Question: Respond to the discussion post below. Tesla uses a focused differentiation strategy.Our chapter reading, tells us that, Focused differentiation strategies involve offering superior products or
Respond to the discussion post below.
Tesla uses a focused differentiation strategy.Our chapter reading, tells us that, Focused differentiation strategies involve offering superior products or services tailored to the unique preferences and needs of a narrow, well-defined group of buyers.Successful use of a focused differentiation strategy depends on two factors:
1. The existence of a buyer segment that is looking for special product attributes or seller capabilities.
Tesla's consumer culture market consists of those people that are environmentally conscious.Additionally, considering equal value for consumer purchase over time an electric car is more cost-effective than traditional cars.Cost-effectiveness and being environmentally friendly are what Tesla produces and what its customer base is looking for in addition to luxury.
Tesla's primary target market is consumers who are considered as Millennials and Baby Boomers from age spans of 30 to 60 years, who are considered upper-middle-class, with yearly household incomes of $80,00 plus.Consumers are conscious of gas consumption, emissions, and the effect those factors have on the environment.The company's secondary target market is Gen Ys between 18 and 24 years of age, who are college students that have negligible incomes.They are well educated, go to prestigious well-known colleges and universities, and the expectancy of a specialized profession in the future is good.
2. A firm's ability to produce a product or service offering that stands apart from that of rivals competing in the same target market niche.
Tesla offers an impressive line of electric vehicles in varieties to compete with the market share of traditional gasoline-powered vehicles.The main goal and expectation behind the creation of Tesla is to "accelerate the advent of sustainable transport".
Technology Factors- To help Tesla maintain elite competitiveness against its competition and new entrants into the market, the company offers fuel efficiency and leads the way for future usability and sustainability.The company's cars are designed to adapt to newer technology in the automotive industry dissimilar to traditional options which gives it an edge.To avoid Tesla's technology from becoming obsolete it is constantly innovating, developing creating, and advancing its current technologies.The consistent goal is always to improve by adding the newest devices and apps to adapt to updates and upgrades.Positioning the company this way for its customers will allow implementation of artificial intelligence into its vehicle line.This is a foreseeability traditional car manufactures overlook.
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