Executive Summary
Facing more and more severe energy shortage and economic pressure, governments and automobile enterprises all over the world generally realize that the replacement of traditional automobiles by new energy vehicles has become a general trend. In order to create a good environment for new energy vehicles, the Chinese government also encourages the development of new energy vehicles through various economic incentives. In this context, the Chinese market has attracted many enterprises to invest and carry out business. Tesla Company cited in this paper is a good example.

As a well-known brand of electric vehicles, Tesla is still in the stage of exploration and development in the Chinese market. Therefore, this report will take Tesla as the case study object, take the literature as the main information source, analyze the problems that Tesla encountered in implementing its business strategy in the Chinese market, and discuss the opportunities and challenges faced by the company, in order to provide reference suggestions for Tesla.
作为电动汽车的知名品牌，特斯拉在中国市场仍处于探索和发展阶段。因此，本报告将以特斯拉为案例研究对象，以文献资料为主要信息来源，分析特斯拉在中国市场实施经营战略所遇到的问题，探讨特斯拉面临的机遇和挑战，为特斯拉提供参考建议。

Introduction

Tesla's business analysis in China

Tesla's issue in China market

Promotion strategy ineffectively

Tesla adopted the word-of-mouth promotion strategy in the promotion of electric vehicles. In other words, Tesla abandoned the traditional advertising, relying mainly on social media, blog forums, word of mouth and other means to promote its products. For example, Google President Larry Page and Hollywood famous star Schwarzenegger are Tesla users (Alghalith 2018). They have a lot of fans, which is equivalent to a free promotion for Tesla. And Tesla updates every step of the company's progress every month on the blog. However, in the Chinese market, the way Chinese consumers receive foreign information is limited (Alghalith 2018). Therefore, the promotion of social media through foreign media has little impact on Chinese potential consumers. On the other hand, China's old high-end cars are heavily advertised in China, allowing more people to understand their brands, accumulate market resources and develop potential customers through advertising (Alghalith 2018). Therefore, Tesla's strategy of relying on user word-of-mouth promotion without any paid advertising will make Tesla difficult to be known by more consumers in China.
特斯拉在电动汽车推广中采用了口碑推广策略。换句话说，特斯拉放弃了传统的广告方式，主要依靠社交媒体、博客论坛、口碑等手段来推广其产品。例如，谷歌总裁拉里·佩奇和好莱坞著名明星施瓦辛格是特斯拉用户。他们有很多粉丝，这相当于特斯拉的免费促销活动。特斯拉每月都会在博客上更新公司发展的每一步。然而，在中国市场，中国消费者接收外国信息的方式是有限的=。因此，通过外国媒体推广社会媒体对中国潜在消费者的影响很小。另一方面，中国的老款高端车在中国大量投放广告，让更多的人了解自己的品牌，积累市场资源，并通过广告开发潜在客户。因此，特斯拉依靠用户口碑推广而不做任何付费广告的策略，将使特斯拉在中国的消费者难以知晓。

Threats

Opportunities

Although Tesla has faced various challenges in its business operation, it is still provided with opportunities. Firstly, Chinese people begin to put more emphasis on the environment protection. In recent years, PM2.5 was proved to be a serious factor of diseases. Additionally, as many factories exhaust gas illegally and many mobile vehicles did not reach the exhaust pollution, this situation became more serious. It is reported that China has become the largest gas emission country in the world, overtaking the United States (The Guardian 2015). In order to protect the environment and dispel people’s concerns about air pollution, Chinese government has promote policy to restrict the emission of gas. The implement of this policy had a huge influence on automobile enterprises. As the emission standards have been raised, the traditional automobile manufacturers will be affected. However, new energy automobile market will benefit from it, which means that Tesla gain huge opportunity from this policy. Today, huge numbers of young people have become main consumers to purchase vehicles. Different from elder people, they tend to have a new energy car because of their environmental protection concept. As a result, electronic vehicle has been popular in the Chinese market. Unlike the depression of sales volume in China in recent years, McCarthy (2018) pointed out that ‘electric car sales are surging In China’ and nearly 579 thousand electronic cars are purchased by Chinese customers in 2017.#p#分页标题#e#

尽管特斯拉在其业务运营中面临各种挑战，但仍有机会。首先，中国人开始更加重视环境保护。近年来，PM2.5被证明是一种严重的疾病因素。此外，由于许多工厂非法排放废气，许多机动车辆没有达到废气污染的程度，这种情况变得更加严重。据报道，中国已成为世界上最大的天然气排放国，超过美国。为了保护环境，消除人们对空气污染的担忧，中国政府出台了限制天然气排放的政策。这一政策的实施对汽车企业产生了巨大的影响。随着排放标准的提高，传统的汽车制造商也将受到影响。然而，新能源汽车市场将从中受益，这意味着特斯拉从这一政策中获得了巨大的机遇。今天，大量的年轻人已经成为购买汽车的主要消费者。与老年人不同的是，由于他们的环保理念，他们倾向于拥有一辆新能源汽车。因此，电子汽车在中国市场上得到了广泛的应用。与近年来中国销量低迷不同，麦卡锡（2018）指出，“中国电动汽车销量激增”，2017年中国消费者购买了近57.9万辆电动汽车。

Besides that, Tesla may also gain opportunity because of the popularization of charging positions. In the previous time, the number of charging positions cannot meet the demands of new energy vehicles. It is a big problem for Chinese drivers who have electronic cars to charge for them. However, this problem may be improved in the future. Liu (2018) stated that Chinese governments has made effort to increase charging stations recently. Having heard some recent news from a nationwide charging network, Chinese government decides to increase 12,000 charging stations in order to allow nearly five million electronic cars to be charged by 2020. Additionally, China will also establish 4.8 million power stations and 500,000 will be open to the public. This may be the good news for Tesla. Thanks to the policy of popularization of charging stations in China, electronic vehicles may not only be charged at home, but also be charged outside at any time. Those who used to worry about charging problem may be satisfied with the policy and their degree of worry may be decreased. Under the help of charging positions, the gap between electronic cars and gasoline vehicles may be narrowed. As a result, it may be possible for an increasing number of drives to purchase new energy vehicles.

除此之外，特斯拉还可能因为充电位置的普及而获得机会。以前，充电位置的数量不能满足新能源汽车的需求。对于拥有电子汽车的中国司机来说，这是一个大问题。然而，这个问题将来可能会得到改善。刘（2018）表示，中国政府最近已努力增加充电站。在听到全国性充电网络的一些最新消息后，中国政府决定增加1.2万个充电站，以便在2020年前为近500万辆电子汽车充电。此外，中国还将建立480万个发电站，50万个向公众开放。这可能是特斯拉的好消息。由于我国充电站的普及政策，电子车辆不仅可以在国内充电，而且可以随时在国外充电。过去担心收费问题的人可能会对政策感到满意，他们的担心程度可能会降低。在充电位置的帮助下，电子汽车和汽油汽车之间的差距可能会缩小。因此，可能会有越来越多的驱动器购买新能源汽车。#p#分页标题#e#

Conclusion
Through the above case studies, we can sum up the main problems faced by Tesla. Tesla's profit is declining and competitors are seizing the market. This does not mean that Tesla's products have problems. The reason is the problem of marketing strategy. Emphasizing customer value and implementing value-oriented strategy is the way Tesla should take. At the same time, Tesla's lack of accurate brand positioning and marketing mix strategy, the drastic price reduction measures contradict Tesla's strategy of positioning high-end market. In addition, the decline in sales also shows that the promotion is not enough, it is very important to expand sales channels and increase the intensity of promotion.

通过以上案例研究，可以总结出特斯拉面临的主要问题。特斯拉的利润在下降，竞争对手正在抢占市场。这并不意味着特斯拉的产品存在问题。原因是营销策略的问题。强调客户价值和实施价值导向战略是特斯拉应该采取的方式。同时，特斯拉缺乏准确的品牌定位和营销组合策略，大幅降价措施与特斯拉定位高端市场的策略相矛盾。此外，销售量的下降也表明促销力度不够，扩大销售渠道，加大促销力度是非常重要的。
 

Recommendations

Price strategy

Place strategy

Tesla's marketing channel is experiential store sales model, but the effect of this model in China is not good. Therefore, Tesla still needs to take the following measures to improve.
特斯拉的营销渠道是体验式商店销售模式，但在中国这种模式的效果并不好。因此，特斯拉仍需采取以下措施加以改进。#p#分页标题#e#
Firstly, Tesla can cooperate with local e-commerce platforms in China to expand sales channels. Despite Tesla's online sales function on China's official website, it is necessary to build additional sales windows for online sales platforms with huge user groups such as Tianmao and Jingdong, considering the consumption habits of Chinese consumers and the convenience of payment. People who search for Tesla cars or similar products on the e-commerce platform tend to have a clear purchasing purpose, and their willingness to consume is stronger than those who browse on the general search engine, so Tesla can more easily target customers.

首先，特斯拉可以与中国本土的电子商务平台合作，拓展销售渠道。尽管特斯拉在中国官方网站上拥有在线销售功能，但考虑到中国消费者的消费习惯和支付的便利性，有必要为天猫、京东等拥有庞大用户群的在线销售平台建立额外的销售窗口。在电子商务平台上搜索特斯拉汽车或类似产品的人往往有明确的购买目的，他们的消费意愿比浏览一般搜索引擎的人更强，因此特斯拉可以更容易地瞄准客户。
In addition, consumers often want to have a more comprehensive understanding of Tesla's actual use experience, including not only driving control but also routine maintenance and charging. So Tesla can try to offer a paid short-term lease to potential customers, giving them ample time to understand the superior experience of Tesla cars, dispel their doubts and anxiety about new energy vehicles in all aspects, and at the same time, it can play a very good role in promoting and displaying their family and colleagues when these target customers drive home or work.
此外，消费者通常希望对特斯拉的实际使用经验有更全面的了解，包括驾驶控制，以及日常维护和充电。因此，特斯拉可以尝试向潜在客户提供短期有偿租赁，让他们有足够的时间了解特斯拉汽车的优越体验，消除他们对新能源汽车的各个方面的疑虑和焦虑，同时，在这些目标实现时，它可以在促进和展示他们的家人和同事方面发挥非常好的作用。客户开车回家或上班。
 

Promotion strategy

Armstrong et al. (2015) indicated that satisfying consumer psychology is the key to successful marketing strategies. Tesla can encourage consumers to buy Tesla's products by incorporating the discount of used cars into the sales promotion strategy of new vehicles. If the replaced old car is also Tesla product, it can be renovated by the government and provide warranty and then sold at a more preferential price for the second time to achieve another level of preferential promotion. Meanwhile, Tesla can use reality shows and other forms to prove that Tesla can achieve long-distance travel, which can increase attention, and also can dispel potential customers’ concerns about the endurance of new energy vehicles. Additionally, the company could consider setting up some environmental protection funds in the name of Tesla to study the technology of air pollution control. It could also organize some public welfare activities with environmental protection as the theme and sponsor some documentaries with environmental protection as the title, so that Tesla's brand can be equated with green environmental protection and establish a brand image that actively participates in environmental protection in the market.#p#分页标题#e#

Armstrong等人（2015）表明，满足消费者心理是成功营销策略的关键。特斯拉可以鼓励消费者购买特斯拉的产品，将旧车折扣纳入新车促销策略。如果更换的旧车也是特斯拉产品，政府可以对其进行翻新并提供保修，然后再以更优惠的价格再次销售，以达到另一个级别的优惠促销。同时，特斯拉还可以通过实况转播等形式证明特斯拉能够实现长途旅行，提高关注度，也可以消除潜在客户对新能源汽车耐久性的担忧。此外，公司可以考虑以特斯拉的名义设立一些环境保护基金，研究空气污染控制技术。还可以组织一些以环保为主题的公益活动，赞助一些以环保为标题的纪录片，使特斯拉的品牌等同于绿色环保，树立积极参与市场环保的品牌形象。

References