CASE STUDY ON GOOGLE’S MARKETING STRATEGIES

(Brief Study of 4Ps, SWOT, PESTEL and 5 Factor Analysis)

I.
Abstract
This case study examines the disruptive nature of Tesla’s strategy in the
marketplace to assist researchers and practitioners in future endeavours. From this
research analysis, Tesla has been able to exploit its strengths of being an industry
leader by way of new products as well as by the open lanes of communication of
its flat organizational structure, which allows for creativity and design. Not all of the
products have been winners, but that must not be a deterrent to the future
progress of the company. This research is significant because Tesla’s competitors
may obtain additional information to level the playing field, thereby dethroning
Tesla’s superiority in the market.

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 II. Table of Contents
Sr. Contents Page No.
No.
I Abstract 1
II Table of Contents 2
1 Introduction 3
2 Tesla’s Organizational Background 4
3 Analysis 5
4 Tesla’s Marketing Mix (4Ps) for Global Success 6
5 SWOT Analysis 10
6 PESTEL Analysis 14
7 Porter’s Five Forces Analysis 18
8 Strategic Implications 22
9 Tesla’s Innovative Marketing Strategy 24
10 Micro Environmental Analysis 29
11 Conclusion 30
12 References 31

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 1. Introduction
In the age of technology where everything is rapidly evolving, marketing goes
into a more competitive environment than ever before. The Internet, globalization
and digitization contribute to the markets. On the one hand, burst of information
stems from all sides where potential customers have limited time to investigate and
consider their purchasing decisions. On the other hand, supply of products is higher
than demand, leading to oversaturated markets. The only certainty is that a well-
structured marketing plan based on a solid marketing strategy is the foundation of
a business plan, which constitutes the mean to reach the marketing goals and
achieve the objectives. Specifically, it indicates the cornerstone for the actions that
should be followed in order to display the product or service to potential and
existing customers, thus its analysis is an issue which causes a great deal of debate.
Considering the factors related to this topic, the question of what specific
consequences arise when addressing this thesis must be elaborated.
Tesla Motors was formed to develop an electric sports car. Eberhard was Tesla’s
chief executive officer (CEO) and Tarpenning its chief financial officer (CFO). Funding
for the company was obtained from a variety of sources, most notably PayPal
cofounder Elon Musk, who contributed more than $30 million to the new venture
and served as chairman of the company, beginning in 2004.
In 2008 Tesla Motors released its first car, the completely electric Roadster. In
company tests, it achieved 245 miles (394 km) on a single charge, a range
unprecedented for a production electric car. Additional tests showed that its
performance was comparable to that of many gasoline-powered sports cars: the
Roadster could accelerate from 0 to 60 miles (96 km) per hour in less than four
seconds and could reach a top speed of 125 miles (200 km) per hour. The
lightweight car body was made of carbon fibre. The Roadster produced no
tailpipe emissions, as it did not use an internal-combustion engine. Tesla Motors
found that the car attained efficiency ratings that were equivalent to a gasoline
mileage of 135 miles per gallon (57 km per litre). The vehicle’s electric motor was
powered by lithium-ion cells—often used in laptop-computer batteries—that
could be recharged from a standard electrical outlet. Despite a federal tax credit
of $7,500 for purchasing an electric vehicle, the Roadster’s cost of $109,000
made it a luxury item.

Aim of Study:
The aim of this specific study is to demonstrate the significance of micro
and macro environment analyses where companies could apply the resources in
the most effective way in order to further improve targeted marketing strategies
and broaden selling capabilities. This research is particularly outstanding for the
reader because it will describe the 4Ps, SWOT Analysis, 5 factor analysis and PAGE 3 OF 32
PESTEL analysis of a well-known company i.e. Tesla.
 2. Tesla’s Organizational Background
Tesla continues to dominate the Electric car space.
Tesla has a functional or U-form organizational structure. The unitary-form (U-
form)
structure uses organizational function as the main defining factor. For example, the
company has a structural group of employees for engineering, and another for sales
and service. Some structural characteristics of other types of corporate structure are
also present in Tesla, although at a less significant extent. In this company analysis
case, grouping based on business function stands as the most significant feature.
The following characteristics are significant in Tesla’s organizational structure:
1.Function-based hierarchy (most important)
2.Centralization
3.Divisions
Tesla, Inc. benefits from its corporate structure in terms of effective managerial
control of
multinational operations. Another advantage is the ease of implementing new
strategies throughout the organization. Also, the regional divisions support financial
reporting and analysis, and provide the foundation for future regionalization of
strategies and tactics in the international automotive market. These advantages
empower Tesla to use its organizational structure for further international growth
and to build competitiveness against Toyota Motor Corporation, Honda Motor
Company, Nissan Motor Company, General Motors Company, Volkswagen, Bavarian
Motor Works (BMW), and other car manufacturers. The organizational structure
enables the company to centrally control the development of competitive
advantages.

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 3. Analysis
4Ps, SWOT, PESTEL and Porter’s Five Forces analysis were used to examine the
nature of Tesla marketing. All formulae have an emphasis on identifying threats to
the company by way of substitutions, new entrants, and current competitors. While
all processes have similarities, they are meant to dissect and evaluate different
aspects of Tesla to hopefully identify strengths that should be exploited as well as
weaker areas. Porter’s Five Forces Buyer Power: Tesla customers and users hold a
great deal of power.

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 4. Tesla’s Marketing Mix (4Ps) for Global Success
Tesla’s marketing mix (4Ps) is a major factor in the global success of the
business The company was incorporated as Tesla Motors, Inc. on July 1, 2003, by
Martin Eberhard and Marc Tarpenning. Eberhard said he wanted to build "a car
manufacturer that is also a technology company", with its core technologies as "the
battery, the computer software, and the proprietary motor". With this level of
success, the firm’s marketing mix serves as an example of how carefully designed
marketing strategies can support the growth Musk took an active role within the
company and oversaw Roadster product design at a detailed level, but was not
deeply involved in day-to-day business operations.
From the beginning, Musk consistently maintained that Tesla's long-term
goal was to create
affordable mass market electric vehicles. The company's strategy was to start
with a premium sports car aimed at early adopters and then move into more
mainstream vehicles, including sedans and affordable compacts.

Fig. 4Ps in Marketing

Tesla, Inc. (formerly Tesla Motors, Inc.) uses a marketing mix that stands out in
the automotive industry. The marketing mix or 4Ps (Product, Place, Promotion &
Price) is the set of strategies that a company uses for its marketing plan. Tesla
maintains significant managerial control in all components of its marketing mix.
Such level of control maximizes the company’s effectiveness in reaching its target
customers and optimizing profits. As a major producer of electric automobiles in
the United States and other countries, the corporation continues to use its
marketing mix to support market penetration and potential expansion in overseas
locations. Market penetration is included in Tesla Inc.’s generic strategy for
competitive advantage and intensive strategies for growth. The company’s 4P
supports competitiveness against other automakers, such as Toyota Motor
Corporation, General Motors Company, Honda Motor

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Company, Volkswagen, Nissan Motor Company, and BMW (Bavarian Motor
Works). These competitors also employ strategic 4Ps to address the approach
that Tesla Inc. uses in the automotive market.

In using its marketing mix or 4P, Tesla, Inc. grows its brand popularity along with
increased market penetration. Elon Musk’s popularity adds to the promotional
effectiveness in strengthening the brand. The brand is a major business strength
identified in the SWOT Analysis of Tesla Inc. For example, the brand helps the
company attract more customers, thereby also supporting marketing campaigns.
The Place and Promotion components of the 4P make Tesla’s marketing mix
unusual in the automotive industry.
Tesla’s Products (Product Mix)
This element of the marketing mix identifies the organization’s outputs or products sold
to target customers. In this business analysis case, Tesla’s products are within the
automotive, energy storage, and energy generation markets. Profitable products are the
ones that provide value that customers pay for. The company uses product development to
fulfill corporate objectives in this 4P variable. Also of note is the company’s gradual addition
of new product lines to its product mix. As an international business, Tesla has the
following products:

Automobiles
Electric vehicle powertrain
components Batteries, energy storage
Solar panels

Tesla is known for its electric vehicles. For example, the company’s Model S sedan is one
of the world’s most popular electric cars. However, aside from cars, the firm also
manufactures powertrain components for electric automobiles that other auto firms
produce, thereby
satisfying its mission and vision in facilitating the world’s movement toward electric
vehicles and sustainable energy (see Tesla’s Corporate Vision & Mission Statements).
Moreover, the
company offers batteries for home and industrial use. In relation, upon acquiring
SolarCity
Corporation, the company expanded its product mix to include solar panels and
related
installation services. This element of Tesla’s marketing mix shows focus on electric
vehicles, as
the company currently seeks to grow and expand its multinational business. The
company’s
strategies support profitability in this element of the marketing mix.

Place/Distribution in Tesla’s Marketing Mix PAGE 7 OF 32

The locations or venues used to reach customers are considered in this element of the
marketing mix. An organization distributes or sells its products through such venues. Tesla
Inc. gradually expands its products, but the place element of its 4Ps remains the same. The
company may add more places or venues as it expands, such as through acquisitions or
new ventures. In this company case of Tesla, the following places are involved:
Company-owned Stores and
Galleries Official Company Website
Company-owned Service Centers
Charging stations
Customers can check Tesla’s automobiles, energy storage, solar panels, and related
products at company-owned stores and galleries located in malls and other areas.
However,
customers need to use the company’s website to complete sales transactions. Also,
Tesla owns
its service centers, where customers can access repair and maintenance services, and
where the firm can render services as part of its sales contracts. Moreover, customers can
charge their cars
through the company’s charging stations. These venues reflect the company’s selection of
limited but strategic locations for its business. Thus, the place element of Tesla Inc.’s
marketing mix highlights significant corporate management control on the sale and
distribution of products.

Tesla, Inc.’s Promotion (Promotional Mix)

In this element of the marketing mix, Tesla’s marketing communications strategies
and
tactics are considered. These strategies and tactics enable the global automotive
business to manage and influence customer’s expectations and the presentation and
development of the corporate brand. Tesla, Inc.’s promotional mix has the following
components, arranged according to significance in the automotive and energy solutions
business:

Viral marketing (most

significant) Personal selling
Public relations
Sales
promotions
Direct marketing
Tesla’s
marketing mix is
unusual in the
automotive
industry, partly
because of its
dependence on viral marketing. Viral marketing has the biggest contribution in the
company’s promotional communication with target customers. For example, the release of
the Tesla Model S for Kids is largely promoted through viral videos on social media, thereby
also promoting the company’s product mix. Personal selling is a 4P strategy implemented
through sales personnel at company-owned stores and galleries. In addition, Teslauses public
relations to manage and boost its popularity. For example, the company’s inclusion of its
patents in the open-source movement is a testament to the company’s commitment PAGE to 8 OF 32
driving the world’s transition toward sustainable energy. Such programs improve customers’
perception about the organization and its brand. On the other hand, sales promotions
 Tesla’s Prices and Pricing Strategy
Price levels and related strategies are covered in this element of the marketing mix. In
this company analysis case of Tesla, prices support the premium brand, as well as
profitability
targets for a limited production scale. These prices influence profits and customers’
perception. The company has the following pricing strategies:

Premium pricing
strategy Market-
oriented pricing
Tesla, Inc. usesa premium pricing strategy. This primary pricing strategy involves high price
points on the basis of uniqueness or high value attributed to the company’s products. For
example, customers are willing to pay relatively high prices for Tesla automobiles, which are
considered advanced in terms of technology and ecology. Thus, innovation and product
design are significant factors in successfully using the company’s approach to this part of the
marketing mix. Premium pricing agrees with the generic strategy of differentiation, which
emphasizes uniqueness of products. In addition, the company uses the market-oriented
pricing strategy for its solar panels and related products (services) through the subsidiary
SolarCity. This 4P strategy helps maintain competitiveness in a rapidly changing industry and
manages the
strong force of competition determined in the Porter’s Five Forces analysis of Tesla Inc. It
is
expected that the company will change or add new pricing strategies to account
for new products and trends in the transportation industry and energy solutions
market.

PAGE 9 OF 32
 5. SWOT Analysis
Strengths:
Let’s start with the strengths of Tesla Inc. that will include the positive aspects of the
company, which have reinforced the position of Tesla to become one of the most
dominant companies in the world.
The following factors which are believed to be Tesla’s stronger points have
ensured the
company’s profitability, expansion, and popularity, especially in the long term.
1.A Top Employer Company
2.Most Valuable Automotive Company
3.Best in-class Electric Cars
4.Tesla Dominates the U.S Electric Vehicle Sales
5.Cross-sell and Diversification
6.Innovative Company
7.Better Positioned
8. Unconventional but Effective Strategies

Weaknesses:
All the internal factors in a company which causes any damage or bounds
performance evaluation are identified weaknesses in the SWOT Analysis. So, these are
some of the
shortcomings of Tesla’s organizational structure, which reduce its competitiveness
and business
growth.

Manufacturing Complications
2.Unable to meet demand might affect brand value
3.Lack of High Volume Production
4.Shortage of Batteries
5.Elon Musk as Tesla’s Sole Representative
6.Poor Financial Position
7.Employee Safety Concerns
8.Leadership Wrangles
1.

Opportunities:
1. Sales expansion in untapped Market
The most significant opportunity for the company right now is the Asian market, which is
still unsaturated in the field of automotive and renewable energy markets. Especially in the
situation where Tesla needs to expand its global market to increase its financial stability
and stronger market presences.

PAGE 10 OF 32
 2.Less Expensive Car
Tesla is expensive due to its unconventional reliance on innovation, which requires
maximum financial support to entertain new technology.Recently, Tesla has launched Model
3, which is a more affordable version of Model S with less range, power, and fewer features.
However, it is an excellent opportunity for Tesla to expand the size of their audience
market.
3.Bringing battery production technology in-house
Tesla intends to make its own battery cells. The move can be a big game-changer as it
will help the company to increase its manufacturing rate while reducing its production
cost.
Currently, Panasonic is their primary supplier of batteries.
4.Introduction of pick up truck
According to National Automobile Dealer Association market share data, Pick up truck
accounts for 17.6 percent of the US automotive market, which has huge opportunity of
growth in Electric Vehicle.
5.Market Confidence in Tesla
The stock market has shown confidence in Tesla after beating the projected car deliveries.
The company delivered 90,650 cars, which is more than 20,000 cars over the projected
number. The results pushed Tesla shares up nearly 9% in July 2020.
6.Exploit Air-Taxi Market
Demand for innovative urban air-taxi services to supplant conventional taxis and reduce
traffic congestion and pollution is projected to increase drastically by 2025. Tesla has the
expertise and technology to deliver electric vertical takeoff and landing (eVTOL) vehicles and
a second-largest shareholder has already invested millions in air taxi startup Lilium

Fig. SWOT Analysis of Tesla

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Threats:
The threat factor is combined with the phenomenon which stops the company from
taking full advantages of the benefits that can be derived from the available strengths.
Therefore, these are the few threats which Tesla faces to maintain the business despite the
unpredictable conditions of the market.
1.Product Liability Claims
Despite Tesla’s premium quality assurance and high standards of manufacturing, the
automobile industry, in particular, is accustomed to facing significant product liability
claims which the company’s fears to be one of the biggest financial blows.
Teslahas launched many autopilot vehicles, and not all of them have been successful in
case of an accident. The company has faced lawsuits and claims related to the failure of
technology in their products. If these liability claims continued, then Tesla may be subjected
to greater financial setbacks.
2.Extensive Competition
Tesla, Inc. faces aggressive competition from both alternative fuel vehicles (Hybrid, Plug-
in hybrid, fully electric car) and self-driving technology. Many automotive brands in the
luxury
segment like Mercedes, BMW, Audi, Lexus and in the economy segment like Toyota,
Ford, Volvo, General Motors are getting ready for a fierce competition. ormance,
management
structure, and strategic growth and other aspects.
3.Product Defects
Due to highly complex engineering for innovative vehicles, Tesla’s cars and other energy
products have exhibited major flaws in many cases. The defective products often have
weaknesses in design, manufacturing, and other features which can harm the company’s
image permanently.
4.Long term confidence
For any company, the assurance of long term sustainability is essential to maintain the
public image and the company’s morale. Tesla, due to its unstable manufacturing
conditions, suffers from disbelief among the public about its long-term existence, which
can result in a deficiency in further business development.
5.Custumer Adaptation
Any business run along the lines of customer’s acceptance. If the public is ready to
adapt change, companies benefit from the innovative range of products. However, it can
be a slow, unforgiving process, producing new challenges for companies like Tesla. The
organization highly depends upon customers willingness to adopt electric vehicles.
6.Self-Driving Cars Are Still a Concern for Pedestrians
In a survey from YouGov, US adults still feel unsafe to walk around self driving cars.
Especially, people above the age of 55 are the most afraid to be around self-driving
vehicles.
7.Disruption of Supply Due to Shortage of Materials
Tesla can face major suspensions in the supply of manufacturing materials due to the
increased prices. The company uses aluminum, steel, lithium, nickel, copper, and cobalt, as
well as lithium-ion cells from suppliers. All these materials have volatile prices, which can
affect the company’s production line severely in the future.
8.High-Risk Factor Due to Usage of Lithium-ion PAGE 12 OF 32
 Teslauses lithium-ion cells in their battery packs. Lithium is a highly reactive and
explosive element, which increases the risk factor of our products. Tesla has faced a prices
where their cars have caught fire and vented smoke, which has defamed the company on a
major level.
9.Lack of Regulations for Self Driving
As there are no proper regulations for self-driving in many countries, including the US,
Tesla’s sale is effected by the self-driving restrictions in many areas. This confusing situation
of
legal complexity increases uncertainty about Tesla’s self-driving project’s
future.
10.Elon Musk’s Erratic Behavior Affecting Tesla’s Reputation
Tesla’s entire reputation is built upon the revolutionary personality of Elon Musk. But
recently, his strange behavior and impulsive reactions are affecting Tesla’s worth as an
iconic,
innovative
brand.

PAGE 13 OF 32
 6. PESTEL Analysis
Tesla Inc. (formerly Tesla Motors, Inc.) needs to overcome challenges linked to the
external factors identified in this PESTEL/PESTLE analysis. The PESTEL/PESTLE Analysis is a
strategic management tool that determines the effects of the industry’s remote or macro-
environment on the company. Tesla’s case involves the remote or macro-environment of
the automotive industry, the energy generation industry, and the energy storage industry.
These industries’ external factors influence other determinants of the business, such as
customers and community-based organizations. For example, Tesla Inc.’s customer base and
market share
depend on factors like the cost-effectiveness of technologies in the transportation sector.
With a strong brand image and improving profitability, the company can enhance its long-
term
success by including the results of its PESTEL/PESTLE analysis in strategic formulation.
Tesla’s business effectiveness is a reflection of how well the company addresses the external
factors in its industry environment. The conditions of the remote or macro-environment
change, requiring the company to change its strategies accordingly.
Tesla, Inc.’s electric automobile, battery, and solar panel sales revenues are increasing,
despite competition with large firms, such as automobile manufacturers like General
Motors Company, Honda Motor Company, Toyota Motor Corporation, Volkswagen, Nissan
Motor Company, and BMW (Bavarian Motor Works). This condition indicates effectiveness in
addressing the external factors in the remote or macro-environment of the business. As
shown in this PESTEL/PESTLE analysis of Tesla, the external environment is diverse because
of the variety of the company’s product types and target markets. Strategic management
solutions must correspond to such variety. Thus, it is imperative to identify and address the
most significant of the external factors from these business environments.
Political Factors Affecting Tesla’s Business
This part of the PESTEL/PESTLE Analysis of Tesla Inc. identifies governmental impacts
on
businesses and their remote or macro-environment. Governmental entities are among the
main societal forces that affect businesses and industries. For example, policies on trade can
limit
industry performance and the company’s revenues. In this external analysis case, the
following political external factors are significant to Tesla and the automotive and energy
solutions industries:

Governmental incentives for electric automobiles

(opportunity) New global trade agreements (opportunity)
Political stability in the majority of major markets
(opportunity)

Tesla, Inc. has the opportunity to strengthen its financial performance through incentives
from governments. This external factor directly relates with the minimized carbon emissions
of the company’s operations and products. In addition, this PESTEL/PESTLE analysis
determines that expanding free trade agreements open opportunities for the company to
PAGE 14 OF 32
expand its operations internationally. On the other hand, the political stability of major
markets makes the remote or macro-environment favorable to Tesla’s generic competitive
strategy and intensive
growth strategies, which include market penetration. In this part of the PESTEL/PESTLE
analysis of Tesla, political external factors present opportunities for growing the automotive
business.

Economic Factors
The effects of economic conditions on the remote or macro-environment are considered
in
this part of the PESTEL/PESTLE Analysis of Tesla Inc. These conditions include market
growth, trade levels, currencies, and other variables that influence the automotive business.
For
example, the solar energy market’s growth rate determines the growth opportunities of the
company’s solar panel business. Tesla needs to address the following economic external
factors that influence the automotive market:

Decreasing battery costs (opportunity)

Decreasing renewable energy costs
(opportunity) Economic stability issues (threat)
Tesla’s business performance benefits from lower battery costs. For example, this external
factor translates to affordability of the company’s electric automobile products. This
PESTEL/PESTLE analysis also considers decreasing renewable energy costs as an external
factor that makes Tesla’s products more attractive. The business improves as renewable
energy
solutions become more popular. However, economic stability issues threaten the
company’s financial performance, especially in Europe and Asia. This part of the
PESTEL/PESTLE analysis of Tesla, Inc. highlights major opportunities for growth, despite the
threat of economic instability in the remote or macro-environment of the automotive
industry.

Social/Sociocultural Factors Influencing Tesla Inc.’s Business Environment

Social conditions and trends affect a firm’s remote or macro-environment through
employees, customers, and investors. This part of the PESTEL/PESTLE Analysis of Tesla Inc.
considers how the business aligns with the social trends in its target markets. The
company’s managers must ensure that strategies are applied to maximize the business
benefits of such external factors. The sociocultural external factors important in Tesla’s
business are as follows:

Increasingly popularity of low-carbon lifestyles (opportunity)

Increasing preference for renewable energy (opportunity)
Improving wealth distribution in developing markets
(opportunity)
This company analysis shows opportunities to grow the multinational automotive business.
For example, Tesla Inc. has growth opportunities based on the rising popularity of low-carbon
lifestyles and increasing preference for renewable energy. In the PESTEL/PESTLE analysis
framework, these external factors improve market demand for the company’s electric vehicles
and related products. In addition, Tesla has an opportunity to boost its financial performance
based on the increasing wealth distribution in developing markets. This wealth distribution
trend increases the population of potential buyers of the company’s relatively expensivePAGE cars.
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In this part of the PESTEL/PESTLE analysis, Tesla Inc. can grow its business internationally,
based on sociocultural opportunities in its remote or macro-environment.
 Technological Factors
This part of the PESTEL/PESTLE Analysis determines how technologies influence the
company’s remote or macro-environment. The advancement of Tesla’s automotive and
energy solutions business depends on available technologies. For example, materials
engineering technology determines the efficiency and cost-effectiveness of the company’s
batteries. The following technological external factors are significant in Tesla, Inc.’s
automotive business:

High rate of technological change (opportunity &

threat) Increasing automation in business (opportunity)
Increasing popularity of online mobile systems
(opportunity)
The high rate of technological change is an
opportunity and threat in this business analysis.
The high rate presents opportunity for Tesla to enhance
its products’ technologies. However,
the same external factor threatens the company in terms of the potential rapid
obsolescence of technologies used in its products. Nonetheless, increasing business
automation is a trend that creates opportunities in this PESTEL/PESTLE analysis case. For
example, Tesla has growth opportunities through further automation of its business
processes. In addition, the increasing popularity of online mobile systems should prompt the
company to increasingly integrate these systems in its automobiles. The technological
condition of the remote or macro-environment, as shown in this part of the PESTEL/PESTLE
analysis of Tesla, Inc. emphasizes opportunities for growth based on technological
enhancement.

Ecological/Environmental Factors
The remote or macro-environment of the global business is subject to the effects
of ecological conditions covered in this part of the PESTEL/PESTLE Analysis of Tesla,
Inc. For example, ecological trends determine the availability of materials used in the
company’s
production processes. In this case, the following ecological external factors affect
Tesla’s market:

Climate change (opportunity)

Expanding environmental programs
(opportunity) Rising standards on waste
disposal (opportunity)
This PESTEL/PESTLE analysis considers
ecological factors as significant forces on Tesla,
Inc.’s
industry environment. For example, the company has opportunities to promote its electric
vehicles based on concerns on climate change, expanding environmental programs, and rising
standards on waste disposal. The company’s electric vehicles, batteries and solar panels are
considered suitable in directly addressing these external factors linked to business
sustainability and environmentally friendly products. This part of the PESTEL/PESTLE analysis
shows that Tesla has significant growth opportunities based on the nature of its products.
PAGE 16 OF 32

Legal Factors
within legal constraints. In this case of Tesla, Inc., corporate strategies must include
the following legal external factors:

Expanding international patent protection

(opportunity) Energy consumption regulations
(opportunity)
Dealership sales regulation in the United States
(opportunity & threat)
Teslahas opportunities to safely expand its business overseas, considering
expanding international patent protection. In addition, this PESTEL/PESTLE analysis
identifies the
opportunity to promote the company’s electric vehicles and energy solutions
products, based
on energy consumption regulations that client organizations must follow. Also, the
business has
an opportunity to grow through direct sales, which is allowed in many states in the U.S.
However, based on the SWOT Analysis of Tesla, Inc., this external factor is also a threat,
considering that other states do not allow direct sales and, instead, require dealerships to
transact with customers in the automotive market. The legal conditions of the remote or
macro- environment shown in this part of the PESTEL/PESTLE analysis point out that Tesla can
expect growth opportunities.

PESTEL/PESTLE Analysis of Tesla Inc. – Recommendations

Tesla, Inc.’s profitability improves over time. Elon Musk’s leadership and popularity are
among the factors behind this performance. The company is also in a position to improve its
operations in the global automotive market, addressing the competitive landscape
determined in the Porter’s Five Forces analysis of Tesla Inc. The company, however, needs to
continuously evolve to account for the trends shown in this PESTEL/PESTLE analysis. These
trends affect all businesses in the automotive, battery/energy storage and energy generation
industries. Thus, the corporation must also consider its business condition relative to other
automakers and energy solutions providers.

As shown in this PESTEL/PESTLE analysis of Tesla Inc., there are a variety of opportunities
that facilitate further growth of the business. For example, free trade agreements make it
easier to expand internationally. Thus, a recommendation is for the company to globally
expand its operations. It is also recommended that the business increase its marketing
aggressiveness to increase its market share, especially in countries other than the United
States. This move could reduce market-based risk, considering that Teslahas limited sales
operations in overseas markets.

PAGE 17 OF 32
 7. Porter’s Five Forces Analysis
Tesla Inc. (formerly Tesla Motors, Inc.) maintains its profitability through strategic
measures that address the competitive challenges outlined in this Five Forces analysis of the
global automotive business. Michael Porter developed the Five Forces Analysis model as a
strategic management tool to understand the impact of external factors on firms and the
competitive landscape of their industry environment. This Five Forces analysis of Tesla looks
into the external factors significant in the automotive industry and the energy solutions
industry, and how such factors affect the company. As one of the biggest players in the
electric vehicle market, Tesla must effectively address such external factors to ensure its long-
term competence and resilience in the face of competitive rivalry involving automakers like
Honda Motor Company, General Motors Company, Ford Motor Company, Volkswagen, Toyota
Motor Corporation, Nissan Motor Company, and BMW (Bavarian Motor Works). The company
must account for the nature and characteristics of such competition in the domestic and
international markets for electric automobiles, batteries, and solar panels, as considered in this
external analysis.
Tesla Inc.’s success as an innovative manufacturer of electric vehicles is partly based on its
strategies that tackle the external factors in the automotive industry environment and the
energy storage and solutions market. This Five Forces analysis (Porter’s model) shows that
Tesla must prioritize competitive rivalry as the most significant of the forces in its
multinational business environment. Pressures from substitutes, suppliers and buyers are also
considered in this business analysis.

Summary & Recommendations: Porter’s Five Forces Analysis of Tesla, Inc.

Firms in the international automotive industry environment experience a variety of
external factors, including raw material availability and technology-based firm
competitiveness. Tesla’s resilience is a reflection of strategic effectiveness. This company
analysis shows that the business manages to grow in spite of competitive challenges.
However, Tesla must ensure that it addresses external factors according to the intensity of
the forces impacting the business, as shown in this Five Forces analysis:

Competitive rivalry or competition (Strong Force)

Bargaining power of buyers or customers (Moderate
Force) Bargaining power of suppliers (Moderate Force)
Threat of substitutes or substitution (Moderate
Force) Threat of new entrants or new entry (Weak
Force)

Recommendations. The results of this Porter’s Five Forces analysis of Tesla, Inc. show that
competition is the most significant force that impacts the business. Thus, the company must
prioritize this force in its strategic formulation. A recommendation is to continue
strengthening Tesla’s competitiveness: Stronger competitive advantage is achievable through
innovation and increased market presence. For example, in terms of innovation, the company
can boost its

PAGE 18 OF 32
research and development (R&D) investment to outpace competitors’ rate of energy
storage innovation. In terms of increasing market presence, aggressive marketing
campaigns support Tesla’s vision and mission statements. The other forces outlined in this
Porter’s Five Forces
analysis also have significant intensities, but to a lower degree compared to competitive
rivalry. Managerial initiatives must address these forces according to their intensities.

Competitive Rivalry or Competition with Tesla, Inc. (Strong Force)

Tesla, Inc. operates in a highly competitive market. This aspect of the Five Forces
Analysis outlines the influence of competition on the automotive and energy solutions
industry environment. In this case of Tesla, the external factors and their intensities
responsible for the strong force of competitive rivalry are as follows:

Small number of firms (weak force)

High aggressiveness of firms (strong
force) Low switching costs (strong force)
There are only a small number of
firms operating in the automotive market.
In Porter’s Five
Forces analysis framework, this external factor limits the effect of competition on
companies like Tesla, Inc. However, these firms are generally aggressive in innovating and
promoting their products. For example, large automotive companies have aggressive
marketing campaigns.
Tesla’s marketing mix or 4Ps partly meets such aggressiveness, which strengthens the
effects of
competitors against the business. Also, the low impediments for customers to buy cars
from other manufacturers (low switching costs) further strengthen the force of
competition. This aspect of the Five Forces analysis of Tesla Inc. points to competitive
rivalry as a high-priority strategic management consideration in the automotive and
energy solutions industry environment.

Bargaining Power of Tesla’s Customers/Buyers (Moderate Force)

The influence of customers on firms and the automotive, battery, and solar panel
industry
environment is accounted for in this aspect of the Five Forces Analysis. Tesla’s customers
are a direct factor that determines the company’s sales revenues. The following external
factors and their intensities maintain the moderate force of the bargaining power of
customers on the company:

Low switching costs (strong force)

Moderate substitute availability (moderate
force) Low volume of purchases (weak force)
Low switching costs reduce barriers for Tesla
customers to purchase cars from other
providers. In the context of this Porter’s Five
Forces analysis, this external factor imposes a
strong force against the company and other PAGE 19 OF 32
players in the automotive industry environment.
However, the availability of substitutes is only
moderate in many cases, thereby limiting
reduces the influence of customers on Tesla. Thus, the intensities of the external factors in this
aspect of the Five Forces analysis reflect the bargaining power of customers as a moderate
force and a secondary management priority. This prioritization is reflected in Tesla Inc.’s
generic strategy and intensive strategies.

Bargaining Power of Tesla’s Suppliers (Moderate Force)

Tesla Inc.’s business depends on the reliability of suppliers. This aspect of the Five Forces
Analysis shows how suppliers shape the industry environment by influencing the availability
of materials that firms need. The intensities of the external factors that create the moderate
force of the bargaining power of Tesla’s suppliers are as follows:

Moderate forward integration (moderate

force) Moderate size of suppliers (moderate
force) Moderate supply level (moderate
force)
Tesla Inc.’s suppliers have a low level of forward integration. This external factor refers to
suppliers’ limited control in the distribution and sale of their products. For example, some
suppliers use third parties to sell their materials to Tesla, while others directly transact with
the company. In the framework of Porter’s Five Forces analysis, this external factor imposes
a moderate force on the corporation. In addition, most of these suppliers are moderately
sized, thereby having limited influence on the automotive industry environment. Another
external factor is the moderate level of supply, which empowers suppliers to affect Tesla, but
only to a limited degree. This aspect of this Porter’s Five Forces analysis of Tesla Inc.
indicates the bargaining power of suppliers as a secondary strategic management priority.

Threat of Substitutes or Substitution (Moderate Force)

Tesla, Inc. experiences the impact of substitutes on the automotive and energy
solutions
industry environment. In this aspect of the Five Forces Analysis, the intensities of the
external factors that lead to the moderate force of the threat of substitution against the
company are considered, as follows:

Low switching costs (strong force)

Moderate substitute availability (moderate force)
Moderate performance of substitutes (moderate
force)
As pointed out in the other aspects of this Porter’s Five Forces analysis of Tesla Inc., low
switching costs enable competition. In this external analysis case, the low switching costs
enable substitutes, such as public transportation, to easily attract customers. This external
factor imposes a strong force against Tesla’s industry environment. However, the moderate
availability of substitutes limits such influence of suppliers. For example, customers have only
a moderate and limited number of substitute options in the market. In relation, many
substitutes have only a moderate level of performance in satisfying customers’ practical needs.
For instance, public transportation is not as versatile as a private car. This condition further
limits substitutes’ force against Tesla. In this aspect of the Five Forces analysis of Tesla, Inc.,
the external factors point to
PAGE 20 OF 32
the threat of substitution as a secondary management consideration in the company’s
strategies.

Threat of New Entrants or New Entry (Weak Force)

New entrants are new firms, which impact the industry environment and determine the
performance of companies like Tesla Inc. This aspect of the Five Forces analysis identifies
the intensities of the external factors that create the weak force of the threat of new entry,
as follows:

High cost of brand development (weak

force) High cost of doing business (weak
force) High economies of scale (weak force)
Tesla’s business is difficult to compete with, especially because of the high cost of
brand development, along with the popularity of Elon Musk. For example, it is difficult for
new
entrants to match the company’s strong brand, which is one of the strengths enumerated
in the SWOT analysis of Tesla Inc. This external factor is an entry barrier in the context of
Porter’s Five Forces analysis. In addition, automobile manufacturing has high costs, which
impose a barrier to new firms. Also, established players like Tesla benefit from increasing
economies of scale, which new entrants can only achieve upon exceeding a production
threshold. Based on the external factors in this aspect of the Five Forces Analysis, the threat of
new entry is only a minor strategic management concern in Tesla Inc.’s industry environment.

PAGE 21 OF 32
 8. Strategic Implications
1. Superior technology

Electric motor
Tesla’s electric motors are superior compared to the company’s
competitors. Tesla motors are equipped with proprietary magnets, making
them not only smaller, but also cheaper and more efficient than
competitors’. For example, the Model 3’s motor is estimated to cost
approximately US $754 (at 46.1 kg), while the BMW’s i3 and the Chevy Bolt,
are estimated to cost US$ 841 (at 48.37 kg) and US $836 (at 51.49 kg)
respectively. Furthermore, Tesla’s motor also has more torque and better
performance.

Battery
Tesla’s energy storage system consists of thousands of individual lithium ion
batteries arranged in series. This component is manufactured by Panasonic
(ticker: PCRFY) and by far the heaviest part of the car – weighing more than
500 kg. This is why the energy storage system is placed at the bottom of
the car to help with stability and handling. Experts in the field consider
Tesla’s battery technology to be a couple of years ahead of competitors’.
For example, the battery pack in the model 3 is estimated to have 14%
better energy density.
Tesla’s superiority in battery does not stop on the technology aspect.
The company also
has access to the largest battery manufacturing capacity in the world.
Since its early days, Tesla has had a close relationship with Panasonic. The
Japanese company would produce batteries in Japan and export them to
California for Model S and X cars. The two companies have since partnered
to make batteries in the US at Gigafactory 1 in Nevada, USA (note that Tesla
calls factories that combine battery manufacturing with electric car
assembly “Gigafactories”).

2. Supercharger Network
The average American drives 29.8 miles (47.7 km) per day. At first
glance, this range is sufficiently covered by an EV. But the average can be
misleading. Despite the low average, there are circumstances where the
driver drives very long distance – exceeding the range coverage of EVs. As
such, about 95% of driving needs can be satisfied by an EV, but most
consumers require 100% of their driving needs to be met (including long
distance trips 1-2 times per year). The fear of not being able to drive long
distance using an EV is called range anxiety, and is the number one reason
consumers cite to be the barrier to adopting EVs on a wider scale.
Recognizing this, Tesla has developed a network of superchargers.
Superchargers are electric charging stations that can fast charge (50%
charge in about 20 minutes) Teslas. They use a proprietary connector,
which means other EVs cannot use Tesla’s network.

PAGE 22 OF 32
 3. Vertical Integration
Tesla’s organizational structure and its approach to vertically integrate
where possible
are what make its technology superior. Unlike other car companies,
Tesla develops and produces most of the core components in-house. In
contrast, established car companies

(OEMs) such as Ford, GM and others have an ecosystem of third party

suppliers that comprise of three tiers (Figure 5). This makes fast
technology innovation and iteration difficult.
A recent report by Goldman Sachs estimates that Tesla has achieved
about 80% vertical integration in its manufacturing supply chain. The
company’s innovations range from its supercharger network and custom
software, to novel methods to produce the frame of the car.
The primary benefit of vertical integration is not to profit from the
margin you would otherwise pay your suppliers, but rather to enable a
much faster rate of innovation and
technology development.

PAGE 23 OF 32
 9. Tesla’s Innovative Marketing Strategy

1. Create the Best Possible Customer Experience

One of the biggest drivers of Tesla’s success is its focus on providing the best possible
customer experience. Ordinarily, when you go to a car dealership, you have to deal with a
sleazy salesman trying to earn as much commission as possible from your purchase. You
haggle about the price, take the car for a test drive, and talk some numbers – overall, it’s a
time-consuming and not a very pleasant experience.
Tesla, on the other hand, is totally different. It doesn’t have any retail dealerships where
you need to negotiate with tedious salesmen. All information is conveniently made available
on their website, you order and configure your car online, and schedule the pickup. The price
listed is the final price. The entire car buying process is seamless and time-efficient.
No wonder Tesla has the highest customer loyalty of all car brands with an overall
satisfaction rating of 90%. From the very outset of your buyer’s journey, you’ll realize Tesla
is
different. The company controls everything (from the initial test drive to follow-up
maintenance) about the journey and isn’t pushy with its sales, which makes for an outstanding
car buying experience.
An excellent experience builds a sense of exclusivity and makes you want to spread
the word about the company, which leads us to the next point…

2. Build a Strong Referral Program

People trust recommendations from friends and family more than they could ever trust
ads of a brand promoting itself. That is, word of mouth is one of the most effective forms of
marketing and Tesla knows this well.
And so, from the beginning, Tesla has had a solid referral program that further
motivates
customers to share their great experiences with the company and its products. If you
haven’t already, consider creating an exciting referral program for your company that
motivates your customers to spread the word amongst their friends and family.
3. Don’t Rely on Paid Advertising
Whether you’re scrolling through social media or cruising along the highway, ads are a
nuisance you can’t escape. Apart from people in the marketing and advertising industry,
there may only be a handful of people on the planet who actually enjoy ads.
In other words, nearly everyone hates ads. And yet it seems like a necessity for
companies
to promote their products. Every year, in the auto industry alone, billions of dollars are spent
on advertising alone. But Tesla spends $0 on ads.
Instead, they focus on creating a customer experience that automatically turns
customers into fans. And, of course, also on building exciting products that you can’t help
but crave.
Essentially, Tesla shapes its brand with innovation and simplistic minimalism – it sets itself
apart by doing things differently without compromising on quality.
This is not to say that you must completely ignore paid advertising, but your ad
spend should be minimal. Your focus should be on providing amazing customer
experience and PAGE 24 OF 32
creating the best possible products in your niche which, with the help of content marketing,
sell themselves.
Also, honest tweets from your company’s CEO likely hold far greater value than 30-
second paid ads on YouTube, which brings us to the next point…

4. Leverage Your CEO’s Social Media Influence

As needless to say as it is, Tesla Motors won’t be where it is today without the influence
of its charismatic and rather audacious CEO, Elon Musk.
Usually, CEOs are somewhat hesitant when it comes to going all out on social media.
And
that’s quite understandable – they have to be extremely cautious about what they’re
posting as they’re the face of the company, so to speak. One wrong post can seriously
damage the brand’s
reputation, or even invite lawsuits.
But not Elon Musk. In fact, you might say that his social media influence has contributed
to Tesla’s success more than any money they spent on marketing. With over 34 million
followers and 11,000 tweets, calling him a mere “influencer” would be an understatement.
He’s straightforward (about failures too) and engages with his followers almost daily.
Tweeting about new business ideas on the commute home, ranting about Twitter locking
his account, live broadcasting rocket launches – you name it, he tweets it. He speaks what’s
on his mind, unlike other CEOs who use social media just to share rather uninteresting
corporate updates and latest product information.
What’s the lesson here? Put a face to the name. You, or your CEO, can take a bit
more personal approach, and freely engage with the audience. It could work wonders
for your branding and you won’t be spending a dime on ads.
Of course, your company’s CEO won’t be nearly as popular as Musk, but their
personal brand can contribute substantially to the company’s growth, probably more so
than a paid
advert. Thus, it is a good idea to let the marketing team dedicate a part of their
social media
marketing strategy to work on improving the company leadership’s social media
presence and authority.

5. Be as Authentic (and Fun) as You Can

Continuing along the same lines of authenticity, Tesla as a company are blatantly
themselves. They add features like “fart noises” to their cars, while the CEO shares memes
on
Twitter. At the same time, they have the most talented engineers building vehicles that
help
tackle the fossil fuel crisis.
They appear to be nonchalant and fun-loving while also being one of the most
ambitious
brands on the planet. Simply put, Tesla’s branding strategy is more “human”, relatable,
and fun
– something that you can emulate for your own branding.

6. Champion Your Mission and Vision in All Marketing Efforts PAGE 25 OF 32

As such, any company or brand must have a strong vision statement. Not only does it
help guide the company in a forward direction during testing times, but when used
 “To create the most compelling car company of the 21st century by driving the world’s
transition to electric vehicles.”
And Tesla’s mission is to “accelerate the world’s transition to sustainable energy.”
Customers can easily appreciate that Tesla Motors exists to do more than just sell cars.
Of course, most companies can’t match this level of ambition in their mission and vision
statements – but you sure can emulate the strategy of using your statement to build a
brand with a faithful following.
Companies that wholeheartedly believe in what they sell and stand behind their beliefs
are the ones that stand out. If your company has a clear vision that resonates with the
target audience, you should integrate that message in every piece of marketing material.
This is how you’ll rally a staunch fan following, and in turn, a loyal customer base.

7. Provide Top-Notch Customer Support Post Purchase

Customer experience doesn’t end once the purchase is complete. Customers regularly
engage with your product after the purchase, which affects their outlook of the company and
its service.
Tesla steps into the shoes of its customers by thinking through the entire journey. For
instance, Tesla built a massive network of supercharging stations across the United States and
Europe to make it convenient for customers to charge their cars on the move. The lesson here
is that companies that consider post-purchase customer needs are the ones that win big in
the long run.

8. Be Transparent
Being completely honest and transparent with your customers is extremely important.
If
there’s an issue that you’re working to fix, one that’s going to cause customer disappointment,
it’s crucial to be transparent about it instead of hiding it – and your customers would
appreciate it.
For example, many customers who pre-ordered the Tesla Model 3 were discouraged to
have their delivery dates delayed due to manufacturing problems. Soon, customers witnessed
backlogs of Model 3s sitting at assembly plants and wondered why they hadn’t received
their
cars.
Instead of hiding the problem, Tesla was candid about its challenges. Many customers who
tweeted at the company received personal responses from Elon Musk who gave honest
updates on the situation.
Long story short, customers are more inclined to bear with delays and issues if they
understand what’s really happening behind the scenes. So, transparency should be integral
to
your digital strategy.

9. Don’t Be Afraid to Be a Bit Controversial

Authenticity is how you correctly connect with your audience, and controversy is how
you expand your audience. And Tesla, with Musk as its CEO, does a great job at it.

PAGE 26 OF 32
 He smokes marijuana with Joe Rogan, sells flamethrowers for fun, and sends aTesla into
space – pretty controversial stuff that completely captures and keeps your attention for
when there’s a product launch.
So while competitors shell out hundreds of thousands of dollars for a 30-second
commercial to play during a sports event, Tesla sits back and lets their fans (many of whom
are extremely influential) make (and promote) these videos for them.
That being said, don’t go overboard with being too controversial or you might have
to face
a lot of backlash, something that could be counterproductive for your brand image.

10. Focus Your Efforts Online

The modern customer starts their buyer journey online. So, the internet provides
potential customers with their first impressions of the brand.
Tesla distinguishes itself with a strong online presence, with countless press mentions
and millions of followers across the social web. This social proof is pivotal to creating a
brand that’s head and shoulders above the competition.
Furthermore, on their website, customers can comfortably get all the information in
one
place and are empowered through a seamless digital experience. Rather than being pushed
into a sale, they are given information to make their own decisions, which leads us to the
next point

11. Allow Self-Service Options

Modern customers are an impatient bunch. They don’t want to wait to get in touch
with brands. They want the ability to get instant answers to any doubts they may have.
Tesla recognizes this fact very well. So, after test driving a car, potential customers are sent
a link so they can configure their car and know the pricing of their exact configuration. Rather
than wasting time with unnecessary sales pitches, Tesla empowers customers to make their
own decisions. And this is appreciated by the customers – 73% of customers say valuing their
time is the most important thing companies can do to provide great service.

12. Have Consistent Company Messaging

Amazing customer experience is also about being able to provide the same information
in the same positive tone regardless of how a customer contacts the company. This hasn’t
been a strong point of Tesla as some of the major complaints of new car owners come from
Tesla’s distribution strategy and delivery process.
Many customers reported receiving conflicting information from different Tesla
employees. Some customers were given outdated contact information. You must make sure
this is not the case with your company.
Consistent messaging from every department and employee helps customers stay
confident in the company and have a smoother buying experience.

13. Keep Your Audience in the Know

Tesla and Elon share just about everything with their followers – mostly via Twitter or the
company’s blog. In this way, their audience knows where to turn to for the latest
updates. In fact, most of the company’s announcements are made casually in response
to Twitter fans. PAGE 27 OF 32
 The lesson here is to maintain continuous and open two-way communication with your
audience. Also, responding to comments and complaints in a timely manner on social media
is crucial to building a loyal fan base.

14. Generate Brand Exposure Through Multiple Paths

Apart from your core products or services that you’re selling, what else do you have to
offer? Are you doing anything interesting or helping the world?
Sometimes, standing out from your competition doesn’t have to just be about your
business offerings, but your involvement in other important things in the world.
Supporting a cause, raising funds to help someone in need, and being present at public
events also gets people to check your business out for reasons other than just the
products or services you offer. People will see you as a friend, not just a corporate trying to
sell as much as you can.
Simply put, all these things generate positive brand awareness which ultimately
translates into more sales in the long run.

15. Embrace the Competition

If you didn’t already know, Elon Musk, in good faith, famously open-sourced all of
Tesla’s patents and praised Tesla’s rivals for their progress on electric vehicles.
After thinking of other companies as a competition for about a decade, the
company simply
decided it was ‘’silly’’ to think like that. Their mission as a company is to accelerate the
world’s transition to sustainable energy, and so, they thought it would be best if other
companies use their concepts so long as they help in making that transition happen.
This shows Tesla’s ability to embrace competition. It proves that instead of worrying
about your competitors’ success, your focus should be to become the best at what you do
while
realizing your company’s mission – which, usually, is meant for the greater good of your
target
audience.
Ultimately, people would appreciate that fact and prefer your brand over
competitors.

PAGE 28 OF 32
 10. Micro Environmental
Analysis
Suppliers:
Concerned about competitors either obtaining inside information or buying out
necessary parts, Tesla is rather secretive about the more than two dozen parts suppliers for
the Model S, but many of them have been uncovered by diligent researchers. Tesla
manufactures the basic electric components of the car – the electric motor, the battery pack
and the charger – but other parts come from suppliers spread across the U.S., Europe and
Asia.

Customers:
Tesla products are considered to be expensive for average consumers and thus, the
target customer segment for the company is wealthy individuals and households. Tesla also
uses anticipatory type of positioning. Less incentive for consumersto buy anew type of
electric car ratherthan a traditional gas car.

Competitors:
other electric and hybridtype cars: Coda Sedan,GM VoltThe Leaf is priced at about
$25,000, theModel S at $57,500, the Coda Sedan at$37,400, and the GM Volt at
$41,000(allprices include tax credits)

Employees:
This is a substantial increase from how many people the company had employed at the
end of 2020. Tesla reported an employee headcount of 70,757 people at the end of 2020.
The figures only count full-time employees.

Shareholder:
Singapore-based Leo KoGuan is the third-largest individual shareholder in electric
carmaker Tesla, behind billionaire Larry Ellison and TeslaCEO Elon Musk.

Social Media:
Company Main social media influencer is Elon musk.
Elon Musk’s social media presence is so strong because he is unabashedly authentic,
engaging, and fun. Plus, Musk adds in controversy to keep conversations orbiting around
him.

PAGE 29 OF 32
 11.
Conclusion
Tesla is among the leaders of car manufacturers especially in
the category of electric cars. They are doing a great job and it is very
evident by their actions that they know what they are doing.

Tesla believes it is better to invest in customers by providing

them quality products rather than spending millions of dollars on
marketing and promotion. Tesla’s 0$ marketing strategy is one of a
kind and kudos to Tesla are still able to run it without any major
issues. If you have made it to the end then it proves you are among
the fanbase of Tesla.

Hope this case study is helpful for you. If you find this
interesting, share it with your friend and comment on what are your
takeaways from the marketing strategy of Tesla and check out this
institute where you can learn more about Marketing Strategy and
Social media marketing in minutes

PAGE 30 OF 32
 12.
References

Korosec, K. (2020, July 1). TeslaBlows Past Toyota to become Most Valuable Automaker
in the World. Tech Crunch
Retrieved from: https://bstrategyhub.com/tesla-swot-analysis/

4Ps BY DANIEL KISSINGER.

Retrieved from: http://panmore.com/tesla-motors-inc-marketing-mix-4ps-analysis

PESTLE Analysis BY DANIEL KISSINGER

Retrieved from:
http://panmore.com/tesla-motors-inc-pestel-pestle-analysis-
recommendations

A Complete Analysis on Tesla Marketing Strategy – 360 Degree

Analysis by Aditya Shastri
Retrieved from: https://iide.co/case-studies/tesla-marketing-strategy/

PAGE 31 OF 32