Tesla, the pioneering electric vehicle manufacturer, exemplifies the successful implementation of this strategy. By initially targeting a specific niche market, Tesla laid the foundation for its eventual domination of the broader automotive industry.

When Tesla first entered the market, it didn't try to compete with mainstream car manufacturers head-on. Instead, it focused on a narrow segment: high-end sports cars. The Tesla Roadster, launched in 2008, was the company's first product and served as its beachhead. This decision was driven by several factors, including the high cost of early electric vehicle technology, which made producing a $50,000 mainstream car unfeasible.

However, Tesla's choice of the sports car segment was not just a matter of practicality; it was also a strategic move. Electric motors offer instant acceleration, a feature highly valued by sports car enthusiasts. Moreover, this segment is less price-sensitive, allowing Tesla to charge a premium for its innovative technology.

From this initial beachhead, Tesla gradually expanded its reach. In 2012, it launched the Model S, a more affordable but still high-end sedan. This move allowed Tesla to capture a broader market while still maintaining its brand image as a luxury electric vehicle manufacturer. Finally, in 2017, Tesla introduced the Model 3, a more accessible car aimed at the mass market.

Tesla's naming convention for its models is a nod to this strategic expansion. The Roadster, Model S, and Model 3 are named after the Ford Model T, the car that revolutionized the automotive industry in the early 20th century. By borrowing these names, Tesla signaled its intention to disrupt the industry in a similar fashion.

Tesla's beachhead market strategy has proven highly effective. By starting with a niche market and gradually expanding, the company has been able to establish itself as a leader in the electric vehicle industry. Its success has forced traditional car manufacturers to invest heavily in electric vehicle technology, accelerating the transition to electric vehicles.