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THE GLOBAL BUSINESS DISTRIBUTION WITHOUT A NY INTERMEDIARY



THE GLOBAL BUSINESS DISTRIBUTION WITHOUT ANY  INTERMEDIARY



 Imagine, you are the owner of a global business firm. You want to reach all worldwide customers. Is it possible for you to reach all of them without any middleman? No? Two engineers from America had already made it possible in July 2003. A well known car manufacturing firm TESLA has been following “no middleman” strategy since 2003. Is it strange to hear that a well known brand Tesla doesn't have a single distributor till now? So, let’s discuss their story.






 Tesla is an american multinational vehicle company based in California. Two engineers Martin Eberhard and Marc Tarpenning discovered this business in July 2003. The company’s name is tribute to a great inventor and electrical engineer Nikola Tesla. Right now Elon Musk is a CEO of Tesla, one of the three employees who are named as co-founders of the company.

 One of two unique features of Tesla is that Tesla manufactures an electric chargeable motor vehicle instead of petrol or diesel based models. It is the first electric motor vehicle manufacturing industry ever in America. Tesla doesn't only sell the cars but they do sell the stories of environmental sustainability. They attract their customers and build their brand image by selling electric cars and not fuel based models that harms the environment. The other benefit of selling electric cars is everybody knows that fuel comes under one of the limited resources on the earth. So, if we see by futuristic view, when the world will start feeling scarcity of the fuel, Tesla can easily gain competitive advantage as they already have excellence and experience in manufacturing and selling electric vehicles.


 Another unique feature of Tesla is about Tesla’s distribution strategy. Many times the business has to face lots of problems because of middlemen. Usually business entities appoint middlemen to distribute their products and services. But it may create limitations like low quality service offered by middlemen, disputes among them, etc. It also increases the cost. To avoid these problems, Tesla eliminates any third party middlemen or third party distribution channels. This unique distribution strategy helps Tesla to focus more on their qualitative production by saving the distribution costs. Tesla follows two direct channels to distribute their products one is the company owned stores and another one is an online website. Tesla operates with more than 200 company owned stores and galleries around the world where 120 stores are located outside America. On the other hand, Tesla’s online website allows visitors to order a customized vehicle according to their liking and then receive it several months later when it is ready. In 2019, Tesla sold 367,500 cars without any intermediaries or a single middleman.


 In 2019, Tesla was the best selling plugin and battery electric car manufacturer in the world. Till now Tesla has announced four models, i.e. model S, model X, model Y and model 3. The Model 3 of Tesla ranks as the world's all-time best-selling plug-in electric car, with more than 500,000 delivered. Along with these there are certain unveiled models of Tesla like roadster, tesla semi and tesla cybertruck.


 Along with all these car models, Tesla also manufactures a unique set of energy solutions like, powerwall, powerback, solar roof, gigafactory-1,etc. It is always said that every business carries a bitter truth with them. For Tesla, even Tesla is a best selling manufacturer in the world, it’s bitter truth is Tesla never had a profitable year till today. But, it is always said that being patient is a key to making a huge success and this is exactly what Tesla is following. 

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