PESTLE and SWOT analysis of Tesla
12 Pages3916 Words417 Views
Added on 2021-02-19
PESTLE and SWOT analysis of Tesla
Added on 2021-02-19
ShareRelated Documents
BUSINESS STRATEGY
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1PESTLE Analysis and Swot analyses..........................................................................................1Porter Five Forces Analysis.........................................................................................................3TASK 2............................................................................................................................................5Different strategic directions available to business.....................................................................5Justification and recommendation for most effective strategies..................................................6Strategic management plan..........................................................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness Strategy is the combination of all the decision taken to influence the work of theorganisation to accomplish the organisation goal very efficiently (Scholes, 2015). Tesla is anAmerican automotive company specialised in making electric car based in Palo Alto, California.Tesla was founded in the year 2003 by the founder Martin EberhardandMarc Tarpennin. Thisreports highlight the PESTLE and SWOT analysis of the Tesla. Further this report shows thePorters five factor analysis of the organisation and also shows the Ansoff matrix of theorganisation. Further these report goes on to show the recommendation of the strategy which canbe most beneficial for the organisation to grow in the market. In the end report shows theStrategic management plan with strategy, objective and Plan.TASK 1PESTLE Analysis and Swot analysesPESTLE analyses or external environment of TeslaPolitical Factor: Tesla is well known for producing electronic vehicle. Unlike the othertraditional vehicle which requires the fuel to operate. As the government of US always supportthe non fuel vehicle Tesla is getting a good support from the government side in promoting theawareness of the product in the market. Tesla has tried to enter into the new market through theirelectric car but the success in that market generally depends upon the economy of the country(Akter and et.al., 2016).Economic Factor: As the global economy is growing frequently demand for the luxury'sproduct is also growing as the reason growing economic has resulted in increase in the demandof the electric car which has benefited Tesla as Tesla has gained a good name in the electric carindustry till the demand has come which has resulted in increase in the sell of the Tesla product.Fall in the price of the raw material specially electric batteries has also helped the Tesla inreducing the price of the product which has also helped the business in facing a new entrantthreat in the market as many well known car producer has introduced the electric car (Thompson,Strickland and Gamble, 2015).Social Factor: In today's world people love to have an Eco-friendly car as they believe in savingthe environment, it cannot be said that it is cheaper to use as compare to the fuel car but it is truethat electric car does not harm that much of environment as compare to the fuel car which hashelped the Tesla in gaining a good name in the eye of the customer, these has also helped the1
Tesla in getting competitive advantage as other company find it difficult to gain a name ascompare to the Tesla (Pisano, 2015).Technology Factor: Technology is the only way the Tesla is able to gain a competitive edge inthe market and able to sustain the place in the market but at the same time it is also proved toughfor the business to cope up with the technology as the technology used to change rapidly it hasproved a tough task for the firm to evaluate the technology and used the best one to get theperformance out of it (Amran and et.al., 2016).Legal Factor: Legal factor is the factor which is helping the Tesla also but at the same it is alsohurting the business as Tesla is now looking to enter into global market by selling their productinto new market, as almost all the government support the electric car it is proving good for theorganisation but at the same time all the government has their own rules and regulation which isletting to fluctuation in the price value of the product and which eventually proving in losing theprice advantage in the global market (Chang, 2016).Environmental Factor: it is the main factor where the strength of the Tesla lies as Teslaproduces the electric car which is environment friendly product so Tesla always promote theproduct with the environment friendly tag line which helps the business to have a good name.SWOT AnalysisStrength: Tesla main strength lies in the innovative idea to sell the electric car to thecustomer when Tesla started to sell the electric car Tesla was a only company in theindustry and has enjoyed the success of the market alone and which has also helped theTesla in earning a good name in the market which has helped the business as goodwill isalways looked before making buying decision. Tesla strength also lies in the productwhich Tesla develops as the product develop by the Tesla is luxuries product and Teslanever compromises on the quality aspect of their product and that's the big reason ofcustomer attracting toward the company (Buckley and Ghauri, 2015).Weaknesses: Tesla has faced the problem in cash maintaining for the business as Tesla isinvesting very much of their cash resources in buying the resources for the research anddevelopment program and also trying to cover more market area in the global market bydiversifying their business and it requires a very big investment so from the last few yearTesla is finding it difficult to maintain the good cash reserve with them as the result Teslawas also supported by the government by providing$365 million USD from the2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Strategic Management Plan of Teslalg...
|13
|3596
|111
Business Strategy Assignment PDF - Teslalg...
|13
|4007
|145
Unit 32 Business Strategylg...
|15
|5095
|87
Business Strategy: PESTEL Analysis, SWOT Analysis, Porter's 5 Forces Modellg...
|14
|4407
|1
Business Strategies of Tesla Assignmentlg...
|15
|3625
|27
Business Strategy: Analysis and Evaluationlg...
|14
|4616
|1