Expansion Strategy

The expansion strategy can be employed by Tesla to help determine other ways to break into other markets and raise their strategic competitive advantage. Tesla can utilize expansion to help increase growth and mitigate a rapid decline by not expanding and adapting to the market demand and growing market share and using resources. Some advantages of expansion:

· R& D can be enhanced within the organization

· Opportunity to improve innovative ideas and diversify products

· Economic of scale

Disadvantages of expansion strategy

· Require massive capital investment

· Different customer base

· Outsourcing

Regardless if you’re a pursuing stability or expansion plans, they are great alternatives depending on the objective of the company and current state of the market.

Reference

DeShazo, J. R., Sheldon, T. L., & Carson, R. T. (2017). Designing policy incentives for cleaner technologies: Lessons from California’s plug-in electric vehicle rebate program. Journal of Environmental Economics and Management, 84, 18-43.

McMullen, S. (2016). Giving Consumers What They Want?. In Animals and the Economy (pp. 45-61). Palgrave Macmillan UK.