A silicon valley version of the automotive business model. The process of buying a car is essentially the same as it was a generation ago. 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. Tesla mission our goal is to create awareness of the potential of electric vehicles and particularly around those created by tesla motors we want to bring powerful electric cars from the narrow luxury market to mainstream america elon musk ceo and chief architect. But much of the mainstream acceptance and excitement for electric cars can be traced back to. Understanding tesla motors marketing strategy market realist. Tesla s internationallevel strategy is the transnational strategy. Business strategy teslas business strategy is clearly differentiation. Teslas distribution strategy is much different from that of other automobile manufacturers including ford, fiat chrysler, and general motors.
Jul 12, 2016 teslas strategy is risky and aggressive, but it has worked. Once it is more established and widely known as a successful idea, it would venture into a more competitive market of lowerlevel priced models. Below is the pricing strategy in tesla marketing strategy. Pioneer towards a new strategic approach in the automobile industry along the open source movement. Teslas strategy in 2020 a comprehensive overview youtube.
In michael porters model, a generic competitive strategy represents the companys approach to competing in the market. Posts about tesla marketing strategy written by pjda. In order to effectively implement this marketing strategy for the model s. I have to analyze how closely tesla aligns to lean agile operations. Tesla decided not to build a traditional car dealer network.
Hi guys, im writing a report for my university degree on lean operations and i chose to look at tesla motors. That company is tesla motors, founded by elon musk, 43, a cofounder. Tesla motors was founded in the year 2003, 1st july by its esteemed cofounders jb straubel, elon musk. Marketing mix of tesla motors tesla motors marketing mix. Coming from a highly sophisticated technology, the tesla products are categorised in premium pricing strategy in its marketing mix owing to the huge material and research and development costs, but when compared to competitors like bmw electric cars, it is still starts at a low price. Report contains a full analysis of tesla segmentation, targeting and positioning and tesla marketing strategy in general.
Nov 28, 2018 tesla was a tiny company that was seen as a boutique venture. Tesla motors is the pioneer company in the manufacture of electric cars. Tesla motors designs and sells highperformance, highly efficient electric sports cars, with no compromises. Jul 25, 2016 last week elon musk released the second installment of teslas master plan. Elon musk has his master plan available for anyone to read on teslas website. But, how has a company founded in 2003 been the car brand with more engagement over audi, bmw, toyota, cadillac or porsche. Since the late 2000s, the firm has forged partnerships. This paper seeks to explore reputational risk management practices of tesla inc. Sep 02, 2015 teslas distribution strategy is much different from that of other automobile manufacturers including ford, fiat chrysler, and general motors. 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.
In 2006 he published the secret tesla motors master plan just between you and me which summarized, so, in short, the master plan is. Its important for tesla to get its china strategy right, as the country is and will continue to be the worlds largest ev market. I think its interesting to look at tesla because lean operations started with toyota another auto manufacturer but obviously tesla operates. Sep 21, 2019 what makes tesla s business model different. Tesla motors, currently known as tesla inc is a public limited company of american origin. In the contemporary world of business and technology, few companies get as much. 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. Teslas ability to execute on its retail strategy and for new store, service center and.
Im finding it difficult to find information, any ideas where to look. It deals in energy storage products and is associated with the automotive industry. This case study provides analysis of the strategic marketing plan of electric vehicle manufacturer, tesla motors. Tesla motors was founded in 2003 and released its first electric sports car in 2008. Monography of a innovative car company focused on ecosystem and disruptive innovation analysis. We are going to analyze the marketing and advertising strategy of tesla.
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 model of apple computer. Elon musk has made a bold bet that the car industry can move faster than anybody believed possible. Teslas supply chain management strategy focuses on a longterm growth strategy involving production, inventory management, and distribution. 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. Teslas competitors have much higher revenue, so the actual cost of research and development is high, but the percentage of revenue spent comes to only 4. 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. Pdf tesla motors business model configuration researchgate. Use that money to build an even more affordable car. Pioneer towards a new strategic approach in the automobile industry along the. Could a strategy based on openness in the end turn out to be a key advantage. Tesla was a tiny company that was seen as a boutique venture. Tesla motors plans for the next 4 years business insider.
This is an ingenious marketing strategy that leads to anticipation making each of. Teslas ability to execute on its retail strategy and for new store, service center and supercharger openings. 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. In 1996 general motors came out with general motor.
One of teslas stated goals is to increase the number and variety of evs available to mainstream consumers in three ways. May 29, 2019 segmentation, targeting, positioning in the marketing strategy of tesla. Many people have tried to change the auto industry over the last 40 years and none have succeeded. How has tesla come to be a reference without spending money on advertising. Tesla motors cars combine style, acceleration, and handling with advanced technologies that make them among the quickest and the most energyefficient cars on the road. Tesla entered the market through expensive highend cars targeted to the more financially privileged class of people. Marketing strategy of tesla tesla marketing strategy. Tesla sales blow past competitors, but with success comes scrutiny, january 2014. Tesla was named after nikola tesla, who was a very successful inventor and scientist of his time. Summarize the key areas of the previously completed case analysis for tesla. Growth strategy teslas growth strategy is mostly driven by the anticipated high demand for model 3. They make electric vehicles evs that people want and can afford to buy. Report contains a full analysis of tesla marketing strategy.
It also makes and sells energy storage systems as well as installs, operates and maintains solar and energy storage products. Teslas internationallevel strategy is the transnational strategy. It was the first electric car built from the ground up and massproduced by a major automaker adler 1996. But much of the mainstream acceptance and excitement for electric cars can be traced back to tesla motors. 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. I have also been tesla motor s primary funding source from when the company was just three people and a business plan. Business strategy tesla s business strategy is clearly differentiation. Ehs team has built a strategy based on three pillars. One of teslas stated goals is to increase the number and variety of evs available to mainstream consumers in.
It outlined teslas automotive strategy and it has been pretty much. Marketing report on tesla motors publish your masters. Tesla motors, inc pioneer towards a new strategic approach. Tesla motors tsla history founded in 2003 by elon musk current ceo, jb straubel cto, martin eberhard, marc tarpenning, and ian wright tesla roadster first manufactured product, offered from 2008. Marketing strategy of tesla tesla marketing strategy explained. Albert alla smita biswas victor hang fung renny saldanha patricia trutescu 2. Tesla is known mainly as the maker of fully electric vehicles. May, 2019 how has tesla come to be a reference without spending money on advertising.
Tesla wants to become a high end, low volume manufacturer, as that would allow them to stay alive in the current market. Tesla motors elon musks giant battery factory in nevada is absolutely key to teslas future because it will help the company cut the cost of its batteries. Tesla shows how traditional business metrics are outdated. Even if the most popular model of tesla vehicle is not tesla roadster currently, the continuous development of this vehicle model assist tesla establish high entry barriers in this blue ocean, the first mover advantages that tesla has are benefit to the development of tesla as a whole. The case focuses on the electric vehicle segment of the business formerly known as tesla motors inc. Tesla has revealed its plans for china business insider. Understanding tesla motors marketing strategy market. He had remarkable achievements in radio technology and electrical engineering of serbian descent.
The marketing and advertising strategy of tesla telling. Last week elon musk released the second installment of teslas master plan. 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. Summary does tesla have the resourcescapabilities to provide a sustained competitive advantage. Tesla cars are great their ecosystem strategy not so much. Tesla motors was founded in the year 2003, 1st july by.
The strategy of tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as. Pdf tesla international business strategies researchgate. Tesla s competitors have much higher revenue, so the actual cost of research and development is high, but the percentage of revenue spent comes to only 4. Segmentation, targeting, positioning in the marketing strategy of tesla. The secret tesla motors master plan just between you and. Shen haiyin, ceo of chinabased electric car startup. By applying a brilliant business strategy, tesla managed to become one of the household names in the automotive industry around the world.
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