Value chain of the company

Value chain of the company

Hi guys!
I have home exam in strategy, and I choose to write about Tesla. I've tried to find some information about how the production take place. I'm using a marketing model, value chain/value configuration model by Michael Porter. The concept of the model is to think of an organization in terms of sets of activites. The main focus is on the primary activites; inbound logistics, operations, outbound logistics, marketing and sales, and service. This is where i'm stuck!

I've searched alot, but didn't get any information about "inbound logistics, operations, and outbound logistics", there are the hardest to find. So if any of you guys have some knowledge, I would appreciate it. i

In addition I want to know your guys opinion, about this question:

"What makes Tesla so different from everybody, like is it becuase of their dynamic capabilities, their resources, and competence?"


Timo | 23 oktober 2013

Opinion: yes. ;-). Also vision and intelligent way to realize it.

calimann83 | 23 oktober 2013


Ah, Micheal Poters value chain model. Always a fun one :)

Here is the thing about doing research on a firms value chain, finding the details is usually very difficult. Remember that the way they perform these activities is, according to porter, what sets them apart from competitors. So this means that most companies are not be to open about these sorts of things. Of course you probably do not need to many details, and there are some assumptions you can make.

From what I have seen Tesla owns almost all of their value chain, from production and design to the customer. This, of course, will make it even harder to find information because most of the transactions taking place are internal. This is also one of the things that sets them apart, this control helps them reduce cost, but it also helps them control quality.

Another factor is their Elon Musk. He is one of those innovative entrepreneurial types and I am pretty sure he is pretty deeply involved in the operations of the company. He has taken some risk that others would not which has, for now, benefited the company.

That's about all I have,I have only done some preliminary research on their value chain for some work I am doing. hope that helps a little. just remember that it is okay to make some assumptions, as long as they grounded in reality and reasonable.

Brian H | 24 oktober 2013

There is a diagram labelled with names of parts suppliers, somewhere on this site or linked.