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GBMT 2008 Global Business Strategy 2 - Selecting The Business, Product And Expansion Geography
Choose an origin location:
Tesla, an American-based company, traded on NASDAQ.
Identify the products or services that will be part of the targeted expansion:
Product: Electric Cars
Different types: Model S, Model Y, Model X, Model 3
Product links: https://www.tesla.com/en_ca/models
https://www.tesla.com/en_ca/modely
https://www.tesla.com/en_ca/modelx
https://www.tesla.com/en_ca/model3
Identify the destination/target expansion country for the international expansion:
Saudi Arabia
Clearly define why the selected international market was chosen and why it makes sense for the identified company:
Tesla does not operate in Saudi Arabia. Being a major exporter of oil, Saudi Arabia has great access to such fossil fuel, however, with an ongoing world crisis and the possibility of Russia choosing to withdraw itself from supplying oil reserves, Saudi Arabia has great potential of becoming a much more prominent exporter of the same - which means greater demand will result in greater prices for the home country as well.
Therefore, with the rate at which the country is progressing, it only makes sense to invest in a sustainable business idea - Tesla - that can help resolve this potential issue.
Identify a city, province, or state in the targeted country – share why that city was selected for international expansion:
Neom - a futuristic mega-city on the Red Sea coast in the northwestern Saudi province of Tabuk. The city's name "Neom" means a "new future"; the city is "an ambitious plan to revolutionize Saudi society, reduce dependence on oil, and make the country a technology hub" (Bostock, 2019) - which makes it the best option for this international expansion. In addition, it also embodies Tesla's vision of futuristic sustainability.
Reference: Bostock, B. (2019, September 23). Everything we know about Neom, a 'mega-city' project in Saudi Arabia with plans for flying cars and robot dinosaurs. Business Insider. https://www.businessinsider.com/neom-what-we-know-saudi-arabia-500bn-mega-city-2019-9#neom-is-part-of-vision-2030-an-ambitious-plan-to-revolutionize-saudi-society-reduce-dependence-on-oil-and-make-the-country-a-technology-hub-3 Retreived 28 May 2022.
