Digital Strategic Trends in Tesla

The report covers changes in technologies that could affect the business of Tesla in upcoming years. It explores marketing insights of the target market of the company and impacts of digital trends on Tesla. The report also explains the strategy of Tesla to position its products in the market.

DIGITAL
STRATEGIC
TRENDS IN TESLA

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Upcoming Digital Trends.......................................................................................................1
Target Market Analysis of Tesla............................................................................................3
Impacts of Changing Digital Trends on Tesla........................................................................4
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Tesla, Inc. which was formerly known as Tesla Motors was formed in the year 2003 and
headquartered at Palo Alto, California. The company is involved in making electric vehicles,
space exploration, solar panels, lithium ion batteries, sustainable housing solutions, virtual
reality, software and artificial intelligence. Elon Musk, the CEO and founder of the company
envisages the company as a technology company and independent vehicle developer which aims
to provide affordable electric vehicles to average customers. Te report covers changes in
technologies that could affect the business in upcoming years. Further, the report covers
marketing insights of the target market of the company. At the end, the report covers impacts of
digital trends and how company responds these trends are given along with its impacts on the
target customers.
MAIN BODY
The swiftness in the technology sector has always been the concern for all the companies.
As much as statistics shows that the technology is advancing so rapidly that the upcoming ten
years growth in e-commerce have been compressed and achieved in one year, till 2019. It is
predicted that upcoming digital trends and technological advancements of preceding 100 years
would be achieved in the next decade (Ambalov and Heim, 2020). There are many changes that
can be unsettling and even more hectic for keeping pace with developments. Tesla will witness
various technological changes in upcoming years that will affect working of the company in
upcoming years.
Upcoming Digital Trends
With the pace of changing technology digital trends are improving rapidly. The changes
in digital technology has significant effects on various global businesses along with Tesla.
Theses digital trends in upcoming years would largely involve improvement in artificial
intelligence, augmented reality, voice search optimization, programmatic advertising,
geofencing, social media and many more. The newest digital trends are given below that would
significantly affect Tesla in upcoming years. 5G Technology: The term 5G is related to advancements in spectrum and internet. It has
been creating a noise for almost half a decade. Since 5G has emerged and still rolling out,
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it would definitely create a revolutionary buzz like its predecessors has created (Baltaci,
2021). The advent of 5G is among the most enigmatic new upcoming digitalization trends
that would impact businesses in upcoming years. Many industry experts such as Google
has termed 5G as the future of advancement in communication and how people will link
to each other. Tesla would have advantageous effects due to amplification of broadband
and mobile connectivity that would help in object specific transformation with
increasable connections. The upcoming technology 2020, 5G opens up a bigger field
where covenant technologies will have gainful advantages due to its release. Artificial Intelligence (AI) and Augmented Reality (AR) in Automated Driving:
Appraising companies like Tesla, with its objective in upcoming years to craft
unimpeachable automated vehicles is important. The idea of autopilot and augmented
reality in itself in blood soothing that generates an excitement among the people
(Direction, 2021). Tesla and Space-X chief and founder Elon Musk Already has a
futuristic approach of automated driverless cars to aim big in auto-mobile industry. The
upcoming trends in technology, like auto-pilot vehicles, virtual reality, smart cites, etc.
would support the requirement for 'what is upcoming in the changing technology'.
Augmented Reality and Artificial Intelligence would enhance interactive experience of
real world environment with the help of computer generated perpetual information
(Kitsos, 2021). This would be required to develop such cars in Tesla that would
outperform any other competitors in the market.
 Big Data Analytics: Big data analytics refers to the use of advanced analytical techniques
against huge, data sets that may be unstructured, semi structured or structured from
various sources (Luo, 2021). Tesla produces high tech and technologically advanced
electric cars, with cutting edge technologies that are implemented inside the car. The
company have very huge loops of data for instrumenting vehicles with sensors therefore,
it makes the use of Apache Hadoop® connectively to collect data and analyse it. This big
data analysis is helpful to the company in research and development for car maintenance,
performance and other improvements. This helps in understanding of the consumer
behaviour and improve their experience by developing according to their needs (Mariani
and Wamba, 2020).
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Target Market Analysis of Tesla
Segmenting, targeting and positioning is a chain of activities that involves identification
of specific population and developing the products according to the wants and needs of
consumers belonging to the particular segment (Mühlroth and Grottke, 2020). Tesla uses many
methods for specifically identifying their customer market. Accordingly this company targets the
specific group of people who becomes the best buyers of its products. Tesla uses the data gained
from segmenting such as demographic, geographic, socio-economic, behavioural and psycho-
graphic analysis of the market. With the help of this data the company places its products across
various locations where company could gain maximum customers. For the purpose of exploring
primary target market and marketing insights of Tesla its STP is given below: Segmenting: It refers to dividing the population into groups according to the age, status
and psychology of people, society or individual. Tesla uses matrix concept for
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segmenting its products through mono-segment positioning and multi segment
positioning. The company uses demographic factors such as requirements of people with
their size of family, income levels, etc. to determine the manufacturing of electric vehicle
cars. This helps to determine the target market of the company. Psycho-graphic
segmenting of product helps to determine the highly educated people who are well aware
of the consequences of climate change and pollution (Schislyaeva and Kovalenko, 2021). Targeting: It implies the choosing of the specific groups identified during the segmenting
process to sell products to that groups. The market coverage of electric vehicles in
majorly based on the geographic segmenting as it could greatly flourish in areas where
infrastructure is highly developed and expanded to provide further transformation.
Psycho-graphic segmenting helps to endure places where people are most educated and
willing to move toward sustainable future.
 Positioning: It can be selection and application of marketing strategy at the most suitable
place for the targeted customer segment. The positioning uses socio-economic
segmentation where people are having high or above average level of incomes and are
willing to pay more for societal change along the environment friendly vehicles. It also
uses behavioural segmenting for enabling price sensitivity among customers, quality
standards along with performance and safety in their vehicles. The company positions its
vehicles and services where people are quality lovers and want standard lifestyle.
STP of Tesla
Segmenting People looking for environment friendly, electric premium sports
luxury cars.
Targeting Rich, affluent, average but powerful people who are willing to pay
prices for such a vehicle with millennial advantages.
Positioning In the market across the places which are developed and have educated,
sensible youth to encourage sustainable growth.
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Impacts of Changing Digital Trends on Tesla
With the advancements and innovations in newest technology trends and functions like
automatic braking, lane-overdrive, and automation of other auto-mobile systems are
continuously being aligned with the guidance of data capture and analytics. There is still scope
for the modulation of legislation framework for auto pilot driving by government, authorities,
and regulators (Shah and et. al., 2020). Over that, significant changes will be required in the pre-
existing infrastructure, legislation and social attitudes before we can develop autonomous
vehicles in the current trends in digital transformation in technology. But these determinants
could not over-rule and hinder the possibility of automated self driven vehicles in future. There
are various impacts of changing technology and digital-trends on Tesla which are given below: The company is driven by technology: Tesla is more than than a auto-mobile company
and this fact is acceptable as well. It is more often said to be a technology company
building advancements, future strategies and technology platforms to enhance sustainable
growth. The company not only sells cars but it has also developed itself as the most
advanced operators that functions to explore and inhabit in the space. The company has
build and developed battery stations, superchargers and service stations all based on core
of spectrum. The development of 5G will help the company to grow and become more
futile in its operations. Scope to diversify the business: The company could diversify its business with the help
of its development programmes because it already has covered large area in space
exploration. The business has ability to enter in the designing and manufacturing of AI
and AR for the other companies willing to adapt change, it could also provide ideas for
innovations in the artificial intelligence sector. The company has developed auto piloting
software that could be entrenched in other companies that would help it to cover larger
markets. The company could easily use strategic collaboration to grow and develop its
branches across nations and other countries of the world. Understandability of customers through big data analytics: The company could track
full anonymous driving capability earlier than many car manufacturers by leveraging the
billions of miles of big data it is gathering. The company could also cover and reach its
customers through the direct iteration with them with the help of artificial intelligence.
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The company is researching further needs of customers in automated housing and smart
cities, solar roofs, rechargeable housing and storage facilities.
 Helpful in research and development: Big data analytics is important for the company to
improve its research and development because of its huge set of data that is vigorously
collected by the consumer iteration. Tesla also has generated mind mapping and artificial
reality to cover heavy research and development which provides homage to new ideas.
The advantages of this will help to enhance better performance of company in future.
Strategy of Tesla to Position its Products in The Market
Tesla is very influential and aggressive in its promotional activities. The promotion
activities of the company is mainly done through social media platforms. Tesla is among the top
three auto giants, outperforming Volkswagen, Toyota and Ford Motors. Tesla does not uses any
advertisement media and either it does not uses any paid promotional techniques. Tesla never
relied upon any paid promotions it made its focus on developing its image through social media
experiences. The up-gradation of spectrum to 5G will affect the behaviour towards the social
media and impacts of it will be significant for the company to promote its products. The
company would get the advantages of knowing consumer behaviour through big data analytics
and AI will help to interact with the customers effectively.
The CEO and founder of the company is the iron man personality of the company and
face for the brand on the social media. The company makes its most of the sales due to the
innovative and crowd gathering lectures that are presented by Musk that fuels demand to its
products. Tesla have build a strong brand image that reduces its needs for sales and marketing.
Another aspect is Tesla's website that is an effective channel for its marketing of products and
increasing its sales, the company also used Twitter to cover and connect to larger fan base and
followers.
Importance to target Audience on Changing Trends
With the help of changing trends in this industry the people will get many advantages
(Technology Trends of Tesla, 2021). With the growth of 5G technology, people will move
towards advanced world and automation. The growth of 5G will provide wider and faster
connectivity to the people and company will be able to access and reach the customers more
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easily. The customers will get the benefits of communication and data sharing with the company.
Artificial intelligence and augmented reality will help the customers to get more advantages of
enhanced experience. The comfort of automated and driverless vehicles would be life changing
for the customers.
CONCLUSION
In the following report covers an insight of an auto-mobile company and what are the
digital trends that could affect the company in future. The report had also explained about the
STP analysis that will help to formulate the target market of the company. There had been a
description of marketing insights of the company using demographic, psycho-graphic and
geographic criteria for evaluating company's target customers. The report further had been
explaining about the impacts of three digital trends on the company and how the company
responds these. The report at the end had been elaborating positioning and placing of the product
in the market and its impact on the target audience.
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REFERENCES
Books and Journals
Ambalov, V. and Heim, I., 2020. Investments in the digital Silk Road. In Kazakhstan's
Diversification from the Natural Resources Sector (pp. 111-149). Palgrave Macmillan,
Cham.
Baltaci, A., 2021. Strategic Digital Marketing and Sustainability. In Financial Ecosystem and
Strategy in the Digital Era (pp. 237-264). Springer, Cham.
Direction, S., 2021. Digital discoveries: The drive to adopt digital technologies in the cultural
industry.
Kitsos, P., 2021, September. Cloud Computing as a Strategic Asset: European Union Regulatory
Inititatives. In 2021 6th South-East Europe Design Automation, Computer Engineering,
Computer Networks and Social Media Conference (SEEDA-CECNSM) (pp. 1-5). IEEE.
Luo, Y., 2021. New OLI advantages in digital globalization. International Business
Review, 30(2). p.101797.
Mariani, M. M. and Wamba, S. F., 2020. Exploring how consumer goods companies innovate in
the digital age: The role of big data analytics companies. Journal of Business
Research, 121. pp.338-352.
Mühlroth, C. and Grottke, M., 2020. Artificial intelligence in innovation: how to spot emerging
trends and technologies. IEEE Transactions on Engineering Management.
Schislyaeva, E. R. and Kovalenko, E. A., 2021. Innovations in logistics networks on the basis of
the digital twin. Academy of Strategic Management Journal, 20. pp.1-17.
Shah, N. and et. al., 2020. Research trends on the usage of machine learning and artificial
intelligence in advertising. Augmented Human Research, 5(1). pp.1-15.
Technology Trends of Tesla, 2021. [Online] Available Through
<https://relecura.com/technology-trends-of-tesla/>
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