Report contains a full analysis of tesla segmentation, targeting and positioning and tesla marketing strategy in general. In this company analysis case, such behavioral factors contribute to tesla inc. Marketing strategy of tesla tesla marketing strategy explained. The generic strategy that tesla has used is that of differentiation. Tesla s internationallevel strategy is the transnational strategy. Nov 28, 2018 tesla s strategy is a textbook example of how a company disrupts an entire industry and elon musk has proven that he is one of the greatest entrepreneurs of this generation. This swot analysis of the very organization will reveal all the significant insights regarding every factor of tesla business model. Tesla motors is wellknown for producing the best electric car models on the market by developing technology and pushing it as far as possible. Rather than focusing on a lowcost strategy, tesla invests vastly in new technology in order to differentiate their products and lead the industry in innovation. Very few brands sell fully electric vehicles and tesla has further differentiated its brand by adding luxury to its cars. The high operational costs associated with the product to consumer process lead to low profit margins. A deeper understanding about tesla is then developed under the lens of the swot, value chain and resource based analysis.
So far all theyhave reallydone is eat a tonof the upfront cost of doing business. New entrants in auto manufacturers major brings innovation, new ways of doing things and put pressure on tesla, inc. Moreover, the overall results of this analysis also include strategic reforms in light of all the swot factors, i. Tesla strategic analysis breana arrieta, kylee floodman, hallie messenger, pameet musafar chapman university argyros school of. Tesla motors cars join style, acceleration, and handling with advanced technologies that make them the quickest and the most energyefficient cars on the planet. Oct 11, 20 darden school of business tesla strategic analysis 1. A pioneer of sustainable energy options tesla motors is backed by a very strong research and development team and. A strategic audit of tesla, inc electrifying our future or. May 29, 2019 segmentation, targeting, positioning in the marketing strategy of tesla. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis, ansoff matrix and mckinsey 7s model on tesla. Our collaboration with tesla has been very well perceived by the market. The aim of this market analysis is to recommend tesla motors the best suit international market.
Tesla motors, inc pioneer towards a new strategic approach in the. Part deux of 2016, serial entrepreneur and disruptor elon musk reminded readers that out of all american car companies, only two have avoided bankruptcy. Market entry strategy in germany a corporate strategy analysis. It is not just about selling cars but completely revolutionizing the way we look at the entire driving experience. The swot analysis report of tesla presents the internal and external analysis of the company with insightful details. The saudis may be following this strategy to become again the leading country in the opec. This course will immerse you in teslas business strategy, marketing, financial statement analysis, financial planning and forecasting, and valuation. Tesla supply chain case study, strategic planning lessons learned, and insights to bring your business at a new level. Each topic will be broken down and analyzed from multiple perspectives to give you a holistic view of teslas approach. Teslas growth strategy is mostly driven by the anticipated high demand for model 3.
Tesla s strategic alliance helped to pave the way for making the first model s fleet reservation possible for leasing worldwide. Functional strategies teslas commitment to brand drives several aspects to its value chain and thus, affects its functional strategy particularly in sales and customer service. In a 2006 letter elon musk, teslas cofounder and ceo, explained. A diagram of a porters five forces analysis and list of teslas potential opportunities will follow. A strategic audit of tesla, inc electrifying our future. Nov 27, 2016 this paper is a strategic analysis of tesla motors, inc.
Elon musk has made a bold bet that the car industry can move faster than anybody believed possible. This paper is a strategic analysis of tesla motors, inc how tesla motors inc. The focus of this essay are the strategies used by tesla. The purpose of this paper is to perform an analysis and valuation of tesla motors strategy in germany. It has profound marketing management implications, as it addresses this investigation from the unique perspective of teslas new technologybased approach to automobile marketing and relates it to the successful marketing. My day job is running a space transportation company called spacex, but on the side i am the chairman of tesla motors and help formulate the business and product strategy with martin and the rest of the team.
While segmenting the market tesla didnt ask which segment is the most fuelconscious but which segment enabled the company to build longterm and innovative model vehicles. The sales of the electric cars of tesla motors increased from 100% to 360% in the previous year. Given the number of actions and partners, the overall matrix of actions against partner participation was. With the pull strategy playing a major role, tesla still has an upper hand. In the contemporary world of business and technology, few companies get as much.
Such reform should increase strategic effectiveness in addressing the strong force of competition shown in the porters five forces analysis of tesla inc. Ii teslas business model analysis using the business model canvas 102. I have also been tesla motors primary funding source from when the company was just three people and a business plan. Porter five 5 forces analysis for consumer goods industry threats of new entrants. The purpose of this report is to conduct a thorough market analysis for tesla motors. Marketing strategy of tesla tesla marketing strategy.
Almost 50 % of our initial order have already been prereserved by several of athlons existing. Pdf this paper is a strategic analysis of tesla motors, inc how tesla motors inc. Ehs team has built a strategy based on three pillars. Tesla pestel analysis harvard strategic management. The secret tesla motors master plan just between you and me. Understanding tesla motors marketing strategy market. Its cars are outstanding in terms of utility and luxury both. The customers are mostly males looking for luxury cars. The company could be the apple of this generation a massive success story, or it. It is based on this analysis that electricpowered vehicles. What business model and strategy does tesla motors follow. The other strategy that tesla can consider is to position themselves to be bought out by a large automobile manufacturer, becoming their electric car division.
All information for these assessments is obtained from tesla s 2017 10k. The company manufactures electric vehicles since 2003 tesla. Teslas supply chain management strategy focuses on a longterm growth strategy involving production, inventory management, and distribution. Herb benson, robert korn, samantha nettnin, and kevin peterson slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Tesla is the first company in the united states and globally to design, develop, manufacture and commercialize high performance and advance electric vehicles. Mar 22, 2020 tesla has emerged as one of the most discussed and analyzed companies among business enthusiasts. A diagram of a porters five forces analysis and list of tesla s potential opportunities will follow.
This paper is a strategic analysis of tesla motors, inc. Tesla s distribution strategy is much different from that of other automobile manufacturers including ford, fiat chrysler, and general motors. The following will be a strategic analysis, illustrating the. This paper seeks to explore reputational risk management practices of tesla inc. Tesla motors is a new age automotive company which manufactures alternative energy vehicles like solarpowered cars, hybrid vehicles, and battery operated vehicles. Tesla motors designs and sells high performance, super efficient electric cars. To begin the external analysis, a pest strategy will be applied to the identified threat categories. The last part assesses the way tesla is building competitive advantage through a sustainable strategy and a business ecosystem innovation. Report contains a full analysis of tesla marketing strategy. The swot analysis essays the detailed business case of this maverick automobile mammoth covering strengths, weaknesses, opportunities, and threats. All information for these assessments is obtained from teslas 2017 10k. With the technology advancement, there will be batteries that are more efficient and there will be more stations for charging the cars scholz, 2014.
With this strategy, tesla with this strategy, tesla seeks to simultaneously achieve low costs through economies of scale. As per the tesla swot analysis, the first point to consider is what the strength that this company has. Do they want to be a high end, low volume automobile marque like porsche, or do they want to be a low end, high volume brand like volkswagen. The first is ford, and youve probably worked out which is the second. Tesla intends to advance the desire for sustainable transportation. You know it as the maker of high performance fully electric vehicles and energy systems. Darden school of business tesla strategic analysis 1. Case analysis does tesla have the resource and capabilities to provide a sustained competitive advantage. May 03, 2017 tesla has been using the science and strategy that innovators use to create and dominate product markets. Tesla wants to become a high end, low volume manufacturer, as that would allow them to stay alive in the current market. View essay example 1 tesla strategic analysis report1. Once it is more established and widely known as a successful idea, it would venture into a more competitive market of lowerlevel priced models.
Analysis of tesla motors marketing communications strategy marketing report aylin kadriye tansel term paper business economics offline marketing and online marketing publish your bachelors or masters thesis, dissertation, term paper or essay. Strategic analysis is performed to get an understanding of the external and internal factors that. Pioneer towards a new strategic approach in the automobile industry along the. Tesla entered the market through expensive highend cars targeted to the more financially privileged class of people. Tesla s strategy is risky and aggressive, but it has worked. Jul 24, 2017 teslas stock price recently took a hit because of concerns about its delivery capabilities and about increasing competition from carmakers who are switching their product lines to electric. Feb 09, 2020 teslas strategic alliance helped to pave the way for making the first model s fleet reservation possible for leasing worldwide. Sep 12, 2018 a tesla roadster at the tokyo auto salon, 2011. Tesla launched its first product following a niche market strategy. Tesla has a unique positioning in the automobile market. Financial statements analysis, tesla incorporation, financial ratios, comparative statements, commonsize analysis, research and development expenses.
Customer analysis in the marketing strategy of tesla. In other words, teslas ongoing tsunami of success in the industry is relatable to a specific and existing strategic theory it perfectly first the model of playbiggers category king. Since then, tesla hasnt just kept up with competitors. Tesla motors cars join style, acceleration, and handling with advanced technologies that make them the quickest and the most energyefficient car. It has profound marketing management implications, as it addresses this investigation from the unique perspective of tesla s new technologybased approach to automobile marketing and relates it to the successful marketing model of apple computer. The results of the swot analysis also suggest strategic reform to ensure tesla s competitiveness and longterm success in the global automotive and renewable energy markets. Tesla looks towards sustainable, performance technology to outdo all of its competitors, rather than focusing on a being a cost leader within the market. Its headquarters are located in silicon valley, a highly strategical location for itcompanies. Sep 02, 2015 teslas distribution strategy is much different from that of other automobile manufacturers including ford, fiat chrysler, and general motors. Analysis of tesla motors marketing communications strategy. Its mission and vision statements emphasize the focus of the company is ushering in the new era of electric cars, which it considers more reliable, efficient and sustainable.
Jul 12, 2016 teslas strategy is risky and aggressive, but it has worked. Monography of a innovative car company focused on ecosystem and disruptive innovation analysis. Teslas marketing strategy of direct sales influences the bargaining power of customer. Jan 11, 2019 this is swot analysis of tesla motors. The typical customers of the brand are business executives and entrepreneurs who are techsavvy, greenfriendly and wealthy. Growth strategy teslas growth strategy is mostly driven by the anticipated high demand for model 3. Business strategy tesla s business strategy is clearly differentiation. Tesla motors, inc pioneer towards a new strategic approach. This case study provides analysis of the strategic marketing plan of electric vehicle manufacturer, tesla motors. Analysis of main interventions this main section of the report considers each of the tesla actions in turn. Pdf tesla pestel analysis harvard strategic management. The brand is famous for the environment friendly vehicle and energy products it makes. Tesla has emerged as one of the most discussed and analyzed companies among business enthusiasts.
Today, tesla builds not only allelectric vehicles but also. Understanding tesla motors marketing strategy market realist. Swot analysis of tesla motors tesla motors swot analysis. Looking inside for strengths and weaknesses describes strengths as unique resources or.
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