Introduction and Expansion Rationale
This report focuses on Tesla and suggestions for expanding and setting plant operations in Brazil. The automobile industry has various players, an aspect contributing to increased competition. Thus, with Tesla as one of the players, sustainable strategies are vital to remaining relevant. Research associates global expansion to various benefits, e.g., entering newer markets and higher revenue potential (Capital, 2020; Hitt, Li & Xu, 2016). Also, globalization allows access to a newer customer base and helps on cost-saving (Capital, 2020), vital for Tesla. The expansion is also beneficial, allowing the company to gain competitive advantage amid rivals (Hitt, Li & Xu, 2016; Smith, 2014). All these reasons and others make it essential for Tesla to establish a presence in Brazil. Brazil offers significant business potential attribute to its economic status (Bertsch & Ondracek, 2010).
Company Profile: TESLA
TESLA foundation dates to 2003 and is attributed to Marc Tarpening and Martin Eberhard, with the largest shareholder being Elon Musk, after joining the organization upon initially investing $ 7.5 million (Fruhlinger). Tesla is recognized as focused on electric vehicles, as well as the delivery of clean energy solutions (Fruhlinger, 2019). Some other operations are in Norway, Switzerland, Britain, France, as well as Mexico, China, and Germany (Fruhlinger, 2019), among other global nations.
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In its energy-efficient portfolio, the company deals with supplying energy solutions into powering homes, as well as businesses, through solar panels selling, provision of solar roofing services and also through its battery storage packages under the brand names ¨Powerwall¨, ¨Powerpack¨ as well as ¨Megapack¨ (Tesla, 2020). As the main aim of the company, there is an emphasis on electric vehicles being better, offering various consumers quicker transportation capabilities, as well as are more fun driving when compared to gasoline cars (Tesla, 2020). Some of the company's masterpiece projects include Roadster launched in 2008, followed by its Model S, and the launching of the Model X as of 2015 (Tesla, 2020). Other projects within the electric vehicle portfolio include Model 3, which was introduced in 2017, finally, the Tesla Cybertruck, introduced in 2019 (Tesla, 2020). As of May 2016, the company had 14,000 chargers globally, has 438 Tesla Motoes Stores as well as 98 service centers (Fruhlinger, 2019).
Selected Country Profile: Brazil
Brazil is ranked among the most influential and one of the best investment opportunity countries in South America (World Bank Group, 2020). As a rising economic power, it ranks highest in the world's largest democracies, an aspect attributed to its massive size, its economic potential, and also the implications on international trade. Brazil's population is diverse, comprising indigenous Americans, as well as numerous descendants of European settlers and those of African slaves. Current statistics put the nation's population at 209,469,333 persons, with Portuguese ranking as the primary adopted language, while Christianity ranks as the main religion (BBC, 2019; World Bank Group, 2020). Overall, the nation's life expectancy varies across gender, with men at 72 years, while females have a higher value of 79 years (BBC, 2019). Despite past adverse outcomes related to increased poverty, the nation has adopted key measures, contributing to the raising of the citizen's livelihood, positively raising millions of its citizens from the poverty trap (Bertsch & Ondracek, 2010). Policy changes and improvements in leadership has played a significant role in improving the nation's current state (World Bank Group, 2020).
Conclusion
The desire to remain sustainable, and successfully accomplishing the company objectives makes it essential for Tesla in expanding globally. Of the various markets, Brazil emerges as a potential country that can allow Tesla to meet its operational goals, not only in Brazil itself but also to meet the demands of other South American nations. Brazil's strategic position can successfully help save Tesla operational costs, and allow timely delivery of its electric cars to the market.
References
BBC (2019). Brazil country profile. BBC News. https://www.bbc.com/news/world-latin-america-18909529
Bertsch, A., & Ondracek, J. (2010). The Risks and Rewards of Doing Business in Brazil: Can Brazil Escape the Fate of Greece? Mountain Plains Journal of Business and Technology , 11 (1), 23-42.
Capital (2020). 8 Reasons to Expand Internationally In 2020. Capital GES. https://www.capital-ges.com/8-reasons-to-expand-internationally-in-2020/
Fruhlinger, J. (2019). Tesla's growing worldwide presence. https://media.thinknum.com/articles/teslas-growing-worldwide-presence/
Hitt, M. A., Li, D., & Xu, K. (2016). International strategy: From local to global and beyond. Journal of World Business , 51 (1), 58-73.
Smith, D. (2014). Global Expansion Strategies for Variations in Innovative Service Technology Adoption. Journal of Strategic Innovation & Sustainability , 9, 76-82.
Tesla (2020). About Tesla. https://www.tesla.com/about
World Bank Group (2020). Economy Profile Brazil: Doing Business in Brazil . world Bank Group. https://www.doingbusiness.org/content/dam/doingBusiness/country/b/brazil/BRA.pdf
