Introduction to Tesla's Expansion in Bulgaria

Principles and Practices of
Marketing-PPM

Table of Contents
INTRODUCTION................................................................................................................................4
TASK 1.................................................................................................................................................4
Situational Analysis.....................................................................................................................4
Objectives....................................................................................................................................6
Task 2...................................................................................................................................................6
Strategy........................................................................................................................................6
Tactics..........................................................................................................................................7
Action...........................................................................................................................................9
Control.......................................................................................................................................10
CONCLUSION..................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
This study aims at identifying viability of introducing Tesla in Bulgaria. Tesla is
American electric vehicle and clean energy company. It was founded in 2003 by Elon Musk and
is headquartered at Palo Alto, California, United States. For this SOSTAC framework will be
applied for planning expansion of Tesla in Bulgaria.
Figure 1 SOSTAC MODEL
TASK 1
Situational Analysis
PEST framework of Bulgaria
Political Factor- In Bulgaria there is parliamentary republic system in which people have right
over government and ministry. President represent state and have 5 year term and prime minister
lead the council of Ministers heading various agencies by members of ruling party (Mihailova,
2020). This means that political environment in Bulgaria is moderately stable which does not
cause much difficulty for Tesla to enter Bulgaria.
Economical Factor- GDP growth of Bulgaria was 3.1% in 2018 and 3.4% in 2019 and this have
reduced to -6.2% in 2020. Reduction in GDP growth is because of unpredictable circumstances
in country. Bulgaria is free market in which private sector is large and public sector is small.
Other than this, Bulgaria is upper-middle-income country. Bulgaria is also a country where there

is availability of skilled workforce in country. These reasons suggest that there are both positive
as well as negative elements when Tesla enters Bulgaria.
Social Factor- Bulgaria is culturally rich country in which culture is very important part of life
of people in Bulgaria and among these, majority of people in Bulgaria belongs to Christian
Orthodox culture. This means that when Tesla enters into Bulgaria, they are required to consider
that it does not function in opposition to culture and cultural values of Bulgaria. In addition to
this, functioning in relation with Bulgarian culture can also improve possibility of its success.
Technological Factor- In terms of technology, Bulgaria is continuously working towards
technological development. Bulgaria has high skilled workforce and companies are working
towards improving technology.
Hofstede model for Bulgaria and comparison with UK
Figure 2 Hofstede Model
Above figure outlines difference in dimensions in UK and Bulgaria. In UK there is low
power distance whereas it is high in Bulgaria, individualism in UK is high and is low in
Bulgaria, there is less uncertainty avoidance in UK and in Bulgaria, there is high uncertainty
avoidance and in terms of indulgence, there is very less indulgence in Bulgaria.