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Running Head: TESLA INC. STRATEGY DEVELOPMENT PAPER 0

Tesla Inc. Strategy Development Paper

Company’s Strategy

Tesla is one of the leading companies in the automotive industry that have been able to supply effective strategies that have enabled the country to attain its goals and objectives over the years. One of the major aspects that the company has applied is differentiation. The original founders at Tesla had a vision of creating automotives that were environmentally friendly, which created a competitive edge over the other players in the automotive industry. The managers at Tesla understood the growing demand of environmentally friendly products, which helped them position their products with the needs in the market. Such a strategy has been considered as effective in attaining the goals and objectives of the organization (Tesla Inc., 2017).

Demand Forecast

The climate change has been one of the major emerging issues within the society. People are shying away from buying and using automotives that affect the environment negatively. Based on the differentiation strategy that has already been described above, the demand for Tesla products will be high in the first six months. The forecast actually reveals that the company will be able to break even in the first few months of operation (Wheelen, 2011).

Technical Rationale for Forecasting Method

The forecasting method that has been applied is depended on the current needs in the market. The automotive market is one of the competitive markets where the players are constantly coming up with new strategies in staying ahead in the industry. However, Tesla has taken a new turn in differentiating its products to meet the needs of the market. The demand forecast is actually based on the current needs of the market and the expected outcome after rolling out the plan. In the implementation plan, the forecast has created an assumption that the market will respond positively given the current needs in the market, which will help in attaining the goals and objectives of the organization (Rothaermel, 2015).

References

Tesla Inc., (2017). About US. Retrieved from https://www.tesla.com/about

Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.

Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India.