Tesla Competitive Advantage

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Building their presence through market penetration not only shifted the paradigm of the auto-industry, however it offered customers top-of-the-line EVs in a market with few other alternatives to ICVs. As discussed in the analysis the success of firm is related to its impact on sustainability, affordability and feasibility as costs inquired after the purchase of the vehicle are diminished or eliminated, i.e oil or gas, certain taxes. Tesla’s further differentiation is visible through its unique design and performance competencies developed through extensive R&D programs and patent protection of its technologies whilst delivering excellence to its luxury niche segment customers. One argument against this methodology is the high costs inquired …show more content…

The Tesla Roadster represented the company’s first generation of EVs produced. Since its development in 2008 the EVs sold 2,400 units in 31 countries up to year 2012, Tesla (2012). To maintain its sustainability the company started selling the Model S vehicle before manufacturing by charging reservation fees to create revenue, which was reinvested in the production of the vehicles. Its strategic approach provided short-term funds in the downturn of the financial crises and it is used until this day. With increased demand and continuous expansion, the company had to surpass an important challenge: the further development of the industry.
In an effort to encourage competition amongst rival companies in the auto-industry, in 2014 Tesla opened all its patents to its competitors to advance technological development, Tesla (2014). The company’s long term positioning in the auto-market involved opening stores and service centers, entered into partnerships, provided financing services and the construction of a leading charging infrastructure.
TALK ABOUT model s other …show more content…

Daimler was part of a stagnant partnership with Evonik chemical industrials whilst heavily investing capital in R&D in developing technology for its Mercedes Benz E-Cell and Smart EVs. The joint venture of the two firms provided Tesla the opportunity to supply lower weight battery pack chargers for the Smart EVs and powertrain technologies for its Mercedes Benz E-Cell vehicles. Tesla also benefited from Daimler’s intellectual property in terms of suspensions, brakes and more advanced battery technologies positioning itself higher in the auto market in terms of reputational achievements. With a stake of 4.3% and an active partnership, the German company is often referred to as the rescuer of the Tesla Motors as its investments aided the company in financial need, According to CEO Elon Musk

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