Ottawa University BUS 8500 Final Strategic Analysis Report: Tesla

This report presents a comprehensive strategic analysis of Tesla, encompassing internal and external assessments. It delves into Tesla's goals, strategies, organizational structure, and competitive landscape. The internal analysis evaluates capabilities, resources, and financial conditions, while the external analysis examines social, technological, environmental, economic, and political factors through STEEP and Porter's Five Forces analysis. The report also includes a SWOT analysis, BCG matrix, and recommendations for strategic actions, such as foreign market expansion, production innovation, and customer service enhancements. It explores Tesla's China market potential and acquisitions, such as Maxwell Technologies, to provide a holistic view of Tesla's business model and future growth strategies. The report is based on the BUS 8500 course at Ottawa University.

Tesla

Tesla
• American automotive
and energy company
• Mother company from
Palo Alto, California
• specializes in
manufacturing electric
car, solar panel and Solar
City subsidiary.
• Incorporated by Martin
Eberhard and Marc
Tarpenning
Goal: Commercialize electric vehicles

Strategy
• Complex coordination: change automotive industry
by innovations
• Automotive strategy: produces typical technological
product life cycle
• Production strategy: produces component and
proprietary charging infrastructure
• Sales strategy: To sell vehicles online
• Technology strategy: aims at producing pure-
electric propulsion technology

Organizational structure
This structure helps in attaining the goal of the
organization

Internal and external analysis
Internal assessment
• Capabilities and
resource analysis
Management
Culture
Financial
condition
Resources
capabilities
• Description of service
offerings
• Value chain analysis
of Model S
• Competitive strategy
of Model S
External analysis
STEEP
• Social factors
• Technological factors
• Environmental factors
• Economic factors
•Political factors
Porters Five Forces Analysis
• Competition
• Threat of new entrants
• Bargaining power of
customers
• Bargaining power of
suppliers
• Threat of substitution

Recommended strategic action
Internal assessment
• Revenue generation $50
billion.
• Produces battery
modules, power-pack
product and power wall
• positive brand image
• 32,500 models were
booked in the first week
of release
• Model X and Model S
offers certain
specification
External Assessment
• Transforming of
electric cars
• Competitors are
General and Ford
• Earns 45% revenue
from Model X and
Model S.
•Planning to open a
factory in order to
increase the electric
vehicle market.

PESTEL analysis
Political
Governmen
t helping
Tesla by
supporting
technologi
cal
innovations
Economic
Lower
batter costs
Lower cost
of
renewable
energy
Economic
stability
issues
Technologic
al
Provides
growth
opportunity
Environment
al
Ecological
factors have
significant
forces on
company
Social
Low carbon
lifestyles
provides
opportunity
Legal
It affects
the decision
making of
the
company

Perspective strategic action plan

BCG Matrix- Tesla
Growth rate analysis of
Tesla

Tesla’s Market position

SWOT analysis
Strength
• Successful rate of
innovation
• Powerful symbol of
invention and
solution of renewable
energy
• Strong brand image
Weakness
• Market shareholding
is limited
• Minor shareholding
in China
• High cost of
production
Opportunity
• Market presence in
the industry
• Can improve supply
chain through
expansion of sales and
operations
Threats
• Aggressive market
strategies
•Variation in prices of
raw materials

Recommendation
• Foreign Markets
• Production
•Innovation
• Customer service
and support
• Support network
• China market
share
External growth
strategies
Mergers
Acquisitions- Of solar
city
Alliances

Why Tesla’s China Business could
explode
• Tesla has cut down on
Solar City’s previous cash
burn and realized some
synergies
• In china, the President has
promised to lift the foreign
ownership restriction and
reduce tariffs on imports of
foreign cars
• Tesla plans to build a
factory in China, whose sales
would reach to more than $2
billion
• Tesla is building its
supercharger and expanding
its retail presence.

Acquisitions of Maxwell Technologies
• Acquired the company at
$218 million
• this offer values each of
Maxwell’s 45.9 million
shares at $4.75
• The main aim has been
ultra capacitors
• Their main focus is on dry
electrode technology

Reference
Carlson, W. B. (2015). Tesla: Inventor of the
electrical age. Princeton University Press.
Aaij, R., Amato, S., Anderlini, L., Benson, S.,
Cattaneo, M., Clemencic, M., ... & Jones, C. (2016).
Tesla: an application for real-time data analysis in
High Energy Physics. Computer Physics
Communications, 208, 35-42.
Cadle, J., Paul, D., & Turner, P. (2014). Business
analysis techniques. Chartered Institute for IT.
Mohajan, H. (2017). An Analysis on BCG Growth
Sharing Matrix.

Thank you