Essay about Business Strategy And Business Level Strategy
Tesla Motors is a company that has known how to well penetrate in the car industry and in the market. According to Liu, Kang, Wu, Chen & Hon “Tesla is pursuing market penetration strategy and related constrained. Tesla intends to enhance their influence on the current markets with their current products. They also market their electric powertrain components to other automakers (2014).” Tesla is really focusing on working on market penetration and all related to it, so the company wants to penetrate in the market using their current products and offering tis product to other car companies. However, it is important note that the company not only make cars, but also works on technology, design, and energy innovation (Tesla, 2016).
Actually, the business –level strategy of the company is a differentiation strategy. Tesla uses the focus differentiation strategy, since it wants to offer its middle and upper income levels customers, excellent performance along with innovation (Liu, Kang, Wu, Chen & Hon, 2014). Tesla knows the customers are purchasing an expensive car that need to satisfy their expectations.
Return on Invested Capital (ROIC)
According to the income statement and balance sheet in Gurufocus (2016) and after subtracting dividend from net income, then sum debt plus equity, then multiply both results, the ROI ratio for Tesla Motor Inc. were: -36.62% at the end of 2015 and 10.36% for the TTM of…