Tesla

The world has gradually been moving towards cleaner fuel sources for environmental
conservation and its benefit in terms of costs. Over the years, hybrid and electric cars have
experienced increasing demand. In realizing this, Tesla identified the gap and utilized technology
to become the world’s leading electric vehicle manufacturer.
Global Political Environment

Several nations have been providing incentives for customers of electric-powered
vehicles. Some incentives include establishing charging stations and tax and duty rebates (Nie et
al., 2018). Such moves have greatly benefited Tesla as a leader in the electric car market.

Technology and Luxury Niche

Tesla also realized that modern vehicle manufacturers specialize in comfort and luxury.
Tesla has created a fully electric luxury vehicles niche through technology and innovation.
Through such a niche, Tesla created a market segment with minimal competition.

Technology and Customer Experience

Tesla has leveraged technological innovation to enhance customer experience (Ullah et
al., 2018). Most of the modern vehicles are fitted with interactive screens. Besides providing
driving assistance, the screens are also designed to provide entertainment for the users. The
screens have been designed to provide other functions such as climate control, anti-theft and
cyber security, autopilot, and self-drive.

Approaches to Hold Off Competition

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Tesla has segmented their marketing activity to target consumer specialty. Their target
market is wealthy customers with exquisite taste. Tesla needs to expand this strategy to increase
its market share in this customer segment. Moving into the future, particularly the Internet of
Things (IoT), Tesla can remain relevant by integrating electronic technologies in vehicles
through continued innovation. Tesla has already incorporated some features of IoT into its
vehicles, placing it way ahead of other luxury vehicle manufacturers (Krasniqi & Hajrizi., 2016).
With continued experience, research and development, Tesla can create a competitive advantage
by providing the most advanced IoT technology.

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References

Krasniqi, X., & Hajrizi, E. (2016). Use of IoT Technology to Drive the Automotive Industry
from Connected to Full Autonomous Vehicles. IFAC-PapersOnLine, 49(29), 269–274.
https://doi.org/10.1016/j.ifacol.2016.11.078
Nie, Y., Ghamami, M., Zockaie, A., & Xiao, F. (2016). Optimization of incentive policies for
plug-in electric vehicles. Transportation Research Part B: Methodological, 84, 103–123.
https://doi.org/10.1016/j.trb.2015.12.011
Ullah, A., Aimin, W., & Ahmed, M. (2018). Smart Automation, Customer Experience and
Customer Engagement in Electric Vehicles. Sustainability, 10(5), 1350.
https://doi.org/10.3390/su10051350