LCBB4005 - Environmental Analysis of Electric Car Industry: Tesla

This report offers a detailed environmental analysis of Tesla, a leading electric vehicle manufacturer. The assignment, based on the course LCBB4005, examines the major forces shaping the car manufacturing industry, including advancements in battery technology, industry policies, increasing production capacity, and the rise of commercial electric vehicles. It employs PESTLE analysis to assess political, economic, social, technological, and environmental factors impacting Tesla. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report utilizes Porter's Five Forces to evaluate the competitive landscape, focusing on the threat of new entrants, threat of substitution, buyer power, and supplier power. The analysis provides insights into Tesla's strategic positioning within the electric car industry and the challenges and opportunities it faces.

Environmental Analysis of An Electric
Car Industry

TABLE OF CONTENT
INTRODUCTION.............................................................................................................................3
TASK A.............................................................................................................................................4
Major forces shaping business environment of car manufacturing industry...............................4
Pestle analysis...............................................................................................................................5
TASK B.............................................................................................................................................6
SWOT analysis..............................................................................................................................6
Porter 5 forces analysis.................................................................................................................7
CONCLUSION.................................................................................................................................9
REFRECNCES..................................................................................................................................9

INTRODUCTION
Environmental analysis is described as effective procedure that identified all elements,
either external or internal, that has an impact on business performance and tactics. It is also
considered as strategic tool or approach that help a company to identify all the factors or
components that may have an effect on overall activities of their work. It entails assessing degree
of opportunity or threat the factors might present. The current study is based on TESLA, which
falls under list of leading and most popular electronic vehicles brands in the world. With clear
mission statement, organization manufactures and delivers the best products to their consumers,
which is one of its biggest strength. Furthermore, this assignment will explain major forces that
can shape business environment of car manufacturing industry (Akakpo, Gyasi and Akpabot,
2019).

It will justify challenges and opportunities that forces show and it will also clarify ways
companies can best position business to gain further advantages. Moreover, this study will
describe varied types of strategic tools.
TASK A
Major forces shaping business environment of car manufacturing industry
 Improvements in battery technology: Tesla is widely facing competitive levels with
various new competitive changes shaping up car manufacturing industry by new battery
improvements where there are various advances coming on within consumer preferences
shaping up new performance levels. The car manufacturing industry faces wide
competition from external business environment where there are high tech new
improvements coming on among wider levels of competency among various electric car
manufacturers onto which Tesla needs to be working on with new innovation and
advancement for reaching customers expectations.
 Industry policies supporting battery development: The car manufacturing industry is
rapidly growing with various new policies and business frameworks where battery
development has become widely one of the major objective and for gaining on machinery
for fuel use reduction. There is higher emphasis on cleaner energy production engines,
new vehicles production and wider business programming mechanical adjustment onto
which it can be understood that there are new goals development onto business framework
. Tesla for competitively growing within this industry has to focus onto completion of
these aspects and for working towards positive goodwill forming through which new
profit goals can be formed among business avenues (Bhardwa and Kulkarni, 2020).
 Increasing production capacity: Tesla needs to focus on producing increasing production
capacity engines and car vehicles where there are wider goals competitively growing on
and new working efficiency levels growing up. This is widely important factor shaping up
car manufacturing industry globally where competitively brands are focusing to bring on
longer time effective electric car vehicles who, consumers are also widely demanding for
cost effective ,efficiency and innovative machinery. Tesla for comeptitoevly growing have

to focus onto increasing production capacity paradigms, market out products and services
innovatively and for factoring growth onto new working goals.
 Commercial electric vehicles: The Tesla company needs to invest further in producing
new commercial electric vehicles and various effective machinery where this factor is
dynamically shaping up electric car manufacturing industry rapidly globally. There is
wide increasing demand among consumers for various new products, stronger effective
technology and potentially raising wider demands functionally onto new horizons for
entering onto new customer segments (Ferreira, 2019).
Pestle analysis
External business factors within macro environment has wide impact for strongly
impacting the business of car manufacturing industry where there are major factors coming on
within business world potentially bringing forward how Tesla company can focus onto these:
 Political factors: UK Tesla business may widely impact from the political changes
through Brexit where there are various factors such as increased tariff rates, higher taxes
for exporting to European countries. The political changes may have strong impact to
reduce fundamental working parameters of efficiency within company if stronger working
actions are not taken by company for gaining on stronger working metrics and for
competitively growing within global international car manufacturing industry.
 Economical factors: The economic stability metrics are widely important for stronger
business profitability metrics within international industry electric car manufacturing,
where people have wide options with stable economic parameters. Tesla has to focus onto
economic stability paradigms for expansion into new boundaries as there is wide
competition growing on among various marketing paradigms, and focus shall be
pertained onto how new stable changes can be undertaken (Gui, 2019).
 Social factors: Tesla has to focus on keeping renovating within mechanical engines,
machinery and automobiles for bringing on products as per the wide social factors for
developing stronger place within competitive global industry. Socially brand has to
actively engage in best services and creatively developing new machinery for technical
exploration within electric car industry.

 Technological factors: Tesla has to also focus onto competitive technology factors and
gbring before new technology metrics, leverage best machinery engines for electric cars
and development of green energy which will enable for building stronger place within
industry globally. The electric car automobile industry is competitively growing with
various new innovation and higher marketing goals onto which various new perspectives
are working where Tesla has to also factor on strongly for encompassing wider profit
gaols and consumer goodwill globally. Environment factors: The environmental external factors such as development of green
gases which are competitively stronger for producing best batteries within electronic cars
bare widely in demand. Tesla has to focus on keeping stable metrics and compose
innovative goals and working parameters where environmental factors are strongly
focused on which will enable for developing new end goals and wider space of innovation
within consumer market.
These factors enable us to analyse how external business environment have strong
impact within automobile electric car industry, which is rapidly growing on and to work
on with best innovation, new relative advancement onto which new quest shall be
developed further by Tesla (Long, Miller and Kormos, 2019).
TASK B
SWOT analysis
The swot analysis is internal analysis where there are various factors working
within company enabling us to analyse how much growth has been brought within future
working competitive scenario and to rapidly work on for improving new synergy of technical
exploration for Tesla.
 STRENGTHS: Tesla has strong brand goodwill of its won because of best quality
metrics, new working synergy of innovation among all automobiles products and services
which are also available within worldwide metrics. Tesla has wide range p of electric
cars producing best engines which are widely known for producing best effective
technology products, marketing with new innovation and digital platforms. Tesla also has

strength of best vision , leadership of Elon Musk where he has been showing up rapid
growth and keen development of factoring advancement competitively. Tesla also has
strong capital to expand ad invest in untapped business avenues within global electric cars
industry (Lv, 2019.).
 WEAKNESSES: Tesla faces competition from various external factors where forces are
bringing on advanced new brands, companies with new electronic cars and batteries
technically more advanced. External factors are weakness for brand where there is also
growth within consumer demands and parameters of advancement, which may also
impact Tesla for competitively growing within business avenues.
 OPPORTUNITUES: Tesla has working competitive strong business opportunities to
invest in new untapped countries industries market and fuelling up growth within
consumer market share productively which will enable to factor on wider profitable goals.
There is also wide opportunities for tesla to leverage on new marketing tools, productively
using up new innovative machinery and employing best talented skilled employees who
hold wide opportunities for programming on new synergy of functional growth.
 THREATS: There is also increased threat of new companies coming in within global
automobile industry and factoring on keen synergy of strong working gaols where there
are various new companies and brands coming up with innovative electric car. Also
worldwide climate changes have been impacting new functional synergy for producing
new green energy electric battery engines within vehicles for commercial use and vehicles
producing new working metrics of continuous innovation (Zhili, Boqiang. and Chunxu,
2019).
These factors enable us to analyse how various new internal changes are widely
impacting within company business framework where Tesla is actively working for wider
new changes development and wider technical advancement within resources factorisation
and management fundamentals.
Porter 5 forces analysis
Porter 5 forces is one of the most innovative model focusing to bring on rapid technical
analysis of various new changes where business internally has to work on various changes for
bringing up external changes strongly and also for productively reaching up best relative goal

completion. Tesla has to focus on producing new working horizons within electric car industry
where technical exploration has been actively producing new fundamental development and to
yield onto productive functional efficiency
 Threat of new entries (high): There is wide demand among consumer globally for best
higher quality electric cars where innovation is more advanced, and within industry there
has been more new brands and companies coming on and also increasing consumer
preferences may impact in competition . Threat of competition with new entries in the
automobile electric industry has wide potentiality for bringing in rapid changes and
increased competition within global paradigms. Tesla faces competitive threat of new
entrants within electric car industry where world over there has been new brands coming
on with new increase among consumers business demands (Wells and Weinstock,2019).
 Threat of substitution (low): Tesla faces low threat of substitution within automobile
industry as the brand promises best quality factors of engines and electric cars industries,
which has made strong goodwill for consumers rapidly increasing wider synergy of
growth among business avenues. The company products cannot be substituted within
consumer market share and for gaining that productive quality standards, also tesla capital
is mostly unmatchable by any other small brand, new company for gaining on that same
level synergy. Buyers power: Tesla company buyers power are widely effective and known for strong
metrics of independent sales where it can be analysed that buyers power is medium to
impact sales productivity and working hemisphere where there are various paradigms
working in favour for Tesla. This factor shows how Tescla buyers have strong goodwill
attached for best quality performance arena, new productive synergy for factoring growth
objective and for bringing on new arenas of development and speed delivery of various
products , services through which it aims to reach onto wider world levels goals and
operational functions .
 Suppliers power: There are large numbers of supplier in electronic cars industry of Tesla
company own where it can be understood that power of supplier is low in which Tesla
operate its business (Fishe and McCabe, 2019.). It can easily purchase products from
number of supplier at lower prices as it has strong brand image and large market share and
wide capital strongly developed within business industry. Company also maintain strong

relationship with supplier so that it can meet demand of customers within limited time and
cost, where it has strong networks and advanced manufacturing essentials which rapidly
makes up procedures advanced within various metrics for long term working essentials.
CONCLUSION
From above analysis, it has been concluded that organizations like TESLA while
operating their business within car production industry are facing several issues or challenges that
affect all functions and operational efficiencies. But with the help of effective management styles
and skilled applicants they overcome problems in effective manner. With strong and effective
workforce company grabbing all potential opportunities arise in market place, which in return
increasing their productivity level as well as profitability rather than before. Furthermore, it has
been summarized that by using SWOT, PESTLE, Value chain analysis, Porter’s five forces and
other models identify their abilities and capabilities effectively. Organizations operating under
above sector, by creating and implementing effective plans as well as tactics effectively gain
competitive advantages. By following and considering last few years changes they are performing
more effectively within industry (Kester, Sovacool and Heida, 2019).
REFRECNCES
Books and journals

Akakpo, A., Gyasi, E. A.,. and Akpabot, S., 2019. Foresight, organization policies and
management strategies in electric vehicle technology advances at Tesla.
In Futures Thinking and Organizational Policy (pp. 57-69). Palgrave Macmillan,
Cham.
Bhardwaj, S.,., and Kulkarni, S., 2020. Problems Faced by Automobile Industries: Case Study on
Tesla. International journal of Tourism and hospitality in Asia Pasific, 3(2),
pp.78-88.
Ferreira, M., 2019. Tesla and the electric vehicle market in 2018 (Doctoral dissertation).
Fisher, M. and McCabe, M.B., 2019. Tesla: Accelerating to Market. Journal of Strategic
Management Education, 15.
Gui, G., 2019. Carbon Footprint Study of Tesla Model 3. In E3S Web of Conferences (Vol. 136,
p. 01009). EDP Sciences.
Kester, J., Sovacool, B.K. and Heida, V., 2019. From flying cars to Tesla: examining the personal
automobile preferences of primary schoolchildren in Denmark and the
Netherlands. Energy Research & Social Science, 56, p.101204.
Long, Z., Miller, I. and Kormos, C., 2019. Electric Vehicles and Automotive Brand: How has
Tesla Shaped Consumer Perceptions? (No. 19-00417).
Lv, Z., 2019. Observations and reflections on electric automobile industry
developments. International Journal of Frontiers in Engineering
Technology, 1(1).
Wells, J.R. and Weinstock, B., 2019. Electric Car Wars, 2018.
Zhili, D., Boqiang, L. and Chunxu, G., 2019. Development path of electric vehicles in China
under environmental and energy security constraints. Resources, Conservation
and Recycling, 143, pp.17-26. Lugtu Jr, R.C., 2019. Tesla: Testing a Business
Model at its (R) Evolutionary Best (Doctoral dissertation, DE LA SALLE
UNIVERSITY-MANILA).