Blog--4

September 06, 2019

Blog--4

Blog 4

4(a).

Tesla is an electric car and solar company based in the United States, which mainly produces electric cars and solar panel equipment. Elon Musk is the company's CEO (Tesla, 2019) (Marketscreener, 2019). And Tesla is both a B2B model, partnering with other companies by offering products and services, and it is also a B2C company. Because Tesla also offers home and mass-market vehicles (Bhasin, 2019). The company came up with an overly successful business model where they focused on creating fascinating cars for the market. Tesla also included the creation of charging station networks in the strategy aimed at dealing with the main issue surrounding the acceptance of electric cars- that of long trip refueling (Chen & Perez, 2015). The exceptional business model, that includes all services and sales controls, is among the main reasons why the stock has risen in value considerably from its first public offering.

Picture: Tesla logo

https://www.inverse.com/article/26665-elon-musk-tesla-logo-what-it-means

Part of the mission by Tesla is to encourage the advancement of transport that may be termed as sustainable. In order to achieve this, Tesla designs and sells parts to other manufacturers of automobiles including the sale of powertrain components and systems. The company introduced a brand of home batteries, indicated as Powerwall, which serve as systems for energy storage in businesses as well as homes (Chen & Perez, 2015) (Tesla, 2019). The batteries may be connected to a solar system which may be used as a form of back-up power when it is interrupted or when there is high peak demand. The company sells the solar panels, entire solar roofing, and the above indicated Powerwall. In addition to its business model that may be viewed as three-pronged, Tesla provides financial plans similar to other manufacturers of vehicles such as General Motors. They include leases and ordinary loans. In some of the loan facilities, it has a guarantee provision for resale values. This, therefore, affords some protection to the value of the vehicle I case the client wants it sold.

Picture: Model S | Tesla Australia

https://images.app.goo.gl/QrsEBxkwv63xSdvZ7

Picture: Tesla Powerwall

https://images.app.goo.gl/v7GpNyd1V1fySd1g6

4(b). Amazon’s business model

Amazon is most of the times referred to as the biggest online retailer in the globe. The company operates along with a business model with many different components. The entity sells its products directly to targeted individuals (Buddhadev, 2018). Amazon targets a wide range of customers, including men and women over the age of 18 and almost all social classes, as well as people who like to shop online (Dudovskiy, 2018). Several products are presented to buyers via the online store with a slight mark-up, where the goods are kept in large warehouses owned by the company. Most of the clients visit the entity’s site based on the assumption that the goods are much less expensive and available to be shipped.

Apart from direct sales, the entity gives a platform for all types of retailers to sell their products. the range of products that are sold through the retailers are generally items that are not commonly found or those that have a much higher buying price, enabling Amazon to do away with inventory that moves slowly, which could in the end reduce profits. Even though Amazon does not have a fee for the retailers to display their items, Amazon retains a percentage of the sales as commission.

Amazon continues to maintain the Amazon Prime Service, a subscription-based model of business, including a small product line for electronics. Under the account, customers are required to pay a yearly subscription fee to get a same-day shipping or two-day shipping policy on the highlighted items, including access to streaming products such as movies and digital music (Buddhadev, 2018). The company also gains revenue through selling the famous e-reader, known as the Kindle, including the mobile applications and e-book purchases of applications afforded to owners of Kindles (Miller, 2010).