Executive SummaryAn Executive Summary is a

Executive summary
Tesla is an automotive firm established in 2003 with an aim to manufacture fully electric vehicles. The intention to develop electric cars was triggered by the desire to conserve the environment as the fueled cars seem to have negative impacts on the environment. Technology has been embraced by the firm which helps in the manufacturing of new products as well as improving the existing ones thus expanding the firm’s global market. The Company provides its essential products which include the Sedan Model S, Model X and the SUV which compete with other products produced by other automobile Companies. Tesla experienced high costs of production which made the prices of its cars to be expensive as compared to those manufactured by the fueled Industries. Tesla had as well targeted the rich as their primary customers, but due to the desire to fulfill the interest of all the customers, the prices of its vehicles were reduced. Tesla has been able to implement strategies such as reducing the cost of production which will then lower the prices of its products to target a broader market in its process of relocating to South Korea.
Tesla provided its customers with a shopping experience through having a direct deal with them. The firm does not involve intermediaries in the process of distributing its products to consumers which have helped in cutting off some costs the company has therefore employed experienced personnel responsible for dealing with clients complaints as well as directing customers on how to use the technical products. Competition in the automotive firm has largely increased which is a threat to the market performance of Tesla. Companies such as BMW, Volkswagen, Mercedes, and Audi among others have caused high competition to Tesla. Automotive firms such as BMW and Mercedes have also launched their automotive cars thus making Tesla have stiff competition. Despite the threat from other automobile firms, Tesla has been able to use its strength to overcome competition. The production of environmentally friendly vehicles, joint ventures, and control over distribution as well as the Gigafactory factory are among the strength of the firm. Tesla thus has the upper hand over the competitors. Tesla as well has weaknesses such as having expensive products, massive debts and the delivery process which is time-consuming.
The need to venture in South Korea was to be understood by analyzing the PESTEL model of the country to have a bigger picture of the nation. South Korea has a stable political environment, a developing economy as well as a skilled labor force which will promote the existence of Tesla. With the expansion of the market size of Tesla products, there was the need for the firm to invest in the production of 500000 cars by 2018. The firm has also ensured consistency in the production of a quality product by examining the needs and interest of its customers. Tesla is also anticipating reaching one million registered electric cars by 2020.
Tesla should employ the direct exporting as an entry strategy to South Korea as it eliminates the intermediaries who are expensive. The entry vehicle would also help in expanding the sales as they will deal directly with clients. For Tesla to be able to overcome the threats of competitors, there is need to come up with a competitive strategy. Differentiation strategy could give Tesla an upper hand against other automotive firms as it will lead to the production of unique products. The firm has invested more in research and development to manufacture exceptional products that other automotive firms have not developed. It thus made Tesla experience an increase in its income following the introduction of Model S and X into the market.
The targeted market in South Korea is one million people who have registered cars. The government is supportive towards the aim of Tesla to conserve the environment by mobilizing people to find the need to use the electric vehicles. A more substantial percentage of clients in South Korea have changed their attitude and purchase the electric cars produced by Tesla which is increasing the presence of Tesla in the country. In 2020, it is anticipated that the market size of Tesla in South Korea will be 40 percent as compared to the limited market experienced.
South Korea has weaknesses which need to be combated for proper operation of Tesla in the country. South Korea is experiencing poor infrastructure thus Tesla will require more funds in the building of the supercharge systems for its customers. The financial result of Tesla in the first year of its operation in South Korea is promising following the expansion of the net-income of approximately $44,877,112. The firm used $8,940,000 on costs and expenses, but the trend indicates an increase in the revenue for the next five years. To maintain the growth of the firm, marketing plans such as advertisement as well as training workers should be used.
Tesla has strategies which range from a financial perspective, consumer needs, internal as well as the growth and learning perspective which will be helpful in achieving its goals. The firm aims at maintaining a strong brand in the market which will be attained by producing quality products and conducting market research. Moreover, to ensure consumer satisfaction, Tesla is training its workforce on cultural issues and how to expand the organization presence in South Korea. Tesla wants to acquire a global market in various regions which will expand its revenue. Advertisement programs have been funded to increase customer awareness about Tesla products.