Operational Strategies of Tesla and Nio

TESLA AND NIO
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Table of Contents Section 1. 3 Introduction. 3 Business Environment 3 Section 2: Tesla. 5 Supply Network Management 5 Capacity Management 5 Process Technology. 6 Product Service Innovation. 7 Quality Management & Improvement 8 Section 3: Nio. 8 Supply Network Management 8 Capacity Management 9 Process Technology. 9 Product Service Innovation. 10 Quality Management & Improvement 10 Section 4: Comparison of Nio & Tesla Operations Strategies. 11 Supply chain management 11 Capacity Management 12 Process technology. 12 Product service innovation. 12 Quality management and improvement 13 Conclusion. 13 References. 15   Section 1 Introduction Many companies have entered the electric car market in recent years owing to recent developments in new technologies. However, all these companies have approached this relatively new industry differently. They have created different philosophies and processes that they are betting will determine the future of the industry. Two of these companies are Tesla and Nio. Tesla is an American company headquartered in California and arguably the leader in this industry. Nio is a Chinese company headquartered in Shanghai, China. These two companies have developed very different process technologies and philosophies. This research has used secondary sources to find credible information about these two companies and compare their operational strategies and how they have affected their short and long-term goals. Business Environment  The electric car market is a relatively new market that has grown tremendously recently. One of the electric car makers, Tesla, has reached a trillion-mark valuation, and newer companies like Nio, which struggle to produce 5000 cars over the week, have a valuation bigger than that of Ford Motors and Honda, which are notable heavyweights in this industry.     Carmakers valuation vs. units produced:   Source: Marketwatch.com The industry has become very competitive largely because of the consumer awareness of the impact of climate change caused by humanity's reliance on fossil fuels (Foster, et al., 2021). Newer technologies have also helped these companies grow. Additionally, investors are pumping a lot of resources into these companies giving them the necessary resources for R&D and ramping up production. Market valuation running into trillions shows the faith investors have in the industry. Governments like in China have also supported these companies through subsidies and tax breaks, helping them weather the teething problems of startups (Li, et al., 2020). Generally, the market is ready for their products, and investors have shown confidence in the industry. There are few large players in the industry, but the barrier to entry is very low; hence more companies are springing up all over the world, seeking to claim some market share in the future. Section 2: Tesla Supply Network Management  Tesla has previously sought to vertically integrate its supply chain. Tesla was the pioneer of mass electric vehicles, and there was no well-developed...