Value Chain Analysis of Tesla

Tesla is a clean energy and electric automobile manufacturing American multinational company. Marc Tarpenning, Martin Eberhard, and Elon Musk founded the automobile company in 2003. Today, we’ll discuss the value chain analysis of Tesla supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Vendors of Tesla

• Panasonic
• LG Energy Solutions
• CATL
• Rohm and Haas Company
• Modine Manufacturing
• Glencore
• Ganfeng Lithium
• BHP
• Clarcor
• Burlington Northern Sante Fe Corp
• Argent
• Mann+Hummel
• ABC Group
• Harada
• Gentex

The Value chain analysis of Tesla supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Tesla value chain analysis company example as follows;

Value Chain Analysis of Tesla

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Tesla supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Tesla

The primary activities are directly involved in the production of products and goods and adding value to the company. Some of the five main primary activities in the value chain analysis of Tesla supply chain analysis are as follows;

Inbound Logistics of Tesla

I-Material Sourcing

Tesla sources raw materials, parts, supplies, tools, equipment, and components for the production of electric automobiles, solar panels, and energy storage devices. The automobile brand sources following raw supplies and materials;

• Specialty materials
• Battery chillers
• Cobalt
• Lithium
• Nickel
• Coper
• Steel
• Aluminum

II-Suppliers Network

Tesla has established a very large network comprising thousands of suppliers, vendors, and manufacturing partners. The automobile brand has built a very good and effective relationship with suppliers and vendors to ensure the smooth availability of raw supplies and materials to the company’s manufacturing facilities. Some of the main suppliers of Tesla are as follows;

• Avid Technology
• Bel Fuse
• CECO Environment Corp
• Core Molding Technologies
• Deswell Industries
• Gorman Rup
• Handy and Harman

Outbound Logistics of Tesla

I-Warehouses and Distribution

Tesla has a very large network of warehouses and distribution centers in various countries across the globe. They play a key role in making the company’s automobiles, solar panels, and energy storage devices for the end consumers. However, they receive finished products, tools, parts, vehicles, and solar items from the company’s production and manufacturing factories; assemble and package products, and then move them to the chain stores and showrooms.

II-Direct Sale

Tesla doesn’t employ any middlemen like resellers and dealers; rather the automobile brand directly sells its products and automobiles to the end consumers. The large and diverse distribution network would help the company to make its automobiles available to customers on time without any delays. Most importantly, it helps the company to control the retail price from increasing and offers a direct cost benefit to the end consumers.

Operations of Tesla

I-Automobile Operations

 Tesla engages in multiple automobile production operations ranging from designing of tech structure and layout of the vehicle to production and manufacturing hurdles. The automotive brand has a production capacity of approximately 1845985 electric vehicles in multiple categories and produces vehicles of different types. The production and assembling operations of the automobile brand in the company’s factories are very large and diverse.

II-Solar and Energy Storage Operation

Along with the production and manufacturing of electric vehicles, Tesla also engages in multiple operations of the production, distribution, and installation of solar panels and energy storage devices. They comprise sourcing materials, production of panels, installation, and performing repair and maintenance operations.

Marketing & Sales of Tesla

I-Marketing

Tesla doesn’t invest capital resources in traditional marketing and advertisement. Instead, the company and its founder Elon Musk spend on buzz marketing on social and digital media platforms. The brand has the unique advantage of being the pioneer automobile brand in the EV manufacturing industry.

II-Retail Chain Stores

Tesla has established a very large network of approximately 1208 retail sales outlets. They help the company to remove all the middlemen and intermediaries; and directly sell its products to the end consumers.

Services of Tesla

Tesla offers a wide range of services to the end consumer along with automobiles and solar products. The additional service portfolio helps the company to improve the customer satisfaction level and promote brand loyalty. However, some of the main services of the brand are as follows;

• Repair and maintenance
• Charging stations
• Insurance
• Customer support service

Supporting Activities of Tesla

Supporting activities are indirectly involved in the production of products and goods and adding value to the company. Some of the main supporting activities in the value chain analysis of Tesla supply chain analysis are as follows;

Infrastructure of Tesla

Tesla has established a very large infrastructure comprising production and manufacturing factories, supplier networks, distribution channels, warehouses, and retail chain stores. The large and diversified product portfolio would help the automotive company to smoothly perform its various operations and timely deliver the finished goods to the end consumers.

HRM of Tesla

Tesla has employed over 140,000 employees to manage its global operations. The human resource management department of the automobile brand plays a key role in building a large database of employees, conducting training programs, and skill development, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Tesla

Tesla invests a significant amount of capital resources in research and technological development. The research program helps the company to develop efficient electric automobiles, unique tech designs and features, and gain a competitive edge over competitors.

Procurement of Tesla

Tesla is highly careful and cautious about ethical sourcing and procurement of raw materials, parts, and components. The automobile brand makes sure that the company’s suppliers are engaging in the ethical and sustainable and complying with the human rights standards.

Conclusion: Tesla Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Tesla; we have realized that Tesla is the world’s leading electric automobile manufacturing brand. If you are learning about the Tesla value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.