Strategic Management - Case Study on Tesla

Strategic Management- Case study

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................2
MAIN BODY.............................................................................................................................2
Presenting the possible strategies at corporate and business level.........................................2
Critical evaluation of different possible scenarios.................................................................5
Recommended route forward...............................................................................................10
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................12

INTRODUCTION
Strategic management is the process through which company set goals, procedure and
objectives that assist company to be more competitive. It effectively deploying staff and
resources in order to attain goals. It is considered one of the most important aspect that
provide overall direction by implementing effective plans and policies. The current study is
based upon Tesla which is one of the best automotive company in the world and operated
thousands of units at global level. The company have strong financial performance and that is
why, there is a need to expand a business at different level in order to be a leader in the
world. The report will identify the possible strategies at corporate level so that company can
generate an effective outcome. Further, the study will critical evaluated the different possible
scenarios by using variety of strategic models. Lastly, the report will recommended the route
forwarded by expanding the scenario chosen and critical analysis implications.
MAIN BODY
Presenting the possible strategies at corporate and business level
In order to determine the strategies, it is suggested to use Ansoff growth vector matrix
which in turn assist to analyse and plan company’s strategies for growth.
Market Penetration: The concept of this strategy is to increase the sales for an
existing products in an existing market. This in turn help to company to seek sell into an
existing products and maintain the relationship with the customers (Chen, Jin and Xie, 2022).
With the help of this strategy company decreases the prices to attract customers and acquire a
competitor in a same market so that brand image can be sustained.
Market development: It is consider more risky from penetration because it does not
require any significant investment in Research and development department so that
management can supply the existing products and take the same into a new market. With the
help of this method, company is able to expand the business at international market and this
in turn help to create a better outcome for the business as well. The reason of its successful
market is to focus upon selling existing products into new market in order to generate a better
outcome.
Product development: This is deal with focusing upon new products into an existing
market. With the help of this method, company can offer the products into same customers
and meet the defined aim as well (Ansoff growth vector matrix, 2022). With the help of this

method, company increase the sales of a firm and this causes positive impact over the
business sales. That is why, it can be stated that this method is highly used by the company in
order to remain competitive and strong.
Diversification: The concept is all about entering into new market with new products
so that best outcome can be generated. This is one of most riskiest strategy that affect the
business performance and this is mostly used by the company whose financial performance is
quite strong in order to generate a better outcome and improve the sales as well.
From these, Tesla uses product development in which company keep changes its
strategy in order to remain competitive. Through this method, company can sustain the brand
image and attract new customers towards it.
BCG Matrix
With the help of this model, company can help with long term strategic planning and
assist to understand Tesla’s strategic choices. Thus, the highlight areas of each activity of a
company are determined by using these methods:
 Star Products: In the context of Tesla, the start products are continuously innovative
products offered by the company like electric vehicles and production of cleaner
energy. Also, the quoted company is considered as a sustainability leader in an
industry and it keep providing healthier environment (Kaipainen and Aarikka‐
Stenroos, 2022). That is why, it can be stated that the series of its latest vehicle are
considered as a star products that help to grow the market.
 Cash cows: The products fall in this category are provide profit to the business even
company exist in the low market. Thus, in the case of Tesla, its all vehicle models are
considered as cash cows that require little investment. Powerwall is also fall in this
category.
 Question marks: The company faces any dilemmas are considered in this category
and it includes miscellaneous accessories, energy storage and solar power. In this
competitive era, company also wants to make itself differentiate that helps to run for a
longer term (Park, K., Grimes and Gehman, 2022). However, ecology is also remain
niche market in this world where more players play. Thus, Tesla plays an important
role because the quality of products offered in the market is competitive and strong.