Company Background
Tesla is a recognized world leader in its market niche, and the brand is popular in different countries. However, according to Maradin et al. (2022), the predominant share of sales falls on the American market, exceeding, for instance, those in Europe ten times. For the Tesla brand to become global, the corporation needs to set up the expansion process with some changes in the current operating and control policies.
Global Expansion Strategies for Tesla
Reforming Supplier Process
One potentially viable solution is to reduce reliance on the company’s suppliers since, as Maradin et al. (2022) state, the corporation spends significant funds on purchasing batteries from intermediaries. In the case of setting up its own production, the cost of products could become cheaper, which, in turn, would simplify the globalization of the brand.
Sales Process Transformation
Another priority direction for Tesla’s global expansion is transforming the nature of the corporation’s vehicle sales. Hu (2022) analyzes the company’s internal policy and notes that “Tesla only sells cars in its offline stores” (p. 173). Unlike competitors who offer online sales, the concern is losing a significant share of buyers. Therefore, to successfully enter the global market, the corporation should change its selling strategy, using both direct sales and a franchise system. Such an algorithm is the key to reducing management costs and a catalyst for increased demand.
Raising Brand Awareness
Increasing brand loyalty in different regions is a significant prerequisite for successful global expansion. Maradin et al. (2022) mention defects in the electronics of some of Tesla’s models. The authors note that due to recorded accidents with the use of the autopilot function, the company cannot count on the full confidence of the international market (Maradin et al., 2022). Therefore, through technological innovations, including reliable testing, Tesla should strengthen brand loyalty by providing consumers with safe vehicles. In this case, global expansion will be less of a problem, and the corporation will not face legal challenges.
References
Hu, Z. (2022). Research on the consumer behavior characteristics and marketing strategy of new energy vehicles – Taking BYD and Tesla as examples. BCP Business & Management, 31, 168-175.
Maradin, D., Malnar, A., & Kaštelan, A. (2022). Sustainable and clean energy: The case of Tesla Company. Journal of Economics, Finance and Management Studies, 5(12), 3531-3542. Web.