Business Strategy for Tesla Motors

This document discusses the business strategy of Tesla Motors, focusing on their strategic goals, competitive advantages, competitor analysis, and environmental analysis. It also includes a SWOT analysis and recommendations for the company.

BUSINESS STRATEGY
TESLA MOTORS

BUSINESS STRATEGY
Contents
Introduction & Industry.........................................................................................................................3
STRATEGIC GOALS AND COMPETITIVE ADVANTAGES...........................................................................3
COMPETITOR’S ANALYSIS......................................................................................................................3
FIVE FORCES ANALYSIS..........................................................................................................................3
ENVIRONMENTAL ANALYSIS..................................................................................................................3
SWOT ANALYSIS.....................................................................................................................................4
RECOMMENDATION..............................................................................................................................4
REFERENCE............................................................................................................................................5
Introduction & Industry
Tesla motor Inc. is an American electric automobile manufacturer. It was founded in
2003 and known for designing, manufacturing and selling fully operated electric vehicles and

BUSINESS STRATEGY
energy storage systems. It also operates and maintains solar and energy storage products.
Tesla is offering environment friendly electric cars but which are not releasing carbon
submissions like other gas cars or not so costly like other fuel cars are. Tesla is very popular
for their electric cars all over the world.
STRATEGIC GOALS AND COMPETITIVE ADVANTAGES
The main strategic goal of tesla company is to speed up the beginning of bearable
transport by making a very convincing electric car for the quantity market. They have a great
leadership of Elon musk who has started this different segment of electric vehicles. It also
helps in controlling costs of the company. It runs with electricity and hence not having the
highest capital costs. It is much economical than the other segment cars which runs on fuel.
Tesla is selling directly to it consumers which cuts the cost of intermediate brokers or
agencies. They are operating directly in the market with some of the joint ventures who have
a good reputation in the market. The main competitive advantage is of eco-friendly with the
environment and low running costs as compared to other segment cars.
COMPETITOR’S ANALYSIS
The business or industry of electric cars is on a successful expansion and soon the
worldwide trend in sales of electric automobiles will get a rise of almost 62% in all over the
world. Competitors of Tesla are also running very fast as it is a new segment for them also.
FIVE FORCES ANALYSIS
Five forces analysis is really important for any of the company or the organization as
it shows the complete threats a company may have like threats of new entrants or the
competitors which can share our market, bargaining power of the suppliers as well as of
buyers so that price rise will not be there. Other threat is from the temporary products
available in the market, it will provide the customers with other options and the
competitiveness among the present companies or the competitors as well. (Dudovskiy, 2018)
ENVIRONMENTAL ANALYSIS
Tesla is offering many benefits either it is a political, economic, social, technological,
legal or environmental factor. Tesla being as an electric vehicle doesn’t require plenty of fuel
to run like other vehicles. Sales of electric cars helps the global economy increasing day by
day and running cost of these particular cars is very low so it is great for the company as well
as it’s consumers. Electric car is eco-friendly with the environment and very much
economical than the other cars which are consuming much fuel while running of course.
While the technology factor also helps as these electric cars are fuel efficient and running on
latest and newer technology which is an advanced segment. Legal factors in mind will help
Tesla to keep them up to date to expand fast globally and they are eco-friendly so they can
promote their vehicles as energy effective vehicles. Environment friendly Tesla is also
popular because they use electricity more than gas and doesn’t influence carbon releases as
compared to other fuel consuming cars. (Frue, 2018)
SWOT ANALYSIS
There are many strengths, weaknesses, opportunities and threats also for every
company and same is for Tesla motors. They have many strengths like their marketing

BUSINESS STRATEGY
knowledge is a positive factor for them when they have announced electric car for the first
time, the company has a good brand reputation which can further help them in expanding
their business internationally, tesla motors are offering the products which are really
inventive in nature. On, the other hand there are some weaknesses like they have limited
funds which is a barrier for introducing new products in the market, they have a very low
capacity manufacturing which slows down them in the market and many adverse occurrences
may damage the growth of the company. There are some Opportunities they can grab like
market of electric cars is in a rising stage so they can expand very fast in the international
market, they can also work with other companies like Toyota and moreover their products are
atmosphere friendly so will be able to fulfil with the atmosphere policies. Unlike other
companies they have some threats like other companies are also entering in the same industry
which is giving hard competition and market expansion is so fast that new market study can
also change the style of the whole business. (Dalvagas, 2016)
RECOMMENDATION
To enter and to expand fast in international market it is really important to conduct a
viability learning. This sector is new and companies like Tesla has a higher opportunity to
enter in the international market with a good existence and their rising stage.
REFERENCE
Dalvagas, I. (2016). Swot analysis. SWOT Analysis: Tesla Motors, Inc.,. Retrieved from
http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Tesla_Motors,_Inc_.aspx#.X
OoHi7puKM8

BUSINESS STRATEGY
Dudovskiy, J. (2018). Five forces analysis. Tesla Porter’s Five Forces Analysis,. Retrieved from
https://research-methodology.net/tesla-porters-five-forces-analysis-2/
Frue, K. (2018). Environment analysis. PESTLE Analysis of Tesla Inc.: The growth of the eco-friendly
electric car,. Retrieved from https://pestleanalysis.com/pestle-analysis-of-tesla/