Tesla’s target customers
Tesla focusses on high end automobiles that are able to attract premium prices from consumers. Such is the case with the introduction of the Model S brand and the Tesla Roadster that were both high end electric cars meant to compete with other luxurious brands. The Tesla Roadster was able to compete with Porsche while Model S competed with brands such as BMW and Audi 6 .
How Tesla satisfies customers’ needs
Tesla satisfies the needs of its customers by adhering to the needs of eco-friendly cars with internal combustion capabilities. Tesla is committed to providing high quality cars that are responsive to the changes in customers’ preferences such that through its research and development department, Tesla aims at ensuring customers derive the highest utility from its products. The other key factors that Tesla relies on is the need to provide customers with electrical vehicles that offer unique capabilities such as acceleration. Through its Tesla service centers programs, Tesla ensures that customers are able to have repairs and maintenance services easily hence improving on its post purchase capabilities to build on customer loyalty .
Type of Business Strategy used by Tesla Motors
Differentiation strategy
Tesla relies on differentiation strategy to compete with firms that manufacture luxury cars such as Porsche. With the differentiation strategy, Tesla Motors is able to reach out to specific customers both high income and middle income earners. The differentiation strategy is explained by the fact that Tesla is committed to manufacturing unique electric cars with potential of competing and outperforming the high end brands that still rely on fossil fuels for energy.
4. Major innovations that Tesla has introduced to the market.
A major innovation introduced in the market is the Tesla Roadster, an expensive car that competes and outperforms other luxury brands such as Porsche. The other innovation was the introduction of Model S that attracted much attention from consumers and was rated highly by high end customers . While other firms were declared bankrupt, Tesla was still making profits due to its innovative brands that had increased its stock prices and were rating highly in the consumer reports .
The introduction of Tesla Roadster and Model S were both radical innovations considering the major technological breakthroughs they made in the industry. Both innovations proved the uniqueness electric cars offer to the market and the fact that they are able to create more value than other high end brands such as BMW, Porsche and Audi. The innovations of Tesla Roadster and Model S proved that there is still a lot of knowledge gaps that could be filed to exploit the opportunities offered by reliance on electric cars and power trains.
Works Cited
Van den Steen, Eric. "Tesla Motors." Harvard Business School Case 714-413 2013. Document.
