An Analysis of Tesla’s Strategies Business & Marketing Essay (Essay Sample)

An Analysis of Tesla’s Strategies
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An Analysis of Tesla’s Strategies
Tesla has snowballed to become one of the most valuable companies in the world. Experts attribute its success to excellent short-term and long-term strategies. The strategy-making process is complex and requires continuous evaluation and reconsideration by experts. The purpose of Tesla’s strategies is to improve the quality of its products, diversify its product range, improve its performance, and meet its vision.
Tesla intended to manufacture an efficient, environmentally-friendly, and competitive electric car. Their entry strategy was to manufacture expensive electric car models and gradually introduce successive affordable models. They planned to allocate Tesla’s free cash to research and development (R&D) as this would lower production costs and speed manufacturing (Musk, 2006). Tesla identified its competitors as gasoline cars due to affordability, competitive advantage, and high performance. The company planned to overcome the challenges by manufacturing affordable, energy-efficient, and aesthetically pleasing vehicles. Lastly, they resolved to increase the mile design life of batteries manufactured by Tesla, manufacture high-performance cars with low carbon emissions, and improve the R&D through the allocation of more resources. The company develops excellent products because it consistently evaluates challenges and develops practical solutions to them.
Tesla’s success results from perseverance and profitable strategy. While the company experienced problems before, it has overcome most of them and is undoubtedly the most valuable vehicle manufacturer globally. In January 2021, Tesla is the largest vehicle manufacturer by market capitalization. In January 2019, the company was worth $100 billion, and by November that year, its value had exceeded $500 billion. Tesla’s total vehicle output in 2020 was 499,550, and currently, it is building production plants around the world (Bursztynsky, 2020). The excellent performance of Tesla results from identifying opportunities and exploiting them.