Question

What do you think of Tesla's entry strategy? What barriers did it have to overcome?

(Comprehensively explains what Tesla’s entry strategy is and correctly explain all of the barriers it had to overcome, with examples from potential and current competitors.)

(Explains what Tesla’s entry strategy is and explain some of the barriers it had to overcome. The analysis displays a basic level of understanding of the facts of the case and the ability to apply relevant concepts and an understanding of those concepts.)

(Explain at a superficial level what Tesla’s entry strategy is and describe one or two barriers it had to overcome.)

Answer 1

As we all know that all the competitors of tesla were focusing on manufacturing petrol or diesel engine vehicles while tesla launches its first electric car named as tells electric roadster which attracts the lot of consumer and the best part of the car was that it runs 394 km in a single charge. This was a huge success for the company, and everybody appreciated this innovation of tesla. Tesla is known for its technology and innovation in its car. It was the first company who launched driver less car, a fully automatic cars which works on the basis of artificial intelligence. Tesla is premium brand and with these innovations, the brand has justified the higher price which they are charging from their customers. Tesla is the only brand who change the mind of the consumer towards electric vehicle by telling them usage of diesel and petrol engines vehicles is increasing the air pollution, Ozone layer depletion and temperature of earth is increasing day by day. This strategy works a lot for tesla and now it has become the market leader in electric car segment.

Barriers which they overcome are: -

Adoption of technology: - It is the first one to adopt the technology and to produce battery running vehicles. For this they have taken various types of licenses and permissions from the government and proved them that they are using sustainable methods in manufacturing of vehicles. No harmful substances are used in manufacturing. A lot of cost they have barred in order to design the cars of tesla and upgrade as per the requirement of the customer.

Sustainability factor: - They overcome the use of Lithium batteries which sometimes during usage can caught fire. So do a lot of research and found that Silicon batteries will be great for making an electric vehicle which is eco-friendly, conserves nature and there will be no risk to humans also sitting in that.