This study is to identify why Tesla is the biggest Electric Vehicle company in the world, why it has been able to spread its wings in other countries and China especially and If its strategy as a whole is a one worth emulating by other companies. This will bring to bear mostly what Tesla is doing right and some of its shortcomings as an automobile giant. The first part of this study emphasises on the fast growing network of the global market scene as well as how some corporations attack new markets, with some successful ones acknowledged. A short introduction on Tesla is made; history, products, owners and some financials as well as future projects. In order to answer the question why Tesla is able to enters new markets, the strengths and weaknesses of the company was looked at, then its viable opportunities and daunting threats were put against each other. Tesla is seen to be a high innovative company with a strong brand and can use these to its advantage despite its weaknesses and threats. Based on this analysis comes the marketing strategy of Tesla. By identifying the marketing strategy of Tesla we hope to eliminate all assumptions and put to front if this strategy has been successful for Tesla or not.
? E.V. (Electronic Vehicle)
? Power Train
? IPO (Initial Public Offering)
The world is now a global village, and the movement of globalization is taking over. It can be traced back to a sequence of cultural, social, economic and political blends both domestically and internationally. This has created an internationally integrated market. Globally, both domestic and international companies face the daunting question of whether they should enter new markets, and if they do, how far should they go to localize their products or services. Should they change already existing products or services just so it appeals to the consumers in the target market? Or a whole new business model should be re-thought of from the top. The standard methodology to foreign expansion is to try to sell core products or services the same way they are sold in the western part of the world, that is, The United States and Europe, as the model is keenly monitored from headquarters. Once such methodology is embedded most companies find it difficult to make some changes. An example is when Dominos Pizza entered the Australian market with a western approach. They nearly failed because they underrated the basic need to modify their products to satisfy local tastes. It was only after they realized that were they able to take a strong hold on the market. Nestl? the food titan is said to be the master of market adaptation because many consumers think Nestl? is a local company. This is because their products have been incorporated with local flavours. Toyota, the Japanese car brand was and is very successful in many different markets in the world as they design their various car models according to the terrain of the market. China in itself has seen an influx of international companies and brands over the past two decades, with some being very successful and others not too successful. Most of these companies are from the west and the others coming from in and around Asia. Companies and brands that have ventured into the Chinese market include; Fast Food: Kentucky Fried Chicken (KFC), Dominos Pizza, McDonalds and Starbucks. Automobile; Hyundai, Toyota, Tesla, Nissan, Buick etc. Financial Services; Citi Group and Deutsche Bank. Other honourable mentions include Uber, Walmart and Decathlon. One of the most notable, well-defined and imposing stories in the world of international markets is happening right now in China. As of now, TESLA Model S reservations are being accepted Tesla posted on Weibo (CNNMONEY, 2014). Tesla, the electric car giant has been selling its cars in China since 2013 and was projected to sell over 5,000 units every year. China could be as big as the U.S. market, maybe bigger. I dont want to get excited over it, even without building there locally, it is always going to be the second biggest market after the United States, CEO of Tesla Elon Musk said in January 2015 (HYBRIDCARS, 2015). Amidst some key setbacks for the car maker in 2008, they pushed and in 2018 Tesla announced plans to build a new factory in Shanghai that is expected to make 500,000 electric automobiles within five years (USA TODAY, 2018). How did they do it?