Piecing Together the Tesla Strategy Puzzle (Halla: HBR 9-2015)

1. What were the four major obstacles facing Tesla?

2.What are they going to do about them?

3.Who is Tesla trying to change the business model for the consumer or the automotive industry?

4.What parts, if any of the value chain does the Tesla model address and how do they do it?

Sample Answer

Tesla, Inc. is an automotive and energy compony specializing in the manufacturing and production of electric cars and solar panels, based in Palo Alto, California. Tesla is finally giving the world a breakthrough in environmental conservation by reducing the amount of carbon emissions to the horizon. Even with its stellar achievement and the amount of praise it globally achieved, there still lies a litany of obstacles in its endeavors to give the world the much-awaited electric cars. Among the obstacles standing on tesla`s way include but not limited to: need to establish enough battery stations, the cost of replacing the car batteries, limited battery range and the amount of time it takes while charging the batteries among other challenges. These challenges and the Tesla strategy puzzle are discussed in much details in subsequent paragraphs


As everybody knows, the Coca-Cola Company (see Appendix A) will be an outstanding enormous beverages maker with more than one multi year. On account of its solid image, it not just makes and conveys their items around the globe, yet in addition showcases the non-mixed refreshment concentrates and syrups. The organization has an immense arrangement of beverages, refreshments, waters, juice, teas, espressos, and sports drinks which they items, convey, market and permit everywhere throughout the world. Then, Coca-Cola additionally deals with its business in excess of 200 nations. (Datamonitor, 2009) The organization has a significant influence in the universal markets, and it likewise gives its probably the nearest contender Pepsi a major test when the costs of the beverages are about the equivalent. As indicated by the Coca-Cola official site (www.thecoca-colacompany.com), the organization is becoming quick with its growing, 92,400 overall representatives are being utilized to work for it (The Coca-Cola Company, 2009).

Then again, Coca-Cola turns into an effective organization and wins incredible income, utilizing its inner and outside promoting procedures to conquer a large portion of different contenders. The organization additionally guarantees that development is at the core of all that they do and it is one reason why they achievement. The report plans to dissect the market division for one of the world's most grounded brands Coca-Cola and discusses the distinctive market division factors by hypotheses and practices in the organization. Besides, the report talks about the focusing on and situating of Coca-Cola Company, it additionally gives the market to the association is sectioned for the organization.


With its high notoriety and solid brand picture, Coca-Cola Company changed its unique name Coke with New Coke in 1985, and, the organization additionally means to give their clients better taste (Datta, 1996). As a rule, in spite of the fact that the organization center around entire populace on the planet, youthful age is the objective advertised of the organization and they additionally need to show their items with brimming with youth and vitality to their clients. Pendergrast(1993) states that Coca-Cola are cool and genuine, and , separate Coke from its rivals while Plummer (1995) contends "pepsi being youthful, energizing and hip and Dr pepper being nonconforming, interesting and fun". (refered to in Jennifer, 1997). Coca-Cola Company needed to painstakingly consider discharging an eating regimen product offering because of fears of debilitating the brand. Some portion of the choice procedure depended on the creation of aspartame, which is viewed as a better sugar than saccharine with less symptoms (Patrick and Thomas, 1992). Coca-Cola has been utilizing its showcasing blend to demonstrate their prosperity business.

Market fragments help the organization to improve their items and administrations, recognizing what their clients require and advance new areas. They advertises the items selling into various or more than one market (for example Diet coke) (Patrick and Thomas, 1992). To comprehend what their clients need, Coca-Cola utilizes the customer division criteria and market into various gatherings: social, psychographic and profile.

Coca-Cola makes an incentive to its clients and with great execution to persuade individuals to purchase their items. The organization vigorously contributed heaps of cash to publicize the items starting with one nation then onto the next. As indicated by its official site (2009), Coca-Cola Company says that it is glad to be the longest consistent corporate accomplice of the Olympic Games. It is clearly that the organization has a long association with the Olympic Games since 1928 (The Coca-Cola Company, 2009). The notoriety is getting more grounded and more grounded now. There are in excess of 3,000 refreshments and being sold at each store and luncheonette and sports ground over the land (Hays, 2004). It is very accommodation to get them wherever for parties or any capacities. The Coca-Cola Company treats each store in an unexpected way. For instance, in Japan, Coca-Cola Company portioned its items for clients, through their items or most loved decisions as well as indicated by the sparing needs of coordinations and candy machines to bring more comfort and efficient, for example, help the charging or consistently conveyance (Joseph et al., 1993). In spite of the fact that the organization is winning great benefit, development is as yet one of the significant procedures to acquire riches. Distinctive new items and bundles could pull in individuals to purchase. For example, if organizations need to run achievement business, they should realize how to disintegrate in various culture. Coca-Cola knows individuals from various culture, utilizing its advancement to combine various societies and flavors to make new item (for example with the European dispatch of Jianchi, another beverage motivated by the old standards of customary Chinese intelligence (The Coca-Cola Company, 2009)).

The Coca-Cola Company means to concentrate on market and work shrewd. By and large, contrasting and old age, Coca-Cola appears to be progressively well known in the more youthful gatherings. Particularly they put candy machines in schools to acquire benefit. "A Coca-Cola official said that his organization would "keep on being exceptionally forceful and proactive" in following school business" (Marion, 2000). In 2008, the organization propelled in excess of 700 new items all inclusive, which was including in excess of 160 low or no-calorie drink alternatives (The Coca-Cola Company, 2009). This gives individuals more alternatives to pick what they need, particularly for those individuals who don't care to drink with an excess of sugar however water, so diet coke isn't the main choice for those individuals any longer.

Moreover, the organization pursues the mass showcasing methodology. As every one of the items are non-liquor and everybody can drink, Coca-Cola focuses all in all market as opposed to and specific section of the populace. However, this doesn't imply that Coca-Cola doesn't have its separation system to beat the entire market. For instance, diet coke isn't simply showcase division, it worries with the worth chain on acquiring Coca-Cola (see Appendix B) and Diet Coke in financial contrasts with obtaining, generation cost, just as promoting practical help cost (Peter, 1987). Coca-Cola has effectively portioned its market in various items. The organization remains the No.1 of selling the starting refreshments, juice and juice drinks, just as No. 2 in offers of sports drinks and No. 3 in offers of jug water (The Coca-Cola Company, 2009)

Coca-Cola utilizes a similar procedure to market and equation it's the same old thing: "One sight, one sound, one sell" (David, 1996). The Coca-Cola Company works its business in different geographic regions, for example, Eurasia and Africa, Europe, Latin America, North America and Pacific. Toward the start of 2007, the organization chose to change the working structure, joining Eurasia and Middle East Division, and the Russia, Ukraine and Belarus Division, and, with the India Division to shape the Eurasia working fragment; and consolidated the China Division and the Japan Division with the staying previous East, South Asia and Pacific Rim working portion to frame the Pacific activity section. This was finished constantly end of 2007. (The Coca-Cola Company, 2008)

Then again, Warren et al.(2001) claims that the situating and technique are being utilized in same condition in all nations and it shows a worldwide picture of fun, great times and satisfactions. Coke is "The genuine article" and exceptional. Coca-Cola has being situated with a low/no tech item, and "it's seasoned, carbonated, improved water in a plastic, glass and metal container"(Warren et al., 2001). Be that as it may, in spite of means to arrive at customers' longing, there was a fascinating issue turned out from its situating. For example, as indicated by Madden (2007), Diet Coke and Coke Zero (see Appendix B), in spite of the fact that Diet Coke isn't just planned to offer to ladies deliberately, 80% of Diet Coke deals are to female clients. The organization has done an exploration for male clients and it shows men are additionally intriguing in low-calorie drink however they just not acknowledge to drink Diet Coke since they may believe it's intended for ladies. Later on, the organization welcomed another item Coca-Cola Zero, which was focused at the male advertise, so the two items are altogether different in the market position. (Incense, 2007, refered to in David and John, 2009)


The Coca-Cola Company/Industry have secured a solid business advertise scale far and wide. Utilizing distinctive market procedures and partitioning the market sections to assist the organization with gaining more benefits. In addition, the organization (association) procedure and usage gives a short diagram of Coca-Cola Company's activity, focusing on and situating in the beverage business. For this situation, in spite of the fact that the organization is maintaining a decent business, there are still some other interior (for example situating) and outside provokes sitting tight for it to accomplish, for instance, Pepsi is one of the storeroom contenders and buys comparative items.

Being the greatest producer, wholesaler and advertiser of non-mixed drink industry, the Coca-Cola Company has been running fruitful business with its diversifying model on the planet. The organization is in a decent position to catch the market of any new drink classes. Coca-Cola keeps on extending their clients through contributing new items, continues developing and interest to show signs of improvement results for its business so as to get their reliable clients all through the world.

Informative supplement A:

Set up in 1886, The Coca-Cola Company works in excess of 200 nations and markets almost 500 brands and in excess of 3,000 refreshment items. These items incorporate shimmering and still refreshments, for example, waters, 100 percent juices and juice drinks, teas, espressos, beverages and caffeinated drinks. The organization has four of the world's main five nonalcoholic shining refreshment brands: Coca-Cola, Diet Coke, Sprite and Fanta.

The Coca-Cola Company is a worldwide business that works on a neighborhood scale in