Tesla’s
goals are not set in producing and manufacturing high-end electric cars to make
money and move up in the charts. Their goals are set as their mission states “to
accelerate the world’s transition to sustainable energy” (Tesla, 2018).

In
contrast to most car companies who spend billions on advertising costs, Tesla
simply needs to send a tweet announcing the new release of a model. This is
because of the strong brand name which is created through their business
strategy. Because Tesla is already a high valued brand, people will be talking
about the cars without Tesla needing to do any effort (Feedough, 2018).

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Tesla
focusses on a differentiation strategy. Tesla aims to differentiate and stand
out from their competitors. This is in comparison to an economies of scale
strategy which focusses on gaining market share by selling large volume for a
low price. As mentioned, competitive pricing is not an important part of Tesla’s
strategy 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 electric
power 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.

Their
strategy can also be explained in a few simple steps:

A
business strategy is the means by which it plans to achieve its objectives. It
can be described as a long-term business planning (Businesscasestudies,
2018).
Tesla used a special business strategy to enter the market. Instead of starting
with selling less expensive cars to target a large market share, Tesla entered
the market with expensive high-end cars. Tesla’s first high-end model was
launched to communicate the company’s image. This image made the brand widely
accepted and respected.  After creating a
strong name for the brand, the company ventured into a more competitive market
of lower priced cars. The brand was already highly valued by a wide public and many
consumers were interested in the brand but could simply not afford it. Now that
consumer who could not afford a Tesla before can purchase one, the market share
increases (Feedough, 2018).