Tesla Company’s Entry in the Chinese Market

Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Click Here To Order Now!

Executive Summary

Though not a one-of-a-kind product, Tesla’s electric vehicles (EVs) have become a household name for an environmentally safe and sustainable mode of transportation known for outstanding quality and an appropriately high price.

Extensive efforts have been undertaken to promote Tesla’s EVs in the Chinese market so far. It is quite remarkable that the government also lent a hand in advertising cars as new-energy vehicles (NEVs).

Nevertheless, the success of Tesla’s entry into the Chinese market is yet to be seen. Because of current challenges, entrepreneurship may fail to sell the expected number of cars, thus suffering significant financial damage and possibly losing its chance to establish a strong presence in the Chinese market. Needless to say, the failure to successfully integrate into the identified environment is likely to have a deplorable effect on the company’s progress, setting it back several steps in its development.

Herein lies the necessity to identify the differences between the behavioural patterns of customers living in the United Kingdom, and Chinese consumers. It is assumed that cultural misconceptions, in general, and the lack of cultural awareness required to appeal to the target members of the population successfully, in particular, are the key factors preventing the entrepreneurship from experiencing a rapid and consistent triumph in the context of the Chinese EV market. As a result, an improvement in the current market density rates can be expected.

The study shows that there is a strong need to reconsider the current approach to multicultural communication, by focusing on the study of customers’ unique needs and cultural characteristics.

Introduction: Tesla’s Density Issues in The Contemporary Global Market

Background: Company’s Innovative Management Model in the Context of the UK and the Chinese Markets

The transportation issue has always been a subject of debate as, on the one hand, it is a huge industry that creates a wealth of jobs, contributes to an increase in the state’s GDP rates, etc., and, on the other hand, creates premises for a large rise in environmental pollution levels (Zhang & Yao 2015).

The creation of electric vehicles (EVs) seemingly solved the problem, as the specified mode of transportation does not involve the use of petroleum; as a result, the levels of CO2 emissions would be expected to drop significantly (Gardoso et al. 2014).

Therefore, Tesla’s innovative EV products were welcomed with open arms in the UK market, despite the comparative costliness of the cars. It could be argued that the Tesla company proved its success by deploying an original marketing strategy that would not commonly be viewed as appropriate for an automotive and energy storage company. Particularly, the application of the approach, similar to that applied by Apple to sell its iPhones, needs to be brought up as the foundation for the company’s strategy.

Tesla’s EVs can be considered a commercial miracle. Although environmentalism as the selling point of a product became dated some time ago, the company managed not only to sell its products to the target audience but also made EVs a brand with an outstandingly huge competitive advantage.

Problem Statement: When the Lack of Cultural Awareness Becomes an Impediment

The progress of the organization in the environment of the Chinese market has been rather bumpy thus far. It would be wrong to claim that the entrepreneurship has not been provided with opportunities for attracting the attention of the target population – quite the contrary, Tesla has received extensive support from the Chinese government, which reinforced the importance of environmental awareness among the target denizens of the population. Nevertheless, a lack of understanding of specifics of buyer behaviour in the identified area poses an impediment to Tesla’s expansion.

Research Question: What Needs to Be Identified

How will the crucial differences and similarities between the buyer behaviour patterns of Chinese and UK customers affect the current management system adopted at Tesla, particularly in the promotion of the EVs?

Goals and Objectives

The goal of the paper is to identify similarities and differences between the consumer behavioural patterns and the decision-making processes of customers in the UK and China, as far as the purchase of EVs, in general, and Tesla cars, in particular, is concerned. The research will be carried out as a qualitative case study. A questionnaire will be used as the primary tool for data collection.

To attain the goal described above, one will have to complete an array of objectives. First and most obvious, the specifics of the Chinese customers’ behaviour in the EV market should be identified. Afterwards, the similarities and differences between the behavioural patterns of the two types of customers will be identified. Finally, the strategy that a foreign company should use when promoting its EVs to foreign demographics, in general, and the Chinese market, in particular, should be outlined.

In other words, the customer-related factors that determine the density of Tesla in the UK and especially the Chinese market can be viewed as the key goals of the study. To put it another way, it is imperative to identify the essential drivers behind the decision-making process among the customers in the UK and China, so that the further course for the company’s development, including an increase in its density in the identified environments, can be determined.

Along with the primary goal identified above, one will have to consider a range of objectives to be attained. First, it will be necessary to determine the specifics of buyers’ behaviour in the UK and Chinese markets, identifying the factors that enhance or inhibit the process of purchasing goods. Thus, the foundation of marketing and management strategies can be determined.

Afterwards, the attitudes towards the idea of using EVs should be identified among the British and Chinese audiences. There is no need to stress that the environmental movement is gaining strength once more, yet some members of the population may be unaware of this for cultural or other reasons (Jensen, Cherchi & Ortuzar 2014). Thus, it is crucial to ensure whether the participants of the study are environmentally aware; in the case that they are, promoting Tesla’s EVs should rest on the opportunities for a green and sustainable approach to the transportation process, and the positive environmental effects will have to be greatly emphasized.

Finally, the unique characteristics of the behavioural patterns of the target customers will have to be identified so that the corresponding decisions can be made concerning the choice of the marketing strategy and the management approach. As stressed above, the choices that people make when purchasing products depend heavily on the specifics of the buyers’ culture. To be more specific, the cultural background of the buyers determines the issues that they pay special attention to; as a result, the promotional campaign for British buyers is likely to be significantly different from that targeted at Chinese customers.

Rationale: Studying Present-Day Consumer Behaviour Patterns

By focusing on the behavioural patterns of a specific group of consumers, one will receive information that will help adjust the current strategy adopted by the company to the ever-changing environment of the global market. Specifically, one will retrieve essential knowledge about the means of catering to the needs of any population, so that the demands of the target customers could be met most efficiently.

Put another way, the study has two primary rationales, the first one concerning a rather narrow goal of determining the strategy that Tesla should adopt to manage the situation that it is currently facing with its Chinese customers.

On a larger scale, the research will embrace the opportunities that companies are provided with for cross-cultural communication in the context of the global economy. In other words, patterns can be created for direct solutions to any emerging cultural conflicts or misunderstandings. Furthermore, the chances to avoid possible misconceptions when designing a brand product for the representatives of a specific culture can be discovered by considering the issues that Tesla has been facing in the Chinese market.

The lack of an intercultural dialogue, which can be viewed in the contemporary global market, and which is likely to be detrimental to the relationships between companies and their target customers belonging to different cultures is, therefore, the primary rationale for carrying out the research.

Significance: An Addition to the General Knowledge of Buyers’ Decision-Making Processes

Because the present-day environment of the global market requires extensive knowledge and understanding of the reasons behind the choices that customers belonging to different cultures make, it is imperative to carry out an analysis of the differences between the Chinese customers’ market behaviour and that of the British buyers. As a result, Tesla will receive essential information concerning the further changes that its marketing and management approaches will have to undergo.

On a larger scale, the importance of carrying out the study lies in the identification of the strategies that a company may use in the context of a multi-cultural environment, or in a scenario requiring a perfect understanding of a specific culture. In other words, the outcomes of the research can be applied to determine a general strategy that will help the market not only NEVs but also other products to people all over the world. On the one hand, the strategy to be determined is likely to be rather broad; on the other hand, the tools identified in the process will serve as universal means of managing the possible issues that may emerge as a result of two different cultures colliding.

Indeed, the issue of a culture clash is not new to the global economy; because of the differences in perceptions among the representatives of different ethnicities, numerous misunderstandings and misconceptions may emerge, leading to a significant drop in sales and the loss of customer loyalty. By analysing the choices that Tesla has or will make in the UK and the Chinese markets, one is likely to determine the general problems that organizations face when promoting their goods to those who are members of other cultures. Consequently, a general tool can be designed.

Literature Review: Tesla’s Ev, Branding, Customer Choices, and Related Issues

Tesla’s Branding Model: The Art of Marketing

A closer look at Tesla’s branding tool will reveal that the company uses a combination of several ideas, thus propelling its product to the top of the contemporary EV market. First and most obvious, Tesla emphasizes the significance of its innovative solutions, detailing the unique approaches that it adopts to cater to the needs and demands of the target audience as far as quality and usability are concerned.

Much to the credit of the organization, one must admit that the innovativeness of the company’s solutions is beyond doubt and quite evident. In the first place, one should bring up the fact that the company distinguishes between the innovations related to the cars themselves and the unique solutions related to the battery, therefore making it clear that both items deserve attention, and that each should be viewed as a separate achievement.

Furthermore, the organization also puts a heavy emphasis on the innovations related to its value configuration. In other words, the business model innovation that Tesla works towards incorporates not only a consistent redesign and improvement of the brand product, but also a clear focus on the correlation between the firm’s values and the quality of the end product. As a result, Tesla manages to keep customer satisfaction rates high, while at the same time building room for further development (‘Tesla’s electric man; Brain scan’, 2015).

As soon as the quality of the product offered to the company’s Chinese buyers is established and Tesla becomes recognizable in the target market, the emphasis on its luxury must be advanced. The identified process can be carried out by putting such aspects as outstanding quality, impressive speed, environmentally friendly design and more into the limelight and determining the specified features as the sort of innovative concepts that only a NEV can combine in its unique design (Han, Han & Aki 2014).

Tesla is a marketing wonder since it manages to sell a product that has an array of cheaper substitutes for a truly luxurious price. One might argue that the disruptive nature of the product, i.e., the fact that Model S, as well as other creations of Tesla, represents an environmentally safe means of transportation, is the key to the stunning success of the firm in the UK (Nelson 2015).

However, considering the subject matter more closely, one must admit that there is more than meets the eye in Tesla’s unexplainable success. Particularly, the organization did a fantastic job at improving the quality of the existing EV concept and designing the battery that seems to have become the firm’s trademark (Cheong, Song & Hu 2016).

One might argue that the model used by Tesla is not original to the company’s design. Indeed, the fact that the entrepreneurship has been using a strategy that Apple deployed quite a few years ago has become common knowledge: ‘Tesla’s business model reflects a marketing strategy that is adoptive of Apple’s marketing approach to innovative technologies’ (Mangram 2012, p. 304). However, one must admit that the statement above can be defined as rather broad and, therefore, is not limited solely to Apple and its corporate marketing framework.

By targeting rich customers as its primary audience, Tesla makes it evident that the quality of its EVs is beyond outstanding. As a result, the necessary impression is created for the target audience (Arora, Shen, & Kapoor 2016).

Expanding in the UK Market: Pandering to the Needs of the UK Audience

The process of promoting EVs to the company’s British customers is also admittedly complicated. Although the study of the reasoning behind the British clients’ decisions may not be as convoluted as the analysis of the Chinese buyers’ behaviour, an overview of the factors that determine their decision-making process shows that Tesla will have to focus on quality enhancement strategies and quality management processes to a considerable extent (Fiori, Ahn & Rakha 2016).

There is a tendency in the system of global marketing to assume that British customers are driven by their appreciation of tradition (Ruan, Walker & Zhang 2016). The idea expressed in the statement above is often twisted to the point where the concept of tradition becomes the opposite of innovation, thus leading one to an erroneous assumption that British customers do not want innovative solutions and products (Ma et al. 2012). The specified myth, however, has very little to do with reality.

Similarly, the concept of an ethical consumer, which British customers are quite frequently tagged as, may not necessarily correlate with the truth. A recent study on the behavioural patterns of British customers shows that they are inclined towards making ethical choices when it comes to addressing essential social, political, economic and environmental dilemmas, yet predicting the choices that they will make is barely possible:

There is conflicting research to date on the proclivities of consumers to support or reject the ethical and unethical conduct of marketing firms. A recent MOBI poll commissioned by the Co-operative Bank in the UK suggests that one-third of consumers are “seriously concerned” with ethical issues (Carrigan & Attalla 2001, p. 564).

In other words, British customers can be viewed as environmentally aware, which means that they are likely to support Tesla’s products as items that will eventually lead to a drop in air pollution rates. The target audience is becoming more conscious about the choices that they make, as well as the effects that their decisions have on the rest of the world. The tendency for the British customers to gain awareness and responsibility as far as their behavioural patterns are concerned affects their perception of EVs, in general, and the products supplied by Tesla, in particular (Rechtin 2012b).

It would be wrong to claim that the identified tendencies are purely the effect of the customer evolution – the British buyers are also considerably influenced by several outside factors, such as choices made by the state authorities: ‘Many European governments and cities (e.g., Norway, Denmark, the Netherlands, France, UK, as well as Oslo, Amsterdam, Paris, and London) are incentivizing consumers to opt for electric mobility, each with their own schemes’ (Amsterdam Roundtables Foundation 2013, p. 16). Nevertheless, the shift towards a more conscientious approach regarding the purchasing process can be deemed a positive factor in promoting Tesla’s EVs.

Establishing Presence in the Chinese Market: Understanding the Behavioural Patterns of the Chinese Audience

The expansion in the Chinese market, however, poses a plethora of challenges to the company’s further progress as the target customers are not driven by the same hype for environmentalism as their European and American counterparts. Therefore, a detailed analysis of the customers’ behavioural patterns for the further identification of the choices that the entrepreneurship may make in the context of the Chinese market is required (Xue, You, Xiang, & Liu 2016).

It should be borne in mind, though, that the Chinese market is represented by customers with a unique culture that forms the basis for their decision-making. Seeing that the target market belongs to the Asian environment, it can be viewed as the exact opposite of what the Tesla managers are used to dealing with, i.e., the American and European clientele. Indeed, casting a single glance at the identified population will reveal that the identified audience is inclined to choose the sort of items that allow them to improve their social status: ‘higher-priced, name brands function as symbols and demonstrate the social distance between different groups in China’ (Wei & Yu 2012, p. 41).

The focus on luxury items as the essential attribute of a successful person is, therefore, an integral part of the Chinese market culture. Indeed, the research mentioned above points to the fact that the acquisition of luxury items helps one build a stronger societal position and become more respected among the members of the society: ‘Status appeals are therefore common in advertisements for luxury goods in China, such as automobiles, which highlight images of modernity, affluence, and social achievement’ (Wei & Yu 2012, p. 41).

In light of the information mentioned above, the current approach undertaken by Tesla seems quite legitimate. Specifically, the fact that the company markets its product as a luxury item aligns with the concept of customer satisfaction is a significant factor in driving the Chinese market (Webb 2012). As stressed above, Chinese customers are thrilled about the idea of having luxurious products that will allow them to gain a better and more powerful social status. In their minds, this is achieved by purchasing a car that is deemed as not only expensive but also luxurious by the target audience (Undercoffler 2016).

Indeed, another glance at the approach that the company has been using thus far to attract Chinese customers and gain a competitive advantage in the identified environment will point to the fact that Tesla has been using its resources most efficiently and sensibly. It could be argued that the triumph enjoyed by the entrepreneurship owes its nature to the specifics of the Tesla management approach, in general, and the framework of managing the marketing processes, in particular (‘11 new members join EV leaders’ 2012).

The fact that the company has been applying a uniform strategy to promoting EVs to both its UK and Chinese customers can be deemed as both a flaw and an opportunity for the organization. One might argue that, by disregarding the cultural specifics of the Chinese customers, the company may lose significantly and, therefore, fail to drive Chinese buyers’ attention to the product.

Indeed, the failure to appeal to the identified audience is a tangible threat. Unless the unique characteristics of the Chinese buyers are identified and addressed, Tesla is unlikely to establish and maintain a strong presence in the specified market. On the other hand, a closer look at the current success of the organization in the realm of both the UK and the Chinese economic environment points to the fact that the selling point of Tesla can be used to appeal to Chinese and British buyers alike (Chappel 2012).

Changes in the Corporate Strategy Approach: Building an Emergent Industry

However, assuming that the entrepreneurship’s marketing model did not undergo any changes when EVs were introduced to the Chinese market would be quite a stretch (Crane 2016). The changes that the company made can be deemed as merely viewing Tesla’s products from a different perspective. In other words, the firm has retained its innovative practices.

As a recent report shows, Tesla still focuses on the three areas identified above. Furthermore, the framework of innovation has been successfully turned into the efficient strategy of value proposition in the identified markets (Rechtin 2012a). Particularly, the performance of the vehicle improves consistently with the introduction of new technological concepts, and the focus on the development of the connective services for EVs needs to be listed among the primary elements for the further course of the company’s selling strategy. Indeed, according to the latest data on the company’s performance, there has been a significant improvement in both the characteristics of the cars and the services connected with them:

The Tesla Roadster, which is released in 2008, changed people’s imagination on EV by offering a fancy looking sports car with offering a 0-100km/h within 3.7s acceleration and a standard range of 393km for a one-time charge. Following this, Tesla motor released Tesla Model S in 2012, with purpose design for a premium family car. It has several different sub-type with acceleration performance varies from 3.2s to 5.9s for 0-100km/h acceleration, and the standard range varies from 335km to 426km for a one-time charge (Chen & Perz 2015, p. 6).

One should also bring up the fact that Tesla offers extensive options for its customers to control the battery system. As a result, EV users can customize the car according to their requirements (Truett 2016). Therefore, Tesla’s current strategy is geared towards customizing its services to meet the demands of the largest variety of the target population (Ciferri 2015). This approach can be deemed quite sensible due to the flexibility that it offers.

Research Methodology

Research Type: A Qualitative Framework

Seeing that the research question does not require quantifying the data and is geared towards the analysis of the qualitative relationships between the key variables (i.e., the differences between the consumer behavioural patterns of Chinese and UK buyers and the factors that these relationships are defined by), a qualitative framework will be used for the study (Willig 2013).

According to the existing descriptions, qualitative research can be determined as the method of academic inquiry that involves the use of qualitative tools for data collection and its subsequent analysis (Carsrud & Brannback 2014). Although a qualitative study does not allow for accurate measurement of the research outcomes in the same way that a quantitative analysis does, nevertheless, it offers a plethora of advantages, the primary one being the opportunity for an in-depth study of the data provided by the respondents. Therefore, the method in question is extremely useful when there is a strong need to thoroughly describe a complex phenomenon (Benbya 2015).

Furthermore, ample opportunities for retrieving an insider’s viewpoint can be deemed to be an essential benefit of the chosen method (Siegfried 2014). As a result, the study embraces a wide array of factors that would have otherwise passed unnoticed. Also, the chance to consider the participants’ opinions leads to a better understanding of the factors that motivate customers to purchase specific products, as well as those that compel them to make choices in favour of certain brands. Therefore, the use of the qualitative design will help shed some light on the current situation with Tesla, allowing one to understand how it managed to become popular with both UK and Chinese clients, as well as how it can retain its success and, therefore, increase its density in the identified markets (Simkin 2013).

Research Design: A Case Study as the Foundation for the Analysis

The case study was chosen as the primary means of carrying out the analysis since the identified research method serves as the tool for determining the current tendencies in as efficient a manner as possible. It is essential that a case study does not require building a model of the relationships between the key variables but instead allows for a direct study of the issue (Saquib 2013).

When considering the benefits of a case study as the research design, one must mention the fact that the identified tool permits simplifying complex ideas and notions. As a result, opportunities present themselves for creating a basic model of the relationships studied in the case. Furthermore, there are relatively few other tools that help explore real-life interactions, which makes a case study irreplaceable in the specified situation (Guo 2014). Therefore, the application of a case study as the most suitable means of discerning the reasons for the low density of Tesla in the Chinese market can be viewed as a sensible step to take.

Unfortunately, the use of a case study as a research design also implies that certain limitations must be addressed. Specifically, the fact that a rather small number of participants can be included in the case study design needs to be mentioned. Furthermore, the time issue is another reason for concern; being rather time-consuming, the specified research design may hamper the process of data analysis (Beaumont, ‎Whitaker ‎& Pedersen 2014).

Data Collection: Questionnaire as the Means of Acquiring Relevant Information

To retrieve the necessary information and isolate the factors that determine customers’ behaviour when considering the choice between an EV and a traditional car, a questionnaire was used (see Appendix A).

The questionnaires were provided to the participants and answered by them online via Skype. Thus, the data can be collected straight away without any procrastination; as a result, the accuracy of the information retrieved in the process is going to be rather high. Specifically, the first reaction to the questionnaire of the people involved in the study will be assessed and interpreted successfully. As a result, certain types of research bias, such as the misinterpretation of the data due to the lack of connection between the researcher and the participants, can be avoided (Brock & Birkinshaw 2015).

Moreover, the fact that the questions will be addressed to the participants via Skype implies that there will be an opportunity for recording the answers. Consequently, the analysis will be even more accurate, and the prevision of the analysis tools will be enhanced significantly (Kasahara 2015).

In other words, the exploratory research questions asked of the participants will compel the author of the study to incorporate the ontological and the epistemological approaches into the methodology. Put differently, the analysis will encapsulate both the participants’ realities and the endeavour to understand the phenomenon (Williamson, Williamson & Jenkins 2013).

It should be borne in mind that the application of a questionnaire has its pros and cons. Speaking of the advantages that the use of the specified tool will give in the identified scenario, one should mention that a questionnaire helps retrieve the necessary data within a relatively short amount of time, encompassing a significant amount of the target population. The speed of receiving the necessary results, in its turn, creates premises for an accurate analysis of the latest tendencies in the identified area; in other words, the latest factors can be taken into account.

Description of Participants: Who Was Included in the Research

To provide an accurate assessment of the buyers’ behaviour, eleven Chinese volunteers, and fifteen from the UK were selected for the study. The participants were aged 20-35, the male and the female demographics being represented by five and six in the group of the Chinese participants and eight and seven in the UK group respectively. The people participating in the research came from middle-class families.

The reasons for choosing the participants mentioned above are rather basic. To make the research results as credible and meaningful as possible, as well as suitable for developing the strategy that could apply to other entrepreneurial settings, one had to choose the demographics that could represent a rather specific type of audience. Thus, the unique characteristics thereof could become the foundation for building a strategy that would allow catering to the needs of the identified type of clients.

Sample Size Identification: Increasing the Credibility Rates

When calculating the sample size (SS) for the case in point, one must bear in mind that, in qualitative research, the SS hinges on the characteristic known as data saturation (DS) (Mason 2010). By definition, DS is used to mark the point at which the further review of the existing information will not introduce any new factors that will have any tangible effect on the study outcomes (O’Reilly & Parker 2013).

Based on the existing assumptions regarding the SS determination for a qualitative study, it is assumed that a sample of 30 participants can be deemed to be the optimum solution. Therefore, a sample of 25 people was used in the study to determine the answer to the research question.

Data Analysis: Coding and Categorization

A system of codes was created in the course of analysing the respondents’ answers to the questionnaire. The information retrieved from the questionnaires can be viewed as an unstructured text that contains the data that can be coded and interpreted afterwards.

To carry out the procedure, one should consider a strategy known as open coding. Although typically viewed as the simplest and the most common approach to use, it is also viewed as the most trustworthy tool for categorizing the data and carrying out a corresponding analysis.

It should be borne in mind that the coding framework both offers ample research opportunities and suffers several limitations that may affect the process of data analysis and, therefore, make the outcomes somewhat biased. To avoid the identified issues, one must take the following characteristics of the coding process into account.

First and most obvious, the methodology, as it is based on qualitative data retrieved from people with the help of a survey that includes open-ended questions, relies heavily on information that may turn out to be subjective. Even more disturbing, it could be argued that by wording the questions in the surveys in a specific manner, the researcher suggests specific ideas to their participants, thus planting certain concepts into their heads and causing the outcomes of the study to be biased (Mason 2010).

Nevertheless, with the use of tools such as Skype, which allow for recording the data retrieved from the participants, and analysing it accordingly, one is likely to reduce the biases mentioned above.

Findings

British and Chinese Customers: Differences in Consumer Behaviour

The analysis of the questionnaire responses has delivered rather noteworthy results. First, it became obvious that the culture factor defines the density of the company in the target market to a significant extent, if not entirely. Specifically, 78% of the British participants indicated that they would rather choose Tesla EVs, due to the high quality that the company promises for its cars.

The Chinese respondents, however, were not as decisive in their choice of the preferred brand; instead, they made it clear that they were willing to consider products that will help them improve their social status. Specifically, the responses of the British customers fell under the categories of both ‘practicality’ and ‘luxury’, whereas the Chinese buyers were inclined towards choosing the goods that factored into the ‘luxury’ category.

Furthermore, when responding to the answer concerning the factors that shape their choices, the British buyers mentioned the significance of commercials and advertising, whereas the Chinese customers pointed to the importance of the government-based promotion. Particularly, the Chinese customers participating in the interview referred to the concept of state-funded advertising by addressing the issues related to new opportunities for investment. Indeed, according to the results retrieved after the questionnaire analysis, 79% of the Chinese participants mentioned the fact that the Chinese government has recently provided a plethora of options for investments in NEV development.

Herein lies the primary difference between the factors behind the density of Tesla in the identified markets; in contrast to the Chinese market, where the process of promoting NEVs occurs at the government level, the British consumers are influenced mostly by the advertisements issued by the entrepreneurs who sell the product. One might assume that the given difference in the issues that influence the behavioural patterns of the target audience create a gap between the motivation rates of each.

However, in a very peculiar manner, the external variables determining the behavioural pattern adopted by the target clients allow for making the cultural differences less noticeable. Particularly, the government-funded focus on NEVs and their significance to the state economy create premises for keeping the Chinese clients’ focus on the product.

As a result, the engagement rates do not drop, which is rather unusual for the Chinese consumers, as the results of reviewing their culture specifics indicate. The effects of marketing tools used by companies on the British population, in their turn, are just as successful as they serve to appeal to similar characteristics thereof, such as the need for high-quality vehicles and the importance of environmentally safe transportation.

Finally, when it comes to determining the unique characteristics of Chinese shoppers that set them apart from British consumers, one must mention that the study showed their complete obsession with the shopping process. In contrast to the British population, which views the process as a part and parcel of everyday routine, Chinese customers are truly excited and often delighted with the idea of shopping.

As the chart below shows, 89% of the Chinese study participants used words with a positive denotation when talking about the process of shopping, whereas only 43% of the British customers preferred to deviate from the use of neutral concepts. Particularly, the identified percentage of the target population used the words with a positive connotation when talking about the shopping process; for example, 37% used the word ‘happy’ when describing their positive experiences with the shopping industry, 15% mentioned the word ‘great’ when addressing a particular part of their shopping process, 58% defined the items that they bought or saw during the shopping process as ‘cool’, and 49% referred to their shopping experience as ‘fun’ (see the graph below).

Characteristics Provided by the Chinese Customers for Shopping.
Figure 1. Characteristics Provided by the Chinese Customers for Shopping

Also, when it comes to determining the types of products that Chinese buyers typically look for, one must mention the peculiar propensity for purchasing luxurious items. Chinese buyers aim at buying products that will help them boost their social status.

The specified finding aligns with the conclusions made in recent studies determining the specifics of Chinese buyers’ behaviour: ‘The standardization–localization dilemma of brand communications for luxury fashion retailers’ internationalization into China is a unique contribution that adopts a managerial approach and presents qualitative insights from 22 luxury fashion retailers currently active in the Chinese market’ (Chandon, Laurent & Valette-Florence 2015, p. 302).

The propensity to purchase luxurious goods as opposed to similar products from less famous organizations has been also viewed as a problem of the contemporary Chinese market: ‘Chinese marketplace, with its low brand awareness and loyalty but pressing needs to maintain exclusivity and standardized brand images’ (Chandon et al. 2015, p. 302). Therefore, the study outcomes point to the fact that the company should reconsider its current brand strategy so that it can incorporate an element of innovation that the Chinese consumers will be interested in.

Similarly, when describing the characteristics of the products that they would prefer to similar ones, Chinese participants in the survey mentioned that the target goods should be ‘luxurious’ (65%), ‘rich’ (33%), ‘deluxe’ (14%), etc. (see Fig. 2). Particularly, the respondents indicated that the NEV cars that they considered as a possible purchase could be characterized in the identified manner. In other words, the Chinese customers were largely concerned about the popularity, as well as the level of luxury, that the product could help them attain.

Chinese Customers’ Characteristics of NEV.
Figure 2. Chinese Customers’ Characteristics of NEV

Attitudes

The questionnaire also returned rather predictable results concerning the attitudes of Chinese customers towards the concept of NEVs, therefore allowing the researcher to predict the specifics of the target audience’s behavioural patterns in the NEV market rather successfully. According to the results provided in the questionnaire, Chinese customers are quite concerned with the issue of pollution. It is worth noting, though, that there is an evident tendency for the participants of the study who are preoccupied with the problem of pollution to focus on the factors causing it, rather than on the means of managing the root cause.

For instance, the answers to the questionnaires indicate that the respondents tend to focus on the impact that they have on the environment and, as a result, change the behavioural patterns that compel them to cause harm to nature. Specifically, 65% of the respondents claimed that they were ‘very concerned’ about the impact that their vehicles have on the environment, in general, and the progress of global warming, in particular. Particularly, the questionnaire results have shown that the number of participants who claimed to be indifferent towards their impact on nature and, therefore, purchased products no matter how ecologically unsafe they were, is minuscule.

As the figure above shows, environmental awareness cannot be deemed to be one of the strongest points of Chinese consumers. However, one must admit that the identified population, nevertheless, has a general inclination to buy products that can be viewed as environmentally safe. As the responses to the questionnaire have shown, Chinese buyers focus primarily on the quality and popularity of the product. Even though the gravity of environmental awareness has been reinforced among the identified crowd over the past few years by the state government, it still lacks the strength required to make it determine the behavioural patterns of the buyers and, therefore, shape the density of Tesla’s products in the Chinese market.

The identified features of the Chinese audience are in striking contrast with those that are typically displayed by the British population, and that have been identified in the course of the research. Specifically, the fact that British customers are more practical and are less geared towards purchasing trendy products needs to be mentioned. Indeed, a closer look at the answers by the identified members of the population to the same questions that the Chinese participants were provided will show that the key characteristics of the shopping process included epithets such as ‘leisurely’ (36%), ‘relaxing’ (72%), ‘fun’ (80%), and ‘comfortable’ (28%) (see Fig 4).

Characteristics Provided by the British Customers for Shopping.
Figure 4. Characteristics Provided by the British Customers for Shopping

Therefore, it can be assumed that, unlike the Chinese buyers, British consumers prefer comfort to the search for excitement and novelty. Similarly, the British members of the target population seem to be considerably less thrilled about the idea of purchasing solely luxurious items; according to the responses provided, the comfort and quality of the product were perceived with much more appreciation for its belonging to a worldly renowned trademark. Specifically, only 2% of the participants involved indicated that any luxury inherent in the purchase meant anything to them.

It is quite striking, though, that the survey allowed distinguishing two very specific and rather numerous groups of buyers, whose approach towards the purchasing process, as well as the concept of brand awareness, are the exact opposite of each other. Specifically, 22% of the respondents indicated that they are willing to try new brands and find the idea of product novelty rather thrilling. Particularly, in their answer to the question ‘What do you think of EVs, in general, and Tesla’s EVs, in particular?’, they included words and phrases such as ‘innovative solution’, ‘new and thrilling’, ‘cool’, ‘positive’, etc., thus indicating that they applaud innovative solutions and are willing to try new products.

The other group, in its turn, pointed to the fact that they are inclined heavily towards buying ‘traditional’ products since it allows them to feel ‘secure’. Although there were very few variations on the words mentioned above, the identified group made up 24% of the entire number of the British respondents.

Herein lies the principal difference between the attitudes towards the buying process as evidenced by the British and the Chinese consumers. As stressed above, the Chinese respondents were mostly homogenous in the characteristics of the products that they prefer to purchase, as well as their concept of brand identity and brand loyalty.

The British consumers, in their turn, showed quite clearly that some of them are willing to experiment with the choices that they make as buyers, whereas the rest stated that they prefer more traditional products, as well as the brands that have established themselves in the target market for quite a while and, therefore, have proven that they are worth trusting.

British and Chinese Customers: Similarities in Consumer Behaviour

It would be wrong to claim that the Chinese and British consumers have nothing in common between them. On the contrary, the study results showed that the target audiences share quite a several characteristics, the primary one being a concern for the environmental effects of the products that they buy. Although it has been stressed that Chinese consumers are not overly concerned about the threats that the modern vehicle industry poses to the global environment, they are, nonetheless, quite environmentally aware.

The British participants also proved to have a general understanding of the deplorable effects that traditional cars and similar vehicles that run on petrol have on worldwide ecologies. To be more accurate, 87% of the respondents claimed that they were in favour of consuming those products that do not pollute the environment or harm it to a lesser degree than other solutions. Although one might argue that there is a significant gap between the 65% among the Chinese audience who supported the idea of a greener approach, and the 85% of the British research participants who returned the same response, the identified characteristics can still be viewed as similarities.

British and Chinese Customers: Differences in Decision-Making Towards EV

Although the promotion of NEVs in the Chinese market and EVs in the British one can be considered successful, the attitudes of the target audiences towards the subject matter are strikingly different. When it comes to detailing what sets the two categories of customers apart, one should bring up the process of decision-making as a crucial stage in the purchasing process. Indeed, the Chinese participants claimed to base their decisions on a set of concepts that are quite different from those of the British participants.

Naturally, the phenomenon described above owes much of its nature to the perception of luxury by Chinese and British customers. Furthermore, the price does not seem to be an issue for Chinese buyers, as the results of the survey show. The British participants of the study, quite, on the contrary, claimed that they would rather buy a product that is slightly worse yet cheaper, as opposed to a well-marketed brand that costs a small fortune.

British and Chinese Customers: Similarities in Decision-Making towards EV

However, the outcomes of the questionnaire have also pointed to an array of similarities between the Chinese and the British customers when it comes to the process of decision-making. For instance, both participants agreed on the significance of complying with the principles of environmentalism, which the identified product provides. Indeed, because the significance of NEVs as tools for addressing concerns about global warming has been enhanced among the Chinese customers by the state government needs to be acknowledged as a crucial factor in shaping the local population’s attitude towards NEVs.

Similarly, British people are considering EVs as a means of reducing pollution rates and, thus, allowing for a significant improvement in the current levels of climate change. According to the information provided by the participants, 67% of the British respondents confessed that they were highly concerned about the impact that traditional cars have on the changes in the global climate, which aligns with the recent increase in the percentage of environmentally aware Chinese members of the population as shown in the questionnaire analysis. Furthermore, as stressed above, there are a vast amount of the British population whose values, as far as the process of purchasing is concerned, align perfectly well with those of the Chinese population.

Discussion: Making the Cross-Cultural Communication Successful

Determining the Factors Affecting Customers’ Decisions

As the information retrieved in the course of the analysis has shown, the factors that affect the target customers’ choices can be split into several large groups, i.e., those that are culture-related, political, technological, environmental, legal and economic.

Even though the significance of the economic, financial and political circumstances is not to be underrated, one still has to give credit to the overwhelming influence of the cultural factors as far as shaping customers’ choices is concerned.

When considering the factors that shape the decisions of the Chinese and the British consumers as far as the purchasing of EVs are concerned, one must admit that the decision-making process is influenced heavily by the concept of environmental safety and the effect that the car has on the changes in the global environment. The specified tendency among both British and Chinese audiences to take the issue of global warming and related concerns seriously shows that, despite possible flaws in the product design and the strategy used to promote EVs in the target environment, Tesla has a very strong chance at succeeding in the identified environment.

Consequently, the issue of environmental awareness can be turned into a common selling point in both markets. The issue of luxury is another peculiar aspect that needs to be taken into account when shaping the current approach to marketing. It is important to bear in mind that the British customers are not as thrilled by the luxury-related qualities of the EVs that they purchase and, instead, focus on the quality aspect, as the survey indicates.

To reach a compromise and cater to the needs of all customers, Tesla may consider drawing parallels between high quality and luxury. In other words, the organization may represent its compliance with the latest requirements in quality for NEVs, as well as an improved delivery model, as part and parcel of the luxurious service provided to the end customers.

Opportunities for Tesla in the Context of the Chinese Market

Based on the study results, one may claim that Tesla has a plethora of opportunities to explore in the Chinese NEV market. For instance, the chances for marketing the product as a luxury item that determines the status of its owner and elevates it in the eyes of the rest of the members of the society can be explored quite successfully. Once the car is branded as an element of luxury, the qualities and characteristics of the car will justify its high price. As a result, the process of selling the product to the target members of the population will become much easier, since the Chinese people will have a rather marked idea about the benefits of using the specified vehicles.

In other words, assuming the niche of an ecologically safe and at the same time luxurious item can be viewed as the most sensible step for the company to take. While putting the stakes on the latter aspect of Tesla NEVs as a crucial selling point would be a mistake, since environmental awareness is not yet big in China, the organization should incorporate the identified idea into the branding process.

The propensity of the Chinese customers to have a lot in common with a significant part of the British consumers, who are also eager to buy new and innovative products, allows the assumption that some of the elements of the current marketing approach could be used when designing a framework that will help reach the Chinese buyers. Specifically, the tools that the company uses to cater to the needs of a younger and more excited crowd can be applied to the context of the Chinese market.

It should also be borne in mind that the prerequisites for NEVs to enter the environment of the Chinese market have been created artificially by the Chinese government for some time (Zhang, Yu & Zou 2012). As a result, there is a rather profound platform for the organization to build its promotional campaign on. To be more accurate, the target audience must be aware of the problems of traditional, gas-based cars, and is therefore likely to be willing to purchase vehicles that do not pose a significant threat to the environment.

Possible Threats to Be Aware of in the Chinese Market Environment

Naturally, operating in the realm of the Chinese market implies facing an array of threats, the key one being customers losing their interest in the product. As the analysis of the questionnaire and the overview of the recent studies of the Chinese customers’ characteristics have shown, the identified population is extremely prone to choosing such items as are consistently innovative and original. Therefore, as soon as the novelty of NEVs wears out, Tesla is likely to face the threat of losing a significant part of its customers. Hence, it is imperative to make sure that the target members of the population should be provided with new and improved versions of NEVs.

Besides, when considering the responses of the participants to the questionnaires, one should also pay attention to the fact that a wide range of participants proved to be rather conservative about their choices when it came to making purchases. Particularly, the identified characteristics of the target population imply that traditional cars are associated with the idea of high social status and luxury to a considerably greater extent than the NEV cars in the eyes of a regular Chinese buyer. The specified tendency is common with both the younger and the older population; thus, there is a threat that Tesla will not be able to change how people think within the relatively short amount of time that it needs to market its products in China. Finally, the inability to meet the quality requirements may become a tangible threat due to the lack of standards for NEVs in the Chinese market:

This interoperability problem is further exacerbated by China’s NEV demo areas, industrial incubators located in 88 cities that regularly issue new and differing NEV standards. Without a uniform standard uniting the infrastructure in these different areas, application of NEVs will remain limited on a national scale (Marro, Liu & Yan 2015, par. 12).

The specified characteristics of the Chinese NEV market open an entirely new pool of opportunities for Tesla in China. Specifically, the organization may become the one that will set the standards for the quality of NEVs in the Chinese market. The honour of the task, however, should be taken with a grain of salt. On the one hand, by setting the quality hallmark for the rest of the organizations to meet to sell the product in the identified environment, Tesla will create a significant barrier for new entries, thus possibly gaining a monopoly over selling NEVs in the target environment.

Another possible threat that the organization may face with its Chinese customers is the rapid change in the focus of their aspirations. As stressed above, the choices of the identified population can be characterized as rather light-minded as far as the buying process is concerned. Therefore, it is going to be fairly complicated to keep Chinese clients excited about the opportunities that Tesla’s NEVs provide to them.

Even in the case where the company decides to brand its cars as exclusive and luxurious material, the buyers may switch to other expensive brands after the novelty of this one wears out its welcome. The responses to the question of whether the target audience will switch to a different brand that offers something more exciting point quite clearly to the fact that Tesla has a lot to fear.

Therefore, the threat of losing its customers due to the lack of change in the brand product and the absence of innovation can be viewed as the primary challenge that Tesla will have to address when entering the target environment. One might argue that getting used to a specific product, to the point where it becomes stale, is unlikely to occur within a short amount of time – quite the opposite, Tesla is likely to have a lot of time to think its future strategy through and consider the avenues for appealing to its Chinese customers with success. However, the entrepreneurship must be one step ahead of its clients; thus, Tesla will not be taken by surprise as the clients suddenly change their attitude towards NEVs.

Avoiding and Addressing the Emergent Threats: A Sustainable Strategy

It should be borne in mind that the cautious approach designed specifically for the British customers, to lure them into buying EVs as products of the finest quality, at the same time offering a wide array of bonuses, discounts and other options, may fail to work with the Chinese consumers as the target population does not seem to be aimed at buying the target products.

It could be suggested that the possible unwillingness of the Chinese customers to relate to NEVs as items of luxury could be managed by carrying out a vast and ground-breaking promotional campaign. Although changing stereotypical thinking is not an easy task, building the brand image that can be immediately related to luxury and the perception of wealth is still an opportunity once the correct images and ideas are utilized in the process.

Furthermore, when shaping the brand strategy so that the target audience could perceive the company’s products as luxurious ones, Tesla marketers should bear in mind that the survey results have also pointed to a rather peculiar understanding of luxury as demonstrated by Chinese customers. Specifically, the fact that 87% of the respondents related luxury primarily to the outstanding quality of the product needs to be brought up. In other words, the marketing strategy that the company should consider as the foundation for its further promotion in the identified environment should revolve around the quality of the NEVs.

Apart from the obvious fact that Tesla’s NEVs do not emit any CO2, information about recent modifications to the size of the cars could be incorporated into the marketing campaign. As the official description of the latest Tesla NEV products says, the new cars can be defined as highly compact, which allows for increased manoeuvrability, especially as far as the use of the autopilot is concerned:

Autopilot allows Model S to steer within a lane, change lanes with the simple tap of a turn signal, and manage speed by using active traffic-aware cruise control. Digital control of motors, brakes, and steering helps avoid collisions from the front and sides and prevents the car from wandering off the road. Autopilot also enables your car to scan for a parking space and parallel park on command. And our new Summon feature lets you “call” your car from your phone so it can come to greet you at the front door in the morning (Tesla Corporation 2016, par. 4).

Therefore, the actual benefit of the car as far as its technological characteristics, the velocity that it develops, and other capacities of the vehicle, needs to be the focus of the marketing campaign. As a result, the customers are expected to view the product as a luxurious one. The subsequent rise in the enthusiasm rates regarding the purchase of the product, in its turn, can be sustained by introducing new improvements with every new design of the NEVs produced.

Furthermore, the issue of comfort has to become the focal point of the commercial so that the target audience could perceive NEVs marketed by Tesla as luxury items. To be more specific, the fact that the car offers a more relaxing environment for the driver should be incorporated into the message of the commercial, as well as the entire promotion campaign:

Active sensors combined with GPS and high-resolution digital maps comprise a mutually reinforcing system that pilots Model S along the highway, staying within your lane, even in stop and go traffic. Real-time feedback from the Tesla fleet ensures the system is continually learning and improving upon itself (Tesla Corporation 2016, par. 5).

The brand product released recently by the company has a potential for success in the environment of the Chinese NEV market due to its outstanding quality and its unique design. The combination of the original look and the extra options for manoeuvrability that it has to offer to its target clients can be determined as a foundation for success and the key selling point in China. Therefore, the focus on the consistent improvement and the additions to the traditional design of the EVs issued by the organization can be considered a sustainable approach towards maintaining competitiveness in the Chinese EV market. The further focus of the company’s innovations, for example, may concern the increase in the car’s velocity, the enhancement of the safety system, etc.

Conclusion and Recommendations: What Can Be Suggested To Support Tesla

Implications for the Company’s Further Development

As the analysis carried out above shows, the organization must consider the adoption of an innovation-geared strategy. Because of the requirements set by the Chinese customers, i.e., the need for consistent innovation and a focus on the improvement of the existing services, the organization must keep the audience’s focus on changes in the design of Tesla’s NEVs.

It is, therefore, essential that the entrepreneurship should use every single opportunity to improve its current product. Furthermore, Tesla should consider the application of the latest tools for quality improvement; specifically, the philosophy of iSix Sigma mentioned above needs to be considered. By definition, the identified approach helps reduce waste and optimize the essential production processes in the organization within a relatively short amount of time (Nahbid & Yusof 2012).

More importantly, the framework serves as the means of creating a corporate philosophy based on quality improvement and the promotion of consistent performance enhancement. As a result, the organization will set the pace for further development, preventing the threat of customers’ dissatisfaction. It should be noted, though, that the identified approach implies a very strong connection with the target audience, with a detailed analysis of any change in the demand. Thus, Tesla will be able to cater to the needs of the target population successfully. Specifically, the DMAIC tool as the impetus for a consistent quality upgrade needs to be considered more closely and incorporated into the firm’s performance design.

Issues to Be Addressed: Locating the Dents in the Current Strategy

Even though the organization has been quite successful in the target market so far, it is necessary to make sure that it understands the needs of the identified customers and is capable of successfully catering to these needs. As impressive as the current strategy used by Tesla maybe, one still has to admit that the company is not fully prepared to meet every challenge in the Chinese market.

For instance, the innovation issue mentioned above, which the organization is likely to suffer from within the next few years, needs further management. In particular, the technical characteristics of the products will have to be improved. As stressed above, the low battery life can be viewed as a reason for concern for most companies producing NEVs nowadays (Noel & Sovacool 2016); therefore, improving the battery life regularly should be considered a possible route for Tesla to take.

Furthermore, when addressing the issue of customer demand in the target market, TESLA should consider increasing the range of products that it will provide to the target audience.

As a recent study shows, three primary types of EVs can be mass-produced; these are Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV) (Pappas 2014). As a result, the problem of managing the uncertainty that some customers have about battery shelf life, as well as related environmental effects, can be handled in a very efficient manner: ‘A major potential barrier to widespread EV adoption detected among our technologically minded target group is the uncertainty associated with the EV battery technology and sustainability of fuel source’ (Egbue & Long 2012, p. 724).

In other words, the combination of the ecology issue and the absence of new ideas may lead to a rather lacklustre impression of the product among the target audience. The production of different types of NEVs, in its turn, can be viewed as a solution to the problem. As soon as the novelty of the traditional HEVs released by Tesla wears out, the organization may up the ante by introducing BEV and PHEV products to the customers.

Much to Tesla’s credit, though, the battery used currently in its NEVs can be deemed as a breakthrough in the realm of EV production. Indeed, by definition, the cars cannot be viewed as anything but luxurious items for a reason – the battery as it is designed to have the tiniest effect on the environment possible and provide the longest run for the car truly is a technological miracle: ‘The company’s innovative battery and charging technology has given it a substantial lead in making batteries cheaper and recharging quicker, and it’s also helping Tesla lower costs faster than its competitors’ (Bullis 2013, par. 7). Nevertheless, the company must keep its wheel of innovation rolling by updating its technology and keeping the audience on their toes.

One must admit, though, that making sure that the customers are aware of the differences between the identified products and, therefore, are capable of appreciating the challenges that Tesla will overcome to provide its clients with the best product possible, is crucial to the firm’s success. Because EVs are a comparatively new concept in the target market, it begs the question of whether the Chinese audience will differentiate between the types of vehicles and will understand the magnitude of the changes that the company will make to NEVs.

Sustainability as the Foundation for a Successful Entry

Despite the generally positive response that Tesla has received regarding its current options of integrating into the Chinese market, the organization should optimize its innovation and marketing strategies to keep its Chinese customers in a state of unceasing awe. Towards this end, the provision of unique opportunities to the customers, as well as a regular update of the current NEVs’ design, must be viewed as a necessity.

Specifically, the entrepreneurship should improve the technical characteristics of the vehicles, such as the speed to which it can accelerate, the manoeuvrability, etc. The latter is especially important because competitors successfully use the identified characteristic feature of the product in the global market. Therefore, unless the organization incorporates the quality of manoeuvrability into the list of its product’s characteristics, it is highly likely that customers may refrain from purchasing the car.

The issue of price, in its turn, should not be deemed a problem at present. Even though the EVs produced by Tesla is far from being cheap, even by global standards, in the eyes of the Chinese customers, the quality of the end product outweighs the costs involved in purchasing it. Therefore, as long as the cars meet the high standard set by the target population and are successfully promoted to the Chinese customers, the concern of cost is unlikely to be an issue.

Finally, the value chain delivery model needs to be altered slightly so that the customers can receive high-quality products in a manner as timely as possible. The specified strategy is likely to help the company build a strong support system in the environment of the Chinese market, which is currently viewed as hostile and, therefore, dangerous to the organization. Seeing that Tesla will have to be prepared for rapid changes in the environment of the Chinese market, it will be reasonable to adopt the Lean Six Sigma (LSS).

By definition, the specified approach is likely to help the entrepreneurship address the harshest issues that it may face in the target market (Nahbid & Yusof 2012). Indeed, because LSS serves as a tool for consistent quality improvement in an environment that requires careful and sensible use of resources, the identified approach is likely to help the company use its available resources sparingly, at the same time improving the quality of its products and reducing the rate of the waste.

Furthermore, seeing that Tesla must apply a customer-driven approach to cater to the needs of the Chinese audience, it could consider the adoption of the so-called customer offer zones as the means of improving the quality of NEVs and maintaining adequate loyalty rates among clients. Suggested by Kalyanaram and Aung (2015), the identified approach will allow for building stronger relationships with customers by enhancing the communication process and at the same time defining the boundaries thereof: ‘These zones give logical boundaries and the scope for a firm to communicate and direct their collective efforts on service enhancements’ (Kalyanaram & Aung 2015, p. 10). In other words, the concept will serve as a foundation for improving the current approach towards building the company’s communication strategy and, therefore, create prerequisites for retrieving customer feedback in a much more efficient manner. As a result, the needs of the target audience will be heard, and the corresponding changes will be made in a manner as efficient and expeditious as possible.

Becoming a part of the Asian market is one of the most challenging tasks for an organization operating in any domain, and especially for a company producing vehicles. The unique characteristics of the target population’s culture, as well as the original customer behaviour patterns, call for a detailed assessment of the market and its specifics.

Reference List

‘11 new members join EV leaders’, Automotive News, vol. 86. no. 6519, p. 14.

Amsterdam Roundtables Foundation 2013, Electric vehicles in Europe: gearing up for a new phase?, McKinsey & Company, New York, NY.

Arora, S, Shen, W, & Kapoor, A 2016, ‘Review of mechanical design and strategic placement technique of a robust battery pack for electric vehicles’, Renewable and Sustainable Energy Reviews, vol. 60, no. 1, pp. 1319–1331.

Beaumont, ‎R, Whitaker, R, ‎& Pedersen, B L 2014, Managing the environment: business opportunity and responsibility, Elsevier, New York, NY.

Benbya, H 2015, Exploring the design and effects of internal knowledge markets, Springer, New York, NY.

Brock, D M, & Birkinshaw, J 2015, Management and international review, Springer, New York, NY.

Bullis, K 2013, How Tesla is driving electric car innovation.

Carrigan, M, & Attalla, A 2001, ‘The myth of the ethical consumer – do ethics matter in purchase behaviour?’, Journal of Consumer Marketing, vol. 18, no. 7, pp. 560-578.

Carsrud, A, & Brannback, M 2014, Handbook of research methods and applications in entrepreneurship and small business, Edward Elgar Publishing, Northampton, MA.

Chandon, J L, Laurent, G, & Valette-Florence, P 2015, ‘Pursuing the concept of luxury: Introduction to the JBR special Issue on “Luxury marketing from tradition to innovation”’, Journal of Business Research, vol. 69, no. 1, pp. 299-303.

Chappel. L 2012, ‘How goes the EV race?: Companies with cash take the lead, startups struggle, and challenges are everywhere’, Automotive News, vol. 85, no. 6476, p. 4.

Chen, Y, & Perz, Y 2015, Business model design: lessons learned from Tesla Motors.

Cheong, T, Song, S H, & Hu, C 2016, ‘Strategic alliance with competitors in the electric vehicle market: Tesla Motor’s case’, Mathematical Problems in Engineering, vol. 1, no. 16, pp. 1-10.

Ciferri, L 2015, ‘Audi to focus on plug-in hybrids even as it plans EV to take on Tesla’, Automotive News, vol. 89, no. 6671, p. 6.

Crane, D A 2016, ‘Tesla, dealer franchise laws, and the politics of crony capitalism’, Iowa Law Review, vol. 101, no. 2. pp. 573-607.

Egbue, O, & Long, S 2012, ‘Barriers to widespread adoption of electric vehicles: An analysis of consumer attitudes and perceptions’, Energy Policy, vol. 48, pp. 717-729.

Cardoso, G, Stadler, M, Bozchalui, M C, Sharma, R, Marnay, C, Barbosa-Póvoa, A, & Ferrão, P 2014, ‘Optimal investment and scheduling of distributed energy resources with uncertainty in electric vehicle driving schedules’, Energy, vol. 64, no. 1, pp. 17–30.

Fiori, C, Ahn, K, & Rakha, H A 2016, ’Power-based electric vehicle energy consumption model: Model development and validation’, Applied Energy, vol. 168, no. 1, pp. 257–268.

Guo, Y 2014, Research on selected China’s legal issues of e-business, Springer, New York, NY.

Han, S, Han, S, & Aki, H 2014, ‘A practical battery wear model for electric vehicle charging applications’, Applied Energy, vol. 113, no. , pp. 1100–1108.

Jensen, A F, Cherchi, E, & Ortuzar, D O 2014, ‘A long panel survey to elicit variation in preferences and attitudes in the choice of electric vehicles’, Transportation, vol. 41, no. 5, pp. 973 – 993.

Kalyanaram, C, & Aung, Z Z 2015, ’ Value-added ecosystem and customer experience enhancement framework’, Kindai Management Review, vol. 3, no. 1, pp. 9-22.

Kasahara, E 2015, Practical strategic management: how to apply strategic thinking in business, World Scientific, New York, NY.

Ma, H, Balthasar, F, Tait, F, Riera-Paloua, X, & Harrison, A, 2012, ‘A new comparison between the life cycle greenhouse gas emissions of battery electric vehicles and internal combustion vehicles’, Energy Policy, vol. 44, no. 2, pp. 160–173.

Mangram, M E 2012, ‘The globalization of Tesla Motors: a strategic marketing plan analysis’, Journal of Strategic Marketing, vol. 20, no. 4, pp. 289–312.

Marro, N, Liu, H, & Yan, Y 2015, ‘Opportunities and challenges in China’s electric vehicle market’, China Business Review.

Mason, M 2010, ‘Sample size and saturation in PhD studies using qualitative interviews’, Forum: Qualitative Social Research, vol. 11, no. 3, n. p. 2016.

Nahbid, N F, & Yusof, S M 2012, ‘Relationship between lean six sigma, environmental management systems, and organizational performance in the Malaysian automotive industry’, International Journal of Automotive Technology, vol. 13, no. 7, pp. 1119-1125.

Nelson, G 2015, ‘Auto industry should cheer Tesla Motors’ battery play’, Automotive News, vol. 89, no. 1, pp. 66-70.

Noel, L, & Sovacool, B K 2016, ‘Why did better place fail?: Range anxiety, interpretive flexibility, and electric vehicle promotion in Denmark and Israel’, Energy Policy, vol. 94, no. 3, pp. 377–386.

O’Reilly, M, & Parker, N 2013, ‘”Unsatisfactory Saturation”: a critical exploration of the notion of saturated sample sizes in qualitative research’, Qualitative Research, vol. 13, no. 2, pp. 190-197.

Pappas, J C 2014, ‘A new prescription for electric cars’, Energy Law Journal, no. 35, vol. 1, pp. 151-198.

Rechtin, M 2012a, ‘Tesla’s test drive: Manipulation or circumstance?’, Automotive News, vol. 86, no. 6523, p. 12.

Rechtin, M 2012b, ‘Toyota unveils $50,000 RAV4 EV with Tesla battery pack’, Automotive News, vol. 86, no. 6516, p. 6.

Ruan, J, Walker, P, & Zhang, N 2016, ‘A comparative study energy consumption and costs of battery electric vehicle transmissions’, Applied Energy, vol. 165, no. 1, pp. 119–134.

Saquib, S 2013, Business strategies and approaches for effective engineering management, IGI Global, New York, NY.

Siegfried, P 2014, Knowledge transfer in service research: service engineering in startup companies, Books on Demand, New York, NY.

Simkin, L 2013, Market segmentation success: making it happen!, Routledge, New York, NY.

Tesla Corporation 2016, Model S.

Truett, R 2016, ‘LG Chem exec: Tesla’s gigafactory to cut EV costs’, Automotive News, vol. 89, no. 6666, p. 24.

‘Tesla’s electric man; Brain scan’, 2015, The Economist, vol. 413, no. 8916, pp. 19-20.

Undercoffler, D 2016, ‘Jitters over $1 billion EV factory; Nevada tells Faraday: Show us the money’, Automotive News, vol. 90, no. 6713, p. 1.

Webb, A 2012, ‘Shakeout hits small EV makers: Green manufacturers are struggling or failing to find financing’, Automotive News, vol. 8, no. 6507, p. 6.

Wei, Y, & Yu, C 2012, ‘How do reference groups influence self-brand connections among Chinese consumers?’, Journal of Advertising, vol. 41, no. 2, pp. 39-53.

Williamson, D, Williamson, D, & Jenkins, W 2013, Strategic management and business analysis, Routledge, New York, NY.

Willig, C 2013, Introducing qualitative research in psychology, McGraw-Hill Education (UK), London.

Xue, L, You, X, Xiang, X, & Liu, Z 2016, ‘Adopting strategic niche management to evaluate EV demonstration projects in China’, Sustainability, vol. 8, no. 2, p. 142.

Zhang, R, & Yao, E 2015. ‘Electric vehicles’ energy consumption estimation with real driving condition data’, Transportation Research Part D: Transport and Environment, vol. 41, no. 2, pp. 177–187.

Zhang, Y, Yu, Y, & Zou, B 2012, ‘Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV’, Energy Policy, vol. 39, no. 11, p. 7015.

Appendix A: Questionnaire

Appendix A: Questionnaire

Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Click Here To Order Now!