Tesla's Generic and Diversification Strategies

Tesla: Strategic Report
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Tesla: Strategic Report
Tesla’s Generic Strategies
Broad differentiation is Tesla's generic competitive strategy. This approach creates a competitive edge for the organization based on creating unique goods. Since most vehicles today are powered by internal combustion engines, Tesla Inc.'s products have an advantage in the marketplace since they include cutting-edge environmentally friendly technology. Customers are more interested in ecologically friendly items due to the company's generic competitive strategy.
Tesla's general approach to competitive advantage is to concentrate on distinctiveness. While emphasizing the distinctiveness of its goods, the corporation adopted the differentiation emphasis approach to target high-end electric car adopters. Affluent clients are the most likely to buy new items when released. Tesla's generic competitive strategy has moved to wide differentiation now that the firm is well-known and manufacturing costs are dropping (Rowland, 2018). The corporation can reach a wider audience in the vehicle industry because of lower manufacturing costs and increased brand recognition.
Tesla, Inc.'s general strategy necessitates using appropriate strategic goals to guarantee that the company remains competitive. Regarding R&D, one of the company's strategic goals is to boost investment in R&D to create new products that meet market demand for increased renewable energy solutions, such as batteries for diverse uses (Rowland, 2018). Another goal of Tesla's generic competitive strategy is to increase sales and brand recognition by expanding the company's market reach.
Tesla, Inc.'s current major intense growth strategy is market penetration. Increased sales revenues in existing areas are the primary goal of this aggressive approach. In the US, for example, the business plans to advertise and distribute its electric automobiles aggressively. In this manner, the company can optimize income from its present markets. By increasing market share, this approach aligns with Tesla's overall goal of building a competitive edge. Marketing efforts are important to the company's plan to increase sales income.
Tesla Inc.'s secondary growth strategy is product development. The company's growth is fueled by developing new goods that produce new revenue. As a result of this approach, the firm develops new goods using cutting-edge technology that has little effect on the environment. One of Tesla's many products is the Tesla Roadster, the first all-electric sports vehicle on the market when it was initially introduced in 2007 (Furrier, 2022). Tesla Inc. may sustain its differentiating generic competitive approach by concentrating on high-tech vehicles and associated items that appeal to a niche market. As a result, one of the strategic goals of this aggressive expansion plan is to sustain large spending on R&D.
Market development is a tertiary growth method used by Tesla, Inc. This strategy entails entering new areas to increase sales and expand the company's worldwide footprint. By building additional offices and facilities throughout the globe, for example, the corporation is steadily expanding its global mar...