Strategic Solutions: A Comparison of Tesla and Bentley's Approach

This report analyzes the strategic solutions employed by Tesla and Bentley, highlighting Tesla's focus on product development and Bentley's emphasis on market penetration. Tesla's product development strategy aims to reduce manufacturing costs, improve quality, and leverage the latest technologies, but it also involves higher risks and limited market exploration. Bentley's market penetration strategy seeks to increase sales of existing products through marketing and promotional efforts, maximizing revenues and creating goodwill, though it limits innovation and targets a specific audience. The report references Porter's generic strategies, the Ansoff Matrix, and the BCG Matrix to provide a comprehensive overview of the companies' strategic approaches and concludes that while Tesla aims to expand its market share through new products, Bentley focuses on growth through increased sales in existing markets. Desklib provides access to similar documents and study resources for students.

STRATEGIC SOLUTIONS
TESLA AND BENYLEY

TABLE OF CONTENT
 Tesla’s strategic solution
 Product development
 Bentley’s strategic solution
 Market penetration
 Conclusion
 Reference

TESLA’S STRATEGIC SOLUTION
PRODUCT
DEVELOPMENT
This is a product expansion
strategy as new products are
added to the product portfolio.
Tesla is company which uses
latest technologies to produce its
products in the existing market to
achieve its goals and objectives.

PRODUCT DEVELOPMENT
ADVANTAGES
 Reduces manufacturing costs
 Improves quality
 Use of latest technology
 Higher sales
DISADVANTAGES
 Higher risks
 Rapid technological changes
 No new market exploration

BENTLEY’S STRATEGIC SOLUTION
MARKET
PENETTRATION
This strategy encourages the
company to increase the sales of
their current product in the current
market. This strategy has helped
Bentley in increasing its market
share in the existing market by
adopting marketing techniques,
promotional strategies and
personal selling.

MARKET PENETRATION
ADVANTAGES
 Maximises revenues
 Competitive advantage
 Creates goodwill
DISADVANTAGES
 Limits scope of innovation
 Limited target audience
 No exploration of new
markets

PORTERS GENERIC STRATEGIES

ANSOFF MATRIX

BCG MATRIX

SUMMARY
 From the above discussion it can be summarized that the strategic solutions are their arts and
science of creating, implementing and then evaluating the decisions which are cross functional and
enable the companies to achieve its strategic objectives.
 Tesla focus on creating new products to its portfolio which improves quality, enhances sales and
reduces production costs as well.
 However, it involves higher risks and does not explore any new markets. In Bentley, it focuses on
increasing sales of its existing products which results in maximizing sales, creates goodwill and
also provides a competitive edge to company over its competitors.
 However, this strategy limits the scope of innovation and targets only limited population only.

CONCLUSION
It can be concluded that Tesla follows the product development
strategy which helps the company to increase its marketshare whereas
Bentley uses the market penetration strategy which leads the company
toward growth.

REFERENCES
 Dawes, J., 2018. The Ansoff matrix: A legendary tool, but with two logical problems.
But with Two Logical Problems (February 27, 2018).
 Guță, A.J., 2017. The analysis of strategic alternatives using BCG matrix in a
company. Quality-Access to Success. 18.
 Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies
to firm performance. Future Business Journal. 6(1). pp.1-15.
 Kalogiannidis, S. and Mavratzas, S., 2020. Impact of marketing mix strategies
effective product development issues in MNCs/Retail. International Journal of
Business Marketing and Management (IJBMM). 5(12). pp.118-125.
 Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-
Economy Series. 2. pp.141-149.
 Madsen, D.O., 2017. Not dead yet: the rise, fall and persistence of the BCG Matrix.
Problems and Perspectives in Management. 15(1). pp.19-34.