Strategic Analysis of Tesla - Desklib

Running head: STRATEGIC ANALYSIS OF TESLA
Strategic Analysis of Tesla
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STRATEGIC ANALYSIS OF TESLA 2
Table of Contents
1. Introduction....................................................................................................................3
2. PESTEL analysis of Tesla.............................................................................................3
3. Porters Five Forces Analysis...........................................................................................5
4. Overall Market Prospects and Competition.....................................................................7
5. Opportunities and Threats................................................................................................7
6. Strategic Position of Organization.................................................................................10
7. Success/Failure of EV industry’s Current Strategies.....................................................11
8. SBU and Corporate Strategies.......................................................................................12
9. Feasibility of Recommended Strategies........................................................................14
10. Key Issues in Implementing Recommended Strategies...............................................15
11. Conclusion...................................................................................................................16
References..........................................................................................................................17

STRATEGIC ANALYSIS OF TESLA 3
1. Introduction
Tesla Inc. is an American multinational corporation, which specializes in manufacturing
electric vehicles, energy storage and solar panel manufacturing. The organization
is headquartered in Palo Alto, California(Grant2016). The organization was founded in the year
2003 and the progression since its inception was dependent on the innovation that the
organization brought about in the automobile industry. The specialization of the organization is
based on commercializing high quality electric cars, which are powered by high performance
battery packs. The development of the organization is dependent on the steady innovations that
are planned by the business while operating in the markets (Rothaermel2015). On the other hand,
the identification of the needs of the customers has helped in maintaining the different levels of
changes in the processes of the business.
The purpose of the report is to identify the different prospects of expansion of the
organization while operating in the international markets. The report enumerates the different
key roles of the strategies that are undertaken by the organization and the manner in which it
supports the expansion of the business in the international markets.
2. PESTEL analysis of Tesla
Political The environmental issues that are faced by the
world have led different governments to promote
non- emitting cars to reduce the levels of CO2
emissions. It will be helping in the growth of the
organization in the different markets with their
product offering of electronic cars (Moritzet

STRATEGIC ANALYSIS OF TESLA 4
al.2015).
Economic The fluctuations in the world economy have
constrained the limit of the common people to
change to the environmental friendly processes.
The fluctuations in the economy have greatly
affected the sales of the organization as they
promote the green approach through the
innovations (Moehrle2017).
Social The conservative approach among the people has
helped the organization to promote their product
offerings on the basis of the identification of the
needs of the people to resort to environment
friendly automobile technologies. The wide
acceptance of the innovative idea of the
organization to revolutionize the concept of
conservation has helped in maintaining the
different changes in the systems and the
performance of the business while operating in the
international markets (Linxweiler2017).
Technological The general cost of the lithium ion cells have
decreased which will be allowing the organization
to maintain a high profit margin at a comparatively
lower cost. The rise in the demand of the solar
panels for charging the cells has made it mandatory
for the organization to form charging stations