Ch. 16 - Promotional Planning for Competitive Advantage

Tesla dealt with global chip supply shortages by pivoting exceptionally quick to new microcontrollers and developing firmware for new chips made by other suppliers. Always planning for competitive advantage, Tesla now can reuse older chips and rewrite the software due to its coding superiority. The competitive advantage for Tesla doesn't stop there as its shown in its economies of scale and vertical integration of battery, motor, software, firmware, and hardware. On promotional planning for competitive advantage Tesla pledged from inception to become affordable to fulfill its mission statement and has already started cutting prices, doing so six times in 2023 alone, to boost sales, and fence off the growing number of competitors. The smart move has sparked demands worldwide and, in the USA, made more tesla models eligible to benefit from a tax incentive of $7,500 for EV's under 55k.