Tesla Company Market Analysis.edited (1)

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1 Tesla Company Market Analysis Student’s Name Institutional Affiliation Course Date

2 Tesla Company Market Analysis Introduction Tesla creates and markets energy storage technologies as well as electric automobiles (EVs). It was established in 2003 by Jeffrey Straubel and Elon Musk. Tesla wants to aid in the global switch to renewable energy. Reuters reports that the company's home market, the United States of America, generates more than 60% of Tesla's revenues. However, the business has grown abroad because it thinks there is a rising need for electric vehicles on a global scale. In fact, Tesla wants to boost and broaden its revenue sources in the European and Asian markets. This article will examine Tesla's current global presence, highlight adaptations made in various consumer markets and countries, and make recommendations regarding the company's corporate social responsibility. Traditional Global/International Marketing Methods Tesla Target Audience The marketing mix's four Ps that promote growth are Product, Price, Place, and Promotion. Sharp minds are complex at work in the background at Tesla to keep the company profitable (Amad and Khan, 2020). 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. 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

3 (Waller, 2020). 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 Tesla sells to clients directly, as opposed to through franchised dealerships, unlike other automakers. The majority of the company's showrooms and galleries are located in well-known urban regions and are part of a vast network. As a result, under their recently expanded retail model known as Service Plus, they have coupled their direct sales strategy with service centers. Compared to other conventional automakers, Tesla has a unique operating style. Investors are not sold franchises by it. They have set up sales centers where both sales and customer care are handled. Because Tesla manages these sites, franchise owners receive fewer performance-based incentives (Amad and Khan, 2020). Some franchisees put in more effort to earn their rewards than to promote the company. Digital Marketing Strategy of Tesla Tesla's CEO, Elon Musk, has considerably raised brand awareness among consumers. He constantly engages in small arguments and communicates on social media. His large following and cheery demeanor have led to the development of his social media account into a Tesla marketing tool (Pathak et al., 2023). The robust social media presence of Tesla will eventually assist with marketing. Online hype has previously piqued Elon Musk's curiosity. His most recent media appearance was to test the newly introduced cyber truck's window glass, which produced a lot of buzz even though it wasn't meant to break and helped Tesla advertise the car (Pathak et al., 2023). Tesla operates differently from other traditional

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4 automakers. Investors cannot purchase franchises from it.They have set up sales centers where both sales and customer support are carried out simultaneously. Example of adaptations Tesla has done in different Consumer Markets and Countries to consider market conditions and Cultural contexts. Cultural Distance To help people comprehend culture and relate their behavior, Geert Hofstede created the most well-known framework, the Hofstede Model of Cultural Dimensions (Hofstede, 1984). Power distance, individuality, masculinity, uncertainty avoidance, long-term orientation, indulgence, and monumentalism are the seven characteristics of the Model that provide cultural comparisons and contrasts (Hofstede, Hofstede, and Minkov, 2005). Additionally, Ugrin, Pearson, and Nickle (2018) looked into how cultural differences and workplace preferences among employees vary using the Hofstede Model of Cultural Dimensions. As a result, I made the decision to analyze the German and Canadian markets in accordance with tried-and-true principles. German Markets Long Term Orientation Germany has a high pragmatic score of 83 out of 100, according to Hofstede Insights (n.d.), where individuals are adaptable to change and believe that time, circumstance, and context are interconnected. Additionally, they tend to save and invest money. They typically advocate using this realistic perspective to be thrifty when making future plans (Hofstede Insights, n.d.). As a result, Tesla will be able to sell more vehicles in the German market if customers can adapt to the change. Individualism With a score of 67, German society is categorized as individualist (Hofstede Insights, n.d.). People appreciate the relationship between parents and children and prefer small

5 families (Hofstede Insights, n.d.). They consider telling the truth to be the most important component of communication, even when it hurts (Hofstede Insights, n.d.). The US also calculated 91 separate scores (Hofstede Insights, n.d.). As a result, US- based automaker Tesla does not employ the same marketing approach in Germany as 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 (Cotabe and Helsen, 2022) . 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) (Cotabe and Helsen, 2022) . 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 neighbour. As a result, for Tesla, a US-based automaker, to succeed in the Canadian market, it employs the same strategy it employs in the US market. Uncertainty Avoidance The Canadian culture is more "accepting of uncertainty," with a score of 48 in this category (Cotabe and Helsen, 2022) . 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

6 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 A car's structure is constructed of hundreds of parts that need to be manufactured and put together. A collection of parts has typically been produced by workers or machines (think castings, rivets, welding, bolting, bonding.) This is how cars have been constructed for more than 50 years. Contrarily, Tesla is altering that. They have the rights to some of the most advanced die-casting machinery ever created, and Tesla's California production facility currently employs it (Ajitha and Nagra, 2022). Instead of employing several pieces, the machine intends to construct a sizable percentage of the car construction in a single piece.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. 3. Cost savings could be passed on to customers. As a disruptor, Elon Musk immediately comes to mind. He has no qualms about coming up with novel manufacturing ideas. He has attempted to recreate the assembly

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7 line on several occasions over the last 15 years, but he has never given up. Although his manufacturing innovations may benefit his company, he immediately challenges traditional manufacturing methods with new ideas (Ajitha and Nagra, 2022). If large- scale die casting is successful, Tesla will be able to lower the MSRP of its vehicles, increasing market share and shedding its reputation for producing subpar goods in some of its domestic offerings. Tesla's self-driving technology is significantly ahead of the Competition. Despite being a technology firm with a range of products in its portfolio, from cars to rockets, Tesla is best recognized for making cars. They lead the way in developing new technologies in addition to their vehicles and engines, which demonstrates this (9maradin et al., n.d). They developed artificial intelligence and machine learning technologies for driverless vehicles (AI). This is a source of income for Tesla as well as a crucial differentiator. Tesla has established itself as the top EV producer, vying for EV technology with General Motors and other automakers, despite critics and doubters. Their competitors did not take them seriously and were unaware of the cutting-edge technology that Tesla had incorporated into their vehicles. Musk is dedicated to attaining "Level Five," the industry name for completely functional and secure self-driving cars on the market, regardless of what his rivals do. Tesla has what it takes to advance this technology to that point, despite the fact that they still have a long way to go. Furthermore, they are motivated by the potential benefits that this EV technology holds for them, such as 1.A clear benefit for luring new clients to the brand is increased post-sale software revenue from software-equipped automobiles and over-the-air upgrades.

8 2. Control will be obtained by owning their supply chain for computer hardware and software. 3. Would firms like Uber and Lyft be keen to enter the new market? 4. The intended but unbuilt Tesla Semi Truck is a crucial element. Battery Innovation It is impossible to overestimate the significance of battery technology, commonly known as "battery chemistry," given the potential and continuing development of electric cars. Tesla has made several advancements throughout time, including changes to battery composition, safety, and charging speed (Ajitha and Nagra, 2022). Range and lifespan are the two main concerns for buyers. Tesla has been a pioneer in these fields, but as it tries to make EVs more widely available and affordable, bringing down battery costs has taken priority. The new Tesla Powerpack, a commercial electricity program in South Australia that employs battery power to stabilize the region's commercial power grid, is one example of their creative work. It was hailed as a victory for renewable energy, saving apparently close to $40 million in its first year (Ajitha and Nagra, 2022). Tesla will and can use battery power in a variety of ways, such as this. On September 22, Tesla held its annual Battery Day, which illustrated how its batteries are progressing. As only Tesla can do, there were some surprises mixed in with the information regarding more reasonably priced EV batteries to keep everyone on their toes. These technological interventions Relate to the 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 the USA have a high urge for quality regardless of its price. As seen above, the advanced technology on the Tesla cars will push its sales high each financial year. For pricing, Tesla is relatively higher than its

9 competitors, but the price is still affordable (Liu, 2021). The price is high because Tesla offers more features for its vehicle. Using more advanced technology will increase the products' price to cater to production costs. When it comes to 'Place', two marketing channels are used for advertising Tesla's products. The first is when it makes direct online sales to clients. The second is the wholesale market, from which it sells to merchants all around the country (Liu, 2021. Customers are subsequently sold these. Technology has led to a high marketing rate through social media and online marketing, which has boosted the company's sales in the host country each year; this has also contributed to the promotions part of the marketing sector. Tesla's sales staff includes professionals who are essential to the company's marketing initiatives. These individuals have received training in persuasive strategies and how to respectfully interact with clients based on their preferences. Technology has made it easier to train these people and to evaluate and reward their work (Liu, 2021). As a result, there has been less employee turnover. Tesla's sales staff includes professionals who are essential to the company's marketing initiatives. These individuals have received training in persuasive strategies and how to respectfully interact with clients based on their preferences. Technology has made it easier to train these people and to evaluate and reward their work. Employee turnover has decreased as a result (Liu, 2021). Regarding tangible proof, in addition to clearly marked stores, Tesla has an easy-to-use website that enables customers to inspect its items in high-quality photos taken from various angles. This has resulted in increased website traffic from potential customers and more purchases each fiscal year.

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10 Corporate social responsibility (CSR) for Tesla in the International Marketplace Tesla Inc. has a CSR strategy based on the business's nature and products. For instance, the company's electric cars are frequently cited as a remedy for internal combustion engines' drawbacks ( Poliienko, 2022) . In this sense, corporate citizenship is essential in business. This circumstance makes it simpler for the business to carry out its corporate duties. I feel that Tesla should adopt the following initiatives in its CSR: R educing carbon footprints, improving labor laws, engaging in fair trade, promoting diversity, equity, and inclusion, and increasing charitable contributions globally , C ommunity and online volunteerism , C orporate environmental polic y and e nvironmentally and socially responsible investments

11 References Saxena, N., & Vibhandik, S. (2021). Tesla's Competitive Strategies and Emerging Markets Challenges. IUP Journal of Brand Management , 18 (3). Waller, T. (2020). Discovering Your Target Audience. In Personal Brand Management (pp. 37-49). Springer, Cham. Ahmad, S., & Khan, M. (2019). Tesla: Disruptor or Sustaining Innovator. Journal of Case Research , 10 (1). Pathak, P., Yadav, V., Pillai, S., Das, S., & Kansal, G. (2023). Unveiling the Success Behind Tesla’s Digital Marketing Strategy. In Emerging Technologies in Data Mining and Information Security (pp. 251-260). Springer, Singapore. Kotabe, M. M., & Helsen, K. (2022). Global marketing management . John Wiley & Sons. Hofstede, G. (1984). Cultural dimensions in management and planning. Asia Pacific journal of management , 1 (2), 81-99. Hofstede, G., Hofstede, G. J., & Minkov, M. (2005). Cultures and organizations: Software of the mind (Vol. 2). New York: Mcgraw-hill. Hofstede Insights. Maradin, D., Malnar, A., & Kaštelan, A. Sustainable and Clean Energy: The Case of Tesla Company1. Liu, S. (2021, March). Competition and valuation: a case study of Tesla Motors. In IOP Conference Series: Earth and Environmental Science (Vol. 692, No. 2, p. 022103). IOP Publishing. Poliienko, M. A. (2022). Modern Trends of Corporate Social Responsibility in American Business.

Tesla Company Market Analysis.edited (1)

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