Marketing Strategy for Tesla: PESTLE, SWOT, STP and Marketing Mix

Marketing Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE analysis....................................................................................................................1
SWOT analysis ......................................................................................................................4
STP.........................................................................................................................................5
Marketing mix........................................................................................................................7
RECOMMENDATIONS...............................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing strategies are defined as tactics implemented by companies in order to enhance
their brand awareness among people and in the market. Organisations plan about they would
represent their products or services in front of customers so that they could get attracted along
with convince them to buy their commodities. For making effective marketing strategies
companies are required to make external and internal environment analysis so that they could
avoid any misunderstandings or risks in future (Wang and Wang, 2019). Companies also
segment their market and target particular section of customers in order to provide them products
according to their needs or demand. In the following report the company that has been taken is
Tesla which is an auto-mobile company that was founded in the year 2003 and in the UK its
headquarters are in London. The respective company serve its products at international level
which includes various countries such as USA, Australia, Japan and many more. The report
contains internal and external analysis of the selected company along with analysis of its market
strategies by applying STP. Furthermore, marketing mix of the selected organisation has also
been discussed in the report.
MAIN BODY
PESTLE analysis
Pestle analysis is defined as the strategic management tool that helps business to determines the
factors that consist in external business environment and their impacts on organisational
performance and functionality. Tesla is the brand that has international fame for its unique
features. Respective organisation examines these factors and consider them business strategies
for the purpose of gaining competitive advantages over other competitors (Bigelow, and Barney,
2021). Factors of pestle analysis in the context of Tesla organisation are mentioned below:
Political factors: Political factors are related to the intervention of government on
organisation that impacts its performance and operations in both positive and negative manner.
Tesla has provides its products and services in number of countries and jurisdictions so it is
important for organisation to identify legal, political as well as regulatory requirements of
countries in which it operates its operation because organisation has minimal control over these
factors. Political factors include tax policies, trade restrictions, tariff policies and political
stability or instability (Tesla, Inc. PESTEL/PESTLE Analysis & Recommendations, 2022).
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Policies on trade is the aspect that impacts business revenue in negative manner. Government
incentives for electric auto mobile is the opportunity for the Tesla because the concept of car is
directly related to reduce carbon emission. Expanding free trade agreement is another
opportunity for business because it helps to expand operations at international level. Political
stability of major markets are in the favour of Tesla and help it gain competitive advantages.
Economic factors: Economic condition is the factor that impact business operations in
positive and negative manner. It includes various factors like interest rate, working hours,
unemployment, cost of living and market growth as well as other variables that influences Tesla.
Business performance of Tesla is benefited by the lower battery costs because it translates the
affordability of organisational electric auto mobile products (De Kluyver, and Pearce, 2021). As
battery is the important cost factor of the total cost of electric vehicle So, powerful batteries
development is the great opportunity for Tesla. It is the factor that helps business to produce
more effective and affordable EV. Low cost of renewable energy in the external factor that create
opportunity for business through improving attractiveness of products. Whereas, economic
instability is the issue that threaten the organisational financial performance.
Social factors: Social factor includes various aspects such as cultural norms and
expatiations, population growth, career attitudes, health and safety as well as age distribution.
Social conditions and trends are the factor that impact performance of Tesla. Respective
organisation ensures that it aligns with social trends in its target market. In current environment,
world is moving towards more sustainable societies in which people wish to contribute towards
reducing the carbon footprints. Tesla's electric cars are most promising because cars are less
expensive in terms of fuel consumption as well as maintenance as compared to other
conventional cars (Drucker, 2020). There are various factors that create opportunity for business
such as increasing popularity of low carbon lifestyle, increasing the preference for renewable
energy and improving wealth distribution in developing markets. Through attaining these
opportunities, respective organisation improves its financial performance that lead business
towards growth and success.
Technological factors: Advancement and innovation in technologies is the factor that
impacts business performance and functionality in positive manner. Advancement of Tesla's
automotive as well as energy solutions depends of technologies that are used by the business.
High rates of technological change creates opportunity and threat for Tesla because it improves
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