Thus it is able to serve niche members at a lower price From then this report

Thus it is able to serve niche members at a lower

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price. From then, this report is going to analyze how Tesla employs thisstrategy.Tesla Motor Inc. supports a focused strategy because its target customers aremainly from middle and upper income levels – a small group. Moreover,Tesla’s main focus is to provide high performance and creative electric cars,which will benefit the world both environmentally and economically. It cannot adopt low cost and hybrid strategies.The Tesla Roadster has the base price of $109,000 to $128,500, which isvery high.
The Model S was standard in most luxury vehicles. With the battery pack inthe floor of the vehicle and the motor and gearbox in line with the rear axle, theTesla Model S provided best-in-class storage space of 63.4 cubic feet. Thiscompared quite favorably with this one of BMW’s large 7-series sedan,Mercedes S-class sedan and Lexus 460 xedan. By continuing to innovate and create new and more efficient ways oftransportation, Tesla will go on to grow and increase its global outreach. Themost closely approximates strategy that Tesla is employing is a broaddifferentiation strategy. A broad differentiation strategy – seeking todifferentiate the company’s product offering from rivals’ products by offeringsuperior attributes that will appeal to a broad spectrum of buyers. Tesla is usingthis strategy when producingandintroducingtheForthcomingModelXCrossover SUV and MassMarket Tesla Model 3 Vehicle.This make Tesla attract morecustomers with suitable price,but still maintain good quality.The Forthcoming Model XCrossover SUV is designedfrom the platform architectureof the Model S – about 60percent. As a result, the development cost reduces, while having highperformance.The Forthcoming Mass Market Tesla Model 3 Vehicle in 2017 should besold at a lower price points- perhaps as low as $35,000. And it can be deliveredto California, Netherlands, and evens Europe.
Question 3: Are you impressedby the strategy Elon Musk has crafted forTesla? Why or why not?I am impressed by the strategies Elon Musk has crafted for Tesla. The first strategy is making differentiated products, and cheating customers'vision. Model S, which is designed for the wealthy segment in market, was passedthe cars test with the score 99/100. It is modern with blistering acceleration,razor-sharp handling, complaint ride, and versatile cabin. It can say that allparts of Tesla's motors are luxury and high-quality. Attract customers by hiding several functions of their motors, and thenactiving them to become a perfect product. For example: Model S 60 with the battery of 75 kWh; however, theengineers reduced the efficiency by 20% lower level. The price was $66,000.After that, the Model S 75, which had the same functions with Model S 60, butapplied full of battery, was sold at $70,000.

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