THE STRATEGIC MANAGEMENT
Added on 2022-09-09
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Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note
Strategic Management
Name of the Student
Name of the University
Author Note
STRATEGIC MANAGEMENT1
Session 1
Tesla is one of the leading producers of electric vehicles in the world and its position or
rank in global industry for vehicle manufacture remains undisputed in this respect. The
performance of the company has been incredible, so far, to say the least. In as recently as 2019,
Tesla succeeded in producing and selling as many as 550 thousand vehicles in its international
market and in the process of doing so it was able to save 7 Metric tonnes of Carbon Emission
(Bogers, 2019). This ability on the part of Tesla to provide customers with electric vehicles, that
avoid the use of fossil fuel and which are consequently good for the environment, is what makes
it one of the most well-known enterprises in the vehicle industry worldwide. The principal
product that Tesla is seen to offer its target audience is of course the electric vehicle. This
implies that the cars that are sold by Tesla are those that do not run on fuel in the conventional
sense of the term (Bogers, 2019). The success of Tesla thus far has been the result of its loyal
customer base, something that the company has been able to establish by not compromising on
the cars that are sold to the target audience. Indeed, the Tesla vehicles are of a very high
standard, leaving customers with little or no room to complain about such products, regardless of
how extensively or how little they make use of them (Dyer et al, 2020).
Some of the criteria and tools that were made use of in order to assess the performance of
Tesla in the global marketplace are the framework of the SWOT analysis and Porter’s 5 forces. It
was seen from both that there are limited or few threats that are faced by the company especially
in the area of competitive rivalry (Musonera et al., 2019). There are few businesses in the scene
that can match the competence shown by Tesla in the domain of electric vehicle manufacture and
the customers of the company have so far proven to be quite loyal. The only challenge that
remains for Tesla is the high bargaining power of suppliers, given that procurement of raw
Session 1
Tesla is one of the leading producers of electric vehicles in the world and its position or
rank in global industry for vehicle manufacture remains undisputed in this respect. The
performance of the company has been incredible, so far, to say the least. In as recently as 2019,
Tesla succeeded in producing and selling as many as 550 thousand vehicles in its international
market and in the process of doing so it was able to save 7 Metric tonnes of Carbon Emission
(Bogers, 2019). This ability on the part of Tesla to provide customers with electric vehicles, that
avoid the use of fossil fuel and which are consequently good for the environment, is what makes
it one of the most well-known enterprises in the vehicle industry worldwide. The principal
product that Tesla is seen to offer its target audience is of course the electric vehicle. This
implies that the cars that are sold by Tesla are those that do not run on fuel in the conventional
sense of the term (Bogers, 2019). The success of Tesla thus far has been the result of its loyal
customer base, something that the company has been able to establish by not compromising on
the cars that are sold to the target audience. Indeed, the Tesla vehicles are of a very high
standard, leaving customers with little or no room to complain about such products, regardless of
how extensively or how little they make use of them (Dyer et al, 2020).
Some of the criteria and tools that were made use of in order to assess the performance of
Tesla in the global marketplace are the framework of the SWOT analysis and Porter’s 5 forces. It
was seen from both that there are limited or few threats that are faced by the company especially
in the area of competitive rivalry (Musonera et al., 2019). There are few businesses in the scene
that can match the competence shown by Tesla in the domain of electric vehicle manufacture and
the customers of the company have so far proven to be quite loyal. The only challenge that
remains for Tesla is the high bargaining power of suppliers, given that procurement of raw
STRATEGIC MANAGEMENT2
materials and quality raw material at that is something that is imperative for the production of
electric vehicles. Given how widely technology appears to be advancing, it will be only a matter
of time as well, that other businesses catch on the strategies and techniques needed to engage in
electric vehicle manufacture. This indicates that while Tesla is performing well so far, it has to
take the threat of new entry, even if low right now, seriously and must combat this in the best
way possible by always keeping its electric cars or vehicles as uniquely positioned in the market
as possible (Kumar et al., 2020).
When it comes to understanding the control mechanisms that are put to use by a company
like Tesla in order to keep its production and customers under a firm grasp, it needs to be
remembered that solar energy is made use of by the company when designing and manufacturing
the batteries that are then used in the electric vehicles (Tesla, 2020). By making use of solar
energy for the production of the car batteries, the company is able to save financial resources in
millions and it is also able to undertake production in a manner that leads to no carbon emission
and consequently it does not have a detrimental impact on the natural environment (Tesla, 2020).
The management of environmental risks is something that the company is seen to
undertake through the use of solar energy when producing car batteries. Solar energy powered
batteries allow the electric vehicles to run without the use of fossil fuel, are safe and beneficial
for the environment and make it possible for the business to keep environmental risks and
dangers suitably under control (Kumar et al., 2020).
The strategies for competitive advantage as undertaken by a business like Tesla are those
that are based on market penetration and product development. At present, an aggressive attempt
is being made on the part of Tesla to increase its shares in the US marketplace and it is using the
materials and quality raw material at that is something that is imperative for the production of
electric vehicles. Given how widely technology appears to be advancing, it will be only a matter
of time as well, that other businesses catch on the strategies and techniques needed to engage in
electric vehicle manufacture. This indicates that while Tesla is performing well so far, it has to
take the threat of new entry, even if low right now, seriously and must combat this in the best
way possible by always keeping its electric cars or vehicles as uniquely positioned in the market
as possible (Kumar et al., 2020).
When it comes to understanding the control mechanisms that are put to use by a company
like Tesla in order to keep its production and customers under a firm grasp, it needs to be
remembered that solar energy is made use of by the company when designing and manufacturing
the batteries that are then used in the electric vehicles (Tesla, 2020). By making use of solar
energy for the production of the car batteries, the company is able to save financial resources in
millions and it is also able to undertake production in a manner that leads to no carbon emission
and consequently it does not have a detrimental impact on the natural environment (Tesla, 2020).
The management of environmental risks is something that the company is seen to
undertake through the use of solar energy when producing car batteries. Solar energy powered
batteries allow the electric vehicles to run without the use of fossil fuel, are safe and beneficial
for the environment and make it possible for the business to keep environmental risks and
dangers suitably under control (Kumar et al., 2020).
The strategies for competitive advantage as undertaken by a business like Tesla are those
that are based on market penetration and product development. At present, an aggressive attempt
is being made on the part of Tesla to increase its shares in the US marketplace and it is using the
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