Evaluation of Alternatives
These solutions will hopefully extend the business to its customers and help avoid these problems they are faced with. Their target market is very specific so it is important that cater to their customers very well. Tesla has a big competitive advantage of eco-friendly vehicles which customers can appreciate, so it is vital that Tesla acts to these solutions to fix their problems.
The first solution of creating a model that is less expensive so it caters to a broader market can have a big advantage for the company. They will need to some extensive research to make the less expensive model operational and beneficially to the company. Tesla needs to make sure to handle this solution with extensive research to make sure that their products does the functions it is supposed to do. They need to know whether they can produce a product with lowest costs. Also, they need to investigate how this will affect sales and if they will get a profit from this model. Tesla needs to take some important measures before they introduce the cheaper model into production. Providing a cheaper model to people can create a buzz to lower income customers who want to make a difference in the environment. It provides an opportunity to customers to be able to purchase such an item which creates customer loyalty.
A marketing solution is exactly what Tesla needs to reach out to potential customers. It will help people become more aware of the possibilities of eco-friendly vehicles. Usually when people purchase cars, they don’t think of the eco-friendly options and just skim through regular vehicles. However, if there were advertisements regarding Tesla’s products, they can see an increase in sales from the word getting out. When first starting out in the marketing idea, it is important to start it slow just to test how it will make a difference in the company. For example, they can start with a small advertisement through TV, radio, magazines or online platforms. Another step they need to take is to hire a good marketing crew to handle the job. These employees need to understand the business message and their overall approach in the market. These are vital key points before they take on marketing their business. If Tesla did decide to take on the cheaper model solution it could be a great advertisement to create buzz in the market considering it is rare to see a cheaper vehicle that is eco-friendly. Marketing would be a great way to share the benefits of the vehicle and what the features may be. A measure they can consider is adding a website that has vital information about Tesla’s products and a map that pinpoints where Superchargers are. It is important that this information is easily accessible to customers because they will be more willing to choose the product. If they solutions are approached correctly, it could really have a positive influence on the whole business and where they stand in the market.
Offer your best recommendation. Based on the analysis in above, recommend one of the alternatives. Support and justify your recommendation. Depending on the nature of the case, you may suggest management or leadership styles or commitments, describe the organizational structure, policies and systems, or outline changes to the business model needed to successfully implement this recommendation.