The Study On Competitive Strategy Of Tesla In Chinese Market

With the impact of economy,technology,consumption,environmental pressure and policy,the new energy automobile industry in our country has been developed rapidly in recent years.According to statistics,from January to May 2022,3.3 million new energy vehicles were sold with the year-over-year increase in sales of 111%,which turns out that China has become the world’s largest new energy vehicle market.While the wave of change brings opportunities and dividends,the new energy vehicle industry is also facing severe challenges and the competition among the new energy vehicle enterprises is becoming increasingly fierce.As the pioneer of electric vehicles in the new energy vehicle industry,Tesla has successfully dominated Chinese market with its disruptive innovation technology and marketing model,growth strategy,localization strategy as well as differentiation strategy since 201 3.As the competition in the new-energy vehicle industry intensifies gradually,the other new challenges are also emerging in front of Tesla.In this paper,the classical theories such as PEST model,Porter’s Five forces model and VRIO model,combined with the current situation of the new energy vehicle industry,this paper makes a detailed study on Tesla electric vehicle business in China,and conducts a bench marking analysis on its competitors.In this paper,the classic theoretical models such as the PEST,Porter’s Five Forces and VRIO were used to analyze in detail in internal and external environment of Tesla’s BEV(battery electric vehicle)business in China and conduct the bench marking analysis on its competitors base off the current situation of the new energy vehicle industry.And then the SWOT model was utilized to further summarize the strengths,weaknesses,opportunities and threats that Tesla owned.Finally,based on previously mentioned analysis,this paper came to the viewpoint that Tesla currently need adopt consumer-oriented differentiation strategy and overall cost leadership strategy for different target markets by studying the Tesla’s strategic choice and implementation from the company level and business level.And also,whilst the suggestions regarding the differentiation strategy implementation,such as shaping unique value propositions,continuous product power improvement,focusing on technological innovation advantages and business model’s innovations were given in this paper,the proposals regarding the overall cost leadership strategy,such as carrying out strategic alliances in the industry,taking full advantages of R&D and marketing innovation,exploring the coordinated competitiveness of supply chain,were also provided.Therefore,this paper exerts important practical significance and reference value for domestic new energy vehicle enterprises on how to develop and implement competitive strategies.