Analysis Of Tesla's Corporate Level Strategy

Good Essays
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

Related Documents

  • Decent Essays

    Case Study: Aston Martin

    • 1059 Words
    • 5 Pages

    A high end car should allow passengers to drive in style from the climate control to seat material and driving car handles, everything should be made in quality and style. The design of the car should also be well thought. Business and high income people will want cars which fit the idea of sophistication and elegance.  Excellent brand pull: sustaining or pushing up the image of the company by providing cars which are up to expectations of the customers should be one of the main goal of marketing strategies for high end brand cars. Luxury cars brands have to give their customers a reason to brag.…

    • 1059 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Ferrari Case Study

    • 1499 Words
    • 6 Pages

    The value proposition of a firm can be defined as a business statement that a firm uses to summarize the reasons listed why a consumer should buy a product or use a service. This statement aimed to convince potential consumers about the product or services of the firm that it would more valuable compared to other available product. Hence value proposition is very important for business purpose. For practical purpose to understand value proposition, a case study of world famous Ferrari Auto Company has been done. Ferrari is among the world’s leading luxury brands focused on the design, engineering, production, and sale of the world’s most recognizable luxury performance sports cars.…

    • 1499 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    I would also show and describe featured vehicles at the dealership to them. The next step in the sales process is to cause the customer to desire the product. This step is all about making them want the product, in this case a particular car. This can be accomplished by highlighting the car’s special features, explaining how these aspects of the car are essential to the customer, and also by explaining how the car fits the image of their dream car perfectly. These points will cause the customer to start to really desire the product, and often times when someone begins to want something, they will not be able to easily “unwant” it.…

    • 739 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    According to the annual report Tesla (2014), they rely on their relationship with Daimler and Toyota (Brown 0.2013). Partnership is very important to Tesla, because the supply of these companies make up a high percentage of the profits, and therefore, they cannot lose them, which makes high-strength considerably. However, they also sell their cars to individual customers, and many of the incentives offered by the government to give potential customers a tax credit deduction (Ministry Of Transportation, 2010). These programs stimulate demand of electric vehicles that make…

    • 1186 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    GLOBAL STRATEGIC MANAGEMENT: TESLA CASE STUDY CHERRIANNE SCOTT (4324333) What are the key Elements of Tesla Motor's Strategic Decisions? The key element of Tesla Motor’s strategic decision is that they are the driving force behind technology and product development and a prime innovator for electrical vehicles. For decades, Tesla have been investing a large share of their earnings towards research and development in order to develop car models and technologies that were more affordable for their customers and to gain a competitive edge over their competitors. The following are strategies that Tesla Motor uses in all its functional areas:  Human Resource: Human resource is also a key objective in Tesla’s strategic decision. They strive to…

    • 1161 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    The quality of the features or performance is key in terms of satisfying the customer. A customer must get the quality it expects and pays for. A product can be offered with many features or a stripped down version. The likes of car companies can offer different varieties of a model to attract customers. Being the first company to introduce a feature can be the biggest tool a marketer can have over the competition.…

    • 942 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Target Market: The Ford Motor Company is using Differentiated Strategy in their organisations. This approach is to target two or more segments by developing marketing mix for each segment. The Ford Motor Company is designed to appease many diverse types of consumers and to satisfy numerous different needs in the form of economy cars, sports cars, luxury cars, station wagons, vans, trucks, and so on. And lately the latest vehicles that the company produce, the Ford Fiesta, focuses on younger generation and in particularly ladies. Segmentation variables: Segmentation variables used by The Ford Motor Company are Geographic segmentation, Demographic segmentation, Psychographic segmentation and Behavioural segmentation.…

    • 703 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    One of the reasons is that already existing brands have their loyal customers, and to develop the trust of new target market will be quite uncertain. Another factor is that numbers of dollar millionaires who are spending on higher end groups are encouraging several luxury car makers to start operations in Korea including Volkswagen AG's Bugatti and Bentley, BMW's Rolls-Royce and Ferrari SpA. As too look out for bigger market share before nurturing new market, Aston Martin needs to out an effort to connect with the customers and stronger the relationship with…

    • 1483 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    For instance, Tesla maintains excess production capacity in some of their facilities. Such redundancy allows Tesla to rapidly increase their production if there is a sudden market demand change for electric vehicles. By have such a operating management approach, Tesla creates a flexibility and responsiveness in their productivity. Tesla’s Measures of Productivity. Tesla measures their productivity bases on their automobile production.…

    • 936 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    By having a new target market, it will allow Tesla Motors to continue expanding into the future, and attract more consumers. (Slideshare.net, 2015 pg. 5, para 1) Tesla Model S has shown to have many advantages for a prospective user. With its unique car features that allows autopilot, parallel parking mode and auto steering as well as the exterior metallic built of Model S coupled with the latest, innovative safety technological aspects for the car, Model S is built for the user to enjoy a revolutionary driving experience on the safest premium electric car model in the world. Although the Tesla Model S still represents a miniscule segment of the automobile market, the potential demand for is likely to increase in the future.…

    • 1262 Words
    • 6 Pages
    Decent Essays