Contents

• Introduction 5
• Three Strategies Model (Porter, 1980) 6
• Four Generic Strategic Model (Porter, 1985) 6
• Porter’s Seven Strategic Model (Porter,1996) 7
• Problems with the model 8
• Eight Strategic Model 9
• The Broad strategy: 10
• Broad Differentiation Strategy: 10
• Broad Cost Leadership Strategy: 10
• Product based Strategy 10
• Product Based Cost Leadership 11
• Product Based Differentiation Strategy 11
• Customer Based Strategy 11
• Customer Based Differentiation strategy 12
• Customer-based cost leadership strategy 12
• Narrow strategies 12
• Narrow Differentiation Strategy 12
• Narrow Cost strategy 13
• The Analysis of Tesla’s Strategic Positioning 13
• The Generic Strategy of Tesla 13
• Analyzing Tesla’s Generic Strategy through Porter’s Model 14
• Comparative study between Tesla Inc and Toyota Motors 15
• Steps to Implement Generic Strategies in Tesla 17
• Step 1: SWOT analysis of TESLA 17
• Strength of Tesla (internal strategic factor) 17
• Weakness of Tesla(internal strategic factor) 17
• Opportunities of Tesla(external strategic factor) 18
• Threats of Tesla(external strategic factors) 18
• Step 2: Porter’s five forces analysis on Tesla 18
• Competitive Rivalry (Strong Force) 19
• Bargaining power of Customer (moderate force) 19
• Bargaining Power of Tesla Suppliers (moderate force) 19
• Threats from Substitutes (Moderate Force) 20
• Threats of New Entrant(Weak Force) 20
• Step 3: Implementation 20
• Conclusion 21
• References 22

Description

Tesla Inc previously known as Tesla Motors was the brainchild of the visionary Elon Musk.Tesla’s generic strategy was to gain competitive advantage over its competitors by cutting edge technology. Elon musk once said in an interview that his vision was to create a low volume car that will be expensive and will target the premium market only. From the money that will be generated from the sales of that low volume car will be invested so on and so forth into creation of a large volume cars that will be affordable in price.(Musk, 2016). Automobile market in USA is very competitive with a number of premium car options and the market of used car is also very competitive. So as a premium brand Tesla had to give cutting edge advantage over Lexus, Mercedes, Audi, BMW, Infinity and so on. When it comes to electric vehicles there were already very big players in the market like Toyota, General Motors Company. In this report we shall also discuss that apart from generic strategies how Tesla has evolved its intensive Growth strategies. These strategies has helped the company to evolve and gain profitability in the long run. In this report we will also do SWOT analysis, Porter’s model of generic competitive strategy analysis. The strategic adjustments and innovations over a period of time ensures company’s competitive advantage and resilience in the face of new technological innovations.