Tesla case. Business & Marketing. Case Study. Assignment

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Tesla Case Analysis
Industry Lifecycle Model and Car Industry
Before the Tesla Company's entry in the car industry, the overall sector was in the maturity phase of the industry lifecycle. The car process engineering, manufacturing, and marketing were at its highest point. Product innovation in the car industry was low because the cars present in the market had more or less similar features. Most of the cars manufactured in the sector were standardized (Rothaermel 55). On the other hand, the process innovation was at its peak because the manufacturers were adopting the best practices to make the manufacturing process more efficient and cost-effective. The GDP of the industry was 3 per cent, and 1.7 million labour was working in the industry, which made it the biggest industry in the United States of America. The market size of the industry as large as the manufacturers adopted best practices (Rothaermel 55). Most of the buyers in the sector were late majority because the cars had become a necessity for people, and every buyer was able to own a car for personal use. The car manufacturers present in the industry had developed strong brand names and good reputation, which made them attractive to the late majority buyers. The prices were highly competitive because of the presence of numerous manufactures and high supply. The car sectors business-level strategy included a combination of differentiation and cost leadership. The management control strategy, also known as integration strategy adopted by the manufacturers allowed them to gain control over competitors, distributors and suppliers. The presence of high competition present in the market influenced the car manufacturers to include specialized and unique features in their cars. The focus of the manufacturers was on maintaining competitive and low prices (Rothaermel 327). The added features like cruise control, Bluetooth, air conditioning, voice command and built-in navigation were introduced in the high-end cars. The other vehicles also adopted the same features to make cars affordable for low-income people. The car manufacturing process is complex, which makes it difficult for manufacturers to combine low costs and differentiation. The overall aim of the car industry is to establish a strong and authentic strategic position. It had become necessary for car manufacturers to develop a good reputation by adopting technological innovations and producing high-quality vehicles.
Tesla's Entry in the Industry
Before the Tesla Company, no manufacture was able to enter the automotive market of the United States at scale after the Second World War. The customer's high willingness level to pay the price of electric vehicles and the overall financial situation of the Tesla Company allowed it to enter the industry. Tesla's tactics to innovate and beachhead its position in the market proved to be beneficial for the company in the long run (Rothaermel 5). The Tesla Company entered the industry with sporty Roadster. When the company launched sedan, also known as Model S, the Roadster manufacturing was stopped (Akakpo et al. 60). The Tesla Company started delivering SUV in the market. Despite the presence of high competition in the industr...