Market Penetration: Currently Tesla intensive growth strategy is based in their aggressive market penetration. They achieve business development that is demonstrated by an increase of sales. Due to the increase of sales Tesla is growing a emergencing market. Market Penetration could be seen as Tesla plans to sell EV in China and in Europe. In this way, the company maximizes revenues from the markets where it currently operates. The reason for the intense development of the market has been seen when they enter a new global regions. A strategic objective based on this intensive strategy is to grow the company through aggressive marketing to increase sales revenues as seen with their companies growth “ Tesla's stock market value, starting at $100bn (£72bn) and rising to $650bn.”(Fritz, 2018). This was the aggressive growth tesla had gonna throw in 2017.
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'Four Growth Strategies Used by Tesla Motors'
Product Development: Product development is Tesla’s secondary intensive growth strategy. As Tesla develop new products such as cars, solar panels, EV charging stations, etc. They generate a increase of sales as new products and in their other products. Developing products that advance the technology available in the market that reduce their environmental impact is Tesla's main focus. As seen. Tesla created the Tesla Roadster, a car that disrupted the market as it was a electric sports vehicle, the first one of its kind. This disruption in the market is the main reason for the differentiation between Tesla and their competitor as they focus on high end EV such as Tesla Model S, 3 and X. Due to the nature of the high end EV they also develop related products such as the supercharger to be an added incentive for their customers. For this reason Tesla main objective is to invest in their research and development ( R&D). They don't only focus on the development of cars but they develop electric vehicles such as the Tesla semi that is part of Tesla’s “Master Plan” that mentions that they want to build not only the environmentally sustainable vehicles with energy sources that fuel the vehicles being solar energy but it also wants the transport of these vehicles to be sustainable by developing an environmentally sustainable semi.
Market Development: The third growth strategy utilized by Tesla. They use market development as a fuel to grow the EV market as they enter into new markets they generate a new type of customer that being a semi truck, sedan, coupe, solar panel and/or powerwall type of customer. The strategy implies that entering rising markets would generate a increase of sales and therefore the growth of Tesla. For example, Tesla sale their cars in the Netherlands, Norway, Germany Switzerland, Denmark, France, China. United States and United Kingdom (Jones, 2014) a small amount of countries that Tesla has established offices and facilities and expected to expand to other global regions. This intensive strategy supports Tesla’s mission and vision statements, them being the following: mission statement “to accelerate the world’s transition to sustainable energy.”(Tesla, 2016) and the vision statement “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles”(Tesla, 2016) which highlights the global leadership Tesla assumes in the automotive industry. Based on the market development strategy, further Tesla will have to join joint ventures with other companies to enter into other regions or different markets.
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Diversification: The fourth growth strategy used by Tesla. This growth strategy helps the development of the company through developing different products. For example, Tesla created battery products for a variety of non-automotive applications called Tesla Powerwall. It also has gone to the semi truck industry by creating the tesla Semi and it has gone into the high performance supercar market with the Tesla Roadster 2.0. However, this intensive strategy currently has insignificant effects on the company’s financial performance. Tesla utilises most of its income on market penetration and product development that translates into diversification.
