Tesla Inc. is a company incorporated in the United States in 2003 that deals with manufacturing of electric vehicles, energy generation and energy storage products. Since the launch of its first car, Tesla has been able to expand its product portfolio and introducing products that deals with 21st century needs of the world. According to 2017 report, Tesla’s stock prices rose as compared to previous years. Although their revenues remain lower than other competitors like GM and Ford, which are hugely successful in the automotive industry, there are certain factors that make Tesla unique and stand out as compared to these competitors. These strategies act as their competitive advantage and are the reasons of their rising growth in such few years of their launch.
One of these factors is the fact that Tesla is more than just and automotive company as it is highly technology oriented. They have been building technology platforms and growing in the technology industry by manufacturing cars that are completely different from other cars. With everything in the car connected to software that records and analyses its performance, Tesla is able to continuously analyze the car’s performance and to improve anything that results in lack of performance for their future models. Also, Tesla is also developing full autonomous driving capability which will further make them stand out from so many competitors and further build up on their competitive advantage.
Another factor is their battery, which is considered very unique as compared to other competitors. Tesla is also constantly working on improving the performance of their batteries and the supply chain involved in these batteries, as batteries are a very important part of their electric cars that make them different from other competitors. This also involves scaling up their production capacity in order to improve their manufacturing efficiency and reducing costs as well.
Tesla’s supercharger network is also something that makes them different from other companies in the industry. Tesla provides convenience to their customers by locating these charging networks on multiple locations so that car owners can use them with ease. Moreover, Tesla also gives its customers free charging for lifetime, which makes it even more hassle free for customers to charge their cars, even though that price is added to the original price of the car, it’s still convenient for customers to pay just once. Also, Tesla’s prices are comparatively low which makes it even more accessible.
Moreover, Tesla has been able to maintain a reputation of serving their customers, by their good customer services. They have been marketing that as well and maintaining their services so that customers feel connected with the brand and build long-term relationships with it. They have been able to maintain that by connecting directly with their customers, through their services, claiming that they care for the customers more than their own profits. There have been talks in the market that Tesla is the future of the automobile market due to its innovation and constant work of incorporating technology with their products and services.
References
About Tesla. Retrieved December 25, 2017, from https://www.tesla.com/about
Charging Tesla. Retrieved December 25, 2017, from https://www.tesla.com/charging
This Is Tesla’s Greatest Competitive Advantage. (2017, September 29). Retrieved December 25, 2017, from https://singularityhub.com/2017/07/24/this-is-teslas-greatest-competitive-advantage/#sm.0001vpnpqw71rdjvpak1iuhf6yu13