Marketing Strategy for Tesla: Pestle Analysis, SWOT Analysis, and Competitive Advantage

MARKETING STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART A...........................................................................................................................................3
Pestle Analysis of Tesla...............................................................................................................3
SWOT Analysis...........................................................................................................................5
Competitive Advantage...............................................................................................................6
Evaluating current marketing strategy.........................................................................................7
PART B...........................................................................................................................................7
STP analysis of TESLA solar panel............................................................................................7
SMART analysis of TESLA's Solar Panels:................................................................................8
Recommendation.......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is the process to selling products while considering needs and wants of
customers to increase their satisfaction. It is the approach of attracting more customers within the
organization and increasing the potential and seize by high profitability effectively. It is very
essential of businesses to evaluate different market factors to formulate marketing strategies
according to external and internal factors of business environment. In this report there is a brief
explanation about marketing strategies used in Tesla motor to increase the efficiency to sell more
Electric cars in market effectively. Report highlights internal and external market environment
audit to analyse growth opportunities to expand business in different market effectively.
MAIN BODY
PART A
Pestle Analysis of Tesla
Pestle analysis is a strategic planning framework which helps to analyse external
environment of business. Even it includes political, sociocultural, economic, environmental
technological and legal factors which supports to examine organization performance in different
terms. Tesla applies this model on company to analyse external environment of company which
is described below:
Political factors: Political stability, foreign trade policy, trade restrictions etc. are
political factor which gives impact on Tesla. It is a vehicle manufacture company which operates
in various countries and offers their vehicles product services to customer across the world.
Organization can get financial benefits because government offer various incentive to company
for electric vehicle. As per the view of government, if consumer purchases this electronic vehicle
they automatically quality for tax credit as result GDP rate of country will improve. Therefore,
Tesla gets financial support from government. Brexit can give negative impact on organization
while trading raw material from other countries. According to Brexit if company exports raw
products from neighbour countries, in that state they have to pay high cost on raw materials
which directly influence production cost of final products.
Economic factors: Foreign exchange rate, interest rate, tax rates and cost etc. are economic
factors. Cost factor gives positive impact on Tesla because they introduce electrical car which
uses electrical battery that has low cost (Aithal, 2017). Another benefit uses renewable energy
which can renew continuously without expending higher cost. These both factors reduces cost of

car as result economic stability maintain out within company. Thus, organization can easily
improve purchasing power of customers and can generate high revenue of company. Thus,
economic factors can give positive impact on organization performance.
Socio-cultural factors: Demographical changes is major socio-cultural factor which can
give impact on electrical car. For example some customer promotes electrical car because it
prevents depletion of coal in environment by using solar energy, additionally it improves weather
distribution for developing market (Ofosu-Boateng and Jiping, 2020). On the other hand some
customers gives negative aspects because they think electronic car release various radiations
which can directly impact on public health. It can lead climate change due to excessive rays
releasing. Thus, company can get impact on organization performance.
Technological factors: Emerging of new technologies and technology development are
technological factors which gives impact on organization performance. For example
development in existing in new technology can get positive impact Tesla. It manufactures
electrical car with advance technology such as high power electrical battery instead of coal.
Organization uses renewable solar energy which can utilize continuously without investing high
cost. Thus, advance technology helps company to manufacture sustainable vehicle. Even new
technology supports company to maintain it's competitive edge in the competition market. New
technology assists company to enhance product portfolio. Through the new product easily
attracts large number of customers for buying electrical car. Overall technology factors gives
positive aspect on new product profile.
Legal factors: Legal factors are Health and safety law, labour law, employment law,
consumer law, copyright law and minimum wage law etc. gives impact on organization. Tesla
makes plan to expand their business in other countries by trading the latest electronic cars. Here
organization can get negative impact on this decision because they have to update with overall
international patents and existing copyright in different region. Such kind law directly impact on
financial performance of company because they have to follow different policies that can create
complexity for company (Islam and Mamun, 2017). Tesla can get positive impact through
employment law because government has aim to reduce unemployment from country so recruits
job opportunity for those people who don't have job. While Tesla can get support of government
because they want high productivity of labour at workplace so that product demand enhances in