Strategic Marketing & Value For The Customer Lynda Thomas ✓ Solved

Strategic Marketing & Value for the Customer Lynda Thomas

This paper will discuss Customer Value & Role in Mission and Company analysis in two parts. This paper will also answer questions concerning: Creating Value for Customers, The Role of the Customer in Company Mission, SWOT analysis and Competitive Analysis.

Customer Value & Role in Mission

Tesla’s customer value and role in their mission is somewhat different from the traditional auto manufacturer. Traditional auto dealers have distribution networks such as car dealerships that focus on moving a product. Tesla has showrooms and websites which function to communicate and create value for their customers (Hoffman, 2012).

Creating Value for Customers

Value can have a vast number of meanings. For some people, value could reflect on the price of an object, for example: What is the value of this car? Value could relate to the benefit of an object, such as the value I got from this car. Value could also relate to something of worth, hence the value for money. All these concepts are important to customer.

The value and meaning of a product could determine what a customer’s willing to pay for what they consider as benefits or a better product or just more convenience (Mahajan, 2020). Value is created by mindset and culture. Mindset and culture are very difficult to change and imitate (Mahajan, 2020). Creating customer value enhances loyalty, market share, price, reduces errors and increases efficiency. Creating customer value increases customer satisfaction and the customer experience.

The Role of the Customer in Company Mission

With most companies, the mission statement is the declaration of an organization’s reason for being. The fundamental purpose that differentiates a business and thus defines it from other products or services and markets is the role customers have on the mission of the customer and its philosophy (Alousque, 2019). Fossil fuels and petroleum are certain to expire from earth in the next 50 years.

The response to the upcoming reliance of electric vehicles and cars will positively have one brand that is Tesla (GS & LS, 2020). A brand like Tesla will lead the race of electric vehicle cars in the future simply by understanding their target markets and appealing to the growing eco-friendly technological customer, which drives their mission (GS & LS, 2020).

Company Analysis

According to research conducted in the last 5 years, Tesla's development has been in an unstable fluctuation (Huang, 2019). A true fact is that Tesla has to face risks and challenges from its dangerous cost control, increasing long-term debt, and negative income growth. By using analysis tools such as SWOT and Competitor Analysis, this can help a company to deal with difficulties properly and turn development and profit to a more hopeful direction (Huang, 2019).

TESLA SWOT Analysis

Strengths:

• Tesla is a leader in the electric vehicle industry.
• Tesla was the first company to make a practical electric car to sell to consumers.
• Tesla car sales are directly to consumers, instead of selling cars through dealerships.
• Direct sales help Tesla sell the cars at a lower price without dealer mark-up.
• Tesla is a leading competitor in self-driving car technology giving them a competitive advantage over other electric cars competitors (McCain, 2019).

Weaknesses:

• The company has a hefty debt load due to heavy capital expenses and years of losses, hindering future investments.
• All of its vehicles are produced in one facility in California, creating additional costs in sales for shipping and import taxes for consumers in Europe and China.
• Tesla sells all its vehicles directly to consumers; they also have to ship all of the vehicles directly to consumers (McCain, 2019).

Opportunities:

• The electric car market is going to continue to grow.
• Consumers are becoming more environmentally conscious and technology improves to make electric vehicles more affordable.
• Tesla is well established in the United States market and has a growing presence in both Europe and China (Eric, 2019).

Threats:

• Tesla’s electric vehicles have a high price tag because they are expensive to produce.
• Well established competitors begin to sell electric cars at lower price points, causing Tesla to struggle to reach its much-needed growth.
• When trying to grow in foreign markets, consumers may prefer vehicles made by manufacturers in their home country versus those made in America (McCain, 2019).

Competitive Analysis

The competitive landscape includes all major competitors trying to sell essentially identical products to the same type of consumers. The chart below illustrates four criteria selected as important factors to consumers when making decisions about which of the competitors’ offers are better. Tesla ranks highest overall based on this analysis.

Conclusion

Tesla’s mission shows the shift towards business approaches influenced by the consumers and market that are looking more futuristic. Manufacturing sources of green energy makes this company the future of sustainable transport (Musk, 2013). Although there are still many problems affecting the financial health of the company, its potential for future growth is significant.

References

• Alousque, I. N. (2019). Persuasive Strategies in Mission Statements. CIÌRCULO de LinguiÌstica Aplicada a la ComunicacioÌn, 80, 37.
• Eric, W. (2019). Tesla’s New Products And Challenges In 2019. Greentechmedia.com.
• GS, D., & LS, M. R. (2020). Customer perception towards Tesla electric car’s innovative features. Journal of Contemporary Issues in Business and Government, 26(2).
• Hoffman, A. (2012). Tesla Takes on the Dealerships-and GM. Bloomberg.com.
• Huang, Y. (2019, February). A Potential Company or Not: the Analysis of Tesla. In 2019 4th International Conference on Financial Innovation and Economic Development (ICFIED 2019).
• Jing, N. (2020, December). Research on Tesla’s Customer Care Innovation. In 2020 Management Science Informatization and Economic Innovation Development Conference.
• Mahajan, G. (2020). What is Customer Value and How Can You Create It? Journal of Creating Value, 6(1).
• McCain, C. (2019). A Strategic Audit of Tesla, Inc.
• Musk, E. (2013). Tesla Mission and Vision Statement Analysis.