Tesla Motors Inc. Market Entry Strategy in Germany

A Corporate Strategy Analysis

Term Paper , 2016 , 27 Pages , Grade: 1,3

Business economics - Business Management, Corporate Governance

The author of this assignment reviews the Tesla’s business model approach and its strategy in the non-domestic German market. Tesla’s firm specific advantages are especially related to innovation of the vehicle, the battery and the infrastructure. Tesla Motors follows a product strategy entering from premium market and moving towards mass market. After starting with a high-price Roadster model Tesla launched the more affordable Sedan and a SUV model. In 2017 Tesla plans to launch its first mass market EV. Tesla shows a new value chain in the automotive industry by a deep of vertical integration from EVs manufacturing towards software, recharging network and battery manufacturing. Tesla entered the German market to export premium EVs. The Automaker also builds a charging network in Germany and prepares the market for its future mass production Model 3 coming in 2017. This work consists of three major parts. The first part deals with the theoretical background of international strategies for MNEs. The second part describes Tesla as a company and its strategy. The last part analyzes the competitive advantages of Tesla and shows how they are used to enter the German market. This work ends with a final reflection and a conclusion of the research.

Table of Contents

Executive Summary

List of Abbreviations

List of Figures

List of Tables

Table of Contents

1. Introduction
1.1 Problem definition
1.2 Methodology

2. International Market Entry Modes
2.1 Overview
2.2 Advantages and Disadvantages

3. Tesla Motors Inc.
3.1 Tesla Motors – The company
3.2 Financial Situation

4. Corporate Strategy
4.1 Corporate Vision
4.1.1 Build a Sport car
4.1.2 Use that money to build an affordable car
4.1.3 Use that money to build an even more affordable car
4.1.4 Provide zero emission electric power generation options
4.2 Tesla`s Firm Specific Advantages
4.2.1 Electric Vehicle
4.2.2 The Battery
4.2.3 The Infrastructure
4.3 Additional FSAs
4.4 Location Bound FSAs
4.5 Non-Location Bound FSAs

5. Tesla’s Strategy in Germany

6. Conclusion

7. Bibliography

Appendix

• College: University of applied sciences, Munich
• Grade: 1,3
• Author: Andreas Kauerhof (Author)
• Publication Year: 2016
• Pages: 27
• Catalog Number: V354492
• ISBN (eBook): 9783668407305
• ISBN (Book): 9783668407312
• Language: English
• Tags: Automotive Industry, Tesla, German Auto Market, Strategic Management, VRIO, Porter Five Forces, Electric Vehicle, Disruptive Innovation, BWL, Strategy, Autonomous Driving, Elon Musk, Corporate Strategy, Vision, International Market Entry, Tesla Master Plan