Environmental Analysis of An Electric Car Industry
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This study analyzes the major forces shaping the business environment of the car manufacturing industry, including improvements in battery technology, industry policies supporting battery development, increasing production capacity, and commercial electric vehicles. It also includes a PESTLE analysis and a SWOT analysis of Tesla.
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Environmental Analysis of An Electric Car Industry
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TABLE OF CONTENT INTRODUCTION.............................................................................................................................3 TASK A.............................................................................................................................................4 Major forces shaping business environment of car manufacturing industry...............................4 Pestle analysis...............................................................................................................................5 TASK B.............................................................................................................................................6 SWOT analysis..............................................................................................................................6 Porter 5 forces analysis.................................................................................................................7 CONCLUSION.................................................................................................................................9 REFRECNCES..................................................................................................................................9
INTRODUCTION Environmental analysis is described as effective procedure that identified all elements, either external or internal, that has an impact on business performance and tactics. It is also considered as strategic tool or approach that help a company to identify all the factors or components that may have an effect on overall activities of their work. It entails assessing degree of opportunity or threat the factors might present. The current study is based on TESLA, which falls under list of leading and most popular electronic vehicles brands in the world. With clear mission statement, organization manufactures and delivers the best products to their consumers, which is one of its biggest strength. Furthermore, this assignment will explain major forces that can shape business environment of car manufacturing industry (Akakpo, Gyasi and Akpabot, 2019).
It will justify challenges and opportunities that forces show and it will also clarify ways companies can best position business to gain further advantages. Moreover, this study will describe varied types of strategic tools. TASK A Major forces shaping business environment of car manufacturing industry Improvements in battery technology: Tesla iswidely facing competitive levels with various new competitive changes shaping up car manufacturing industry by new battery improvements where there are various advancescoming on within consumer preferences shapingupnewperformancelevels.Thecarmanufacturingindustryfaceswide competitionfromexternalbusinessenvironmentwheretherearehightechnew improvements coming on among wider levels of competency among various electric car manufacturers onto which Tesla needs to be working on with new innovation and advancement for reaching customers expectations. Industry policies supporting battery development: The car manufacturing industry is rapidly growing with various new policies and business frameworks where battery development has become widely one of the major objective and for gaining on machinery for fuel use reduction. Thereis higher emphasis on cleaner energy production engines, new vehicles production and wider business programming mechanical adjustment onto which it can be understood that there are new goals development onto business framework . Tesla for competitively growing within this industry has to focus onto completion of these aspects and for working towards positivegoodwill forming through which new profit goals can be formed among business avenues (Bhardwa and Kulkarni, 2020). Increasing production capacity:Tesla needs to focus on producing increasing production capacity engines and car vehicles where there are wider goals competitively growing on and new working efficiency levels growing up. This is widely important factor shaping up car manufacturing industry globally where competitively brands are focusing to bring on longer time effective electric car vehicles who, consumers are also widely demanding for cost effective ,efficiency and innovative machinery. Tesla for comeptitoevly growing have
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to focus onto increasing production capacity paradigms, market out products and services innovatively and for factoring growth onto new working goals. Commercial electric vehicles: The Tesla company needs to invest further in producing new commercial electric vehicles and various effective machinery where this factor is dynamically shaping upelectric car manufacturing industry rapidly globally. There is wideincreasing demand among consumers for various new products, stronger effective technology and potentially raising wider demands functionally onto new horizons for entering onto new customer segments (Ferreira, 2019). Pestle analysis Externalbusinessfactorswithinmacroenvironmenthaswideimpactforstrongly impacting the business of car manufacturing industry where there are major factors coming on within business world potentially bringing forward how Tesla company can focus onto these: Political factors:UK Tesla business may widely impact from the politicalchanges through Brexit where there are various factors such as increased tariff rates, higher taxes for exporting to European countries. The political changes may have strong impact to reduce fundamental working parameters of efficiency within company if stronger working actions are not taken by company for gaining on stronger working metrics and for competitively growing within global international car manufacturing industry. Economical factors:The economic stability metrics are widely important for stronger business profitability metrics within international industry electric car manufacturing, where people have wide options with stable economic parameters. Tesla has to focus onto economicstabilityparadigmsforexpansionintonewboundariesasthereiswide competitiongrowingonamongvariousmarketingparadigms,andfocusshallbe pertained onto how new stable changes can be undertaken (Gui, 2019). Social factors:Tesla has to focus on keeping renovating within mechanical engines, machinery and automobiles forbringing on products as per the wide social factors for developing stronger place within competitive global industry. Socially brand has to actively engage in best services and creatively developing new machinery for technical exploration within electric car industry.
Technological factors:Tesla has to also focus onto competitive technology factors and gbring before new technology metrics, leverage best machinery engines for electric cars and development of green energy which will enable for building stronger place within industry globally. Theelectric car automobile industry is competitively growing with various new innovation and higher marketing goals onto which various new perspectives are working where Teslahas to also factor on strongly for encompassing wider profit gaols and consumer goodwill globally.Environment factors:The environmental external factors such as development of green gases which are competitively stronger for producing best batteries within electronic cars bare widely in demand. Tesla hasto focus on keeping stablemetrics and compose innovative goalsand working parameters where environmental factors are strongly focused on which will enable for developing new end goals and wider space of innovation within consumer market. These factors enable us to analyse how external business environment have strong impact within automobile electric car industry, which is rapidly growing on and to work on with best innovation, new relative advancement onto which new quest shall be developed further by Tesla (Long, Miller and Kormos, 2019). TASK B SWOT analysis The swot analysis is internal analysis where there are various factors working within company enabling us to analyse how much growth has been broughtwithin future working competitive scenario and to rapidly work on for improving new synergy of technical exploration for Tesla. STRENGTHS:Tesla has strongbrand goodwill of its won because of best quality metrics, new working synergy of innovation among all automobiles products and services which are alsoavailable withinworldwide metrics. Tesla has wide range p ofelectric cars producingbest engineswhich are widely known for producing best effective technology products, marketing with new innovation and digital platforms. Tesla also has
strength of best vision , leadership of Elon Musk where he has been showing up rapid growth and keen development of factoring advancementcompetitively. Tesla also has strong capital to expand ad invest in untapped business avenues within global electric cars industry (Lv, 2019.). WEAKNESSES: Tesla faces competitionfrom various external factors where forces are bringing on advanced new brands, companies with new electronic cars and batteries technically more advanced. External factors areweakness for brandwhere there is also growth within consumer demands andparameters of advancement, which may also impact Tesla for competitively growing within business avenues. OPPORTUNITUES:Tesla has working competitive strong business opportunities to invest in newuntapped countries industries market and fuelling up growth within consumer market share productively which will enable to factor on wider profitable goals. There is also wide opportunities for tesla to leverage on new marketing tools, productively using up new innovative machinery and employing best talented skilled employees who hold wide opportunities for programming on new synergy of functional growth. THREATS:There is also increased threat of new companies coming in within global automobile industry and factoring on keen synergy ofstrong working gaols where there are various new companies and brandscoming up with innovative electric car. Also worldwide climate changes have been impacting new functional synergy for producing new green energy electric battery engines within vehicles for commercial use and vehicles producing new working metrics of continuous innovation (Zhili, Boqiang. and Chunxu, 2019). These factors enable us to analyse howvarious new internal changes are widely impacting within company business framework where Tesla is actively working for wider new changes development and wider technical advancement within resources factorisation and management fundamentals. Porter 5 forces analysis Porter 5 forces is one of the most innovative modelfocusing to bring on rapid technical analysis ofvarious new changes where business internally has to work on various changesfor bringing up external changes strongly and also for productively reaching up best relativegoal
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completion.Tesla has to focus on producingnew working horizons within electric car industry where technical exploration has been actively producing new fundamental development and to yield onto productive functional efficiency Threat of new entries(high): There is wide demand among consumer globally for best higher quality electric cars where innovation is more advanced, and within industry there has been more new brands and companies coming onand also increasing consumer preferences may impact in competition . Threat of competition with new entries in the automobile electric industry has wide potentiality for bringing in rapid changes and increased competition within global paradigms. Teslafaces competitive threat of new entrants within electric car industry where world over there has been new brands coming on with new increase among consumers business demands (Wells and Weinstock,2019). Threat of substitution (low):Teslafaceslow threat of substitution withinautomobile industry as the brand promises best quality factors of engines and electric cars industries, which has made strong goodwillfor consumers rapidly increasing wider synergy of growth among business avenues. Thecompany products cannotbe substituted within consumer market share and for gaining that productive quality standards, also tesla capital is mostly unmatchable by any other small brand, new company for gainingon that same level synergy.Buyers power:Tesla company buyers power are widely effective and known for strong metrics of independent sales where it can be analysed that buyers power is medium to impact sales productivity and working hemisphere where there are various paradigms working in favour for Tesla. This factor shows how Tescla buyers have strong goodwill attached for best quality performance arena, new productive synergy for factoring growth objective and for bringing on new arenas ofdevelopmentand speed delivery of various products , servicesthrough which it aims to reach onto wider world levels goals and operational functions . Suppliers power:There are large numbers of supplier in electronic cars industry of Tesla company own where itcan be understood that power of supplier is low in whichTesla operate its business (Fishe and McCabe, 2019.).It can easily purchase products from number of supplier at lower prices as it has strong brand image and large market share and wide capital strongly developed within business industry. Company also maintain strong
relationship with supplier so that it can meet demand of customers within limited time and cost, where it has strong networksand advanced manufacturing essentials which rapidly makes up procedures advanced within various metrics for long term working essentials. CONCLUSION Fromaboveanalysis,ithasbeenconcludedthatorganizationslikeTESLAwhile operating their business within car production industry are facing several issues or challenges that affect all functions and operational efficiencies. But with the help of effective management styles and skilled applicants they overcome problems in effective manner. With strong and effective workforce company grabbing all potential opportunities arise in market place, which in return increasing their productivity level as well as profitability rather than before. Furthermore, it has been summarized that by using SWOT, PESTLE, Value chain analysis, Porter’s five forces and other models identify their abilities and capabilities effectively. Organizations operating under above sector, by creating and implementing effective plans as well as tactics effectively gain competitive advantages. By following and considering last few years changes they are performing more effectively within industry (Kester, Sovacool and Heida, 2019). REFRECNCES Books and journals
Akakpo,A.,Gyasi,E.A.,.andAkpabot,S.,2019.Foresight,organizationpoliciesand managementstrategiesinelectricvehicletechnologyadvancesatTesla. InFutures Thinking and Organizational Policy(pp. 57-69). Palgrave Macmillan, Cham. Bhardwaj, S.,., and Kulkarni, S., 2020. Problems Faced by Automobile Industries: Case Study on Tesla.International journal of Tourism and hospitality in Asia Pasific,3(2), pp.78-88. Ferreira, M., 2019.Tesla and the electric vehicle market in 2018(Doctoral dissertation). Fisher, M. andMcCabe, M.B., 2019. Tesla:Acceleratingto Market.Journal of Strategic Management Education,15. Gui, G., 2019. Carbon Footprint Study of Tesla Model 3. InE3S Web of Conferences(Vol. 136, p. 01009). EDP Sciences. Kester, J., Sovacool, B.K. and Heida, V., 2019. From flying cars to Tesla: examining the personal automobilepreferencesofprimaryschoolchildreninDenmarkandthe Netherlands.Energy Research & Social Science,56, p.101204. Long, Z., Miller, I. and Kormos, C., 2019.Electric Vehicles and Automotive Brand: How has Tesla Shaped Consumer Perceptions?(No. 19-00417). Lv,Z.,2019.Observationsandreflectionsonelectricautomobileindustry developments.InternationalJournalofFrontiersinEngineering Technology,1(1). Wells, J.R. and Weinstock, B., 2019. Electric Car Wars, 2018. Zhili, D., Boqiang, L. and Chunxu, G., 2019. Development path of electric vehicles in China under environmental and energy security constraints.Resources, Conservation and Recycling,143, pp.17-26. Lugtu Jr, R.C., 2019.Tesla: Testing a Business Modelatits(R)EvolutionaryBest(Doctoraldissertation,DELASALLE UNIVERSITY-MANILA).