INTERNATIONAL

STRATEGY:
CREATING
VALUE IN
GLOBAL MARKET

R e p o r t e r : V i n c e n t P. J o s o l
Potential
Risks of
International
Expansion
 Social unrest
Political and
Economic Risk Military Turmoil

Demonstrations

Violent conflict and terrorim

Laws and their enforcement

 Currency
exchange
fluctuations

Currency Risk
Appreciation
of the U.S
Dollar
 Culture
Management
Income Level
Risk
Customs
Customer
preferences

Language
Distribution
system
Opposing Pressures
and Four Strategies
Karina Brigitte Schwartz Howard
Villanueva Project manager Ong
Exporting
Consists of producing goods in
one country to sell in another
country Beach Head strategy
Local Partnership
Successful
distributors
Licensing and
franchising
Franchisor receives a royalte or
fee Franchisee gets to use
trademark, patent, trade secret or
other valuable intellectual
property
Strategic Alliances
and Joint Ve n t u r e s
Partnership that enable firms
to share risks and potential
revenues and profits
Partners
Wholly Owned
Subsidiaries
Business owned by only
one Multinational company
CASE STUDY

Tesla's International
Expansion
Strategy
 Tesla, Inc. is a renowned American electric vehicle
(EV) and clean energy company founded by Elon
Musk, JB Straubel, Martin Eberhard, Marc
Tarpenning, and Ian Wright. Established in 2003,

BACKGROUND:
Tesla has become a global leader in electric
vehicles, energy storage, and solar products. As
Tesla gained traction in the United States, the
company
of faced
expanding its the challenge
market reach internationally. The
aim was to establish a strong presence in key
global markets to drive growth and achieve
economies of scale.
 Global Market Penetration: Tesla aimed to replicate its
success in the U.S. by entering international markets and
gaining a significant share of the electric vehicle market.
Charging Infrastructure: Establishing a reliable and

OBJECTIVES: widespread charging network was crucial to alleviate

range anxiety and encourage EV adoption.
Regulatory Compliance: Adapting to various
international regulations, standards, and incentives was
necessary for seamless market entry and customer
adoption.
 STRATEGY:

LOCALIZATION
MARKET OF
CHARGING
SELECTION: INFRASTRUCTURE
PRODUCTION: INVESTMENT:

Tesla identified key To reduce costs and Tesla prioritized the

markets with high logistics challenges, development of an
potential for electric Tesla strategically extensive Supercharger
vehicle adoption, located Giga factories network in
in key international international markets.
including Europe,
markets. For example, This investment in
China, and later,
Gigafactory Shanghai in charging infrastructure
other parts of Asia
China and Gigafactory aimed to alleviate
and the Middle East. Berlin in Germany.
range anxiety and
encourage adoption.
 STRATEGY:
REGULATORY
COMPLIANCE
AND INCENTIVES:
Tesla worked closely with regulatory
bodies in each market to ensure
compliance with local laws and
regulations regarding vehicle
manufacturing, safety standards,
and emissions requirements.
Additionally, the company took
advantage of government incentives
for electric vehicle adoption.
MARKETING
AND
BRANDING:
Tesla maintained a consistent
global brand image focused on
innovation, sustainability, and
cutting-edge technology. High-
profile events, product launches,
and social media played a crucial
role in building and sustaining brand
awareness.
RESULT
Tesla's international expansion
strategy proved highly
successful. The company's global
sales continued to grow, and
international markets became a
substantial portion of its overall
revenue. Gigafactories in China
and Europe played a significant
role in ramping up production
and reducing costs.