Tesla’s game plan for competing successfully and securing a competitive advantage over other firms in the global automotive industry includes applying a generic broad differentiation strategy. According to Gamble (2015), a broad differentiation strategy seeks to differentiate the company’s product or service from rivals’ in ways that will appeal to a broad spectrum of buyers. Differentiation strategies can be powerful if the company is sufficiently innovative to prevent rival attempts to copy or closely imitate its product offering (Gamble et al., 2015).
Tesla builds a competitive advantage by developing products that distinguishes the organization from other firms in the automotive industry. Most automobiles today use internal combustion engines; however, Tesla’s products integrate advanced environmentally friendly technology (Tesla Inc, 2018). To their advantage, people have become increasingly interested in environmentally friendly products which broadly attracts all potential customers.
Utilizing a broad differentiation strategy necessitates strategic objectives to ensure competitive advantage. One of Tesla’s strategic objectives is to increase investment in research and development (R;D) to develop new products that please market demand for enhanced renewable energy solutions (Rowland, 2018). As a result, this broad differentiation strategy seeks to build competitiveness by expanding its market reach to produce more revenue and support brand popularity.
Tesla’s main strategy uses market penetration as its current primary intensive growth strategy to enable growth by increasing sales revenues in current markets. Marketing aggressively, Tesla seeks to sell more of its electric vehicles in the United States, thereby maximizing revenue from the markets where it currently operates. Furthermore, this growth strategy correlates with Tesla’s generic strategy by developing competitive advantage based on increased market share. The objective seeks to grow the organizations sales revenues through aggressive marketing. Tesla’s secondary growth strategy seeks to develop new products that generate future sales. With advanced technologies, Tesla develops new produced that will minimally impact the environment. This strategy as well supports Tesla’s differentiation generic strategy by focusing on new high-technology automobiles and related products that attracts target customers.
Thirdly, Tesla uses market development as a growth strategy, entering new markets to generate more sales and grow their business worldwide. Tesla has gradually expanded its market reach worldwide by establishing new offices and facilities. Currently, Tesla operates in about fourteen countries, but further international expansion is expected. Tesla’s mission and vision statements supports this strategy which highlights global leadership in the automotive industry, with energy solutions for the transportation and other sectors (Tesla Inc., 2018). This differentiation generic strategy allows market development by creating unique products that attracts customers when the company enters new markets.
In creating new battery products for a variety of non-automotive applications, Tesla also applies diversification into their growth strategy, growing the company through new business creation. Tesla focuses a lot of its efforts on market penetration and product development to grow its automotive and energy solution businesses (Rowland, 2018). By applying the differentiation generic competitive strategy, Tesla increases the probability of success in using this growth strategy. One objective linked to diversification is to increase Tesla’s R;D investment to identify new business opportunities. As well, to acquire other firms or enter joint ventures to develop entirely new products.

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