What do you think of Tesla’s entry strategy? What barriers did it have to overcome? Should Nissan learn something from Tesla’s approach? Will other firms follow in Tesla’s footsteps?

A

One of the innovative strategies used by Tesla is the company’s choice to sell cars directly to its customers without entering into partnerships with dealers. One of the arguments to support this decision was the obvious conflict of interest dealers had to address. They could not sell electric vehicles effectively as it would decrease their sales of conventional cars. In addition, direct sales bring manufacturers and customers closer together, so they can communicate more effectively. Services can also be provided directly to customers without involving any dealerships. Tesla decided to sell its cars through its own network of stores. A major obstacle was the introduction of regulations in some states that required all manufacturers to sell cars through dealerships. As a result, Tesla decided to sell its models online.

Nissan could also use this strategy, which could result in a decrease in prices for customers, as well as the development of more effective relationships with consumers. Direct contact can facilitate sales. Other carmakers are unlikely to follow Tesla in the near future, however, as they may be reluctant to change strategies they have used for years. They may also fear-provoking state officials to impose additional restrictions.

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Academic.Tips. 2021. "What do you think of Tesla's entry strategy? What barriers did it have to overcome? Should Nissan learn something from Tesla's approach? Will other firms follow in Tesla's footsteps?" November 20, 2021. https://academic.tips/question/what-do-you-think-of-teslas-entry-strategy-what-barriers-did-it-have-to-overcome-should-nissan-learn-something-from-teslas-approach-will-other-firms-follow-in-teslas-footsteps/.

1. Academic.Tips. "What do you think of Tesla's entry strategy? What barriers did it have to overcome? Should Nissan learn something from Tesla's approach? Will other firms follow in Tesla's footsteps?" November 20, 2021. https://academic.tips/question/what-do-you-think-of-teslas-entry-strategy-what-barriers-did-it-have-to-overcome-should-nissan-learn-something-from-teslas-approach-will-other-firms-follow-in-teslas-footsteps/.


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Academic.Tips. "What do you think of Tesla's entry strategy? What barriers did it have to overcome? Should Nissan learn something from Tesla's approach? Will other firms follow in Tesla's footsteps?" November 20, 2021. https://academic.tips/question/what-do-you-think-of-teslas-entry-strategy-what-barriers-did-it-have-to-overcome-should-nissan-learn-something-from-teslas-approach-will-other-firms-follow-in-teslas-footsteps/.

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"What do you think of Tesla's entry strategy? What barriers did it have to overcome? Should Nissan learn something from Tesla's approach? Will other firms follow in Tesla's footsteps?" Academic.Tips, 20 Nov. 2021, academic.tips/question/what-do-you-think-of-teslas-entry-strategy-what-barriers-did-it-have-to-overcome-should-nissan-learn-something-from-teslas-approach-will-other-firms-follow-in-teslas-footsteps/.

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