Tesla Final Paper
February 21, 2015
Marketing strategy: Denmark
Based on Hofstede cultural dimensional analysis for Tesla, a high end premium automobile, it would require a higher individualism score. (The Hofstede Center, 2015). Moreover, based on the second dimension, power distance, Tesla’s main customers should be those wealthy individuals in Denmark with a vast amount of income that have a significant contribution to the society. (Hofstede Center, 2015). Thereafter, based on the third dimension, masculinity, Tesla would target the male audience that are driven by ambition and competition. (Johansson, 2012) Finally, by analyzing the last dimension uncertainty avoidance, Denmark has a low …show more content…
However, a big challenge that Tesla may run into is the increased demand for lithium. Consequently, it is essential for Tesla to utilize alternative forms of technology, and not be completely reliant on a car-battery solution. Based on such a potential unforeseen dilemma, Tesla should invest in a research and development project exploring alternative ways to utilize other resources that fuel a car not compromising fuel economy or overall cost of the car, such as natural gas (CNG), biodiesel, etc. (Bedigian, 2014)
Dealing with competitors making similar automobiles Tesla could be facing a fierce competition in Denmark from BMW, Mercedes, Audi and Nissan in trying to compete with an equivalent level car as the Tesla. Consequently, Tesla Motors should continue heavy investment in their research and development labs by constantly finding ways to innovate and improve the Tesla automobile while keeping costs down. For instance, increase fuel economy, alternate fuels, etc.
Selling its Automobile in the mass market Currently, Tesla is strategically targeting the wealthy as the current Tesla models are premium high-end cars that only the wealthy could afford. Consequently, in order to gain profitability and beat its main competitor Nissan Leaf, Tesla should consider a slightly lower end model to compete with the Nissan Leaf. “Looking at the December 2014 models ranking, it was a close race to the top between the Tesla Model S and the Nissan Leaf, both shattering