Case Study of Tesla Assignment

Running head: ANALYSIS OF TESLA CASE STUDY
ANALYSIS OF TESLA CASE STUDY
Name of the Student
Name of the University
Author Note

ANALYSIS OF TESLA CASE STUDY1
Answer to Question 1
Tesla is an organization which operates in the automobile industry and has gone
through significant breakthrough in the industry of electrical vehicles. The company launched
its first model named Roadster in the year 2003. Tesla has also been facing a challenging
situation in the recent times due to the growth of competition and entry of new automobile
organizations in the industry. The family sedan was launched by the organization in the year
2012. This model was the representative of the entry of Tesla into the family cars market. The
upper luxury market of the automobile was targeted by Tesla with the help of this sedan of
Tesla (Tesla.com. 2018).
Tesla is however facing huge competition from organizations like the Toyota Motor
Company which is a multinational organization and has its origins in Japan. The organization
further owns a luxury brand named Lexus. The largest market for the Toyota Motor
Company lies in Japan and North America. The goal of the organization is to achieve around
40% of the total share of the market in Japan. The company has a partnership with Tesla for
the purpose of procuring the specialised equipments that are required for the manufacture of
its products (Cegliński 2016).
Another major competitor of Tesla in the automobile market is General Motors which
is also considered to the second largest automobile manufacturer in the world in terms of the
volumes of production. Ford Motor Company is also another company which provides huge
competition to Tesla in the automobile industry in the entire world. The primary market
which is served by Ford is in the United States, however the Ford does not have a vast
international presence like General Motors. Ford has focussed its attention on a small range
of its products rather than producing different types of products in the market. Ford had
planned to manufacture electric cars in the 2011 (Chacour and Ulaga 2015). The name that

ANALYSIS OF TESLA CASE STUDY2
was given to the electric cars of the company was the Focus Electric, which can be
competitive with the products of other organizations like, Chevy Volt and Nissan Leaf.
Honda Motor Company is another huge multinational organization which has its
origins in Japan. Honda provides a diverse range of products to the customers and the net
sales of the organization that comes from outside of Japan amounts to 79%. The vehicles of
the company are mainly known in the market for their efficiency and the durability. These
features have helped the company in creating a different position in the industry. The electric
car model of Honda was launched in the year 2010. The electricity based vehicles of the
organization are divided into three groups which are, sport, economic and the normal modes
(Frow et al. 2015).
Nissan also provides tough competition to Tesla in the automobile industry. Nissan
also has its origins in Japan. The organization has recently launched an initiative which is
based on the acceleration of its growth in the industry. The company has also increased the
focus of its operations in the production of electric vehicles. The EV Leaf was launched by
Nissan and had received positive reviews from the various customers.
Answer to Question 2
The internal environment of Tesla can be analysed based on the SWOT framework –
Strengths, core competencies and capabilities of Tesla – The unique position that is
held by Tesla in the automobile market is the major strength or core competency of the
company. The organization thereby has the capability to transform the concept and ways of
driving in the changing environment internally and externally. The innovative technologies
that have been developed by the organization have been the major sources of competition that
Tesla can provide to the other organizations in the industry. The company has been