Business Strategies of Tesla
Added on 2022-12-20
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Running head: BUSINESS STRATEGIES OF TESLA
BUSINESS STRATEGIES OF TESLA
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BUSINESS STRATEGIES OF TESLA
Name of the Student
Name of the University
Author Note
1BUSINESS STRATEGIES OF TESLA
SWOT Analysis
Strengths
The company has a well known CEO with a very good track record, it also uses the
company’s official stores or dealers for selling their cars.
It is the first company which has successfully manufactured the luxury and fully electric
vehicles.
The company is very popular among the younger age groups who are very likely to use
the social media (Oduro and Akpabot 2019).
Weakness
The CEO of the company is a transformational leader who is also a CEO of Space X
Company; therefore it becomes very difficult for him to maintain two companies.
Tesla Company does not have a proper dedicated hardware, and other measurement
devices.
The company is also facing various challenges from its competitors and facing a serious
challenge from the signal ratios and satellite imagining of the cars.
Opportunities
There is an increase in an awareness and supports to the environment, because of its
electric cars.
It also has a large international market potential.
The company is also using lower cost material and applying cost cutting techniques
which are appealing to a wide range of customers.
SWOT Analysis
Strengths
The company has a well known CEO with a very good track record, it also uses the
company’s official stores or dealers for selling their cars.
It is the first company which has successfully manufactured the luxury and fully electric
vehicles.
The company is very popular among the younger age groups who are very likely to use
the social media (Oduro and Akpabot 2019).
Weakness
The CEO of the company is a transformational leader who is also a CEO of Space X
Company; therefore it becomes very difficult for him to maintain two companies.
Tesla Company does not have a proper dedicated hardware, and other measurement
devices.
The company is also facing various challenges from its competitors and facing a serious
challenge from the signal ratios and satellite imagining of the cars.
Opportunities
There is an increase in an awareness and supports to the environment, because of its
electric cars.
It also has a large international market potential.
The company is also using lower cost material and applying cost cutting techniques
which are appealing to a wide range of customers.
2BUSINESS STRATEGIES OF TESLA
The advances in the technologies will also help the company in increasing the battery if
and other innovations.
Threats
It will be facing many threats from its competitor brands.
The lawsuits can also delay the innovations.
The loss of government subsidies will also drive up the prices.
2. The potential pitfalls which the company needs to avoid is that it had taken more than
300,000 orders of its Tesla model S but due to the federal tax credit which is currently
unavailable will be bringing down the price of the cars by $27, 000 as reported by
Akpabot(2019). However if the customers are adding other options the price of the cars will be
escalating quickly, which has made the average sales of the car to be $100,000.
Another issue is that the US federal tax phase will b fading out for Tesla in the coming
years and the customers will be ending with cancelling the vehicles. Also the company will b
recently coming up with the latest model of Tesla S but the price of the vehicles will be much
low which is the reason why the company is slowly losing the reservation of stakeholders.
3. Tesla is known for using the related diversification that they moved into a new industry
which has a very important similarity with the firm’s new and other industries. Tesla has also
build a strong successful business model in bringing compelling electric car models into the
market. The company has started the new concentric diversification that is known for involving
the similar products or services to the existing business. This can be taken as an example that is
Tesla previously used to manufacture the electric cars only. Elon Musk is the present CEO of the
The advances in the technologies will also help the company in increasing the battery if
and other innovations.
Threats
It will be facing many threats from its competitor brands.
The lawsuits can also delay the innovations.
The loss of government subsidies will also drive up the prices.
2. The potential pitfalls which the company needs to avoid is that it had taken more than
300,000 orders of its Tesla model S but due to the federal tax credit which is currently
unavailable will be bringing down the price of the cars by $27, 000 as reported by
Akpabot(2019). However if the customers are adding other options the price of the cars will be
escalating quickly, which has made the average sales of the car to be $100,000.
Another issue is that the US federal tax phase will b fading out for Tesla in the coming
years and the customers will be ending with cancelling the vehicles. Also the company will b
recently coming up with the latest model of Tesla S but the price of the vehicles will be much
low which is the reason why the company is slowly losing the reservation of stakeholders.
3. Tesla is known for using the related diversification that they moved into a new industry
which has a very important similarity with the firm’s new and other industries. Tesla has also
build a strong successful business model in bringing compelling electric car models into the
market. The company has started the new concentric diversification that is known for involving
the similar products or services to the existing business. This can be taken as an example that is
Tesla previously used to manufacture the electric cars only. Elon Musk is the present CEO of the
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