Case Study : Tesla's Strategy

1829 Words Dec 7th, 2015 8 Pages
3.Company Strategy
For Tesla, having a defined and attainable strategy for the future can determine its success or its failure especially taking into consideration that the company is small, and has does not have the capabilities other older and bigger car manufactures have. Tesla’s strategy has followed what is considered the natural trend of technological innovations, entering the market with high-end expensive products and as demand increases, prices for said technologies drop. Initially, Tesla entered the automaker industry with an expensive, high-end product targeted at affluent buyers. As the company, its products, and costumer’s acceptance matured, the company started to switch into a larger, more competitive markets at lower price points, where the company would have to compete for people who own less disposable income and are much more price sensitive. Musk constantly maintained from then beginning that “Tesla’s long term strategic goal was to create affordable mass market electric vehicles” (Fehrenbacker), and the company is on track to fulfill the vision of Mr. Musk. But, as Tesla grows it must have a defined strategy that will help it maintain its position as the clear market leader in the EV market.
One of the most innovative fact about Tesla’s business strategy is the companies distribution methods. Tesla business model cuts out independent car dealers (Welch 2007). Tesla operates stores or galleries –usually located in shopping malls- in 22 states and D.C…

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