Answer To: Case Analysis for Amazon, Mattel, and Tesla. Analysis should be based on pdf cases provided (please...
Arunavo answered on Mar 12 2021
Running Head:CASE ANALYSIS FOR AMAZON, MATTEL, AND TESLA 1
CASE ANALYSIS FOR AMAZON, MATTEL, AND TESLA 2
STRATEGIC MANAGEMENT
CASE ANALYSIS FOR AMAZON, MATTEL, AND TESLA
Table of Contents
Introduction 3
1. Company’s Vision, Mission and Objectives 3
2. Corporate Strategy and Business (or Competitive) Strategy 4
3. Industry Analysis 6
4. Company Situation Analysis 9
Amazon 9
SWOT Analysis of Amazon: 11
Mattel 13
SWOT Analysis of Mattel: 14
Tesla: 15
SWOT Analysis of Tesla: 17
5. Recommendations 18
Conclusion 19
References 20
Appendix 22
Introduction
For any company to function properly some strategic management decisions are taken as for sustaining themselves in the competitive market while delivering the products and services to the customers. The companies, however, must have strategies for future sustainability in market by adopting and introducing the technologies that will be trending in the future. The project report is about Tesla, Amazon and Mattel’s strategic management decisions that will certainly help them to adopt the changes in the market and to introduce technologies that will trend in future. A detailed SWOT analysis of the companies will be made and the strategic recommendations will be discussed further.
1. Company’s Vision, Mission and Objectives
Amazon is one of the e-commerce giant based from Seattle, United States, which was founded by Jeff Bezos in June 1994 (Adaji & Vassileva, 2016). The corporate mission and vision of Amazon is to support company’s competitive aspects and advantages with respect to the rivals in the market. The company’s mission is to provide customers with lowest possible price for the products and services and with best available options for the customers with a convenience to avail them. The corporate vision of Amazon is to be a customer centric company with the availability and supply of products and services as per the demands of the customers of any part of the world with a whole range of available products to choose from the catalogue of products. The company’s objective is to be a leader in the e-commerce platform through their products and services (Amazon, 2020).
Tesla Motors was founded in the year 2003 by a group of engineers in a drive to manufacture electrically driven vehicles. Today along with electric cars, Tesla Motors are manufacturing products responsible to produce clean energy generation and storage products. Tesla Motors mission is to provide the world with a sustainable transportation system. As the fossil fuel, which is mainly petroleum, through which until date the motor vehicles are running must be replaced by a more efficient and environment friendly electric transportation system. The vision of the company is to provide most compelling cars to the people of the twenty first century with future technology driven by electric vehicles to provide a clean and sustainable environment. The objective of the company is to be global leader in the electric driven car company and energy generation company (Tesla Motors, 2020).
Mattel is a toy manufacturing company founded in the year 1945 by Ruth and Elliott Handler in Sothern California and later on formally incorporated their headquarters in Los Angeles, California in 1948. The mission of the company is to provide the products or the toys with safe standards for the children, as they will fall in love with the toys and a trust for the company will be build. With a responsible sense of providing quality products, they build rust among the people. The vision is to be one of the premium toy brands in the world with providing excellent toys in every household where there is a kid. Company’s objective is to provide quality products for their sustainable growth (Mattel, 2020).
2. Corporate Strategy and Business (or Competitive) Strategy
Tesla Motors corporate strategy is to introduce new line of products in their product portfolio. With a vision to introduce, a full line of electric vehicle option for the customers in their long term strategic set up. Company planned to introduce three cars namely Tesla Roadster, The Model S, the Model X Crossover SUV, Tesla Semi Truck, Model Y, Model 3 are few models that they want to spread in the market. The distribution strategy company has adopted is to open company owned operated network of retail store and service centers to ensure that the customer satisfaction is preserved. Different programs will be offered to the customers as to add some value to the products. The technological and product development strategy is funded with $4.1 billion up to 2018, hence proves the seriousness of the company towards their mission and vision (Rothaermel, 2016).
Amazon can be said to be the company, which introduced the concept of buying essential daily consumable goods online the way customers used to purchase from stores. Starting from selling books online they transformed themselves in selling everything that can be sold online. The strategy is to leverage the technological capabilities for the success of business through a cost leadership strategy aimed at offering the maximum value to their customers with at a very reasonable price. Systematically, the company has captured the local supply chain of groceries and has slowly introduced varieties of products. Initially they were focused to the US markets only, however seeing their success they slowly started to spread their operation globally and enabled the people all around the globe to purchase products from anywhere at any time and every time they wish to (Mazzei and Noble, 2017).
Mattel is the name that is popular among the children’s with the quality of toys they have provided over the years. In recent years the company did failed to perform as expected hence a complete restructure of the strategy is proposed as to bring back the company in the book of profits. Company decided to build Mattel’s core brands into a 360 degree connected play systems and experience. The company further focused on the market trend for digitization, hence the digital first solution is offered to the customers. The company had shifted their focus on the strengthening the innovation pipeline for the products. Complete revamp of the company’s operation strategy with introduction of a new working culture with a young energetic team of members to work consistently with the zeal to be a market leader by offering the technologically updated solutions (Gilliard, Hoffman & Baalbaki, 2019).
3. Industry Analysis
Porters five force model of strategy consists of five factors, which are competitive rivalry (strong force), Bargaining power of buyers (moderate force), bargaining power of suppliers (moderate force), threat of substitution (moderate force), and threat of new entrants (weak force).
Tesla Motors:
In today’s world, pollution is at its peak as because of the vehicles running on combustible fuels. Hence, there is a need for the alternate solution for travelling; therefore, the introduction of electric vehicles had taken place. The future of this industry is going to be bright; however, the challenges that will be faced are—
· Limited driving range, which is a serious challenge
· High cost of maintenance
· Regular issues with the battery and
· Infrastructure to set the charging spots on different place as petrol pumps are installed to provide charge to the vehicles (Hannan, Hoque, Mohamed & Ayob, 2017).
Hence, these are few challenges that the electric vehicle industry faces and that can be further explained by Porters five force model.
There are only a small numbers of the companies operating in the auto market with the technology Tesla is providing, however the companies generally are aggressive in innovating and promoting their products. However, there is limited chance of rivalry in the external market due to limited players. In the second force, the low cost of Tesla Motors reduces the barrier from other manufacturers to lure the customers. Therefore, a substantial number of customers buy cars from Tesla.
As in many areas, the public transportation is not that much accessible hence people rely on having their own car. Hence, in this scenario the bargaining power of customer is moderate. In the third force the suppliers have a moderate influence over the supply of materials to the as the suppliers are of moderate size hence there is very less influence. In the fourth force, the threat of substitution is there as there are many low cost public transportation available hence there is a strong force working in this scenario. In the fifth force, it is quite difficult for any new entrant to compete with the brand image that Tesla has established hence it is have a weak force with respect to new entrants (Musonera& Cagle, 2019).
Amazon:
In any industry, there are certain challenges and that goes as well with the e-commerce industry. The common problems are —
· Absence of online identity verification of the customers
· Cash on delivery option will be threatening for the company
·...