Impact of Tesla's Strategy on Company Decisions and Activities

This article evaluates the impact of Tesla's strategy on the company's decisions and activities. It also analyses the internal and external factors of Tesla and how the company responds to them.

Strategic Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluate how strategy adopted by Tesla impacts the company’s decisions and activities....3
Analyse the external and internal factors of Tesla and how the company responses to them3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
Books and Journals.................................................................................................................5

INTRODUCTION
Strategic management includes the actions that are taken by the organisation is order to gain
competitive advantage. It includes evaluating both internal and external environment
(Velikorossov, and et.al., 2020). It helps in developing effective policies that help in success of
the organisation.
MAIN BODY
Evaluate how strategy adopted by Tesla impacts the company’s decisions and activities.
Tesla has analysed the market and understood that present situation of the market. The
company is planning to make so many batteries. The approach of company is to create their own
market and attract more and more customers. There is a trend of electronic vehicles and the sales
will enhance in near future. The company is planning gain economies of scale and to provide
batteries to the customers (Teece, D.J., 2018). The vision of company is to innovate so they use
latest technology and bring changes on regular basis. This is a wild decision that is taken by the
company. All the activities done by the company were altered and shifted towards new decision
taken by the organisation. The company plans to differentiate themselves and serve more
customers. They conduct good amount in research so as to attain long term competitive
advantage. The strategies formulated by company have direct impact on the activities undertaken
by them.
Analyse the external and internal factors of Tesla and how the company responses to them
The internal factors can be analysed with the help of SWOT analysis
Strengths
They focus on environmentally friendly
products and take care about the latest
technology. The brand image of Tesla is also
one of its strengths.
Weakness
The company deals in differentiated product.
Also, the customers have to bear a lot of
expenditure on repair of the vehicles
(Alghalith, N., 2018).

Opportunities
They conduct proper research and that helps
them analyse the trends in market and to take
first mover advantage. This helps company to
gain competitive advantage.
Threats
The electric cars launched by the company are
potential disruption to the automotive
industry. There is huge competition present in
market.
External factors can be analysed with the help of PESTLE Analysis
 Political Factors: The company has to take care of the political condition of the nation.
So, that they can operate smoothly without any intervention of government.
 Economic Factors: The company is earning huge profits and also contributing to the
economic development of nation. There is uncertainty in regard to prices of oil material
for automotive industry.
 Social factors: The company takes care about the society and provide the goods to them
that solves their issue. The provide wide range of products to the customers that satisfy
them.
 Technological Factors: The company is using innovative trends in the market and
electric vehicles are the example of using latest technology by the company (Matthews
and et.al., 2020).
 Environmental factors: The company is eco-friendly and that is the reason they are
switching towards electrical cars.
 Legal Factors: They have to face various laws and take approvals in order to operate
effectively in market.
CONCLUSION
It is analysed that while formulating strategies a company must take wise decisions by
analysing the internal and external factors.

REFERENCES
Books and Journals
Alghalith, N., 2018. Tesla: innovation with information technology. International Journal of
Business Research and Information Technology, 5(1), pp.37-51.
Matthews and et.al., 2020. Tesla Energy. In Innovation Management in the Intelligent
World (pp. 233-249). Springer, Cham.
Teece, D.J., 2018. Tesla and the reshaping of the auto industry. Management and Organization
Review, 14(3), pp.501-512.
Velikorossov, and et.al., 2020. Strategic management.