Tesla in Dubai Essay Example | Topics and Well Written Essays - 500 words

Tesla in Dubai - Essay Example The company built a strong brand image that captures the attention of customers through celebrity impact. The company develops sleek car models that meet the expectations of the customers. The marketing strategy through social and traditional media has catapulted the company into celebrity limelight. The company’s customer –centric approach has also been one of the main factors for its success in Dubai. Tesla fosters a strong customer relationship, thus creating a positive image among consumers. The first strategy available for Tesla’s international expansion is strategic alliance. Tesla has the option of identifying other companies in foreign markets that have good performance history and join forces with them. The company can easily gain entry into foreign markets through mergers and acquisitions. Through mergers, Tesla will create joint ventures with potential competitors in the market while acquisitions will involve buy out of rival companies in the market. Mergers and acquisitions in foreign markets will enlarge the company’s customer base and also enhance intellectual capital as well as performance efficiencies of the resultant company (Benjamin, 2006). The second strategy that Tesla can use to expand into international markets is licensing. This strategy involves entering foreign markets through leasing a company’s intellectual property rights to a foreign firm (Kozami, 2005). Tesla can lease its technology, patents, brand name and trademark to companies in foreign markets. In this strategy, Tesla would be the licensor while the other companies to which it leases its intellectual property rights would be the licensee. Ireland, Hoskisson and Hitt (2008) argue that â€Å"licensing is popular because it involves little direct cost or risk for the licensor (p.158). Despite the fact that this strategy offers a cheap foreign