Introduction

Tesla is a strong innovative motors producer of the United States. Over the period of time, the company has continually evolved into producing a better version of cars that align with the demand of the customer in the market and that drives the urge for a better car experience. In doing so, the company has developed an innovative strategy that includes continual changes in operations, production, and functional capabilities to meet the market demand and to align its strategy and goals with the environment and also with the customer behavior.

While doing this, Tesla in 2012, developed the electric car with the motive to offer better design cars with extended features like increased security, fuel efficiency and high performance. It realized the trend of increasing technology usage in the market and thus, incorporated into its business strategy that offered it the competitive advantage of being the most innovative and efficient car producer in the USA.In addition to this, to match and align the business strategy with the market trends and to develop a strong value proposition, the company has established its own service networks that allow its business functions in a manner that allow it to rapidly grow and launch the electric vehicles with fully loaded technologies. Moreover, the operational structure, engineering expertise and vehicle structure differentiates Tesla from other competitors in the market like Ford and Porsche that also operate in the similar category. Such capabilities and skills allow Tesla to maintain a certain competitive edge in the market, allowing it to lead the electric motor industry with significantly high market share and brand value.

Tesla Motors Harvard Case Solution & Analysis

Problem Statement

Tesla is planning to enter the mass market production in the automobile industry through pursuing the market penetration strategy.In such a situation, Elon Musk hasto analyze the US market in order to pursue the mass production strategy.

Analysis

PESTEL ANALYSIS

Political Factors

The US government is offering great incentives and support to green technology producers. Such a trend is beneficial for Tesla Energy as it will allow the company to expand into the market efficiently without any hindrance from the government and may receive subsidiaries or incentives that may help to grow the business on regional and then, global level. Apart from this, the US government has also initiated a free trade agreement with green technology producers including Tesla that will enable the company to expand internationally, offering the business a competitive edge in maintaining the leadership, positioning global market as well. In addition to this, the political stability is also favorable for Tesla since it will allow the company to maintain its intellectual property rights and maintain its distinctiveness in different markets without the threat of imitation mad unlawful actions from the local players.

Economic Factors

The cost of producing the renewable technology may decrease in the coming period. In addition, the power pack model that offers multipurpose advantages to the consumer and the government may help the company sustain its position in the market. The cost of acquiring new business markets and availing the market opportunity has also become cheap in the US due to the emergence of multiple players and suppliers...............

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