Applied Corporate Strategy

APPLIED CORPORATE
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Q1 EXTERNAL ANALYSIS..........................................................................................................3
PESTLE Analysis........................................................................................................................3
Porter’s Five Forces Model of Tesla...........................................................................................4
Opportunities and Threats of Tesla..............................................................................................6
Q2 INTERNAL ANALYSIS...........................................................................................................7
VRIO Model of Tesla..................................................................................................................7
Strengths and Weaknesses of Tesla.............................................................................................8
CC Analysis...............................................................................................................................10
Q3 RECENT STRATEGY............................................................................................................10
SAF Model.................................................................................................................................11
CONCLUSION..............................................................................................................................12
A SUMMARY OF THE ORIGINAL FEEDBACK.....................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
A corporate strategy is clearly defined as, long-term objective that companies or
businesses set for creating their corporate value in the market, and motivate to workforce for
implementing the appropriate actions for achieving huge customer satisfaction. Currently top-
level management within most businesses focuses on making very effective corporate strategy
gain huge competitive advantage in this competitive market. In this modern and dynamic world,
no company can survive in the market without adopting an effective corporate strategy. This
report discusses Tesla motor’s corporate strategy. There is Tesla motors is an American electric
vehicle manufacturing company, headquartered in California, United States. Some other aspects
also have been discussed in this report which has based on Tesla’ corporate strategy. Thera are
external and internal analysis has conducted for the Tesla in this report to deeply analysis its
structure of corporate strategy. Some models and frameworks also has used in this report for
identifying and analysing different business environment factors of Tesla Motors.
Q1 EXTERNAL ANALYSIS
PESTLE Analysis
This is analytical tool which helps business to analyse external factors in the business
environment. This also helps the businesses to develop effective strategy to compete in the
market.
Political Factors
Due to increase in the demand of electrical cars government has imposed high taxation to
earn revenues from the company this has impacted the profit margins to grow in the market.
Economic Factors
Increase in employment in the global economy has also increased the cost of pay
employees more. This has influenced the allocation of resources of Tesla for future innovations.
Social Factors
Change in preferences of customers and increased the sales of company as it reduces the
cost of maintenance of customers. However customer with traditional mindset does not trust
electric cars which have impacted the market size.

Technological Factors
Company has to invest heavily in innovation, research and development as technology is
changing very fast. This is impacting the efficiency of products and services which Tesla offers
in the market.
Environmental Factors
Global environmental concerns like global warming have affected the climatic changes.
As Tesla has developed electric cars it is also helping to increase its visionary cause and brand
value to grow effectively.
Legal Factors
Implementation of high safety and security laws on electric cars has slowed the efficiency
of Tesla to grow. It has also increased the cost to be in compliance and be ethical and legal in its
operations. It is impacting its market share and profit margins negatively.
Porter’s Five Forces Model of Tesla
There are many factors which hells to increase the productivity of the organisation and
provide effective understanding to compete in market and attain higher profit margins
effectively. Porter five forces model helps to analyse the entire factor which can impact the
competitiveness of Tesla to reduce its market share in market and also impact its growth
opportunities effectively (Bolodurina, 2016). This model is also very essential for Tesla to
develop effective understanding of the future trends of customers to increase the productivity and
quality of their cars to provide satisfaction and increase the quality of products to gain higher
profit margins. To evaluate industry attractiveness, it is very essential for Tesla to adopt this
model and increase the productivity of company and attain core competency in market
effectively. Due to increase in the trends of solar energy company also has to understand its
threats and opportunities top gain effective understanding before investing in this sector to gain
higher profit margins effectively.
Threat of New entrants (High)
Increase in demand in automotive industry the threats of manufacturing companies have
also increased due to high risk of new entrants which can impact the market short of the
company and also influence the profit margins of the company. Tesla is having high risk of new
entrants in the market as many companies are very innovative and also invest much on research
and development to increase the performance of the products and increase satisfaction of the