profits (Mangram XXXXXXXXXXThough the market share of the company is quite low because of the segment it caters to, the sales of the electric vehicles are expected to soar up with the changing environmental conditions with the increase in the recharging stations.(Chen & Perez XXXXXXXXXXWith its innovative designs and the technology, the company is able to attract more and more customers. The customers of Tesla motors is mainly the individuals who are looking for high performance electric cars, they are usually upper class and upper middle class individuals.
Cost structure:
Being an innovative company and the company which is driven in research and technology to be eco-friendly, the cost structure of the models manufactured by the company is high. The company emphasize on manufacturing its cars in-house. Even the assembly of cars and manufacturing unit is handled by Tesla which helped Tesla to spend less cost as compared to other car manufacturer (Stringham, Miller & Clark XXXXXXXXXXThe company also built its own network of company owned stores rather than the distributors and the employing people on sales commission (Van Den Steen XXXXXXXXXXThe major costs of the company includes the research and development costs and the costs related to selling, general and administrative expenses (Rajashekara XXXXXXXXXXThe selling, general and administrative expenses are mainly related to personnel and facilities costs.
Revenue streams:
With the increased environmental concerns, the new generation vehicle which run on electricity has emerged. Almost one in every six new cars in 2025 will be electric vehicles  around the world (Gray XXXXXXXXXXThe company’s revenues has increased over the period. The company’s revenue accounted to $ XXXXXXXXXXin the year 2017 which is 67.98% more than the year 2016 (Nasdaq XXXXXXXXXXThe revenues of the company includes mainly the automotive sales which are vehicle. The other means is powertrain component and related maintenance services (Mangram XXXXXXXXXXThough the revenues of the company has increased,  the company has high cost of production and operating costs because of which the company incurs losses. (Nasdaq 2018).
The innovation of Tesla's business model
The strategy of Tesla is different with traditional industry, they target the high-end market with a high price premium sports car. After that, moving to the mass market with compact sedan, which has
oader customer base. In order to create an affordable fully-electric vehicles for mass market, Tesla decided to share technology with other company. Other players can use and improve this technology in their production. The foundation of Tesla's strategy is to "learning by doing concept", make productivity increased by practices, innovation and self-perfection.( Monsellato 2016) The other innovation of Tesla can be their directly sales market system. The whole process happen through internet.(Tesla 2018) This innovation can give Tesla information about potential customer and cut down the middle cost which benefit customer as well. The other innovation that Tesla created is their infrastructure and battery swapping services offered. This service solve the disadvantage that EV can only used in short distances. This service is free work every Tesla owner which made Tesla has strong competitiveness in EV market.  
Conclusion:
Tesla is a company that adopt innovation thinking in all aspects. There are many creative features can be found through their operation and business model. Tesla Motor use its successful proved that even the automotive industry is dominated by the big players, it can still found its place in the market.

Business Models & Strategic Planning
Assessment Task 1 – Report & Presentation (Group)
This assessment has two parts: Part A is a group report and Part B is group presentations but marked individually.
1
Part A – Group Report
In groups of 5 students per group: Build a na
ative, script or report, from which your presentation will be based. As a group you will choose and analyse an existing business using the Business Model Canvas (BMC) as your main tool as well as some other Strategic Management techniques. Your task is to investigate and articulate the elements of the BMC and explain their relationship in detail. You will identify the business model pattern that underlies that business and explain how the pattern works. You will also assess the cu
ent environmental conditions in which this model operates and assess its continuing viability.
Overview
Business model analysis examines why and how a business is viable and valuable in the present and possibly in the future. It answers the simple question of how a business creates and captures value. After analysing a cu
ent or future business model, strategists have a better understanding of questions like:
· Where are our revenues coming from?
· What value is delivered to which markets?
· What costs are involved in delivering that value?
· Are our perceived key activities and key resources as important for gaining revenues as we think they are?
Business Model analysis is the basis of asking further questions of strategic relevance, like “If we change our model in a specific way, what are the effects?”

There are two important dimensions to learning about analysing business models. The first is obviously about gaining an in-depth understanding of a particular business model and its dynamics - its elements, the attributes of those elements and the relations between them. Results from analysing these elements, attributes and relations become the foundation for business model change and innovation for a specific company
Answered Same Day Apr 25, 2020

Solution

Akansha answered on Apr 27 2020
147 Votes
Introduction
Every organization need a plan to successfully operates it business idea and gain success. A company establishing its business explicitly or implicitly hires a customized business model that explains the creation of value creation, product delivery, and capture devices it establishes. The Business model essence can be defined in the way the organization delivers value to its consumers, entice them to make payment for the value, and changing the payments into profit. A business model also reflects the hypothesis developed by the management about the consumer’s choice in the product, look, and the methods through which an organization could meet the demands along with gaining profits. The purpose of the given report is to understand the importance of business model by analysing it different key factors for a company. To understand the concept better the example of a well-known automobile company will be discussed.
Tesla Motors is a multinational company that manufactures electric cars and other energy operated products like solar panels and energy storage devices. The company is headquartered in the Silicon Valley, and cu
ently, Elon Musk is managing the company operations as the CEO of the company.
Key Partners
As for the key partners, Tesla has signed much agreement with many operators in the automotive and battery manufacturing industry. The most famous one can be Daimer, a German Automaker who own
and Mercedes-Benz. Daimer has already adopted the battery
technology into some of their car models. This cooperation is aimed to develop the
attery technology together. Same as Daimer, the Tesla has also collaborated with Toyota.They shared the battery technology and using it for their manufactures vehicles. From both alliances, Tesla collected a lot of knowledge which the two players have been using in developing its future implementations ( Karamitsios, 2013). Tesla also collaborated with battery manufacturing industry Panasonic Corporation. It manufactures battery cells and packs for automaker industry ( Motors, T. 2014). The government can also be an important partner for Tesla, for example, United States government who provides policy supports for Tesla’s innovation. Another important partner can be a technology company called NVIDIA, as it provides infotainment, navigation and instrument-cluster system for many Tesla models (Tesla 2018).
Key Activities
Tesla started its business as a traditional carmaker, but there are more added activities within its portfolio. Manufacturing electric cars and most of the components can be the core activities of this company. Another activity is associated with its direct sale system; it runs their car dealerships (Chen & Perez 2017). Innovation is an important theme in Tesla, to achieve this goal, it has built a Research and Development center in England in 2014. This new R&D center is expected to develop technologies and material for their future products. Tesla has also built Gigafactory in Reno, Nevada, a huge battery plant that has been working to solve production bottlenecks (Tesla 2018). That battery and cells will be sold in the carmaker industry and to the participants of it such as Toyota and Mercedes. Building and developing charging station can be another key activity for Tesla. The network is...
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