Analysis of Tesla's Competitive Position and Challenges in Different Markets

Business and law

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Analysis of Tesla's competitive position in different markets and how does the respective
company can gain competitive advantage...................................................................................3
Different challenges Tesla needs to consider when trading across different borders.................3
Porter’s five forces model...........................................................................................................5
Supply chain management of Tesla............................................................................................6
Generic strategies of Tesla..........................................................................................................8
Challenges faced by Tesla...........................................................................................................8
Marketing strategy of Tesla........................................................................................................9
Blue ocean strategy of Tesla.....................................................................................................10
Considerations for the Tesla, to be focused when it tries to create a positive social impact....11
PART 2..........................................................................................................................................14
Theoretical tools for the Tesla with brief explaination to enhance its business........................14
CRITICAL ANALYSIS................................................................................................................21
REFLECTION...............................................................................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
According to the views of (Backer, 2017), business play an important part in developing
an economy as it helps in generating employment opportunities in a country. On the other hand it
should be the responsibility of a business to follow all the regulations and rules for flexible and
legal operations. There are various laws which are related with business in an economy, they are
to be followed precisely. This project includes a brief analysis of competitive position in various
markets and how that company can gain competitive advantage. The above report includes
various cross border challenges of a business when it performs its trade operations. This report
also concludes application of theoretical tools for a company and also considerations a company
has to keep in mind to gain competitive advantage. In this project example of TESLA company
is taken into consideration, it is an Electric car manufacturing multinational company which
is headquartered in California, United States. The main aim of this project is to find out the
functioning of Tesla at the marketplace. It is very much important to understand operations and
functioning of Tesla in order to learn more about global business environment. It is crucial to
understand different aspects of business functions which are related to Tesla to create and
develop critical learning about management activities.
PART 1
Analysis of Tesla's competitive position in different markets and how does the respective
company can gain competitive advantage
Different challenges Tesla needs to consider when trading across different borders
According to the views of (Chung, 2018), there are several challenges which are faced by a
business when they perform their trade operations outside the local market. As Tesla is a
multinational car manufacturing company, it is necessary to distribute various products at the
marketplace. The company majorly deals in car export, so there are various challenges available
to the company at the global marketplace. In order to develop a comprehensive approach at the
global marketplace, the company has to choose optimum ways to facilitate export in bulk
quantity. There are also rules and regulations which are formulated by different governments for
global businesses. Tesla should consider all the necessary factors which are related with the
charges that are imposed on its products while doing export. It is essential for the company to
keep an eye on every minor factor that impacts its business when it trade cross borders. Being a

multinational company, Tesla perform different operations by exporting its cars at the
marketplace. The logistics management of the company should focus on various issues which
arise during handling trade practices.
 Time management- In a business time management play a crucial role, this is because it
helps in the development of various mechanisms which are essential in trading. It is
important for a business to achieve proper time management with critical functioning.
According to theory of time management” the application of proper time management
practices at Tesla will enhance its trade operations as well as lead to proper functioning at
marketplace. Time management should be performed by framing various short and long
terms goals by the company. In an organisation, time management is the responsibility of
top level management. The top level management should consider all the factors which
impact the functioning of a business at the marketplace. Effective time management in a
business increases the overall efficiency as well as helps in achievement of organisational
goals and objectives.
 Shipping and logistics- These are major issues which are arises in a company when it
performs transfer of goods and services at the marketplace. When Tesla exports its
products at the global marketplace, it is important for the company to pay charges and
fees in the form of Import duty. As per the views of (Ciepley, 2019), the shipping and
logistics department of the company also faces various issues while transferring goods.
These issues also include technical harm which can arise in a ship; this could be a major
problem for Tesla. To manage various functions related to logistics management, Tesla
has hired a professional staff. Logistics charges are also a major challenge for a company
to manage arrangement of goods.
 Additional and overhead costs- As the process of trade across different countries is very
much cost consuming for a business. The overhead charges are also faced by various
companies, when they perform export operations in global market. These costs increases,
the price of product at the global marketplace and also inclines the companies to do a
large amount of expenditure. There are additional charges which are faced by Tesla while
exporting electronic cars.
 Local marketing and promotions- It is very much essential for a business to promote its
product at the global market. There are various types of promotional techniques which

could be used by a business in order to promote its product. Marketing operations in
some other country require various efforts by the company to develop business. As Tesla
is a huge company, it has to do a specific amount of investment in order to do achieve
competitive advantage at the marketplace. The company has to look for professional
marketing staffs which indulge in advertisement of the company at the local marketplace.
It is hard for the company to attract customers from local market as the interest of local
customer lies in the local products. In order to attract large number of customers from the
marketplace, it is essential for the company to generally develop a precise strategy for
marketing operations. Local marketing and promotions should include huge investment
in order to reach large number of customers. It is recommended for Tesla to provide test
drive to its customers who visit showroom in other countries to gain their interest. In the
era of stiff competition between various companies, it is essential for the company to
manage its operations with proper marketing strategy.
 Lack of supervision- As stated by (Contractor, and et. al., 2020), in order to perform
effective trade operations, there should be a proper monitoring process of the company.
There can be lack of supervision, in the operations and functions of the company while
exporting its product. It is recommended for Tesla to implement a proper type of
supervision and monitoring practices which are required in order to gain edge. In the
practice of trade, it is also essential for the company to deploy a proper approach in
monitoring process to gain competitive advantage. In order to create an effective
supervision in functioning of the business, company should deploy professional
information and technology to timely monitor all of its major activities. Effective
surveillance systems should be installed at the workplace in order to track all the major
operations of the company. It should be ethical responsibility of human resource
management of the company to maintain integrity in the operations of company.
Porter’s five forces model
 Bargaining power of buyers- The bargaining power of customers play a crucial role in
the development of a business. According to the intensity and level of bargaining power
of buyers for Tesla, the revenue generation and growth of the company are affected. As
whole, according to the current situation the bargaining power of the customers for Tesla

is very low. This eventually means that company has major strength over its competitors
in order to gain competitive advantage at the marketplace
 Bargaining power of suppliers- As Tesla Company takes supply from various
distributers which are present at the marketplace. Bargaining power of suppliers is also
low which is an advantage to Tesla in terms of gaining edge over competitors and survive
at the marketplace. The bargaining power of suppliers matters more for a business in
order to tackle various advantages related to performance of a business. This power of
buyers is helpful in development of various aspects which provides company major
competitive advantage at the marketplace.
 Threat from new entries- As Tesla is a major established company at the marketplace,
there are fewer threats which are faced company at the marketplace. In order to access
threats from new entrants company have to analyse future market. The new entrants
which are present in the development of business play a crucial role in increasing
efficiency and effectiveness at the marketplace
 Threat from substitutes- Threat from various substitutes at the marketplace is very low
as there are fewer substitutes which are available at the marketplace. It is compulsory for
professional management which is present in company to perform assessment of different
threats. Tesla is having good advantage of having fewer threats from substitutes which is
a major point.
 Competitive rivalry- The competitive rivalry which is present for Tesla is also very low
that plays a crucial role in increasing competitive threat for Tesla. Management which is
present in Tesla is successful in identifying different competitors and the results are positive
for the company.
Supply chain management of Tesla
It is essential for a business to maintain precise supply chain in order to achieve market
efficiency and business growth. Tesla focuses regularly on different aspects of supply chain in
order to develop different goals and objectives. The company is supported by logistics
management and information and technology in order to perform best operations related to
supply chain management.
 Supply chain of Tesla is managed by professional marketing team in order to reach
effective results.