Introduction

docx

School

Technical University of Mombasa *

*We aren’t endorsed by this school

Course

113

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by CountDonkeyMaster365

1 Introduction Tesla company manufactures and sells electric vehicles (EV) and systems for energy storage. It was founded in 2003 by Elon Musk and Jeffrey Straubel. Tesla's goal is to tend to a world's transition to sustainable energy. According to Reuters (2021), more than 60% of Tesla's revenues are produced in the United States of America, Tesla's domestic market. However, the firm has expanded internationally because it believes that Electric Cars demand is rising globally. Indeed, Tesla targets the Asian and European markets to increase and expand its revenue streams. The automobile industry encountered a significant shift when Tesla grew in the last ten years and became one of the most successful car brands globally. Tesla became successful at a considerable speed. Therefore, it is interesting to understand its international strategy and understand what challenges the firm encountered. This article will analyse Tesla’s current global presence, highlight adaptations they have done in different consumer markets and countries and provide recommendations in relation to its corporate social responsibility. Traditional Global/International Marketing Methods Tesla Target Audience The marketing mix's four Ps that promote growth is Product, Price, Place, and Promotion. Sharp minds are complex at work in the background at Tesla to keep the company profitable. This is also Tesla's marketing strategy. Tesla's three main car models are the Model S, X, and 3. Each powerful engine can accelerate to 60 mph in less than three seconds. Each of them is distinguished by distinct eco-friendly characteristics. This brand is significantly improving by incorporating solar-powered technologies into its primary energy frameworks to create better products and provide better performance.

2 Franchises are not available from Tesla. This brand eliminated the support structure of third-party communication by claiming storefronts through its online- based organization. Tesla is always open with its audience and honest about its plans. Due to its launch operations, which included real autotests and online audience engagement, the brand is present in the market. Digital Global/International Marketing Methods Tesla Marketing Channels Unlike other automakers, Tesla sells directly to customers rather than through franchised dealerships. There is an extensive network of company-owned showrooms and galleries, most of which are located in well-known urban areas.As a result, under their newly expanded retail model called Service Plus, they have combined their direct sales technique with service centers. When compared to other conventional automakers, Tesla operates differently. It does not offer franchises for sale to investors. They have established sales centers that perform both sales and customer service at the same time. Because Tesla oversees these facilities, franchise owners receive fewer performance-based incentives. Some franchise owners work harder for their rewards than they do for the brand. Digital Marketing Strategy of Tesla Elon Musk, the CEO of Tesla, has significantly increased consumer awareness of the brand. He frequently gets involved in minor squabbles and interacts on social media. His upbeat persona has a sizable fan base, and his social media account has evolved into a Tesla marketing platform. Tesla's strong social media presence will eventually help with its marketing. Elon Musk has previously expressed an interest in online buzz. His most recent media appearance was for testing the newly launched cyber truck's window glass,

3 which generated much buzz despite not being intended to break and helped Tesla promote the vehicle. When compared to other conventional automakers, Tesla operates differently. It does not offer franchises for sale to investors. They have established sales centers that perform both sales and customer service at the same time. Example of adaptations Tesla has done in different Consumer Markets and Countries to take into Account different Market Conditions and Cultural Context. Cultural Distance Geert Hofstede developed the most well-known framework, the Hofstede Model of Cultural Dimensions (Hofstede, 1984), to assist people in understanding culture and connecting their behavior. The seven qualities of the model—power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, indulgence, and monumentalism—allow for cultural comparisons and contrasts (Hofstede, Hofstede, and Minkov, 2005). Additionally, Ugrin, Pearson, and Nickle (2018) used the Hofstede Model of Cultural Dimensions to investigate how cultural differences and workplace inclinations among employees varied. As a result, I decided to examine the German and Canadian markets using a tried-and-true approach. Geman Markets Long Term Orientation According to Hofstede Insights (n.d.), Germany is a pragmatic nation with a high score of 83 out of 100, where people can easily adjust to change and believe that time, circumstance, and context are interdependent. Furthermore, they have a bias to invest and save money. They frequently promote being frugal in future planning with

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 this practical outlook (Hofstede Insights, n.d.). As a result, if people can adjust to the change, Tesla will be able to sell more cars in the German market. Individualism German society is classified as an individualist with a score of 67. (Hofstede Insights, n.d.). People prefer small families and value the bond between parents and children (Hofstede Insights, n.d.). Even when it is painful, they believe that being truthful is the most critical aspect of communication (Hofstede Insights, n.d.). The United States also computed 91 individual scores (Hofstede Insights, n.d.). As a result, Tesla, a US-based automaker, does not use the same strategy in the German market that it does in the US market. Canadian Market P ower Distance Canadian culture, which scored 39 in this category, is distinguished by citizen interdependence and an emphasis on egalitarianism. The lack of overt status and class distinctions in society also reflects this. Tesla employees frequently consult with one another and freely exchange information. Because Canadians value a simple exchange of information, Tesla ensures that its communication is always up to these standards. Individualism Canada has an Individualist culture, earning an 80 on this scale (its highest dimension score). This translates into a loosely knit culture in which people are expected to look out for themselves and their immediate families, similar to its southern American neighbor. As a result, in order for Tesla, a US-based automaker, to succeed in the Canadian market, it employs the same strategy that it employs in the US market.

5 Uncertainty Avoidance The Canadian culture is more "accepting of uncertainty," with a score of 48 in this category. This demonstrates a willingness to try something new or different, whether it relates to technology, such as electric automobiles, indicating the ease with which new concepts, innovative goods, and ideas are accepted. Because Tesla vehicles are unquestionably the most popular electric vehicles in Canada, the company has capitalized on this culture. Despite the small market share of electric vehicles in Canada, Tesla could sell them reasonably well. T echnological considerations for Tesla to operate S uccessfully in the G lobal M arketplace. T echnological E nvironment Manufacturing improvements using large scale die casting The frame of an automobile is made up of thousands of elements that must be fabricated and assembled. Workers or machines have traditionally created a collection of parts (think castings, rivets, welding, bolting, bonding.) For more than 50 years, cars have been built in this manner. Tesla, on the other hand, is changing that. They hold patents for some of the most sophisticated die-casting equipment ever built, some of which is now in use at Tesla's California manufacturing facility. The machine aims to create a large portion of the car structure in a single piece rather than using many parts. This integration will benefit Tesla technologically in several ways, including: 1. Manufacturing costs and build time have been reduced. 2. Product reliability improved (fewer parts to break or wear out), and factory equipment and tooling costs were reduced. In the factory, less assembly space is required.

6 3. Cost savings that could be passed on to customers. As a disruptor, Elon Musk immediately comes to mind. He is fearless when it comes to thinking creatively about manufacturing. He has attempted to recreate the assembly line on occasion over the last 15 years, but he has never given up. Even though his manufacturing advances may be intended to benefit his business, he is quick to call into question established manufacturing practices with novel concepts. If large-scale die casting is successful, Tesla will be able to lower the MSRP of their vehicles to gain market share and repair their reputation for low-quality products in sure of their offers at domestic level. Tesla's self-driving technology is significantly ahead of the Competition Although Tesla is a technological company with a portfolio that includes everything from automobiles to rockets, they are best known for producing automobiles. This is demonstrated by the fact that they are at the forefront of inventing new technology in addition to their vehicles and engines. They have created autonomous driving technology, such as machine learning and artificial intelligence (AI). This serves as both a source of revenue and a key point of differentiation for Tesla. Despite sceptics and doubters, Tesla has established itself as the leading EV manufacturer, competing for EV technology with General Motors and other automakers. Their competitors did not take them seriously at first, and they were unaware of the cutting-edge technology that Tesla had incorporated into their vehicles. Regardless of what his competitors do, Musk is committed to achieving "Level Five," the industry term for fully functional and secure self-driving cars on the market. Even though they still have a long way to go, Tesla has what it takes to develop this technology to that level.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 Furthermore, they are motivated by the potential benefits that this EV technology holds for them, such as 1. Additional post-sale software revenue from software-equipped vehicles and over- the-air upgrades is a clear benefit for attracting new customers to the brand. 2. Control will be gained by owning their supply chain for computer hardware and software. 3. Would self-driving car companies like Uber and Lyft be interested in entering the new market? 4. The proposed but unbuilt Tesla Semi Truck is a critical component. Battery Innovation Given the potential and ongoing growth of electric vehicles, the importance of battery technology, also known as "battery chemistry," cannot be overstated. Over the years, Tesla has made numerous battery improvements, including battery composition, safety, and charging speed. Buyers are primarily concerned with range and lifespan. Tesla has led the way in these areas, but as it works to make EVs more accessible and affordable to people worldwide, lowering battery prices has taken precedence. One example of their innovative work is the new Tesla Powerpack, a commercial electricity initiative in South Australia that uses battery power to stabilize the area's commercial power grid. It was heralded as a triumph of sustainable energy, allegedly saving nearly $40 million in its first year. Tesla can and will use battery power in various ways, including this one. Tesla's Battery Day on September 22nd demonstrated how their batteries are evolving. There was information released about more affordable EV batteries, but there were also a few surprises to keep everyone on their toes, as only Tesla can.

8 These technological interventions Relate to 7 P’s of marketing. For product, the fact that the company is producing high quality products gives the company a competitive edge. High quality people in USA have high urge for quality regardless of its price. Advanced technology on the Tesla cars as seen above will definitely push its sales high each financial year. For pricing, Tesla is quite higher as compared to its competitors but the price is still affordable. The price is high because Tesla offers more features for its vehicle. The use of more advanced technology will increase the price of the products to cater for the production costs. When it comes to ‘Place’, two marketing channels are used to advertise Tesla's products. The first is when it does online direct sales to clients. The second is the wholesale market, from which it sells to merchants all around the country. Customers are subsequently sold these. Technogy has led to the high rate of marketing through social media and online marketing which has boosted the company’s sales in the host country each year.

Introduction

Related Documents