Tesla’sgoals are not set in producing and manufacturing high-end electric cars to makemoney and move up in the charts. Their goals are set as their mission states “toaccelerate the world’s transition to sustainable energy” (Tesla, 2018).Incontrast to most car companies who spend billions on advertising costs, Teslasimply needs to send a tweet announcing the new release of a model. This isbecause of the strong brand name which is created through their businessstrategy. Because Tesla is already a high valued brand, people will be talkingabout the cars without Tesla needing to do any effort (Feedough, 2018).
Teslafocusses on a differentiation strategy. Tesla aims to differentiate and standout from their competitors. This is in comparison to an economies of scalestrategy which focusses on gaining market share by selling large volume for alow price. As mentioned, competitive pricing is not an important part of Tesla’sstrategy because they focus on maintaining their strong image and high quality.Tesla differentiates itself as a high-end and sustainable brand.
5. Don’t tell anyone.4. While doing above, also provide zero emission electricpower generation options.3. Use that money to build an even more affordable car.
2. Use that money to build an affordable car.1. Build a sports car.
Theirstrategy can also be explained in a few simple steps:Abusiness strategy is the means by which it plans to achieve its objectives. Itcan be described as a long-term business planning (Businesscasestudies, 2018).Tesla used a special business strategy to enter the market. Instead of startingwith selling less expensive cars to target a large market share, Tesla enteredthe market with expensive high-end cars. Tesla’s first high-end model waslaunched to communicate the company’s image.
This image made the brand widelyaccepted and respected. After creating astrong name for the brand, the company ventured into a more competitive marketof lower priced cars. The brand was already highly valued by a wide public and manyconsumers were interested in the brand but could simply not afford it. Now thatconsumer who could not afford a Tesla before can purchase one, the market shareincreases (Feedough, 2018).