Global Team Assignment (gta)


Resources and Capabilities (370)



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Resources and Capabilities (370)


Tesla’s Silicon Valley mindset combines a technologically based business, passionate and talented people, huge levels of optimism & strength to embrace failure, quick adaptability and cooperation among others. Top management starts with the end in mind. Generally people possess critical and analytical thinking, curiosity about the environment, creativeness, and openness. Tesla Motors has a high performance culture and organization, innovating through creative and disruptive products and services (Oppong, 2013; Founder Institute, 2013). Doing things differently versus traditional vehicle manufacturers is one of the valuable and rare capabilities the company has as long as it continued ability to be costly-to-imitate by its competitors.

Employees have strong engineering background either on power and electrical or vehicle design and manufacturing, which is a rare capability since gives the company specialized and focused on technology to coupled then with the vehicle manufacturing, which Tesla defines as the one that will sustain its leadership on electric vehicle industry (Tesla Motors, 2014).

Intellectual and technological development is a rare and non-substitutable capability for Tesla. With their in-house made electric powertrain, which not only they design and build for the models they sell but also for other car manufacturers such as Daimler and Toyota, they’ve created a core competency in which to base their business model from. (Tesla Motors, 2014). To achieve this the company owns manufacturing facilities at Tesla Factory in Fremont, California in the United States, and in Europe at Tilburg, Netherlands. Besides the facilities, Tesla Motors does market and sell their cars without dealers but through their owned stores and galleries in order to perform a closely customer relationship management, as well as for a better control on inventory turnover (Tesla Motors, 2014). The latter can be considered as a temporary competitive advantage that needs to take future considerations.

With all these physical, organizational and human resources and capabilities, the company looks forward to enhance customer’s experience, in addition to their own process of building their models, the regulatory compliance and quality is important on their goal and market positioning. For that reason, Tesla focuses on earning zero emission regulatory credits and safety standards from organizations as shown on figure X. Another reason for aiming to earn regulatory credits is to obtain financial revenues.




Source: Hitt (Appendix 4) and [Tes141]


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