Tesla Inc Strategic Marketing: Sustainable Advantage and Future

This report provides a comprehensive analysis of Tesla Inc.'s strategic marketing approach, focusing on its sustainable competitive advantages, resource allocation, and marketing plan. It highlights Tesla's commitment to sustainable growth and disruptive innovations in the electric vehicle and energy sectors. The report examines how Tesla's strategies align with its target market of environmentalists and tech-savvy consumers, and it assesses the company's resource allocation in research and development. Furthermore, the report identifies future challenges and potential solutions for Tesla, emphasizing the importance of innovation in both product development and business processes. The analysis draws upon Porter's generic framework to categorize Tesla's competitive strategy as differentiation focus, and the report concludes by summarizing the key factors contributing to Tesla's success and its ongoing efforts to drive sustainable transportation and energy solutions.

Running head: STRATEGIC MARKETING
Strategic Marketing: Tesla Inc
Name of the Student
Name of the University
Author’s note

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Executive summary
The purpose of the assignment is to understand the strategies and policies devised by Tesla Inc.
Tesla is an organisation that is established with a view of providing a fuel efficient and energy
efficient solution to the society. There are three sections to the assignment: firstly, sustainable
competitive advantage strategies that are taken by the company, analysis of the resources and
capabilities of the company and the marketing plan that the company employees in order to reach
out and gather the attention of the target market. It is observed form the analysis that innovation
plays an important role in the business model of the company. However, the company just
focuses on the innovation and development of products. In order to combat the challenges the
company has to invest in the innovation of the process of business as well.

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Table of Contents
Introduction......................................................................................................................................3
PART 1: Sustainable Competitive Advantage.................................................................................4
Innovations of Tesla....................................................................................................................7
Offensive and defensive strategy...............................................................................................13
PART 2: Resource analysis/allocation..........................................................................................15
Resources Allocation for the strategies.....................................................................................15
Most Critical Resources.............................................................................................................18
Marketing assets........................................................................................................................20
PART 3: Strategic marketing plan.................................................................................................22
Success factor of Tesla..............................................................................................................22
Future challenges and solutions.................................................................................................24
Conclusion.....................................................................................................................................25
Reference List................................................................................................................................26

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Introduction
The organization that has been selected to conduct the study is Tesla Inc. The company is
headed by the dynamic leader Elon Musk as the CEO of the company (Rains, 2018). The focus
of the company as pointed out in Assignment 1 is to accelerate and power the world by the use of
eco-friendly and sustainable energy. Over the years of operation the company has faced a
number of ups and downs however; with strategic planning and organisation of the policies
according to the business environments the company has successfully established itself in the
market. With some of the ground breaking achievements in innovation Tesla Inc is making some
ground breaking development in the mobility and energy industry (Tesla.com, 2018).
The company has been focusing on the issue of increasing price of oil and thus
developing electric cars and marketing it in the mainstream market. This has enabled the
company to gather the attention of the target market on an international scale (Tesla.com, 2018).
The main competition of the company is are Ford motor company and Honda Motors Company.
From assignment it can be summarized that the factors that add to the success of the company
are the innovation in technology, correct timing and having dedicated and experienced team.
Tesla has two customers segments: environmentalists and people who are looking for investing
in technology that will help them save money in the future, therefore the income group is in
between medium and upper medium.
This report will focus on three parts: Sustainable Competitive Advantage strategies that
are taken by the company, analysis of the resources and capabilities of the company and the
marketing plan that the company employees in order to reach out and gather the attention of the
target market.

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PART 1: Sustainable Competitive Advantage
Schilke (2014), state that competitive advantage is the strategy that an organisation
employees in order to gain an edge over the other players in the market. The management of the
company analyses the micro and macro environmental factors in order to determine the strategies
which will make the company stand out from the rest of the competition in the market (Saeidi,
Sofian, Saeidi, Saeidi & Saaeidi, 2015). Sustainable competitive advantage is the long term
strategies that will help the company maintain the position at the top of the market (Liu, 2013).
The first competitive advantage that the company has over the other players in
the market is that the company focuses in sustainable growth and development and in doing so
the strategy is to concentrate on developing products and services which serve as a solution to
some of the major environmental issues that the world is facing in today’s time (Sperling, 2018).
The company is a forerunner in the renewable energy department. This strategy adds to the value
and supports the mission to accelerate and power the world by the use of eco-friendly and
sustainable energy. This is in sync with target market of the company as well. It has been
established in assignment 1 that one of the target market of the company are environmentalists,
thus it is appropriate for the company to invest in technology and research for sustainable future.
The strategy of sustainability of Tesla Inc goes beyond automobile, rather the recently release
corporate strategy of the company indicate towards additional business ventures (Tesla.com,
2018). The CEO has announced to come up with a pickup truck, battery-SUV, an electric semi-
truck and commercial battery bus. Furthermore the focus will also be on sharing of vehicles and
will also merge with solar panel maker SolarCity in order to broaden the sustainability horizon
(Eisenstein, 2016). Tesla is an organisation that is focused on the big picture with the visionary
leadership of Elon Musk the company concentrates on long term objectives as that is what is

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required to ensure that the company is true to its value of sustainability. There are two main
environmental factors that the company is focusing the strategies upon, these are: the change to a
carbon neutral economy and the urgent need for a new sustainable business model for the
transportation industry based on zero emissions (Tesla.com, 2018).
The second competitive strategy of the company is to invest in research and development
and to come up with disruptive innovations. Innovation is the process of developing an idea, an
innovation is called disruptive when the idea is one of a kind in the market and challenges the
similar services already existing (Christensen, Raynor & McDonald, 2015). With the help of
disruptive innovations the company is not only capturing the attention of the target market but is
also attracting the media and the press (Nagy, Schuessler & Dubinsky, 2016). The breakthrough
innovations that are incorporated by Tesla are a threat to some of the most established
organisations in the industry (Sperling, 2018). With their mainstream electric car the company
has gathered a lot of goodwill and reputation among the stakeholders (Sperling, 2018).
Following are some of the disruptive strategies that the company has been incorporating the
business:
 The game changer for the transportation and automobile industry is the Tesla EV; the
electric cars have efficient batteries that enable the customers a longer driving range
which is a cost advantage in energy storage density, and lower cost per mile transport and
vehicle ownership.
 The battery efficiency of the EV is one of the performance benchmarks and energy
storage markets (Tesla.com, 2018).
 The company is investing in new technologies in the DER Distributed Energy Resources
market GridLogic system is crucial to expand utility Distributed Energy Resource market

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this helps in integrating energy storage with energy generation. This includes solar and
wind energy with electric grid intelligence and equipment control (Tesla.com, 2018).
Thus, it can be said that the company has its competitive advantage aligned with the target
market that has been indicated as well as increase the value of the organisation among the
stakeholders.
With the help of Porter’s generic framework the strategies that the company has undertaken
can be analyzed. Michel porter has explained three strategies with which a company can ensure
competitive advantage (Tansey, Spillane & Meng, 2014). The strategies that Porter has described
are: cost leadership, differentiation and focus; and by examining the two competitive advantages
of Tesla it can be said that the company has undertaken the strategy of differentiation focus
(Tanwar, 2013).

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Cost
Leadership
Cost Focus Differentiation
Focus
Differentiation
Broad Narrow
Scope
Figure: Porter’s Generic Strategy, Source of competitive advantage
Source: (Tanwar, 2013)
The strategies of Tesla are focused on a particular market and the company has developed
the products based on the understanding of the dynamics of that market (Tanwar, 2013). By
recognizing the needs and trends among the customers Tesla has successfully developed a
technologically advanced products and services for the market. Furthermore, the company has
also successfully aligned the objective of the business with the requirements of the target market.
Innovations of Tesla
Innovation plays an important role in the competitive advantage of the company as the
Electric car technology innovations and the energy technologies developed by the company are
the ones which set the products and the services of the company aside. The establishment of the

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company was on the basis of innovating on the idea of making electric car not only a concept but
a fun and mainstream vehicle (Urbancova, 2013). Being energy efficient is one of the major
objectives of the company and in order to do so a large part of investment is focused on
innovation as most of the companies are focusing on profitability by providing the customers
with what they want. However, Tesla is a company that makes the customer realize the future of
transportation and the responsibility the company has towards the environment and society
(Hardman, Shiu & Steinberger-Wilckens, 2015). The company does not have a large number car
models rather they focus on the improving and developing the models that are existing. There are
four cars models: MODEL S, MODEL X, MODEL 3 and ROADSTER (Tesla.com, 2018).
Apart from the vehicles being eco-friendly and running on electricity, there are also other
advance technologies used to serve a number of purposes. One of the major aspects that a
customer looks forward to while buying an automobile is security. Model S and Model X of
Tesla are claimed by the company to be the safest car; Model S is a sedan whereas Model X is an
SUV and is the safest car in the category. Model S has received the highest safety rating of any
car ever tested. Side collision warning and emergency braking are some of the innovation that is
installed in the security system. Front and side impact protection along with lowest rollover risks
are some of the added advantage of the car.

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Safety innovation is taken to another level with the Model 3 car where the body is built
combination of aluminum and steel, for maximum strength. The glass roof of the car has been
tested positive with a mass which is four times its own. Furthermore all the above stated features
are also present in this model. The Model 3 is marketed by the company as a low-priced, high-
volume electric car.
Tesla Roadster is said to be the quickest car in the world with the record of 0-60 mph in 1.9 sec.
Base Specs
Acceleration 0-60 mph 1.9 sec
Acceleration 0-100 mph 4.2 sec
Acceleration 1/4 mile 8.8 sec
Top Speed Over 250 mph
Wheel Torque 10,000 Nm
Mile Range 620 Miles
Seating 4
Drive All-Wheel Drive
Base Price $200,000
Base Reservation $50,000
Founders Series Price $250,000
Founders Series Reservation
(1,000 reservations available)
$250,000
Figure: Base Specs of Roadster

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(Source: Tesla.com/roadster, 2018)
Roadster is marketed by the company as an all-electric supercar; the company is segmented
in the sport car genre ensuring a breakthrough innovation by its all around performance
efficiency. The car maximizes the potential of aerodynamic engineering—with record-setting
performance and efficiency the car has a highway range of 620 miles which is again a record for
any electric car. According to the CEO of the company the idea of building the new roadster is to
leave the idea of gasoline cars behind. The car is packed with features which are technological
innovations like the battery pack of 200 kWh and 3 motors combination. The company unveiled
the car on November 2017 and is set to be available in the market in 2020 (Tesla.com/roadster,
2018).
Tesla Semi is claimed by the company to be the safest and the most comfortable truck. The
truck features four independent motors which provide maximum power and acceleration. From
the design of the vehicle to the fact that it has the lowest energy cost, Semi is another ground
breaking innovation in the pickup truck segment. This would be one of a kind vehicle that runs
on battery (Nykvist & Nilsson, 2015).
Base Specs
Acceleration 0-60 mph with 80k lb 20 sec
Speed up a 5% Grade 60 mph
Mile Range 300 or 500 miles
Powertrain 4 Independent Motors on Rear Axles
Energy Consumption Less than 2 kWh per mile
Fuel Savings $200,000+

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Expected Base Price
(300 mile range)
$150,000
Expected Base Price
(500 mile range)
$180,000
Base Reservation $20,000
Expected Founders Series Price $20 0,000
Founders Series Reservation $200,000
Figure: Specification of Tesla Semi
(Source: Tesla.com/semi, 2018)
Tesla with the technological innovation in the electric car category has made some of the
prominent automobile industry change their perspective and their competitive advantage
strategy. Tesla is focusing on pioneering in the technology of energy efficiency in automobiles,
the company has also improved and developed the solar conservation technology in household
(Meihami & Meihami, 2014). Tesla is a company that allows the employees to have a creative
space in order to come up with ideas and innovations which make the company stand out from
the rest. The leaders of the organisation agree that the employees are the back bone of the
success of the company.
Offensive and defensive strategy
Competitive advantage strategy can be divided in to two segments offensive and
defensive. The strategy is said to be offensive when it is directly targeted to the competitors in

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the market (Harrison & John, 2013). On the other hand, Morden (2016), defensive strategy is
when the company counters an offensive strategy of a competitor.
One offensive strategy that the company can incorporate in the strategies is focusing on
the Asian market which is one of the major aspects of the global market for Honda Motors as
well as ford. Thought Tesla has its operation and distribution to a number of countries however,
there is a significant scope in countries like India and Singapore etc. The competitors of Tesla
have a wider reach to the target market and the company needs to broaden the spectrum. As the
company is coming up with a new vehicle this can be the right opportunity for the company to
set foot in these countries. Furthermore, this is an opportunity for the company to grow and reach
out to a greater target market (Stringham, Miller & Clark, 2015).
The defensive strategy that the company can take is in the form of promotion, Tesla is a
company that promotes the electric car and the features that the cars have in terms of innovation
and technological aspects. However, the company should also focus on the fact that they are
serving the environment and is working towards developing a sustainable future (Hennig-Thurau
& Hansen, 2013). The company can come up with a campaign focusing on the mission of the
organisation and reach out to the customers and ask them to be a part of the revolutionary
approach in the automobile as well as energy industry (Leonidou, Leonidou, Fotiadis & Zeriti,
2013). This will give the company an advantage as the competitors of Tesla focus their
promotional strategy on the products and product development, their message for their customers
are regarding the features and the innovation that they have included in the product. However,
this is where Tesla can come up with a defensive strategy of sending across the customers their
mission for the company.

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PART 2: Resource analysis/allocation
Resources Allocation for the strategies
As discussed above the internal environment factors of the organisation can be managed
and controlled by the organisation (Kuratko, Hornsby & Covin, 2014). Some of the aspects of
the internal environment are: the organisation culture, the structure of the company, the
management strategies etc. All these factors make up for the resource and capabilities of the
company. A major part of the strategic planning of a company is allocating the resource
efficiently (Chen et al., 2014). Tesla is a company that believes in sustainable development and
thus responsible use of resources is also one of the main objectives of the company (Tesla.com,
2018). Resources can be divided in two sections: tangible resources, these are the resources that
can be physically quantified and measured for example: office building, stationery items, raw
materials etc. On the other hand, the resource which cannot be quantified or measured in terms of
units is called intangible assets copyrights, franchises, goodwill etc.
The resources which are required by the management of Tesla to fulfill the strategies that
have been stated above are:
Offensive strategy:
For a company to expand the business to a new market requires a number of resource and
capabilities. Not only that there are also several factors that have to be kept in mind while
devising a plan for expansion like: firstly choosing the country, if Tesla wants to set up
distribution channels in India then the company will need to understand the dynamics of the
Indian automobile market along with other external factors like the political condition of the
country, the economic prospect of the country, the societal condition as well as the technological

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advancement and acceptance etc (Verbeke, 2013). According to Hutzschenreuter and Horstkotte
(2013), another important decision that the company has to make is find the mode of entry in the
market. These are all a part of the strategic management of the company and in order to
implement these strategies the company will need to effectively allocate the resources.
Defensive strategy:
The strategy that has been derived is based on the marketing mix, specifically promotion.
The company has to arrive at a message which will be an identity for the brand. Tesla is an
organisation that has built its unique identity among the stakeholders and the industry and the
idea is to focus on the uniqueness and set the company apart from others with the help of
promotional strategies.
Some of the common resources which are required for both the strategies are:
 Financial resource: Any organisation requires financial back up in order to fulfill the
strategies and the objectives that have been set. Tesla is a company that has earned
around 11.8 billion U.S. dollars in 2017. This is a remarkable growth from the last
financial year where the company was at around 7 billion U.S. dollars. This rapid growth
of the company is based on the products and innovations that the company introduces
with each product and service. Therefore, these figures indicate that the company has the
capability in terms of financial resource to expand the market. Furthermore, with the
introduction of two new models the Roadster and the Tesla Semi the revenue of the
company is anticipated to grow on an increasing trend. And the current growth of the
company can be attributed towards the Model S which was introduced in 2009. In the last
financial year the company had a record of sales of more than 100,000 Model S sedans

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and Model X SUVs. This sale record gave the company a revenue rise of 33 percent
from the previous year amounting to a total of $11.76 billion in 2017. For the company to
incorporate the promotional strategy the management will need to invest in terms of
capital requirement, for example, if the company comes up with a television
advertisement then the company will have to invest fund (Klingebiel & Rammer, 2014).
 Human Resource: The management of Tesla Inc recognizes and acknowledges the fact
that the employees are the most important resource that the company has. As the business
model of Tesla is based on innovation the company ensures a motivating and
encouraging work environment as well. Human resource is required at every step of any
strategy that the company undertakes firstly in order to carry out the research before the
expansion and deciding upon the mode of entry HR is required. Furthermore, in order to
run the business in another country the company will again have to employee managers
and other employees. For the promotional plan Tesla can either choose to align with a
third party organisation to develop and work on the promotional instruments used to
reach out to the target market. However, there is a requirement for an in-house marketing
team who will work closely with the third party to ensure that the process is going
according to the plan ((Purce, 2014). The company can hire the people who are required
for the business in the new country; this is the duty of the HR department. The HR
department is also responsible for transferring a person to the country if required. Tesla is
an organisation that recognizes talent and recruits people based on their skill and their
ability to think differently. Tesla will also need a squad of legal advisors as well as host

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country attorney to deal with the contracts and the initial legal procedures that the
company need to establish the business (Purce, 2014).
 Building and office equipment: For setting up a business in a different country the
company will require to set up an office as well as showroom space for the company. In
order to do so the management requires contacts and financial resources along with HR.
As a multinational company with large revenue the company is popular and this adds to
the goodwill giving the company an opportunity to build contacts among the new market.
These are the resources that the company currently has no access to but has the capability
to invest in the future (Sterner & Coria, 2013).
 Raw materials: Tesla will need to develop and manufacture the cars according to the
rules and restrictions of the country as well as based on the product analysis gap that is
established in the market research mentioned above. The company will need to
manufacture the cars which will require considerable amount of raw materials. For Tesla
it is important to source the resources ethically and to ensure that these resources are
efficiently allocated in order to reduce waste and incorporate recycling where ever
possible. Tesla has an established supply chain which enables the company to fulfill the
innovations in technology that has been created for the cars as well as the energy services
(Sterner & Coria, 2013).
Most Critical Resources
The two most important resources that the company requires to fulfill the strategies are: the
financial resource and the human resource. Without these two resources any organisation cannot
perform their function. Financial back up of the company in terms of its revenue gives an idea to
the management the amount they can spend on a strategy. At the beginning of a financial year

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budget allocation takes place this is based on the revenue of the past year. Any organisation
cannot operate without strong financial support. The money is required to buy or rent the office
and showroom premises, pay the remuneration of the employees who are involved in ensuring
that the strategy is implemented successfully. Pay all the possible bills including the electricity
and communication (Purce, 2014).
For the promotion strategy the company has to invest in availing the services of the third
party organisation that will assist the marketing team with the promotional tools like the
advertisement and the message of the promotion etc. It is important for the company to ensure
that the message of promotion is clear to the target market as it would help in establishing the
unique principle of the company and the motivation that helps the management and the
organisation operate.
Human resource is required to run all the functions of the business and thus it is important for
the strategies as well. With all the other resources that are enlisted above it is not possible to run
a business without the support of the human resource. Tesla operates on the innovation model
and in order to achieve the objectives of providing the people with sustainability mobility options
the company has to bank on the HR for research and development as well as the other functions.
In order to achieve the competitive advantage over the stiff competition in the market Tesla uses
the financial resource to invest in latest technologies and the materials that are required by the
employees to assist in innovation (Sterner & Coria, 2013). The innovations that the company has
developed over the years in the electric car technology are largely dependent on these resources.
When the company was not making enough revenue in 2010, the organisation was made public
and the reported sale in that financial year was reported to be $204 million. Based on these

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figures the company invested in the research team and the Human resource in order to maintain a
differentiation focus strategy that has been discussed above (Sterner & Coria, 2013).
Marketing assets
Assets are an economic resource which has a positive impact on the company. Assets are
reflected on the final accounts of the company in the balance sheet. Marketing assets on the other
hand are promotional factors or items that are used by the company in order to reach out to the
target market (Pucci, Simoni & Zanni, 2015).
Customer based asset: The marketing assets that the company requires in attaining the
sustainable competitive advantage are: Promotional video, this video can be used by the
company as a television advertisement as well as a part of the social media campaign. The focus
will be on the message that the company wants to share across the international target market.
The defensive strategy that has been developed previously indicates the objective of the
promotion strategy to establish the mission of the company as the brand image for Tesla. This
will be in contrast with the other competitors in the market. As the competitors of Tesla focus on
the features of the products that they are selling, however the strategy of Tesla is focused on
informing the customers what the company stands for, what the principles and values are and the
mission and vision of the organisation. Therefore, the video or the series of videos will help in
enforcing the idea in the minds of the people and thus help in maintaining a sustainable
competitive advantage.
Alliance based asset: Another marketing asset that the company has is the official website of
the company. The Website of Tesla is a source of authentic secondary information about the

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company. Tesla has a very compact and an informative yet graphical website which provides all
the necessary information about the cars and the energy services the company provides. The
specifications, unique characteristics, the variations etc are all mentioned in the website.
Furthermore, the website also gives out other relevant information regarding the company and its
leaders there are blog posts from the leaders of Tesla which helps the customer understanding the
principles of the company as well as determine the uniqueness of the values which are further
reflected on the products and services offered by Tesla.

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PART 3: Strategic marketing plan
Success factor of Tesla
Figure: Tesla's revenue from FY 2008 to FY 2017 (in million U.S. dollars)
(Source: Statista.com, 2018)
Tesla is an organisation that has been focused on the mission and objective that was
initially established. The company has gone through ups and downs throughout the years of
operations which are much less than many of its direct competitors like Ford motors, Honda
Motors etc. During the initial time of establishment the company has gone through loss as they
could not align the products with the requirement of the customers and the claims. However it
was the introduction of the Model S car in the automobile portfolio that contributed to the
popularity of the company. The company earned revenue of $14.7 million in 2008, which soared
up to $111.9 million in the next financial year; the rise in the revenue was 661% (Statista.com,
2018).
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0
2000
4000
6000
8000
10000
12000
14000
Revenue (in million U.S. dollars)
Revenue (in million U.S. dollars)

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Some of the features that set the original Model S version from the other vehicles in the
market are as follows:
The batter pack of the car was excellent and way ahead of what any other company was offering
in the electric car segment. This was revolutionary and set a new benchmark for the other
companies who were targeting this segment. The EPA-rated range of the original Tesla Model S
P85 was 426 km. this aspect of the original version was further upgraded in 2013 where 120 kW
DC fast-charging was enable which was initially limited to 90 kW (Tesla.com, 2018)
The original version of the car was introduced with the instant torque which enabled the driver to
accelerate from 0 to 60 mph in approx 4 seconds. Apart from this the overall experience with the
car used by a number of users has been positive.
Therefore it can be said that the investment in research and development and the focus on
innovation is the main reason of success of the company. The focus of Tesla on providing an
energy efficient mobility solution to the global market is the motivation for the management as
well as the employees to concentrate the resources on innovation and development of the idea
which the company was established. Since the success of Model S the company had to allocate
resources in mass production due to the huge demand for the car (Rains, 2018). The company
sold over 100,000 units of the flagship all-electric car Model S sedans and Model X SUV in the
last financial year resulting in the revenue of $11.76 billion (Statista.com, 2018). As discussed
above the company has come a long way in achieving the current status where the focus of the
company is to develop the products and to reach out to newer markets.

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Future challenges and solutions
Mass production of the Model 3 car is one of the major challenges that the company has
been facing, this has also made the investors skeptical. With the Roadster and the Tesla Semi in
the pipeline the company is in pressure to roll out the preordered Model 3 vehicles (Debord,
2018). This issue has given rise to a number of unsatisfied customers as the company is failing to
fill the orders (Rains, 2018). There are certain expectations that a consumer has while booking a
product or service and if that is not even delivered then chances are that the customers will not
return for the second time (Debord, 2018). The manufacturing unit of the company has not
produced car for the mass, with the Model S and Model X the company delivered the expected,
but then the leaders of the organisation claimed that Model 3 is designed for the mass yet the
production and manufacturing units of the company are not capable in fulfilling the claims
(Matousek, 2018). The solution to this issue can be in investing on the manufacturing process
this would involve the company in ensuring that innovation is not only used for product
development rather it is also used for the process of business as well. All the other competitors of
the company have large scale production units with technologically advanced systems to
manufacture vehicles in least amount of time. Tesla has to step up the manufacturing game in
order to fulfill the expectation of the customers.
The company has been earning revenue in leaps and bounces however; the objective of
the company is least on the financial security of the company (Matousek, 2018). This can pose as
a challenge in the future based on the plans that the company has and the claims that the
company has established among the stakeholders. In order to face this challenge the company
has to establish profit objectives and accordingly work on the strategy of sales. The challenge
that has been discussed above are aligned with this, the company has to improve the production

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in order to accelerate the sales process which further more will help in earning revenue
(Matousek, 2018).
Conclusion
It can be concluded form the above discussion that Tesla Inc is a company that
undertakes the strategy of differentiation focus in order to device competitive strategy. The target
market of the company is primarily environmentalist and in order to deliver the customers with
products which are highly efficient as well as sustainable the company employee significant
amount of financial resources in the research and development. The company runs on the
innovation business model and in order to gain competitive advantage the company has
developed fully functional and ground breaking technology in the electric-car segment. Tesla is
an organisation that has been significantly growing in the market and with its disruptive
innovations is capturing new market as well. The challenge for the company in the future is to
fulfill the requirement of the orders that has been pre-booked as well as increase the revenue, the
two challenges are interconnected. The solution to this problem is investment in innovation of
business process by developing efficient manufacturing units in order to compete with the other
players in the market.

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