Question: Broad Differentiation Our broad differentiation strategy was working for a time, but with gas prices so low, families aren t buying our electric cars anymore,
Broad Differentiation
Our broad differentiation strategy was working for a time, but with gas prices so low, families arent buying our electric cars anymore, so the midrange market is suffering. Families can purchase nonelectric cars for a lot less and dont see the difference now that gas prices are so low. We are really struggling to generate sales in this market.
Remembering Mr Musks preference for bringing electric cars to the masses, should we consider a change in direction?
Stay the course. Gas prices will rebound and the families will come back, as long as we have an electric car targeted at them.
We need to switch back to our focused differentiation strategy for luxury vehicles only. These customers are loyal to the brand, regardless of the price of gasoline.
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