Marketing Strategy and Plan of Tesla Motors

Running head: MARKETING STRATEGY AND PLAN OF TESLA MOTORS
Marketing Strategy and Plan of Tesla Motors
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1MARKETING STRATEGY AND PLAN OF TESLA MOTORS
Introduction
Named after the Serbian American inventor Nikola Tesla, the Tesla Motors Inc is an
American automotive company, based on energy in California. It was founded by the American
entrepreneurs Martin Eberhard and Marc Tarpenning in the year 2003 (Van den Steen, 2014).
The company was primarily formed to develop electric sports car, with findings from various
other sources. The company has it specialization in the manufacturing of electric car through the
use of solar panel. The purpose of this report is to articulate the organizational strategies of the
Tesla Motors and the business model of the organization. It also deals with the different
approaches of the company to operations, the developments of its products and marketing, as
well as the innovation and growth.
Discussion
Summary of Tesla’s Strategy
Tesla's business strategy is to recreate distinctive life cycles to the technological
products and the first target wealthy buyers, then shift to the bigger markets at the reduced
prices. The present strategy is to maintain a competitive advantage and attract the global
automotive market. On the other hand, the Tesla Motor’s mission and strategy is to accelerate the
world’s transition to sustainable energy (Rothaermel, 2013). Its main aim is to maximize its
productivity , by selling products at reasonable prices. The Tesla Motors has strategized in a
manner in which it can reflect the company’s aim for the dominance in the global electric
vehicles and the market of battery.

2MARKETING STRATEGY AND PLAN OF TESLA MOTORS
Operations and undertakings of Tesla
Tesla Motors’ expansion plans in the global market depend on the successful practices
and the overall performance in the productivity. It depends on the operations management and its
effectiveness, the organization’s operations management is focused on the innovations of the
electric cars and car accessories. The operation managers conduct quality reviews on a regular
basis and implements enhancements to the manufacturing processes (Hemelka, 2015). The
operations management decision focuses on the business processes, and it automates the
manufacturing processes along with human intervention. The operations of the Tesla Motors
focus on the global supply chain as well as well as enhances the productivity through the regular
training and leadership development programs (www.tesla.com , 2019)
Marketing
The target customers of the Tesla Motors are the individuals or the households who are
not indifferent towards the environmental issues and the negative environmental implications of
the emission of carbon dioxide. It recognizes it market segment ad has a target to reach a greater
customer base. The people belong to the categories of eco-friendly nature, tech-savvy as well as
the luxury buyers, ranging in the age group of 20s to 40s. Since 2015, the company has been
successfully selling the all electric luxury car SUV which has reached to a record of 100,00
vehicles in the year 2017 (www.tesla.com, 2019). Its biggest strength is its positioning the
market of cars, with its price incentive performance automobile segment. Tesla’s marketing, its
promotional as well as its advertisement costs amounted to 66.5 million US dollars in the year
2017. According to a report from Global Equities Research, Tesla spends as little as USD6 per
vehicle on advertising (www.tesla.com 2019).