Marketing Strategy for Business: Tesla Analysis Report

This report provides a comprehensive analysis of Tesla's current marketing strategy, examining its growth strategies, competitive landscape, and marketing mix (4Ps). It delves into Tesla's generic and intensive growth strategies, including market penetration, product development, market developme...Read More

Student Details
Student Number 2057132 Email [e-mail]
Assignment Details
Module name Marketing Strategy for
Business Module Code 7MK007
Lecturer Dr.Ravi Dissanayake For the attention of Dr Imran Khan
Due date 4/10/2021
Assignment title Tesla current Marketing Strategy and recommendations for future sustainability
All forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the
University and could result in penalties including failure in the unit and possible exclusion from
the University. If you are in doubt, please read the following web page.
Student’s Declaration
By submitting this assignment I SIGNAL & DECLARE my knowledge and agreement to the
following: -
Except where I have indicated, the work I am submitting in this assignment is my own work and has
not been submitted for assessment in another unit or for any other purpose. This work conforms to
the instructions and submission guidelines as contained in the assessment briefing and the module
guide respectively.
This submission complies with University of Wolverhampton policies regarding plagiarism, cheating
and collusion.
I acknowledge and agree that the assessor of this assignment may, for the purpose of assessing this
assignment:
 Reproduce this assignment and provide a copy to another academic staff member; and/or
 Communicate a copy of this assignment to a plagiarism-checking service. This web-based service
will retain a copy of this work for subsequent plagiarism checking, but has a legal agreement with
the University that it will not share or reproduce it in any form.
I have retained all assignment drafts, papers, materials and a copy of this assignment for my own
records.
I will retain a copy of the notification of receipt of this assignment.

Table of Contents
1 Executive Summary ..................................................................................................................... 4
2 Tesla Electric vehicle Productions. .............................................................................................. 5
3 Growth strategies followed throughout ....................................................................................... 6
Tesla-Generic Strategy .......................................................................................................... 7
Tesla’s Intensive Growth Strategies ...................................................................................... 7
3.2.1 Market Penetration (Primary Strategy). ......................................................................... 7
3.2.2 Product Development..................................................................................................... 7
3.2.3 Market Development. .................................................................................................... 8
3.2.4 Diversification................................................................................................................ 8
Major Competitors ................................................................................................................ 9
3.3.1 Competitive Sales and Market Share: ............................................................................ 9
Overall assessment of the marketing mix (4Ps) Analysis ................................................... 10
3.4.1 Product mix to Tesla .................................................................................................... 11
3.4.2 Place/Distribution in companies’ Marketing Mix........................................................ 11
3.4.3 Tesla, Inc.’s Promotion (Promotional Mix) ................................................................. 12
3.4.4 Tesla’s Pricing Strategy followed ................................................................................ 12
4 Critical evaluation of the opportunities and problems facing the organization from both the
strategic and operational perspectives: .............................................................................................. 13
Tesla Inc. SWOT Analysis & Recommendations ............................................................... 13
4.1.1 Tesla’s Strengths (Internal Strategic Factors) .............................................................. 13
4.1.2 Tesla’s Weaknesses (Internal Strategic Factors) ......................................................... 14
4.1.3 Opportunities for Tesla, (External Strategic Factors) .................................................. 14
4.1.4 Threats Facing Tesla, Inc. (External Strategic Factors) ............................................... 15
Proposed TOWS Matrix ...................................................................................................... 16
Tesla, PESTEL Analysis & Recommendations .................................................................. 17
4.3.1 Political Factors Affecting Tesla’s Business ............................................................... 17
4.3.2 Economic Factors......................................................................................................... 18
4.3.3 Social Factors Influencing Tesla’s Business Industry ................................................. 18
4.3.4 Technical Factors ......................................................................................................... 19
4.3.5 Ecological/Environmental Factors ............................................................................... 19
4.3.6 Legal Factors ................................................................................................................ 20
STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS .............................. 21
4.4.1 Porter's Five Forces in case TESLA Motors ................................................................ 21

4.4.2 Bargaining power of suppliers ..................................................................................... 22
4.4.3 Bargaining Power of Buyers ........................................................................................ 22
Substitute and Threats ......................................................................................................... 24
Ansoff Matrix for Tesla....................................................................................................... 25
4.6.1 Market penetration. ...................................................................................................... 25
4.6.2 Product development. .................................................................................................. 25
4.6.3 Market development. ................................................................................................... 25
4.6.4 Diversification.............................................................................................................. 27
5 Knowledge and understanding of alternative competitive positions/strategies ......................... 27
Analysis of Target market segmentation and targeting strategy ......................................... 27
5.1.1 Target market segmentation ......................................................................................... 27
5.1.2 Geological segmentation .............................................................................................. 27
5.1.3 Demographic segmentation ......................................................................................... 27
5.1.4 Socio-economic segmentation ..................................................................................... 27
5.1.5 Psychographic segmentation ........................................................................................ 27
5.1.6 Behavioural segmentation:........................................................................................... 27
Target markets and targeting strategy – UK context........................................................... 28
5.2.1 Target market 1 ............................................................................................................ 28
5.2.2 Target market 2 ............................................................................................................ 28
5.2.3 (Future) Target market 3 .............................................................................................. 28
Tesla’s brand strategy and Positioning Analysis................................................................. 28
5.3.1 Tesla’s product strategy ............................................................................................... 28
5.3.2 Proposing alternative target markets for Tesla ............................................................ 29
6 Recommended marketing strategy with justification ................................................................ 30
Assumptions, Interpretations and strategic Suggestions based on strategic analysis ......... 30
Conclusion and short-term recommendations ..................................................................... 30
Competitive sales growth and potential product growth:.................................................... 31
Adding value to Tesla’s strategic position .......................................................................... 31
Should be implemented with digital strategy ...................................................................... 32
6.5.1 1. Tesla’s Instagram is more organized ....................................................................... 32
6.5.2 Tesla’s twister is synched with CEO Musk’s Twitter ................................................. 32
7 Conclusion................................................................................................................................ 34
8 Content Tables ........................................................................................................................... 35
9 List of Figures ............................................................................................................................ 35
10 References .................................................................................................................................. 36

1 Executive Summary
Tesla motors is a USA EV (electro vehicle) and green energy organization located in California. It
was found in 2003 by a set of skilled engineers who needed to demonstrate that individuals who are
motivated to drive electric cars rather than traditional fuel engine cars. Tesla believes that in future
the fossil resources will coming to an end then the world will be moving towards EV sector.
This report describes the market by analysing the internal, external and strategies for investigation
incorporate SWOT and PESTEL. Other researches include new market segment for Tesla by
analysing it’s positioning, Targeting based on the findings.
This report also explores the marketing mix for focused markets and target areas as analysed. Also
report evaluates and concludes that it would be ideal to choose UK as the market for the development
of Tesla in Europe region.

2 Tesla Electric vehicle Productions.
For EV market tesla made it first product, the Roadster uses its powerful battery technology and
electric powertrain. Since then, Tesla initiated the world first since forever luxury EV vehicle –
Model S – which performed best in all segments.
High safety, Efficient, and Production, Model S was able to full fill the requirements for the vehicle
of this century which recorded that can accelerate from zero to 60 within 2.3 seconds.
In 2005 tesla launched Model X which is faster, safety vehicle which was graded 5-star in overall in
US national highway and Traffic administration
Then according to Elon Musk’s plan they launched model 3 for the market
Afterwards, Tesla produced the most agreeable truck ever. It can run up to 1 million cost per
$200,000 which vary on fuel costs
In 2019, Tesla divulged Model Y, a medium size SUV, Cyber truck, which has the features of a
truck than a sports car. (Tesla, 2018)

3 Growth strategies followed throughout
Figure 3-1
Tesla uses generic strategy to achieve their goals in global automobile industry. In potters theory
they are used to call company’s strategy of marketing segment
Tesla’s generic strategy help to keep the company more competitive, and survive in the world
automobile industry. The intensive strategy helps to develop its revenue generation of Tesla. The
growth strategies with the generic competitive strategy help for companies’ operational adequacy
(Rowland, 2018)

Tesla-Generic Strategy
Tesla's uses broad differentiation as its competitive strategy. This broad differentiation implement
the competitive advantage on the manufacturing of new innovations that separate Tesla from
different competitors in the automobile business.
Tesla themed eco-friendly products. In applying broad differentiation competitive strategy, the
every person who are motivated towards eco-friendly can get to its business.
At first, in this automobile industry Tesla used differentiation focus as its generic strategy for their
advantage. In applying, the organization followed it’s the uniqueness of its automobiles, also
targeted high end market for electric vehicles.
These first customers are rich people who have a high inclination to purchase recently launched EV
products. Somehow the company is popular and creation costs are declining, their strategy has
moved for broad differentiation.
Tesla’s Intensive Growth Strategies
3.2.1 Market Penetration (Primary Strategy).
Market penetration is their primary intensive growth strategy. This intensive growth strategy help
business development by expanding sales incomes in current business industry.
Consider an example, with aggressive marketing, Tesla planning to sell huge amount of cars across
the US. Along these lines, these sales help tesla to gain more income and same it made all the way
here up to now.
This intensive growth strategy match with other competitions generic strategy by creating
competitive advantage on achieve their share in the market. This aggressive marketing helped to
expand their incomes and it depend on intensive strategy.
3.2.2 Product Development.
As its secondary intensive growth strategy, Tesla has chosen product development. In this case, the
company develops by growing new items that create fresh market opportunity.
Tesla applies this strategy by producing new EV vehicles with cutting edge innovations for
insignificant environmental effect.
This intensive strategy keeps Tesla’s differentiation generic competitive strategy procedure by focus
high tech innovation to get their customers attention.
When considering, a strategic objective for this intensive growth strategy is to work on research and
innovations.

3.2.3 Market Development.
Tesla uses market extension as intensive growth strategy. This strategy also has entering new
markets and expand its global business activities.
For example, Tesla step by step expand their global market by building up new facilities and
offices. As of now, the Tesla sells few countries, however its normal that future expansion in global.
This intensive strategy upholds Tesla's central goal and vision explanations, which feature
worldwide leadership in the car business, with energy solutions for the transportation and different
areas.
Differentiation generic strategy helps market improvement by developing unique products that pull
in customers comes to new sectors.
In market perspective development intensive strategy, important target for its growth. Global
business by developing up alliances with another companies that make it easy to enter new industry
sectors. (Kissinger, 2018)
3.2.4 Diversification.
Tesla follows the strategy diversification, yet just as an insignificantly huge identified intensive
growth. This intensive strategy help company to go through new business segments.
For instance, the company means to make new battery items for an assortment of manual
applications. Be that as it may, this intensive growth strategy has an insignificant effect on Tesla’s
overall budget performances.
Tesla focuses in the vast majority of its endeavors on market penetration and Vehicle development
to implement its auto and power solution industries. Tesla can apply the differentiation generic
competitive strategy to improve the probability of achievement in using this intensive growth
strategy.
A strategic target linked to diversification is to build Tesla's research and development venture to
distinguish new business opportunities. The other strategic objective dependent on this intensive
strategy is to secure different companies or enter partnership to grow totally new innovations.

Major Competitors
3.3.1 Competitive Sales and Market Share:
Being that the Tesla S can run within a single charge almost 483Km and the milage is not more than
less; the makes when considering BMW, Mercedes-Benz, Renault, and BYD. The BMW i3 is
recorded for to get more than 100 miles in range with when its features used power saving mode (AG,
2018).
Mercedes-Benz has likewise has launched a product that has mileage of 137 Km. All these models
are less expensive than the Tesla by GBP 10,850 to GBP 14,465. The I3 would be in luxury Vehicles
column and the B-Class in the luxury Vehicles line.
These vehicles are a lot less expensive, yet they actually miss the mark regarding the reach Tesla
Models put out. In its first year on world market in 2013, it sold more than 10,000 models, which is
40% of the market cover.
Figure 3-2
Other car companies notably:
Finally, the Asian vehicle BYD is the top Chinese producer of electric vehicles. The e6, go upto a
mileage of 196 Km, making it the second place with the proce GBP 25,300 before any incentives. On
the world’s biggest auto industry, as indicated by records; they figured out how to sell more than
18,400 vehicles, holding 31% of the complete piece of the industry.
Volkswagen, Kia, Ford, Toyota, Smart, Chevy, and Nissan all have electric combination with hybrid
technology however they focus around gas power, and low mileage give an clear difference between
them. (Chint, 2018)

Overall assessment of the marketing mix (4Ps) Analysis
Figure 3-3
Tesla uses its own marketing mix to survive in automobile industry. The 4Ps (Product, Place,
Promotion & Price) are the factors considered when targeting a marketing campaign. Tesla keeps up
Tesla controls its marketing strategies so strictly so far which helped them to bring more profits to
the company. As a Lead manufacturer of EV industry in the globe, the organization keeps on use its
marketing mix to help market penetration and possible expansion in abroad nation.
In using Tesla’s marketing mix or 4P develops its brand fame alongside make higher market
penetration. Elon Musk's public image is a advantage to the promotional success in reinforcing the
brand. (Kissinger, 2018)

3.4.1 Product mix to Tesla
In marketing mix this element recognizes the Companies outputs or products offered to aimed
clients. Here when analyzing Tesla's products are inside the Automobile, batteries and power
generation segmeentss. Beneficial innovations are the ones that offer some benefit that clients pay
for. In this 4p scope tesla innovate new products that customers get satisfied, Tesla has the
following products:
1. EV – Electro vehicles
2. EV components
3. Batteries ,
4. Solar systems
As we all know company manufacture electric vehicles. As Model S vehicle is one of the world's
most prestigious EV product. Nonetheless, beside vehicles, the Tesla furthermore makes EV car
parts and electric trains that other auto firms produce, this is how they achieve their vision for the
company by contributing world's development toward electric vehicles and maintainable energy.
Additionally, the organization offers batteries for domestic and industrial use. This element of
Tesla's marketing mix shows center around electric vehicles, As Tesla tries to expand its
innovations. (Kissinger, 2018)
3.4.2 Place/Distribution in companies’ Marketing Mix
This element discuss about the venue that motivated a customer to buy tesla products. When the
company grows in a larger scale some expansion of the venue has to be done in 4Ps. The
organization may add more places as its requirements the new way of distributions must done.
Below this are done for the time being.
 Tesla owned Galleries and Shops
 Official Company Website
 Tesla-owned Service Centres
 Charging stations
Clients can check its products in above mentioned display locations situated worldwide.
Nonetheless, clients need to use the company’s site to finish sales exchanges. Additionally,
Customers can interact with its products where the maintained, charging also repair centers.
Also, clients can charge their vehicles through the organization's charging stations. These locations
have limitations but overall it’s a good way of promoting its products. By considering the above
factors, the place element of Tesla’s marketing mix shows huge corporate management control on
the sales for their innovations. (Steen, 2015)

3.4.3 Tesla, Inc.’s Promotion (Promotional Mix)
In this component of the marketing mix, the company’s strategies and what they are through. This
expect to fulfill the clients requirements and help to develop the company brand. Tesla’s
promotional mix use below methods for both automobile and power industries.
 Viral marketing (most significant)
 Personal selling
 partnerships
 Sales promotions
 Direct marketing
Tesla's marketing mix is quite different from other manufacturer promotions, they do viral
marketing to attract new clients for their business. For instance, they targeted kids largely when they
launched model S, in this way likewise promoting the organization's product mix. Personal selling is
a 4P strategy executed through sales work force at company-owned stores and galleries.
Then again, they have a referral program to get new clients to their business. In some areas
company do direct marketing, for instance they promote power trains to target professional
companies through this. Here viral marketing plays a major role in their marketing mix. (Kissinger,
2018)
3.4.4 Tesla’s Pricing Strategy followed
Prices plays a major role in marketing mix. In this organization analysis instance of Tesla, prices
support the premium brand, just as profit focuses for a limited production scale. These prices impact
benefits and clients' insight. The organization has the below pricing strategies:
 Premium pricing strategy
 Market-oriented pricing
Tesla, uses a premium pricing strategy. This uses the proce for tesla’s uniqueness and high quality
technical features. For instance, Customers will follow the process as they are ecofriendly products.
Along these lines, technology and product design are critical factors in effectively using the
organization's way when deciding this factor. Higher valuing agrees with the generic strategy of
differentiation, which express the Tesla’s uniqueness of EV product. Additionally, the organization
follow the market-oriented pricing strategy for its solar panels base company SolarCity.
.

4 Critical evaluation of the opportunities and problems facing the
organization from both the strategic and operational perspectives:
Tesla Inc. SWOT Analysis & Recommendations
Figure 4-1
This SWOT analysis direct to keep up the company’s performance when planning activities. This
help Tesla to plan its innovations and market capturing to extend its business. This guarantee Tesla's
competitiveness and long-term achievement in the worldwide auto and renewable energy markets.
Tesla should make changes that match with the internal strategic factors (strengths and weaknesses)
and external strategic factors (opportunities and threats) specified in this SWOT analysis. (Gaille,
2020)
4.1.1 Tesla’s Strengths (Internal Strategic Factors)
In business strength is an inner factors which guarantees the productivity and competition with each
other automobile manufacturer. But its long term planning.
In organization tesla below factors can considered as strength:
1. High technical innovations
2. Solid powerful brand
3. Mega level production process
4. Higher research and development department capabilities
5. Qualifies strong management team
6. Eye catching excellent Designs
7. Locations are based on easy accessed areas

4.1.2 Tesla’s Weaknesses (Internal Strategic Factors)
This inner factor of tesla shows the challenges and areas which the company has to develop by their
inner environment.
These are the weaknesses that company must come across through different mechanisms. As tesla
has a solid brand image to protect it tesla have to work on this weaknesses. Tesla, performance and
potential future development suffer from the following major weaknesses:
1. Less market present
2. Supply chain is not powerful
3. Prices are higher
4. Limited charging stations
5. Per charger low battery range running
6. Charging process takes time
7. No history records as it’s a new company
4.1.3 Opportunities for Tesla, (External Strategic Factors)
External factors are the factors which have to be considered when developing the companies
activities for their productivity.
Tesla has the below opportunities when they come across the global market:
1. Worldwide sales extension
2. Using worldwide supply chain
3. Business diversification
4. No fossil fuel used for future as they are depreciating.
5. Modern people are more environment friendly
6. The Tesla battery can used in different areas rather than EV products
7. Governments are supporting for eco-friendly products.
8. Large international market opportunities.
According to its weaknesses tesla should concentrate on developing globally. As it has a global
solid brand image the expansion must be quick to make sales for revenue generation
The external factors can make an operational changes operations to improve its performance
through diversification. This aspect of Tesla's SWOT analysis focuses to the benefits of global
extension. (Kissinger, 2018)

4.1.4 Threats Facing Tesla, Inc. (External Strategic Factors)
The threats reduces the opportunities and performance of a company. Identifying and moving to the
new strategies may help to keep up the companies performances. Below factors are found as threats
to company.
1. Aggressive competition
2. Changes in material prices
3. Partnership conditions
4. Competitions are high , So prices are low
5. Economic slowdown
6. Some materials have limits
7. People are not fully known about EV vehicles
Automobile companies aggressively go up against one another. This may be influencing other
competitors to build up EV vehicles which tesla see as a challenge.
Variation of the material cost directly affect the product price. Therefore the company performance
also reliable on the cost of production (Kissinger, 2018)

Proposed TOWS Matrix
Strengths Weaknesses
S1: Higher research and
development department
capabilities
S2: Qualifies strong management
team
S3: Eye catching excellent
Designs
S4: Locations are based on easy
accessed areas
S5: Large Scale Production
Capacity
W1: Prices are higher
W2: Limited charging stations
W3: Per charger low battery
range running
W4: Charging process takes
time
W5: No history records as it’s
a new company
Opportunities SO Strategies: WO Strategies:
O1:No fossil fuel used for future as
they are depreciating..
O2: Modern people are more
environment friendly
O3: The Tesla battery can used in
different areas rather than EV products
O4: 7. Governments are supporting for
eco-friendly products.
O5: Large international market
opportunities.
-Concentrate on new
developments in each segments
(S1,3,5+O1,2)
-Extend the operating
market(S1,3,5+O5)
-Diversify the products for
spread the market
(S1,S5+O3)
-Hire some activities for
better operational activities.
(O5,W1)
-Promots/Educate people abot
the good side of
EV’s(O1,O4,W1)
Threats ST Strategies: WT Strategies:
T1: Competitions are high , So prices
are low
T2: Economic slowdown
T3: Some materials have limits
T4: Limited Experienced resource pool
T5: People are not fully known about
EV vehicles
-Diversify the new EV’s for
different segments
(S1,5+T5)
-Innovate new products to cut
down operating prices
(S1,5+T1)
-use cost reduction method
(T1,W3)
-Sell the company with a good
bargain (T1,T2+W3,W2,W1)
The above recommendations are proposed to strengthen up the company and for future expansions.
(Galaly, 2018)

Tesla, PESTEL Analysis & Recommendations
Figure 4-2
PESTEL factors are to identify the outside factors of a company. It decides the impacts of the
business' macro or macro scale environments on the company.
Tesla’s business effectiveness decides on how it respond to its external factors. The factors of the
remote or macro-environment change, the company strategies also have to change. (Kissinger,
2018)
4.3.1 Political Factors Affecting Tesla’s Business
Identifies the impact of political factors in their operating market. The government decisions are
among societal forces that help business to operate
For example, the political policies may affect the current market and market expansion for
company. In this external investigation below elements can be analyzed for investigation:
 Governmental incentives for EV’s (opportunity)
 Initiating new world trade deals (opportunity)
 Stability of the politics in a target market (opportunity)
The political stability In UK is a significant market sectors makes the mote or macro-environment
ideal for company’s growth strategy for market penetration. (Kissinger, 2018)

4.3.2 Economic Factors
This area discuss about the financial impact for the company performance.
It incorporate market development, trade levels, currencies, and many factors that impact the
automobile industry.
Tesla needs to focus on below economic external factors that may affect the automobile market:
 Battery process are getting lower (opportunity)
 Electricity costs are getting reduced (opportunity)
 Economic instability problems (threat)
Company increases it profitability by using lower battery costs. This also influences to EV products
for further performances.
The economic stability in UK issues compromise the organization's financial performance,
particularly in other continents. This element of the PESTEL analysis of company features major
chances of growth instead of threats in economic instability in the macro-environment of
automobile industry.
4.3.3 Social Factors Influencing Tesla’s Business Industry
This element combines with representatives, clients, and investors to identify the micro environment
to analyze the impact of social factors and how it impact to business performances. Also it help to
target the social segments in each country.
As identifies in the UK context the below social factors can be considered:
 Growth of eco-friendly life style people (opportunity)
 Recommending the renewable energies (opportunity)
 The wealth distribution of the society (opportunity)
.

4.3.4 Technical Factors
This element demonstrate how technical factors affect the companies’ macro-environment. The
future of the company and expansions are highly depend on the technical factors of the company
For instance, material changes directly affect the capacity and cost- effectiveness of the company
batteries. The below factors are considered in technical factors consideration:
 The technology change suddenly (opportunity & threat)
 The business are moving towards automation (opportunity)
 The interest growth of online mobile systems (opportunity)
4.3.5 Ecological/Environmental Factors
This element demonstrate how technical factors affect the companies’ macro-environment. The
future of the company and expansions are highly depend on the environmental factors of the
company
As the theme of the company also related to ecofriendly the below advantage are directly affecting
the company performances:
1. World change in climate (opportunity)
2. Growth of nature protecting programs (opportunity)
3. The rules are rising towards waste reproduction (opportunity)
The company has the opportunity of change the product for specific environmental change, waste
disposal projects.
Therefore for the company performance the environmental fact is considered highly.

4.3.6 Legal Factors
In this piece of the PESTEL/PESTLE Analysis, the effects of regulatory factors on the far remote or
macro-environment are determined. Laws and legal systems shape Management choices and
business advancement. For instance, Tesla’s marketing mix or 4P are executed inside legal
requirements.
This factor consider constrains of the legal environment. The legal factors of a country also affect
the overall product development ns cost optimization for the company:
 Expansion of global patent protection (opportunity)
 Energy usage regulations (opportunity)
 Dealership sales regulation in the UK (opportunity & threat)
Tesla has the chance to securely extend its market in other countries, considering growing
worldwide patent assurance. In addition the world legal guidelines should follow for further market
expansion. There may be threats and opportunities in this

STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS
4.4.1 Porter's Five Forces in case TESLA Motors
Micheal Porter designs this model of various Forces which would one say one is of the most
notable strategic administration tools which comprise 5 unique areas in which, when considers
about every one of them, shows is that industry attractive to start investing? Possible long-term
profitability inside a business (Porter, 1989)
Figure 4-3
The above theory help to get know about the factors influencing the company’s performances. It
help for company when taking decisions/panning and how to negotiate the prices. This must be
considered when entering market for Tesla’s products,. Considering in UK Context the below
factors must consider for tesla (Tashakkori, 2021)
 Bargaining power of suppliers
 Bargaining power of buyers
 The threat of substitute products
 The threat of new entrants existing

Figure 4-4
4.4.2 Bargaining power of suppliers
When deciding the company suppliers factors the price is an important factor we have to consider.
As TESLA is a vertically integrated maker. For instance they take battery for model 3 from panasonic
.
This can improve the company independence and the quality of their batteries. When the production
is high the company can give orders for various suppliers and fulfil the battery requirements. When
taking parts for Model S and Model X, one of the critical disadvantages is its poor history joined with
less producing quantity were not that convincing to suppliers; things are going to change now.
4.4.3 Bargaining Power of Buyers
As the EV product leader the customers have less bargaining power over the company Tesla. Therefore
the negotiations cannot be done through this.
In addition, TESLA has a superior availability options (Table1) which give customers have the options
for vehicles.

Connectivity Packages Standard
Included Premium
Navigation ✓ ✓
Live Traffic Visualization - ✓
Satellite-View Maps - ✓
Video Streaming*⁺⁺ - ✓
Caraoke* - ✓
Music Streaming*⁺ - ✓
Internet Browser* - ✓
Table 1
For example, Model X, Model S by subscription and roadster has the high competitive power like
when it attempts to win a mass crowd with the Model 3. (Tesla, 2018)
Model Ordered on or before
June 30, 2018
Ordered on or after
July 1, 2018
Model S
Model X
Free Premium
Connectivity
Eligible for Premium Connectivity
subscription
Model 3 with Premium Interior Free Premium
Connectivity
Eligible for Premium Connectivity
subscription
Model 3 Standard Range
Model 3 Standard Range Plus Not Applicable Eligible for Premium Connectivity
subscription
Table 2
TESLA use business to plan of action for selling their items and clients' bargaining power in the B2B
market is low contrasting with others; this permits the customer to have a some discounts from the
cost (Garyfox, 2019)

Figure 4-5
Substitute and Threats
Most of the vehicles in the market are fossil fuel vehicles. The Company’s market depend on hoe
fast the charge rate of the battery in tesla
For instance the change to electric vehicles in the United Kingdom should be in 2040, which chose
by parliament in 2017. At that point TESLA and its competitors educated that they have in any event
23 years to work on research of their new products; however, in November 2020 the UK government
choose to accelerate the transition to electric vehicles, and that was shocked all organizations.
(Harrabin, 2020)
As mentioned earlier there are no other competitors concentrate of purely EV’s. most of them
consider the hybrid technologies. Here find the comparison of both vehicals
Table 3

Ansoff Matrix for Tesla
As tesla is targeting in Substitution for fuel vehicles the market and product planning strategies hav to be implemented
.Ansoff matrix mainly consider the options and chances of market penetration, product development, market
development and diversification.
Figure 4-6
4.6.1 Market penetration.
This element consider the existing products/items how to operate Tesla is using this method broadly.
Tesla is mainly focused selling its Model S, Model X and Model 3 electric vehicles, Powerwall 2 and
Powerpack 2 battery/Energy storing products, just as, solar panels, inverters, racking and IOT devices
in global (Gaveen, 2021)
4.6.2 Product development.
This strategy is used for the exciting markets. Most of the time tesla take part on product development.
It because of high cost of new product in electric vehicles and power storage sectors. As now the
competitions are making new EV products to enter the market. Therefore the existing products have
to change its features for market to survive (Muoio, 2017)
4.6.3 Market development.
This element is for the new markets to use tesla’s existing products. In many countries the research
has been done, UK being in the shortlist.

EV deals are rising yet they are still low customers of what one percent of the UK's all out vehicles.
The government has focused on restricting sales of new fossil-fuelled vehicles by 2040, like the other
countries they are setting up a target. The below table emphasizes the EV policy for each country
(Klein, 2018)
Table 4
This below chart sums up how the United Kindom's overall EV deployment strategy may look in
future. Plug-in awards are phased at where EVs reach the prices, guaranteeing taxpayers don't over-
subsidies the business.
The UK's Zero Emission Vehicle command assists with ensure that automobile manufacturers are
incentivized to create EVs to satisfy domestic need. In general, this strategy is similar to other
countries. (Klein, 2018)
Figure 4-7

4.6.4 Diversification.
When considering the diversification the company should implement new products to new markets.
Tesla has used diversification strategy during last decades. The company uniquely begins its
products as an EV producer. After capturing solar city it became the energy storage company which
develop new products. The alternative fuel vehicles maker is expected upon to further diversify
when/on the off chance that it figures out how to win its present severe financial issues.
5 Knowledge and understanding of alternative competitive
positions/strategies
Analysis of Target market segmentation and targeting strategy
5.1.1 Target market segmentation
Target market is the EV market share which is segmented by geological, demographic, financial, and
psychographic and behavior factors.
5.1.2 Geological segmentation
In UK the infrastructure and it has a highly expanded network for tesla car chargers (IEA, 2013).
5.1.3 Demographic segmentation
The size of the families in UK also considered when implementing the cars for target market. In UK
basically its 4- 6 in average.
5.1.4 Socio-economic segmentation
In UK there are higher number of customers which have the ability to purchase a Tesla EV. As the
per capita is high the Tesla has a big opportunity when implanting the vehicle markets.
5.1.5 Psychographic segmentation
This is the interest of being eco-friendly. In In UK most of the people have the mentality of using
eco-friendly products. (Lyndhurst, 2015)
5.1.6 Behavioural segmentation:
Price-sensitivity among customers, seen benefits about quality, security and performance are far
wide spread in this market and decide the Research and Development and clients administration of
EV makers

Target markets and targeting strategy – UK context
5.2.1 Target market 1
Tesla target on gents (86.9%) and executive class. The majority is between 40-65 years of age in
UK. 78.3% have an income more than GBP 72,327 and are considered have power to purchase Tesla
products and in the upper-mid working class. They consider Tesla is prestigious and part of their way
of life and focus around premium vehicles which are fast, save and eco- friendly. Good service,
performance and branded are additionally considered (Tansel, 2015)
5.2.2 Target market 2
Most of the family target market is target by selling the Model S and X outfitted with seven seats,
which offer ideal space limit families (Tesla Motors, 2014). These vehicles are ideal for trips and
outings for people.
5.2.3 (Future) Target market 3
As the expansion of the EV market in tesla initially they considered higher prices vehicles for
markets. But now they are using model 3 for affordable families. In future this is focused to expand
their bigger market catch. (Tansel, 2015)
Tesla’s brand strategy and Positioning Analysis
5.3.1 Tesla’s product strategy
When considering the previous records Tesla’s line extension includes selling the Model S, Model X
and Tesla Roadster. More they decides to develop model 3 and model D to increase their line
extension. Therefor the below map shoes the current positioning for the tesla brand.
Figure 5-1
But in any case if the product is not successful the perception of other EV’s and company brand
name will damage.

5.3.2 Proposing alternative target markets for Tesla
5.3.2.1 It produce cars as it would a software product.
Tesla produce vehicles by implementing software on unique machine, much in the similar like Apple.
This is a unique feature of tesla comparing with the other manufacturer. Therefore the different
perception traffic/road automation software’s also can be develop
However the production cost is less in a tesla car comparing with the combustion vehicles. There's no
need for costly oil changes, tune ups, replacing mufflers, the like. The car manufactures, who get huge
benefit from their service segment, know this.
5.3.2.2 It can use battery technology for other industry segments
As Tesla’s Research and developments are working towards battery segment the few
upgraded battery types have been made. Commercially this implications can be used for
power segment as the new product development.
5.3.2.3 Solar panels can be make a domestic power source.
As tesla has acquired solar city the existing technology can be used for domestic power
utilization. The company can expand solar products up to domestic level which has a bigger
market volume

6 Recommended marketing strategy with justification
Assumptions, Interpretations and strategic Suggestions based on strategic
analysis
Tesla's competitive market position will be controlled before the finish of 2021.In the situation
where company follows its 2020 pattern and builds its net revenue to arrive at substantial positive
figures in upcoming years, the organization will should grow its business by expanding out its
movement to new markets.
Now days there are only few Tesla production factories in Europe. Its better if the factories are
implanted in Europe region also. Undoubtedly, in Europe Tesla Motors can see lots of new
opportunities; after the merger of the engineering designing business Grohmann, the goliath could
begin consider open doors in the UK.
To be sure, UK has the skilled engineers to start the factories in the country. Citizens would believe
that after Brexit happened England in June 2016, the England market would decelerate down yet the
nation stays an attractive market for new entrance, particularly because it’s 17.2% corporate tax,
Therefore it will be an opportunity to extend its activities for market expansion.
For the situation where Tesla doesn't accomplish to satisfy its demand and make a sufficient benefit,
Tesla will be rapidly out performed by new electric models of traditional automobile manufactures.
In such circumstance, no interest in Europe nor anyplace would be significant. Best the thing Tesla
could manage in such situation is expanding its partnership system with automobile manufactures
delivering electric vehicle to supply them core electric segments and hence make a profit in other’s
car sales. In the two circumstances, Tesla could likewise use its transformational leadership to grow
its activities in economical way of life administrations.
Conclusion and short-term recommendations
Tesla is as of now performing well. By putting a ton in Research and developments just as in
Property, Plant and Equipment, the firm effectively strengthen the ground to become from now to
2018/2020 a profitable innovator in EV manufacturing prepared to climb its growth stage. Even its
younger to automotive industry, Tesla strategically broaden its action to a larger market which is
sustainable way of life- style market.
In all cases, Tesla must continue to put resources into energy storage/management services which is
a strong chance to make the Tesla activity loaded with sense and consistency. For possible clients, to
decrease worries over resale value, at finally, Tesla ensured a resale value pegged to comparable
BMW and Tesla extended quickly in 2014, beginning with just charging stations in Norway, the

expanded to 12 European nations this year with plans to expand into the each country in Europe by
mid of 2016 .This organization will have no short of what one charging station each 100 km.
Competitive sales growth and potential product growth:
The below recommendations can consider for the potential growth of sales and marketing.
 Export Solar panels As much as possible. Solar market is a bigger market which has the
count of all houses in the world. The domestic solar panels will have a higher demand in
future for the electricity requirements
 Keep Dealing with battery manufactures. As tesla is a new to the market the traditional
ways will have higher quality on their batteries. Therefore the tesla have to focus on
their battery partners. As the core of the EV is battery. In any failure the brand name of
tesla will damage
 Sell a “Pro-Pack” containing models III for workers and Power Pack to advance
organizations' energy utilization. Aim high economic developing like Singapore or
Dubai. Model III is open for organizations and workers will be satisfied and more
profitable.
 Trade arrangements: For instance, international trade make it simpler to grow global.
Thus, a proposal is for Tesla to globally expand its tasks. It is additionally suggested that
the organization should build it’s its marketing aggressiveness to expand its market
share.
Adding value to Tesla’s strategic position
Finally below recommendations can introduce to its value chain.
1. Support activities “Technological Powertrain and Battery-Packed Technology”
2. Inbound logistics “The Gigafactory”
3. Production “Manufacturing at the Fremont factory”
4. Using company owned stores
5. Make supercharger network for market developing

Should be implemented with digital strategy
Tesla Company and its CEO Elon Musk make social media campaigns with their innovative
products and publicity methods. Tesla is a well know company which does not use budget for its
social media campaigns.From These success we can predict that using digital media we can
implement its marketing plan.
Tesla use its Facebook page (2.6M subscribers) and Instagram for connect with customers.
6.5.1 1. Tesla’s Instagram is more organized
Tesla uses high quality photos for the Instegram photos It looks perfect and it’s easier to maintain a
good background on your business’ Instagram account. So further promoting the brand and new
products instagram also a good method which I recommend
Figure 6-1
6.5.2 Tesla’s twister is synched with CEO Musk’s Twitter
Tesla uses Twitter for:
 Customer interactions
 Client services
Either than other companies Tesla makes differently is they utilize social listening to combine
Twitter services (HOGAN, 2018)
Even if Tesla isn’t tagged, the tesla social media team interact with the Musk’s twitter conversations:

Figure 6-2
Therefore the above examples must considered for the evaluation of Tesla’s marketing strategies.
The recommended digital media will be an added advantage for its future progress.

7 Conclusion
This report shows the recommendations and current situation for Tesla Company. Tesla has not been
selected UK specifically for the analysis, segmentation, targeting, positioning and marking mix. The
above facts shows that the UK market has the potential strength for Tesla’s market expansion. The
report broadly describe the current situation and techniques such as SWOT, PESTEL also Porter’s
five forces analysis.

.
8 Content Tables
Table 1 ................................................................................................................................................. 23
Table 2 ................................................................................................................................................. 23
Table 3 ................................................................................................. Error! Bookmark not defined.
9 List of Figures
Figure 3-1 ............................................................................................................................................... 6
Figure 3-2 ............................................................................................................................................... 9
Figure 3-3 ............................................................................................................................................. 10
Figure 4-1 ............................................................................................................................................. 13
Figure 4-2 ............................................................................................................................................. 17
Figure 4-3 ............................................................................................................................................. 21
Figure 4-4 ............................................................................................................................................. 22
Figure 4-5 ............................................................................................................................................. 24
Figure 4-6 ............................................................................................................................................. 25
Figure 4-7 ............................................................................................. Error! Bookmark not defined.
Figure 4-8 ............................................................................................................................................. 26
Figure 6-1 ............................................................................................................................................. 32
Figure 6-2 ............................................................................................................................................. 33

10 References
AG, B., 2018. THE NEW BMW i3. [Online]
Available at: https://www.discoverbmw.ie/191/wp-content/uploads/2019/05/BMW_i3_i3S.pdf
[Accessed 29 3 2021].
Chint, R. N. N., 2018. TESLA AS A TRANSFORMATIONAL LEADER IN A SUSTAINABLE
ECO-LIFESTYLE. TESLA - Strategic and Competitive Analysis (Harvard), pp. 8-11.
Gaille, B., 2020. Tesla SWOT Analysis (2021). [Online]
Available at: https://brandongaille.com/tesla-swot-analysis/
[Accessed 3 3 2021].
Galaly, D. S. E., 2018. Tesla motors, s.l.: s.n.
Garyfox, 2019. TESLA Business Model. [Online]
Available at: https://www.garyfox.co/TESLA-business-model/
[Accessed 31 3 2021].
Gaveen, 2021. Tesla. [Online]
Available at: https://www.tesla.com/en_GB/findus/list?redirect=no
[Accessed 31 3 2021].
Harrabin, R., 2020. BBC - Ban on new petrol and diesel cars in UK from 2030 under PM's green
plan BBC. [Online]
Available at: Availabel at: https://www.bbc.co.uk/news/science-environment-54981425
[Accessed 31 3 2021].
HOGAN, M., 2018. stunning strategy. [Online]
Available at: https://www.stunningstrategy.com/social-media-highlight-tesla-elon-musk/
[Accessed 2 4 2021].
Kissinger, D., 2018. Panmore Institute. [Online]
Available at: http://panmore.com/tesla-motors-inc-marketing-mix-4ps-analysis
[Accessed 30 3 2021].
Klein, B., 2018. How the UK can lead the electric vehicle revolution, London: Green Alliance.
Lyndhurst, B., 2015. Uptake of Ultra Low Emission Vehicles in the UK, London: Brook Lyndhurst
Ltd.
Muoio, D., 2017. business insider. [Online]
Available at: https://www.businessinsider.com/tesla-projects-long-term-plans-2017-9
[Accessed 31 3 2021].
Porter, M., 1989. How Competitive Forces Shape Strategy. Palgrave, London: Asch D., Bowman .
Rowland, C., 2018. Tesla, Inc.’s Generic Strategy & Intensive Growth Strategies (Analysis).
[Online]
Available at: http://panmore.com/tesla-motors-inc-generic-strategy-intensive-growth-strategies-
analysis
Saloner, G., 2000. Disintermediation in the US auto industry, s.l.: Stanford Business School Case
EC-10.
Steen, E. V., 2015. Tesla motors, s.l.: Harvard business school.
Tansel, A. K., 2015. Marketing Report on "Tesla Motors", London: Kingston University .
Tashakkori, M., 2021. STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS on TESLA
Motors, Birmingham: University of Birmingham.
Tesla, 2018. Tesla official. [Online]
Available at: https://www.tesla.com/
[Accessed 6 04 2021].