Tesla has once again targeted a niche market in the car industry with their model X. CEO Elon Musk recently released the newest Tesla model, which is a falcon wing doored luxury SUV. This article from the business insider, explains the physics behind the model X, proving that the riding experience is similar to that of an Enzo Ferrari. The car is targeted towards mothers, families and active outdoor people. The car has eliminated any worry for lost roof space by adding a hitch on the back bumper, allowing it to carry equipment.
Tesla has always used the focus strategy of differentiation from porter’s generic strategies, targeting a narrow market with a unique product. In my opinion, they have brilliantly given an option for wealthy families to make an environmentally friendly decision. In the past it has always been a “naughty” or badly regarded thing to purchase expensive, low milage vehicles. Tesla did an excellent job analyzing the market and identifying a problem. I connected this thought to our business model canvases value proposition box in the sense that they are solving this problem. It will be interesting to see how Tesla keeps expanding their customer segments. The new model 3 will allow for middle class customers to purchase a Tesla, therefore improving their customer segments.
photo http://images.thecarconnection.com/med/tesla-model-x_100381829_m.jpg
