Corporate Strategy for Tesla: Opportunities, Threats, and Competitive Advantage

Corporate Strategy

Table of Contents
INTRODUCTION .........................................................................................................................3
External Analysis and its conclusion on the basis of opportunities and threats..........................3
Porter's five force for Tesla.........................................................................................................6
VRIO model for Tesla and its links with competitive advantage...............................................7
SWOT analysis of TESLA..........................................................................................................9
Strategy and test for the organisation........................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Corporate strategy is a subset of organisation plans which is used to choose and develop
the particular market through implementing a desired set of action and goals. This is defined as a
firm's corporate action with the aim of achieving organisational goals and objectives. In simple
terms corporate strategy can be defined as a clear and long term vision which is set by
organisation to generate more corporate value in the organisation. This report is written from the
perspective of Tesla which is one of the leading manufactures of electric cars. Its headquarter is
situated in California (Channon and Jalland, 2016). Moreover, this report highlights on various
factors external and internal environment in order to identify opportunities and threats and
strength and weakness of the organisation. Along with Porter's five forces will also be included
to understand about industry attractiveness. In the last, an effective corporate strategy will also
be chosen that also be evaluated on the SAFe test.
1External Analysis and its conclusion on the basis of opportunities and threats
PESTLE can be defined as an effective framework or tool that is used by marketers for
analysing the external environment of organisation. It is mandatory for Tesla to implement this
model as it helps management to identify the upcoming opportunities and threats for
organisation. It governs that external environment directly or indirectly impacts on operations
and functions of organisation. Implement of PESTLE tool for the respective organisation is
mention as follow:
Political factor- This aspects of the PESTLE analysis leads the organisation to identify the
changes related with politics, government and country rules which are mandatory to follow by an
organisation in order to perform their business effectively. This determines governmental entities
are one of the major aspect that impact on the business and industry performance. Companies is
performing their business in auto-mobile industry (David and David, 2019). So it is mandatory
for them to perform their operations according to industry rules and regulations. Moreover, in
UK the political conditions of government are stable and its incentives in terms of electric auto-
mobile works as an opportunity for companies. On the other side, companies is increasing their
business size by generating new global trade agreements so it also works as a positive factor or
opportunity for organisation because it helps them to attract more number of customer's. In the

last, political stability of the major market and countries helps organisation to generate more
effective strategies for the operations and functions of companies.
Economic factors- The impact of the organisation through economic policy such as
interest rate, value of currency, market growth and trade activities are considered in the
economic PESTLE of an organisation. As per the present economic conditions of UK, Brexit
impacted on the business due to which business policies must generated by automative industry
that helps them to make find economic value in their products. Car manufactures face challenges
because of low factors it governs that as per the present scenario, management see as a threat to
the economic conditions of PESTLE (Dodgson, 2018). So to overcome from this Tesla and
other car manufacture introduces new methods such to reduce waste from their process. It leads
organisation to reduce the cost of their process. Moreover, the wide area of the UK market also
provides high opportunities to market. Such as low battery cost and renewable energy cost works
as opportunities for manufactures of cars. So with the implement of this management easily
reduces the possibilities of decreasing their performance by maintaining economic stability for
organisation. With the growth of the economy the income of the people also increase which
offers opportunity for the industry as they will be able to purchase the cars.
Social factor- Social conditions such as trend, emerging market, change in consumer
demands are some of the most important factor that are undertaken under the social factor.
Moreover, this part of the organisation leads the management to complete their work by ensuring
that its products impact on the target market. This refers that it helps for performing and
managing work performance of car manufactures. to provide their vehicles according to the
needs of customer's. On the other side, there are various task are also performed that leads team
to improve their work productivity as it is directly satisfy the demand of customer's. In the
context of automative industry various opportunities increase in the popularity to decrease the
carbon lifestyle and advertising towards wealth distribution are one of the major opportunities
that leads management to enhance their work (Jenkins and Williamson, 2015). Along with this
the distribution trend related with business performance helps organisation to satisfy the demand
of customer's. The major advantage of social aspect as it helps company to grow their business at
international level.
Technological factor- The technological conditions of the UK are well managed and
improved. It determines that the major advantage which are gained by the car manufactures is