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Expanding Tesla’s Market Share in China: Strategic Approaches and Execution

Business StrategyInternational Business

A strategic management paper, co-authored at Copenhagen Business School, on how Tesla can integrate its corporate social responsibility goals with its business strategy in the world’s largest electric vehicle market.

It combines PESTEL and Porter’s Five Forces analysis with a SWOT/TOWS assessment, weighing the Shanghai Gigafactory and local production against fierce competition, rapid technological change and rising regulatory standards.

Porter's Five Forces

In China, Tesla's pressure comes from buyers and rivals, not newcomers

Buyer power

low switching costs

very high

Industry rivalry

BYD, NIO and Xpeng

high

Threat of substitutes

public transport, fuel-cell cars, other EVs

moderate to high

Supplier power

batteries and semiconductors

moderate

Threat of new entrants

named entrants: Xiaomi and Alibaba

relatively low
Ratings are the paper’s own wording, placed on an ordinal scale; they are judgements, not measurements. The analysis feeds a SWOT and the paper’s case for aligning CSR goals with business strategy.