Marketing Fundamentals for Tesla Assignment

MARKETING
FUNDAMENTALS
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Table of Contents
INTRODUCTION...........................................................................................................................3
Critically analyse the impact of external and internal marketing environment affecting the
decisions for Tesla, UK...............................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7
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INTRODUCTION
Marketing environment is a very essential element of business which has the power of
influencing the decision making of any company (Okazaki, 2012). It can be defined as a
combination of internal and external forces and factors which affects the decision making of the
company. This assignment will analyse external and internal factors of marketing environment
which affects the decision making of Tesla. The external factors of marketing environment are
political, economical, social, technological, environmental and legal also known as a PESTLE
which is a tool of analysing external factors. Also, the internal factors can be examined by
SWOT analysis which helps to understand the strength, weakness, opportunities and threats of
Tesla.
Critically analyse the impact of external and internal marketing environment affecting the
decisions for Tesla, UK.
Tesla is an energy and automotive company which is specialised in electric cars, solar
panelling, and many other products. It was founded in July 2003 by Martin Eberhard and Marc
Tarpenning. The respective company is operating across the world with its highest market in UK.
The marketing environment of Tesla is made up of two factors i.e external and internal
environment. The internal factors can be controlled by implementing changes in the respective
organisation. However, the external factors cannot be controlled by Tesla.
Internal Environment:
The internal factors are consist of all the factors of Tesla that are inside the organisation
like management, finance, resources, and many more (Malhotra and Malhotra, 2012). To analyse
the influence of these factors, SWOT analysis can be practiced. SWOT is an acronym of
strength, weakness, opportunities and threats of the respective company
SWOT Analysis of Tesla:
Strength-
 Brand recognition- Tesla is a well known company which is famous for its innovative
product range. The respective company have a good marketing value because of its
services and products which are offered by Tesla in order to maximise the revenue and
sales.
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 Sustainable innovation- Tesla is well known for its innovations that are sustainable and
eco friendly. The company has a low carbon emission and promotes an environment
friendly product which is a unique selling point of the company (Baines, Fill and Page,
2013).
Weakness
 Limited Suppliers of battery- As Tesla cares runs on battery cells, the demand of these
cells are high. However, Tesla has only one seller which makes it vulnerable to
production delay. It is one of the weak points of the respective organisation.
 Costly products- The vehicles of Tesla are quite costly than comparing it to other brands
ordinary cars. This is why only premium class can afford the product which limits the
number of customers of Tesla.
Opportunities
 Growing demand of sustainable products- As due to environmental issues, customers are
getting aware of sustainable substitutes which are environmental friendly. This provides
Tesla a scope of growth in coming time as it is one of the most efficient company in
providing sustainable products.
 Exploring low cost product range- All the customers have different range of spending
power (Ivanov, 2016). This is why; Tesla can introduce budget friendly cars which will
help in achieving more customers and profit earning.
Threat
 Competition- Though Tesla is a well established brand serving electric cars, but the
competition is rising among the rivals of the company. This is because other brands like
Audi and Porsche are also introducing electronic cars. This is a huge threat to Tesla.
 Legal- As Tesla serves its products across the globe, it becomes difficult to follow all the
rules and regulations of the governing bodies and some of them restricts the growth of the
company.
External Environment:
These are the factors that are outside the respective organisation on which Tesla has no
control (Morrison, 2013). These can be studied by PESTLE analysis:
PESTLE Analysis of Tesla:
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Political- This factor undertakes the impact of governing bodies and regulations on the
company (Brunswick, 2014). There have been many initiatives taken by the government support
Tesla for producing sustainable products. The government has provided various subsidiaries
which helps the respective organisations in smooth running of the operations.
Economical- This element helps in understanding the impact that the organisation has on
the economy of the country. Tesla has provided many job opportunities which raises the
employment rate in UK. Also, Tesla plays a major role in the growth of UK economy as it has
the largest market share in the respective country.
Social- This factor helps in understanding the factors like lifestyle, trends, demographics
and other social element of the society that impacts the demand of the products of the company
(Varnali, 2014). The customers are more interested in environmental friendly and sustainable
products. Tesla has a good scope of growth which can be depicted by the social factor of macro
environment
Technological- This element of PTESLE analysis helps understanding the impact of
technology on the respective company which influences its demand and sales of the products.
The innovation and technology of the company is quite up to date. Tesla is also planning to
launch artificial intelligence in order to fulfil the demands of the customers and raise the quality
and technology factor of the products.
Legal- The legal element includes various laws that are forced by the government of the
country like labour law, wages law, etc which the organisation have to follow in order to operate
the company in the respective country (Palmer, 2012). Tesla has a clean history of obeying these
laws and regulations which helps the respective company in smooth running of business.
Environmental – This factor states the impact of the company on the surrounding
environment. As Tesla serves sustainable cars and other products, the rate of carbon emission is
very low of the respective company. This is one of the biggest strength of Tesla.
CONCLUSION
From the above discussion it can be concluded that there are various factors that effects
the marketing environment of the respective organisation. Additionally, the internal environment
of the company like management, products and others can be measured by SWOT analysis
which can further be controlled by various strategies and controlling. However, the external
factors like political, economical, legal, etc. cannot be controlled completely by the respective
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organisation. Therefore, the company should plan and implement its marketing strategies by
measuring these marketing environmental factors in order to attain more sales and profit growth.
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REFERENCES
Books and Journals
Okazaki, S., 2012. Fundamentals of mobile marketing: theories and practices. Peter Lang
Publishing.
Malhotra, N.K. and Malhotra, N.K., 2012. Basic marketing research: Integration of social
media. Boston, MA: Pearson.
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
Brunswick, G.J., 2014. A chronology of the definition of marketing. Journal of Business &
Economics Research (Online). 12(2). p.105.
Varnali, K., 2014. SMS advertising: How message relevance is linked to the attitude toward the
brand?. Journal of Marketing Communications. 20(5). pp.339-351.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Ivanov, S., 2016. Economic and marketing fundamentals of hotel chains. Routledge Handbook of
Hotel Chain Management. London: Routledge, pp.19-26.
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