Corporate Level 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.
Financial Ratios
Return on Invested Capital (ROIC)
According to the …show more content…
were: 0.42 at the end of 2012; 1.33 at the end of 2013; 1.01 at the end of 2014; 0.48 at the end of 2015; and 0.84 at the end of the third quarter of 2016, which indicates that there has been increases and decreases in the quick ratio during the five years; however, the third quarter quick ratio of 2016 does not fit in with the industry median rate, which is more than 1.9; it points out that it will be very difficult for Tesla to pay its current obligations; the liquidity of the company is not
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.
Financial Ratios
Return on Invested Capital (ROIC)
According to the …show more content…
were: 0.42 at the end of 2012; 1.33 at the end of 2013; 1.01 at the end of 2014; 0.48 at the end of 2015; and 0.84 at the end of the third quarter of 2016, which indicates that there has been increases and decreases in the quick ratio during the five years; however, the third quarter quick ratio of 2016 does not fit in with the industry median rate, which is more than 1.9; it points out that it will be very difficult for Tesla to pay its current obligations; the liquidity of the company is not