today’s global marketplace, cultural differences can make or break a business. Tesla needs to
consider how these differences will affect their customer base in order to have success abroad.
By understanding and mitigating cultural nuances, they can ensure that their products are
accepted across different cultures and markets. Through this approach, not only will Tesla be
able to reach new customers, but it could also lead to increased sales in existing markets as
well. With the right strategy for handling cultural differences, Tesla has the potential of
becoming an even more successful company on the international stage
.
Cultural differences have a substantial impact on international business, particularly in the case
of Tesla trading in Thailand. Thai culture is known for its emphasis on respect, hierarchy, and
collectivism, which can pose challenges for Tesla's business operations. On the positive side,
Thailand's government has been supportive of electric vehicle adoption, and the country's
growing middle class presents a significant market opportunity for Tesla. However, Tesla must
navigate cultural differences in communication, negotiation, and decision-making styles to
succeed in Thailand. Overall, while cultural differences can present challenges, Tesla has the
potential to thrive in the Thai market with a thoughtful and culturally sensitive approach.
Explain how products and processes have to be adapted for international
markets by a selected business
iNTRODUCTION : Strategies for operating internationally
In today's globalised business
environment, companies are increasingly
seeking to expand their operations and
market their products or services
internationally, especially Tesla to
capitalise on their massive success in the
EV industry. To succeed in international
markets, companies like Tesla must adapt
their products and processes to meet the
unique needs and preferences of consumers in different countries and regions. I will also go in
depth about how their brand image and identity has aided them to operate more successfully
in the global market enabling them to build a prospect of globalised recognition worldwide.
Tesla, the electric vehicle manufacturer, is no exception.In this assignment, we will explore the
strategies that Tesla has employed to operate successfully in international markets. Specifically,
,we will examine how Tesla has adapted its products and processes to meet the demands of
consumers in different countries, and the challenges it has faced along the way. By delving into
these topics in-depth, we hope to gain a deeper understanding of the complexities of operating
internationally and the strategies that are necessary for success. Furthermore In this
assignment, I will be exploring how Tesla adapts its products and processes for international
markets. Specifically, I will be discussing the strategies that Tesla employs to operate
internationally. Throughout this essay, I will provide in-depth analysis and examples to support
my arguments.
Strategies for operating internationally
Subsidiary businesses:
A subsidiary is a company that is established in a foreign country and is owned by a parent
company based in another country.Establishing subsidiary businesses is one strategy that Tesla
has employed to adapt its products and processes for international markets. By having a local
presence, Tesla can more easily adapt to local market needs and preferences within that
particular country, as well as navigate local regulations and cultural norms.One way that Tesla
has adapted its products for international markets is by customising its vehicles to meet local
regulations and standards. For example, Tesla has developed models that comply with
European safety and emissions standards, as well as Chinese battery requirements. Tesla has
also customised its charging infrastructure to accommodate different power grids and charging
standards in different regions.In addition to adapting its products, Tesla has also modified its
processes to better serve international markets.Tesla has established local manufacturing and
distribution facilities in different regions, enabling the company to more efficiently manage its
supply chain and reduce shipping costs and lead times. Furthermore, Tesla has established
subsidiary businesses in several countries around the world as part of its international
expansion strategy. For example, Tesla has a subsidiary in China, known as Tesla China, which
was established in 2019. Tesla China operates a manufacturing facility in Shanghai, which
produces electric vehicles for the Chinese market. By establishing a subsidiary in China, Tesla
has been able to directly manage its operations in the country, ensuring compliance with local
laws and regulations, and leveraging local knowledge and expertise to adapt its products to
better meet the needs of Chinese consumers.Similarly, Tesla has also established subsidiaries in
other countries, such as Tesla Europe, which manages the company's operations in Europe.
Tesla Europe has a manufacturing facility in the Netherlands, as well as a network of retail
stores and service centres throughout the region. By establishing a subsidiary in Europe, Tesla
has been able to expand its presence in the region and better serve local customers.
,Joint ventures:
A joint venture is a business arrangement in which two or more companies collaborate and
contribute resources to a new entity, typically with shared ownership and control. A joint
venture in relation to international trade is a partnership between a foreign company and a
local company in a foreign country.Another operating international business strategy adopted
by Tesla is collaboration with local companies in foreign markets to share resources and
expertise. Joint ventures can bring many benefits to Tesla operating in international markets,
including access to local knowledge and skills, shared risks and costs, and reduced capital and
constraints.Tesla has established partnerships in many countries, including China, and
partnered with local companies to set up a Gigafactory in Shanghai. Through joint ventures,
Tesla can use local knowledge and expertise to accelerate the
construction process and better guide regulatory requirements.In
2018, Tesla announced a joint venture with Japanese electronics
company Panasonic to build a new Gigafactory in Shanghai, China.
The factory is a significant part of Tesla's strategy to expand its
presence in China, which is the world's largest market for electric
vehicles. By partnering with Panasonic, Tesla was able to leverage
the company's experience in battery production and
manufacturing to build a new facility in China, which would allow Tesla to produce its electric
vehicles at a lower cost and better serve the local market.Additionally, in 2020, Tesla
announced a joint venture with South Korean battery maker LG Chem to produce batteries for
its electric vehicles at its factory in Shanghai. The joint venture, known as LG Energy Solution, is
a key part of Tesla's strategy to reduce its reliance on battery suppliers and to produce more of
its own batteries in-house. In addition, Tesla can reduce its financial costs by sharing the risk
and investment required to build the factory.One of the ways Tesla adapts its products and
processes to the global market through joint ventures is to partner with local companies to cut
products for local needs. For example, Tesla has partnered with companies in China to develop
new battery technology better suited to local climate and driving conditions. This allows Tesla
to improve the performance and range of its vehicles in China, a key market for the
company.Tesla joined the business to better serve the global market, improving the process as
well as improving the product. For example, Tesla collaborates with local companies to create
different regional communication networks, allowing the company to serve local customers for
better value and flexibility for different models and rules.
Partnerships:
, Partnerships are a business arrangement in which two or more companies collaborate and
contribute resources to achieve a common goal.Partnerships are another strategy that Tesla
has employed to adapt its products and processes for international markets. Partnerships can
provide a means for Tesla to leverage the expertise and resources of local companies to better
understand local market needs and preferences, as well as navigate local regulations and
cultural norms.Through partnerships, Tesla can collaborate with local companies to customise
its products for local market needs. For example, Tesla could partner with a local technology
company in India to develop a new infotainment system that better caters to the
preferences of Indian consumers. Alternatively, Tesla could partner with a local
automotive company in Europe to customise its vehicles for the local driving
conditions and regulations.In addition to customising its products, partnerships
can also enable Tesla to modify its processes to better serve international
markets.One notable partnership for Tesla is its collaboration with charging
infrastructure companies to expand its Supercharger network globally. Tesla has partnered with
companies such as EVgo, ChargePoint, and Ionity to allow Tesla drivers to access charging
stations outside of the company's own Supercharger network. By partnering with these
companies, Tesla has been able to expand its charging network quickly and efficiently, without
having to build and operate all the infrastructure itself. Partnerships have been a critical
strategy for Tesla in operating internationally. These partnerships have allowed Tesla to expand
its charging network, access new suppliers and manufacturers, promote sustainability
initiatives, and enhance its overall competitiveness in the global automotive industry.
Agencies:
An agency is a type of business arrangement in which a company hires an independent third-
party to represent its interests in a foreign market. The third-party, known as an agent, acts on
behalf of the company and provides various services such as marketing, sales, distribution, and
customer support in the foreign market.Tesla has used agencies as a strategy to expand its
operations internationally. For example, in certain markets, Tesla has partnered with local
agencies to help promote its brand, manage sales, and provide customer support. These
agencies act as intermediaries between Tesla and the local market, helping the company to
establish a presence and build relationships with local customers.In China, for instance, Tesla
partnered with China National Machinery Import and Export Corporation (CMC) to establish a
sales and service network in the country. CMC acts as Tesla's agent and is responsible for
promoting Tesla's brand, managing sales, and providing customer support in the Chinese
market. By partnering with CMC, Tesla has been able to establish a presence in China and gain
access to the country's growing market for electric vehicles.Similarly, in Japan, Tesla has
partnered with Sumitomo Mitsui Auto Service Company (SMAS) to establish a sales and service
