Situational Analysis of Tesla Motors

This report provides a detailed analysis of the target market and internal environment of Tesla Motors, including a SWOT analysis and marketing ideas.

Running head: SITUATIONAL ANALYSIS OF TESLA MOTORS
SITUATIONAL ANALYSIS OF TESLA MOTORS
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1SITUATIONAL ANALYSIS OF TESLA MOTORS
Table of Contents
Introduction....................................................................................................................2
Situational Analysis.......................................................................................................2
Target market profile of Tesla Motors.......................................................................2
SWOT analysis of Tesla Motors................................................................................3
Marketing ideas..............................................................................................................4
1. Marketing objectives..............................................................................................4
2. Marketing strategies...............................................................................................5
3. Marketing mix........................................................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................7

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Introduction
Tesla Motors is an American automobile based organization that is has its base in
Palo Alto, California. The organization mainly specializes in manufacturing of electric cars
with the help of SolarCity based subsidiary and manufacturing of the solar panels as well.
The production assembly plants of Tesla Motors are located in Gigafactory 1, near Reno
Nevada. The manufacture based facility of Tesla Motors is situated in Fremont, California.
The report will be based on the detailed analysis of the target market and the internal
environment of Tesla Motors as well (Tesla.com., 2019).
Situational Analysis
Target market profile of Tesla Motors
Tesla Motors has recently recognized the needs that are based on the development of
a larger customer base that is focussed towards people who belong to the age group of 20
years and 40 years. The customer base can be divided into three major categories that
include, tech-savvy customers, eco-friendly customers and the luxury customers (Aguinis,
Edwards & Bradley, 2017).
 Demographic profiling – The demographic profile of the target customers is
based on the customers who belong to the age group between 20 years and 40
years.
 Psychographic profiling – Consumers who are mainly concerned about the
levels of consumption of gas and the economic value of cars (David & David,
2016).
 Geographic profiling – The target consumers of Tesla Motors belong to
different countries and geographic areas as well.

3SITUATIONAL ANALYSIS OF TESLA MOTORS
 Behaviour response based profiling – The response related to behaviour of
customers is based on the ways by which the organization aims at providing
value to the customers (Durand, Grant & Madsen, 2017).
Value based on the products of Tesla Motors can be perceived by the consumers in
the methods that are implemented by the company in order to develop a better future. The
vision of the organization is based on the ways by which the environmental factors can be
considered by Tesla (Ethiraj, Gambardella & Helfat, 2017).
Tesla Motors will be able to use the perception of the products by consumers in an
effective manner in order to develop a competitive advantage in the competitive automobile
industry.
The tangible factors that can have an impact on the operations of Tesla Motors are
based on the quality of products and the levels cost effectiveness as well. The intangible
factors on the other hand are based on the value that is offered to the consumers (Hanson et
al., 2016).
SWOT analysis of Tesla Motors
Strengths – The processes of Tesla Motors are based on high innovation rates and has
played a major role in introducing the first electric sports based car. The strategic factor based
on pioneering the electric vehicles has been a major strength that is able to empower to the
company. The brand value that has been developed by Tesla is a strength of the company
(Hitt, Ireland & Hoskisson, 2016).
Weaknesses – The presence of Tesla Motors in quite low in the automobile based
industry of different countries. The prices of products developed by Tesla are high and the
supply chain is also not quite efficient. The cars are more expensive in comparison to the
competitors (Michael, Storey & Thomas, 2017).

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Opportunities – Tesla Motors needs to consider global expansion of its sales in order
to increase the revenue levels. The emerging markets need to be considered by Tesla in order
improve the position of Tesla in the industry. The performance of Tesla can be enhanced with
the help of proper diversification (Morschett, Schramm-Klein & Zentes, 2015).
Threats – The automobile organizations have started competing for a proper share in
the industry. The external factors are able to threaten the operations of Tesla Motors and the
current operations of the company will also be influenced the levels of competition (Wheelen
et al., 2017).
Marketing ideas
1. Marketing objectives
The marketing based objectives of Tesla Motors are mainly related to the ways by
which the products can be offered to the target customers. The value provided by the
company to the customers is considered to be a major factor that needs to be considered in
order to improve its position (Morschett, Schramm-Klein & Zentes, 2015).
The major communication objective that has been developed by Tesla Motors is based
on the development of the image of the brand. The levels of awareness of the brand can be
increased with the help of proper value in the highly competitive automobile industry
(Aguinis, Edwards & Bradley, 2017).
SMART objectives,
Specific The major aim of Tesla Motors is based on
the ways by which the organization can
improve the levels of communication with
the customers.
Measurable The goals can be measured effectively with
the help of number of customers that can be
gained by the company due to improvement

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of communication.
Attainable The goal based on proper development of
the communication process of Tesla Motors
is easily attainable by the organization with
the help of proper strategies to be
implemented in the website.
Relevant The relevance of the goals is based on the
proper improvement of communication
process in order to develop the customer
base effectively.
Time based The time based factors that are able to affect
the operations of Tesla Motors are mainly
related to the amount of time that is required
for proper achievement of goals (Ethiraj,
Gambardella & Helfat, 2017).
2. Marketing strategies
The marketing strategy that needs to be implemented by Tesla Motors in the
automobile industry is based on the implementation of digital and social media based
strategies. The proper usage of social will be able to play a major role in the ways by which
the organization can reach the customers. The customers of Tesla Motors can be reached with
the help of proper communication process through the website. The major benefit that can be
provided to Tesla Motors is based on the levels of interaction that can be developed with the
customers (Wheelen et al., 2017).
3. Marketing mix
Product – The products that are offered by Tesla to the customers mainly include,
automobiles, energy storage, solar panels and electric vehicles. The company is known in the
industry for the electric cars that have been introduced in the automobile industry. The major
focus of Tesla is based on the development of electric cars (Ethiraj, Gambardella & Helfat,
2017).
Place – The products or cars that are provided by Tesla Motors can be checked by the
company from the stores and the official websites as well. The charging stations are also

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considered to be important places that are related to the products that are offered (Morschett,
Schramm-Klein & Zentes, 2015).
Promotion – The promotional mix of Tesla Motors is related to different types that
are implemented by the company which include, personal selling, viral marketing, sales
promotions, direct marketing and public relations. The company has high dependence on the
viral marketing based activities that are performed in different parts of the world (Aguinis,
Edwards & Bradley, 2017).
Price – The premium pricing strategy is used by Tesla Motors for the electric cars that
are offered to the customers. On the other hand, market oriented pricing strategy has been
implemented by Tesla in order to provide the solar panels to consumers (Hitt, Ireland &
Hoskisson, 2016).
Conclusion
The report can be concluded by stating that Tesla Motors has been able to develop a
unique position and high brand value in the automobile industry. However, the improvement
of proper communication process is important for the company to operate profitably and in a
sustainable manner in the competitive automobile industry.

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References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods, 20(4), 665-685.
David, F. R., & David, F. R. (2016). Strategic management: A competitive advantage
approach, concepts and cases. Pearson.
Durand, R., Grant, R. M., & Madsen, T. L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), 4-16.
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2017). Reviews of strategic management
research. Strategic Management Journal, 38(1), 3-3.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management:
Competitiveness and globalisation. Cengage AU.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new
mindset, 45-65.
Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international
management (pp. 978-3658078836). Springer.
Tesla.com. (2019). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. Retrieved
from https://www.tesla.com/

8SITUATIONAL ANALYSIS OF TESLA MOTORS
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy (p. 55). Boston: pearson.