International Business: How Tesla Sets Itself Apart

BADM 406 - International Business
Instructor:
Article Title: How Tesla Sets Itself Apart
Author of Article: Lou Shipley
Website: https://hbr.org/2020/02/how-tesla-sets-itself-apart
Student name: _____________________
Date:
Main Idea of the Article
This article reviews Tesla Inc.'s strategies that make it unique from its competitors. According to (Shipley, 2020), Tesla uses soft wares on distinctive hardware that they update frequently. Unlike its competitors, the maintenance cost of Tesla's product is relatively lower since it uses fewer automotive parts than other automotive companies. For instance, vehicles do not require oil maintenance because they use electricity. According to the author, Tesla's adoption of computerized software enables it to upgrade its products for additional features or maintenance after a particular period. The author relates this upgrade to that of Apple and iPhone, which makes Tesla comparatively different from other automotive manufacturers.
The author also claims that Tesla has the most simplified process. First, the buyer searches for their model of choice on Tesla's website and selects the product. After selection, the buyer can demand additional features to the product at the prevailing price. After placing an order, the customer picks a destination, and the company delivers the vehicle to that location. Unlike other automotive industries, product purchasing is complex (Shipley, 2020). In addition, the prices of the products are not communicated beforehand to allow space for negotiation. At the same time, the company also requires customers to pick the product for themselves or pay for the transportation fees. Tesla's ease of purchase of its products distinguishes it from its competitors, making it attract more buyers.
Tesla products aim at reducing the customers' total maintenance cost. The majority of Tesla's competitors have products that use internal combustion. However, Tesla uses batt...