All Cases For Marketing Strategy, 8th Edition O. C. Ferrell (Author), Michael Hartline (Author), Bryan W. Hochstein (Author) Cases 1-21 Case 1
Tesla Races Ahead with Nontraditional Marketing Strategy*
Synopsis:
Tesla, the leader in electric vehicles, has managed to become one of the most valuable car makers in the United States without any traditional advertising and an Internet-focused downstream distribution strategy. Tesla also leads with an extensive corporate social responsibility strategy that includes focusing on the safety of both employees and consumers, supporting a diverse work environment, sourcing responsibly produced materials, and contributing to education.
Themes:
Ethics and social responsibility, sustainability, distribution strategy, promotion strategy, product strategy, pricing strategy, competitive advantage
Case Summary Tesla, an all-electric vehicle and energy generation products company, is widely admired for its industry-altering innovation built around its core vision of moving the world toward sustainable energy. Though Tesla got its start with electric vehicles (EVs) in 2003, the company has branched out to create a variety of renewable energy technologies from solar roof tiles to clean energy storage. Today, Tesla is the most valuable carmaker in the world. Remarkably, the automaker reached this status with a $0 advertising budget. This case explores Tesla’s marketing mix including its product strategy, pricing strategy, distribution strategy, and promotion strategy. Tesla has a gift for attracting publicity due to its promotion tactics, such as its launch events, and headline-worthy achievements. Despite the company’s success, Tesla has attracted both skepticism and criticism from the public as well as investors, largely due to CEO Elon Musk’s outspoken nature, which has damaged the company’s reputation and stock price more than once. This case analyzes how Tesla established itself as a leader in EVs. Additionally, this case explores corporate social responsibility at Tesla. Tesla’s corporate social responsibility (CSR) strategy addresses stakeholders’ interests by monitoring and reporting on the company’s product and operational impact, emphasizing consumer safety and responsible sourcing, and focusing on its employees and building a strong organizational culture. *
Kelsey Reddick and Zachary Youngstrom prepared this case under the direction of O. C. Ferrell for classroom discussion rather than to illustrate effective or ineffective handling of administrative, ethical, or legal decisions by management, © 2022.
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