Tesla Motors Inc was founded in America in 2003 by engineers. They establish this company to prove people that they should not compromise on the drive electric. The company manufactures electric vehicle which fast and fun to drive as compare to gasoline cars. Tesla motors manufacture all-electric vehicles, storage products and also generate scalable energy. Tesla believes in moving to zero-emission products rather than relying on fossil fuels. The company is headquartered in California. The company specialized home to grid scale and other operation through the acquisition of Solar panel, Solar roof tile and Solar city manufacturing (Tesla Motors, 2020).
Ansoff Matrix is a marketing planning tool which suggests the companies to adopt growth strategies in combination of products and markets. This matrix helps the company with its market and product expansion and if suitable for the condition companies can also diversify their businesses. Here is the detailed Ansoff Matrix analysis of Tesla Motors.
Market Penetration
Market Penetration is the strategy suggested by the Ansoff matrix to the companies. The strategy encourages the company to increase the sales of the current product in the current market. This strategy helps in increasing the market share of the business. Moreover, companies can opt for this strategy as it is least risky. They can penetrate in the market by adopting more marketing techniques, promotional strategies, and personal selling. Tesla Motors adopt this strategy as it involves in aggressive marketing, which aims the company to sell and roll out more of electric cars in United States. This helps the company in maximising the revenues from the markets it is currently operating. The company try hard to gain competitive advantage in order to increase the market share. This also affects the revenue of the company positively (Rowland, 2018).
Product Development
Product Development is the strategy focuses on the company’s new product launch for the existing market it is serving to. This is also a product expansion strategy as new products are being added in product portfolio. The new launch of product either could be a different product or different version of same products. Company usually adopt promotional strategies to gain market attention. Tesla Motors apply this strategy by using advanced technology products for minimum impact on environment. It offers solar panels and introduced Tesla Roadster as the first electric sports car across the globe. Tesla also introduced battery power storage products to save energy. It is also working on developing semi-truck and pick-up trucks. Tesla Motors have to invest more in the R&D extensively to bring new objects in the market (Dudovskiy, 2018).
Market Development
Market development is the strategy suggested by Ansoff matrix to the companies who prefer expanding in new markets with current products. This is also called market expansion for the company. The company in the market expand either geographically or demographically. Tesla Motors adopt this strategy and expanded itself in China and India. The company introduced its Model S and focused on the high-end luxurious market segment who are sensitive to environment and ecology. The company used aggressive marketing and advertising campaign which focused on the educating about product and positioning as aspirational product with much high value. The company is also focusing to expand to other international markets also with its environmentally friendly products (Sharma, 2016).
Diversification
Diversification is the strategy suggested by the Ansoff matrix. This strategy encourages the company to introduce new product in the new market. The diversification can be related or completely unrelated in new industry. Tesla Motor introduced its battery products as a diversification strategy for non-automotive products. However, it does not make prominent position in the financial statement of the company. The company is working more on product development and market penetration strategy for automotive and the energy solutions. This strategic objective of the company is linked to diversification and increase the investment in R&D for determining new business opportunities (Rowland, 2018).
References
Dudovskiy, J. 2018. Tesla Ansoff matrix. [Online], Available at: https://research-methodology.net/tesla-ansoff-matrix-2/, [Accessed on: 13th February, 2020].
Rowland, C. 2018. Tesla’s generic strategy and growth intensive strategy. [Online], Available at: http://panmore.com/tesla-motors-inc-generic-strategy-intensive-growth-strategies-analysis, [Accessed on: 13th February, 2020].
Sharma, S. 2016. The Tesla Phenomena: A Business Strategy Report. [Online], Available at: https://www.academia.edu/25781072/The_Tesla_Phenomena_A_Business_Strategy_Report, [Accessed on: 13th February, 2020].
Tesla Motors, 2020. About Tesla. [Online], Available at: https://www.tesla.com/about, [Accessed on: 13th February, 2020].