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Essay / International strategies used by Tesla in the market
Tesla's strategy at the international level is the transformation strategy. With this strategy, Tesla simultaneously seeks to achieve low prices through economies of scale, economies of location, and understanding of results; and transform its cars across the global industry to account for local differentiations. Most of Tesla's strategies in the foreign market are close to those implemented in the United States. These strategies are: Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the Original Essay Tesla sells its cars directly to customers through its showrooms and galleries or through the Tesla website. Elon Musk (2012) describes that the main cause of this direct selling, and not selling through merchants, is the fundamental capture conflict that merchants face between the sale of gasoline cars, which represents the major part of their business, and the sale of advanced electric car technology. The benefits of this direct sale include better customer satisfaction since Tesla can largely meet its manufacturing with buyer preferences and a lower total price thanks to trader pricing absenteeism such as inventory financing and insurance and advertising and sales commissions. Tesla uses a buyback program called Certified. Used (CPO) in countries like Germany, France, Sweden, Norway and Canada. Thanks to this agenda, a Tesla Model S is sold with the guarantee of returning it to the organization after three years for a reimbursement of 43% to 50% of its original price. Tesla then examines, renovates and verifies the used cars, after which it increases the warranty and sells the cars for around 62% of the price of a new Tesla Model S car. With this strategy, Tesla not only accumulates profits from the resale (since it sells directly to customers), but also establishes itself more in the main market, because it can attract less wealthy customers by selling at a more reasonable price. Another strategy used by In the overseas market, Tesla deliberately places its showrooms and galleries in busy retail locations, such as shopping malls and shopping streets, where people often go in an atmosphere of very pleasant purchase. According to Musk, you have to go see people before deciding to buy a new car. As part of its program to attract customers in the overseas market, Tesla modifies its cars to meet local requirements and to satisfy the tastes and priorities of its customers. For example, in response to customer responses, Tesla made some improvements to its Tesla Model S in China, including an "executive rear seat option", which costs $2,000 over the main design and points to make the more suitable rear seat experience. Keep in mind: This is just a sample.Get a custom article from our expert writers now.Get a Custom EssayA plan by Tesla to expand internationally is associated with expansion through a strategic association with well-organized global automobile and battery manufacturers. Tesla is actively merging with foreign organizations in the research, improvement and manufacturing of electric powertrain elements (lithium-ion battery cells). This was the case for Japanese automaker Toyota, for which Tesla makes the lithium-metal oxide battery and other powertrain components for the second-generation Toyota RAV4 EV; the builder..