Tesla's international strategy is the transformation strategy. With this strategy, Tesla seeks to simultaneously achieve low prices through economies of scale, economies of location, and understanding outcomes; and transform their cars into the global industry to record local differentiations. Most of Tesla's strategies in the foreign market are similar to those adopted in the United States. These strategies are as follows. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayTesla sells its cars directly to customers through its showrooms and galleries or through the Tesla website. Elon Musk (2012) describes that the root cause of this direct selling, and not selling through dealers, is the underlying commitment dispute faced by dealers between selling gasoline cars, which constitutes the majority of their business, and the sale of advanced electric car technology. The benefits of this direct selling include improved customer satisfaction as Tesla can largely match its production with buyers' preferences, and a lower total price grateful for dealer pricing absenteeism such as inventory financing, insurance, and advertising fees and sales. Tesla uses a buyback program called Certified Pre-Owned (CPO) in countries such as Germany, France, Sweden, Norway and Canada. Through this program, a Tesla Model S is sold with the guarantee of returning it to the organization after three years for a refund of 43% to 50% of its original price. Tesla then examines, refurbishes and tests used cars, after which it increases the warranty and sells the cars for around 62% of the price of a new Tesla Model S car. With this strategy, Tesla not only accumulates resale profits (since it sells directly to customers), but also earns more in the main market as it can attract not so wealthy customers by selling at a more reasonable price. Another strategy used by Tesla in the foreign market is purposely placing its showrooms and galleries in places with high pedestrian traffic, important retail locations, such as malls and shopping streets, where people often go in a shopping mood very pleasant. According to Musk, reach out to people before they decide on a new car. As one of its programs to attract customers in the overseas market, Tesla modifies its cars to meet local requirements and to suit the tastes and priorities of its customers. For example, in response to customer responses, Tesla has made some improvements to its Tesla Model S in China, including an "executive rear seat choice, which costs $2000 compared to the main design and aims to make the seat experience most suitable rear.Keep in mind : This is just an example.Get a custom paper now from our expert writers.A scheme made by Tesla to improve internationally is associated with expansion through strategic association with global manufacturers of well-organized cars and batteries. Tesla actively collaborates with foreign organizations in the research, improvement and production of electric propulsion elements (lithium-ion battery cells). This was the case of the Japanese automobile manufacturer Toyota, for which Tesla produces the lithium metal oxide battery and other powertrain elements for the second-generation Toyota RAV4 EV; the German car manufacturer Daimler AG, for which Tesla produced electric drive elements for the Mercedes-Benz A-Class E-cell and the Mercedes-Benz Class..
tags