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STL takes a look at three strategies that will demystify strategy<\/a> and inspire your leadership<\/a>.<\/p>\n \u201cAlmost any new technology initially has high unit cost before it can be optimised and this is no less true for electric cars… The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model.\u201d<\/p>\n Tesla won market share from other luxury gas-fuelled models. It achieved stellar reviews with the press. The Car and Driver publication wrote that the roadster model was \u201cnot just a car, but one of the strongest automotive statements on the road.\u201d Building on the successes of other models, the Model S sedan launched in 2013.<\/p>\n Besides that, Tesla was able to manage its costs by designing and assembling the cars in-house. By early 2018, nearly 225,000 Model S sedans had been sold. In 2017, Model S sales approached the combined sales of the BMW 6 and 7 series and the Mercedes-Benz CLS and S class.<\/p>\n In the turbulent airline industry, Singapore Airlines performance is peerless. The carrier rarely reports a negative return: just twice in 47 years, and since its last loss in 2017 it recovered to report its highest profit in seven years. Singapore Airlines consistently outperforms its competition and has won hundreds of industry awards and plaudits for the quality of its service.<\/p>\n Through the successful execution of a dual strategy: service excellence and innovation combined with cost effectiveness. Between 2001 \u2013 2009, Singapore Airlines \u2013 a full-service carrier — had lower costs than most European and American budget carriers.<\/p>\n Most importantly, Singapore Airlines makes these two often incompatible strategies work together by running a fleet of relatively new planes. In 2009, the average age of its aircraft was just over 6 years old, which is less than half the industry average. The benefit of this is:<\/p>\n At the beginning of the century, the future of Hornby — the historic British model railway — brand looked uncertain. In order to turn the tide, the CEO at the time, Frank Martin, decided that a change of direction was required. Rather than continue to focus on a young audience he took aim at collectors and hobbyists.<\/p>\n Therefore, Hornby\u2019s strategy was to make perfect scale models (instead of toys), which would appeal to a sense of nostalgia amongst the new target audience.\u00a0The strategy was hugely successful and Hornby\u2019s share price rocketed up from \u00a335 to \u00a3250 in the next five years.<\/p>\n Give your strategy every chance of success by ensuring you put in place something worth implementing. These three case studies give you a clear understanding of what great strategy looks like.<\/p>\nTesla: Take the High Road <\/strong>\u00a0<\/strong><\/h5>\n
Elon Musk first articulated Tesla\u2019s strategy in his Master Plan:<\/h6>\n
Singapore Airlines: Service Excellence & Low Cost<\/strong><\/h5>\n
How does it achieve all of this so consistently?<\/h6>\n
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Hornby Railways: A Change of Direction<\/strong><\/h5>\n
Conclusion<\/strong><\/h5>\n