The various factors influenced changes in Tesla

Balogun and Hope-Hailey’s Change Model explains factors influencing change. The model has four classifications of change types that eventually combine to form four strategies. The four strategies under the model include Adaptation, Evolution, Revolution, and reconstruction. Under the adaptation strategy, change is incremental, and processes result in the realignment of the organization according to the prevailing changes. According to Coppola (2021), e-commerce has become an indispensable part of the retail framework worldwide, with most companies using the online platform to distribute their products. Thus, in this case, Tesla had to change to align the current sale strategy with the best systems that support increased sales within contemporary society. However, the company maintains some of the physical stores as displays for their new and existing technologies.

Tesla also implemented the changes to eliminate geopolitical barriers which affected the distribution of its products through physical stores. An example is the lack of effective dealership laws overseas, which complicated consumers’ knowledge acquisition process. In some locations, the company called their physical stores “galleries,” whereby employees could not take orders or discuss factors like prices with product customers (Dow, 2019). Thus, the strategy could help reduce the inefficiencies that limit the distribution of its products to consumers across the world.

According to Dudivskiy (2019), Tesla’s organizational culture encourages employees to experiment with different business methods. Thus, the company’s sales and distribution changes could have facilitated the transition to a better way of marketing and distributing the company’s products. This approach to operations forms part of the revolution strategies since the change was immediate due to analysis of perceived benefits of the change on the business strategy.

Additionally, economic factors influenced changes in Tesla. The companys cars face intense competition from typical electric vehicles (EV) made in China, mainly due to costs attached to the vehicles. Thus, establishing online stores will reduce costs associated with the distribution of the products worldwide, such as showroom costs and transport costs for delivering the vehicles to the showrooms and their customers. Additionally, the companys strategy shrinks the number of workers required for physical store retail hence reducing the overall costs of the cars. However, the company also applies evolution as part of the change process since the company has been engaged in various modifications to the initial plan to lay off employees. The company described the new roles for existing employees that include redirecting and assisting online buyers to a central virtual store (Klender, 2021). This strategy will enable the company to maintain the low-cost approach to compete against the low-cost EVs manufactured from local industries while maintaining employee performance standards.

Finally, the change aligns with the current modifications associated with sociocultural variations within the society. An example is social distancing that has resulted from the ongoing global pandemic, the coronavirus. While the government regulations discourage access to physical stores by customers, the traditional retail strategy for the company would limit the company to only a few customers that can access the products and their attributes. Thus, the adoption strategy will eliminate barriers to access to the companys products through online stores. According to Balogun and Hope-Hailey’s change model, reconstruction is an essential process whereby changes resulting from the big bang are realigned to integrate with the existing business model. Despite Tesla closing some of its stores in high-end malls, the company has maintained some physical stores to display its technologies while at the same time offering various products online through its e-commerce platform.

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