Tesla Inc. was founded in 2003 with the objective developing electric automobile. The company
has greatly grown over the years following its effective strategies of product and service
delivery. The first phase of its products included sports cars that saw the company penetrate
deeply in the automobile industry. However, it is essential to note that Tesla is not only an
innovative company, but also a financial organization that enacts innovations that are aimed at
minimizing the operational costs. For instance, Semi is an electric driverless truck and it is the
latest product offered by Tesla to the market. Therefore, one of its approaches in the automotive
industry is to ensure that it delivers cars and trucks that are cost friendly and environmental
friendly. With models such as the Tesla 3, the company has significantly grown and met the
expectations of the consumers.
Tesla Business Strategy Analysis
Tesla Inc. is a company that enacts approaches such as the generic strategy towards obtaining
considerable market share in the automotive industry. A look into the company`s business
strategy in the automobile explores e strategy that it establishes in competing in the market. One
of the core strategies that have seen Tesla`s quick penetration into the automobile industry is the
market penetration strategy. It is essential to note that the company has also fostered market
penetration strategy as an approach of ensuring it gains competitive advantage. This approach
allows an organization to grow through growing sales returns in the current automotive market.
For instance, there has been considerable demand of the tesla automobile products in the current
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market. This has allowed the company to increase its revenues. In addition, the company aims at
rolling out an increased number of its electric cars to larger markets such as the United States.
The significance of Tesla rolling out more of its electric cars and selling them to the United
States is to ensure that it creates reputation and demands a desirable market share in this region.
In addition, an organization looks into maximizing on its returns through expanding its market
share. Therefore, this approach adequately explains the company`s generic strategy through
developing competitive advantage rooted on the prospects of market share. Consequently, the
goal of this strategy is to ensure growth of Tesla`s returns through different innovations within
the automotive industry.
Product development is another strategy that has adequately helped this company towards
meeting its objectives. Through this strategy, the company grows by developing new products
that generate new sales. For instance, Tesla`s innovation approaches have allowed it to foster
new products in the automobile industry. This has facilitated the corporation to command a
desirable market share in the market. With Tesla`s approach being the establishment of
innovations that yield unique automobile products, it has effectively competed in the market. For
example, Tesla sales solar panels to its customers. in addition, this has been geared by the
development of the Tesla Roadster, which is the world`s first sports car that fully uses electric
energy. With this in mind, Tesla has endured considerable growth compared to its competitors.
The diversity nonspecific competitive approach allows the organization to focus on high
technology automotive. Therefore, intensive investments in the high technology automobile
allows the company to develop a unique brand within the market.
In addition, Tesla has fostered the market development approach that plays a critical role in
examining the various needs of the consumers in the automotive industry. It is essential to note
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that this approach entails entering new markets to grow the company through increased sales.
Moreover, the business grows globally because the objective of the strategy is to ensure that the
company expands beyond its locality. This has been achieved by Tesla because the company has
greatly invested in the market through establishing new operational points and facilities.
Although the company currently sells its products to very few markets across the world, it is
essential to note that further international expansion is expected. The significance of the
differentiation generic strategy is that it allows market development through creating unique
products. Tesla has achieved this because the company has created a unique brand through its
full electric cars and semi-truck. This has ensured that the company meets various demands from
consumers in the automobile industry.
Strategy Feasibility
Different strategies have been enacted by Tesla towards ensuring that the company meets its
objectives in the automobile industry. However, conducting a feasibility for these strategies is
essential since the automobile industry is dynamic. In addition, consumer references keep
shifting considering factors such as technology and environmental conservation. The market
development strategy is likely to earn Tesla considerable growth because of the high demand of
the products in the world market. In addition, the world is moving towards green energy where
environmental degradation is of major concern. Equally, the product development strategy is
likely to yield positive results given that this is an automobile company that fosters innovation in
technology to produce electric cars and trucks.
Tesla SWOT Analysis
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There are different strengths that Tesla depicts in the automobile industry. For instance, the
company is a top employer. One of the key factors of a successful company is that it is a top
employer in a given industry. This indicates that employee references are centered on the growth
and technological perspectives of the company. According to the Wall Street Journal (2020), the
company has been listed as one of the ideal places to work. Therefore, the company has attracted
many young job seekers with fresh talents. In addition, Tesla is a leading automotive brand for
2019, delivering over 367,500 vehicles. This implies that the company is relatively growing in
this industry and has become the best brand when it comes to electric cars. Other strengths
include its technological innovative and cross sell diversification in its products.
On the other hand, Tesla is prone to various weakness such as manufacturing complications and
being unable to meet the demands. All this weaknesses have affected the brand value in the
automotive industry. Production of Tesla`s cars entails high experimenting and complicated
procedures and this could lead to unbalanced supply and demand. The end implication could be
the company failing to meet the expectations of the consumers in the market. Other weakness
include the company lacking the degree of high volume production. There being no doubt on the
company`s prowess in actual energy saving cars, the demand for the cars has risen rapidly such
that the company`s product production rate cannot meet the demand.
There are different opportunities that Tesla can tap towards ensuring further growth. For
instance, the company could consider sales expansion, production of less expensive cars,
restructuring the electric energy batteries through technology in-house and developing market
confidence. The threats to the company include product obligation claims from consumers,
widespread competition, and product flaws among others.
Conclusion
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In conclusion, Tesla Inc. was founded in 2003 with the objective developing electric automobile.
The company has greatly grown over the years following its effective strategies of product and
service delivery. Product development is another strategy that has adequately helped it grow by
creating new electric cars and generating new sales. Technological innovative and cross sell
diversification in its products are some of the strengths of this company that have led to its
progressive growth. Equally, it is essential to note that Tesla uses market penetration as its core
exhaustive development strategy. Tesla is likely to experience more growth following its
innovations in the automotive industry.
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