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International Marketing: Small To Medium-Sized Business

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Describe about the International Marketing for Small to Medium-Sized Business.




 Marc Tarpenning and martin Eberhard founded Tesla Motors in the year 2003.  The company is seen to expand after the foundation year.  The company Tesla Motors became a public company in 2010.  The company Tesla Motors believes in the performance driven, ecofriendly and transportation that is accessible to all type of customers. Tesla offers premium brands like Model S, Model X and Roadster (Tesla Motors 2016).

Situational Analysis:

The male population rather than female population demand the products of Tesla Motors.  The Roadster Model of Tesla is much in demand by the upper class who looks for luxury cars (Chen and Perez 2015). The electric cars, which are manufactured, are not affordable by the common person due to higher amount of down payment.

Macroeconomic Analysis:

The global market for the Electric car companies needs to be identified before Tesla enters into the market for the retail sale of the cars. It is expected that the use of the electric vehicle car is going to increase (Anderson 2012).  The demand for the electric vehicles is seen to rise very slowly and there is external and internal competition in the electric vehicle battery industry (Belch and Belch 2012).  In a world where oil is limited, the alternate source of fuel is the use of electricity. (See appendix 1.1 PESTLE Analysis).

Microeconomic Analysis:

The suppliers will help in creating and delivering of customer value.  The company Tesla Motors can take the support of the marketing intermediaries so that they are able to promote and distribute the goods (Zimmerman and Blythe 2013). Among all the market, the consumer market is the targeted market for Tesla Motors. Electric cars are designed for the young people from the elite background who would like driving this type of a car (Chernev 2012). Government will help in providing the subsidy to the company so that it grows. Media will help in promoting electric car usage in the city (see appendix 1.2 Porter’s Five Forces).

Internal Analysis:

 Primary Activities includes:

  • Inbound logistics: There are some components that are manufactured in house by Tesla. There are other components that are delivered and produced by a number of suppliers.

  • Operations: The process of manufacturing of the cars is highly innovative and automated with the multifunction robots programmed to produce cars.

  • Outbound Logistics: The distribution channel of Tesla is vast and plays the role pof educating the customers on the benefits of the electric cars (Farrington 2012).

  • Marketing and Sales: There is no money spent on the traditional forms of marketing by Tesla They try to develop their own network of stores. The company uses the short web based films for making ad campaigns on You Tube (Weinstein 2014).

Support Activities:

  • Procurement: There is a good strategic relationship with the suppliers like the Panasonic which helps in  gaining benefit  for each of the party and the sharing of the information
  • Infrastructure: The Company Tesla Motors follow a horizontal organizational structure with the CEO making major decisions and delegating the authority to the lower levels. There would be a better process of communication and faster decision-making (Howes 2015).

  • R and D: The Company Tesla Motors are constantly engaged in the innovation of the products so that they are able to reduce their costs and remain sustained in their image. The patents protect the ideals so that they are not exploited with innovation (Drucker 2014).

  • Human Resources: With the growing global presence, the company is hiring for the most talented group of people who helps in the preserving of the culture. (see appendix 1.3 Internal Analysis)



The focus will be on the development of technology and cost is kept low through the secondary component.  A strong department of R and D will be established through efficient technology. There is a lean management system, which helps in reducing the operation costs. This would help reducing the complexity in business and there is growing level of trust.  Tesla Motors establish a strategic relationship with companies like Dailmer, Toyota Motors and Panasonic (Tesar and Bodin 2013).


 There is strong liquidity problem faced by Tesla Motors. Though there has been a huge sales of Model S is has a large amount of debt of 70 million dollars to recover (Peter and Donnelly 2013).


The message needs to propagate to the customers regarding the usefulness of using the electric cars and their environmental benefits. The government is likely to provide encouragement for providing a large amount of subsidies for the automobile industry to grow and attract customers.


There is an innumerable seller of electric cars who sells at a much affordable rate. The competitors they are trying to use hydrogen-powered vehicles that provides the same performance (Peñaloza, Toulouse and Visconti 2012) (see appendix 1.4 SWOT analysis).

Market Attractiveness

The business sector engaging quality of the three nations have been considered utilizing the PESTEL analysis for the suggested markets. Notwithstanding, the business sectors should be assessed in light of the electric vehicles in Tesla in every nation to set up the support what nation is productive and viable for association with Tesla.

The political environment of the nations are distinctive in light of the soundness in the business sector for the Tesla products. The monetary environment substantiates the disposable level of income of the general population and the interest in electric vehicles by Tesla. The social environment depends on the liberal activities. The innovation component is one of the critical variable that should be assessed as electric vehicle is an inventive item by Tesla. Then again, legal and environment conditions depend on the guidelines and controls that need to fit in with manageability (Madureira 2014).

The all the three markets based on GDP are analyzed based on the economy as well (See appendix 1.5a Market Attractiveness and 1.5b PESTEL Analysis for each country).

Ansoff’s Matrix

The likely ways of approaching this strategy includes the following:

  1. New Distribution channels
  2. New geographical markets
  3. Diverse policies related to pricing in order to attract different customers
  4. New dimension of the products

With the help of this strategy, Tesla will be able to sell its existing products to the new markets in the countries where Tesla do not exist. The market development strategy is the most risky strategy as compared to that of market penetration. (See appendix 1.8 Ansoff Matrix)

Recommended Market:

Sri Lanka

Country, Choices and Concentration – The country is Sri Lanka and the people will have a choice for the electric cars. The country is not too vast, so the main concentration will be on price.

Consumption, Commitment, Currency – Tesla requires a long-term commitment to build a new market in Sri Lanka. The foreign currencies should not fluctuate much against the home currency.

Caveats, Channels – Tesla will follow a direct and indirect channel for the distribution of the automobile. The company follows a law that will help Tesla to set up the industry.

Communication, Capacity to Pay – The capacity to pay is quite high in Sri Lanka as the country is developed country and the communication level is also high.

Contractual Obligation, Culture – There is a Contractual Obligation by which the individuals need to go through contractual obligation before purchasing the cars. The person in Sri Lanka mainly follows the Western culture. 


Country, Choices and Concentration – The Country is Bangladesh and the concentration is to sell the goods to the rich residents.

Consumption, Commitment, Currency – In order to avoid the difficulties in pricing, the foreign currencies should not fluctuate against the Bangladeshi Taka.

Caveats, Channels – The distribution channel should be mostly through the direct channel.

Contractual Obligation, Culture – Bangladesh had started to follow the Western culture and the country has now become developed with diverse individuals so the country will follow Contractual Obligation.

Communication, Capacity to Pay – Most of the people in Bangladesh is not developed and as a result, the communication should be through the SMS technology.


The 12 Cs Framework is segregated into three components the market place, engagement and infrastructure.

Customers and Clients: There is a huge demand for the products of Tesla by the customers, as they are increasingly becoming environment friendly (Paliwoda, Andrews and Chen 2013).

(See appendix 1.6 12Cs Framework)


Market Attractiveness of Dubai and Justification of choosing Dubai:

Dubai is a cosmopolitan city with diversity and contrasts with population from Asia, Europe and Africa. Dubai is city with the global aviation hub. There are a large number of flights operating back and forth Dubai to many international locations. Dubai is a city with the excellent infrastructure. The city boasts of the excellent roads and public transport (Kratsch and Skelly 2013).

Identification of the market entry strategy and clear justification of the strategy:

The company Tesla will be using the Franchising strategy to establish the brand name.  The main reason for this is that there is going to be freedom of employment, the products and the services are already proven in the market. The trademark is widely accepted by the buyers of cars. The risk of failure will also be less (Clow and Baack 2012). (See appendix 1.7 Market Entry Strategy)

7Ps of three different countries:


Product - The Company Tesla Motors offers some of the premium brands in the market.  The Model S of Tesla is the most preferred brands.  The Model 3 was designed for retail sell and mass market in Dubai

Price - The Company Tesla Motors fixes the luxury cars within the range of 3000 dollars, which is developed so that more number of customers is attracted towards buying electric cars. The demand is mainly due to the zero emissions of cars.

Promotion - The loyalty programs will help in providing comfortable and safe driving the make the customer’s family to use the bonus and becoming the Tesla’s Customers (Homburg, Krohmer and Kuester 2013).  The website will be used for the promotion of the car brand.  The details of the new car and promotion of the campaign will be done through the website.

Place - The place where the product is going to be sold is shopping malls in the showroom, near Palm Jumeirah where huge number of tourist throng the area.

Process - The process involves the delivery of the products by Tesla Motors. The company offers excellent customers delivery services.

People - The Company Tesla Motors is reliant upon the front line sales staff to the Managing director.  The company makes sure there are right people who would be offering business.

Packaging - The company Tesla Motors tries to ensure that the model of the electric cars has amazing features that would help in wooing the customers.  The interior designing of the car would be similar to that of the fuel-enabled cars.



Product – The product of Tesla mainly deals with the high and electric car that has excellent handling. The electric cars and the products of Tesla will gain profit in Bangladesh due to the increased income of a particular segment of residents.

 Place – Chittagong is the place in Bangladesh which will be ideal for Tesla to build the new market of its existing products.

Price – The price will vary greatly, however Bangladesh is a developing country so Tesla will not benefit by selling a car with a high range of prices.

Promotion – In Bangladesh, the promotion will be executed mainly with the help of the automobile magazine in Bangladesh.

People - In Bangladesh, the middle class people are improving at a rapid pace which in turn will result in the greater movements as well as greater use of the vehicles provided by Tesla.

Processes – The process involves the delivery of the Tesla cars to Bangladesh that is executed with the help of excellent delivery process.

Packaging – The product of Tesla is mainly designed and the company develops a protective packaging containers.

Sri Lanka

 Product – Since Sri Lanka is growing in terms of technology, the electric cars will be widely accepted by the individuals.

Place – Peliyagoda is the name of the place in Sri Lanka, which will be ideal for Tesla to build their existing products in the new market.

 Price – In the case of Sri Lanka, the price of Tesla will mainly depend on the preferences of the buyers.

People – Bangladesh is mainly the country that has a high rate of literacy rate and they are intelligent enough to choose the right vehicle.

Promotion – The cars are mainly promoted by the advertising agencies.

Processes - The process involves the delivery of the Tesla cars to Sri Lanka that is executed with the help of excellent delivery process.

Packaging – Sri Lanka is a developing country and so the packaging will be efficient and will be done based on the protective handling.


7Ps adapted based on the behavior of the consumer:

The 7Ps that is noted for the three countries justify that the market of Dubai would be more favorable for Tesla Motors to flourish. The environment is conducive for the performance of business and this will help the business to grow.  The company through the market research can understand that the income status of people in Dubai is sounder than that of Bangladesh and Sri Lanka (see appendix 1.9 Marketing Mix (7P’s)).


Tesla Motors has to face a high competition in Dubai for electric cars. There are a number sellers of electric cars like BMW, Ford, General Motors and Mercedes.  The company would be able to gather a large share in the market with leading in the innovation in the electric car manufacturing industry. It has been realized by the company Tesla Motors that the renewable energy is limited and so there is a requirement for protecting the environment.



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