Peer review analysis and critique

Tesla has been able to achieve successful business marketing and brand name recognition. When someone mentions electric cars, Tesla immediately comes to mind. They are the global leader in the push for electric cars and making it popular around the world. This paper will go over my proposal for a new division within Tesla that is customer focused with an innovative mission, one that is differentiated from other products or services.

Proposal

Now that Tesla has already dominated sales in electric cars, luxury, sports, and economy level. Tesla has also purchased a solar panel company and now has exposure to serving residential and commercial properties in exploring cleaner energy. I think it is time for Tesla to research and develop an all-electric airplane. There will not be a further need for jet fuel and gases that are emitted into the air. According to (AirNav, 2017) Jet A prices average anywhere from $3.60 to $5.00 per gallon. With prices like that it can cost anywhere from four thousand to ten thousand dollars to fill up the tank depending on the type of plane personal or commercial. Tesla will save companies, and consumers thousands of dollars on airline travel, and its battery life will last longer than a plane that requires fuel; allowing Tesla’s plane to operate longer and get to its destinations faster.

How Division Addresses Customer Needs

This new division within Tesla will be called project cloud 9. Cloud 9 specifically serves customers travel needs while also cutting cost on airline travel for the consumer and Tesla the company. The other benefit is that there will be a decrease in air pollution from jet fuels and Tesla will lead this global change the same way they led the charge in making electric cars popular. Secondly, project cloud 9 will achieve the competitive advantage by offering consumers a better more cost efficient way to travel using clean energy and no diesel fuels. This makes things better for the environment, and hopefully extends the life of the ozone layer, and cleaner oxygen.

Vision and Business Model

There needs to be a vision statement for this new division that explains what this business plans to do that defines it and differentiates it from anything else that is out there. According to David, F. & David, F. (2017) a vision statement explains to everyone what the organization wants to become, and what its long-term goals are (2017). Cloud 9 wants to become the better alternative to flying, especially for people who care about the environment and want to do the right thing. Soon after Cloud 9 main goal is to influence all other major airline travel companies to follow our lead and begin researching and developing how to do the same thing. The faster this happens the better things will be for the planet and our kids, and their kids for generations to come. The business model will be similar to Tesla’s line of electric cars and the strategy to how they were released. First the electric planes will be developed and built out of the same factories in the United States where the electric cars are developed and built. The first plane to be designed and sold will be targeted at wealthy clients that fly on their own personal jets, or planes. Then we will use the proceeds from those sales to design and build a more affordable personal planes or jets for the middle class. Then we can design and build commercial airlines used for more than just a few passengers. We will follow a time line of two to four years in between each release of a new plane to see how the sales actually go before moving onto the next project.

How do Cloud 9’s Vision, Mission, and Value Statements Align with Tesla’s

According to Rowland, C. (2017) Tesla’s vision statement is to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles (2017). Tesla’s new division Cloud 9’s vision statement is very similar and closely aligned with each other. Cloud 9’s vision statement is to lead the world in clean energy, cost efficient airline travel for people and businesses around the world. Cloud 9’s vision statement addresses more towards the customer needs. According to Rowland, C. (2017) Tesla’s mission statement is to accelerate the world’s transition to sustainable energy (2017). Cloud 9’s mission statement is to accelerate the world’s transition from gas guzzling Jet-A fuels to clean sustainable energy. Both mission statements are again similar and align with each other, except the new division’s mission statement is more directed to planes and jets flying in the air, while Tesla’s mission statement is more generally directed to the world’s transition to sustainable energy. It is clear that the values of Tesla and its new division cloud 9 are of protecting the environment and leading the charge of transitioning the way the world drives and fly’s and how they travel as this will lead to cleaner air to breath, less chemicals and fumes that pollute the air we breathe.

Guiding Principles and Values of Culture, Social Responsibility, and Ethics

The guiding principle and culture that put Tesla on the map was by taking something that already exists, and making it better. Tesla motors took the idea of a car that people are already driving, and are used to purchasing gasoline to fill up the tank, and made it better by getting rid of gasoline and having the vehicle powered by an electric power source. Tesla’s goal was also to influence other motor vehicle companies to follow their lead, and they were successful. Soon after Ford, Toyota, Honda, BMW and others are all spending vast amounts of money on research and development to design a vehicle just as efficient as Tesla’s. The great thing about Tesla’s social responsibility was that they did not keep all of their designs to themselves, they have made their knowledge public in how to design and build an electric car. Of course leaving the most important patents, formulas, and designs secret. Therefore, by creating this open door policy and sharing their knowledge Tesla is actually following their vision and mission statement and accelerating the rest of the world towards sustainable energy and driving the world’s transition to electric vehicles.

Conclusion

In conclusion we have discussed the proposal for the new product and new company division. This paper also described how the new division and product addresses customer needs and achieves competitive advantage. We then described what the vision, mission, and values are and how they align with the company’s vision, mission, and values statements. Cloud 9 the name for the new division within Tesla may have found another niche by first targeting the wealthy audience first before rolling out more affordable prices to the everyday consumer.

Reference