Value Chain Analysis and Pestle Analysis of Tesla

TESLA ELECTRIC CAR

Contents
INTRODUCTION...........................................................................................................................3
Porter’s value chain analysis.......................................................................................................3
Pestle analysis of Tesla-...............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
This report contains information which highlights the value chain of Tesla with the analysis of
external environment. Other than this it has also been highlighted that what are the factors that
has made the company very successful in a very short span of time. This report has given the
complete analysis of the operations and procedures of Tesla. The purpose of this report was to
analyze the working of Tesla in the global business environment with the reasons of their success
(Hamilton and Webster, 2018).
Porter’s value chain analysis
The model of value chain analysis was introduced by Michael E. Porter. The activities that are
highlighted in this model are raw materials and its obtainment, production, sales and marketing
and after sales service. These stages add value to the finished product. It is necessary to analyze
the value chain for the business as it will help them to achieve great results if they are optimized.
This helps the companies such as Tesla to enhance their efficiency of operations through which
they create new factors to gain competitive advantage. There are two activities included in it that
is primary and support activities.
Primary Activities-
These activities deals with products and services when it is in the creation stge.
Inbound Logistics-
This aspect refers to the flow of goods that is inward which consists of storage, transport
and delivery. Tesla has many warehouses which are situated in US and many of them are leased.
The main manufacturing site of the company is in Fremont, California United States. The facility
is around 5.5 million square feet and many of their warehouses are apart from it such as
Livermore California, Sparks Nevada etc. These sites are used for storage and distribution.
Operations-
The company commenced their operations in 2003 and the purpose was to bring
revolution in the market and bring electric cars for everyone. Roadster and after that Model S
was launched in 2008. The headquarters of the company is in California still they have managed
to expand their base of operations and set the platform of supply chain global. There is one