This case study analyzes Tesla's business strategies, focusing on the challenges the company faced in 2016, including low gasoline prices and growing competition. It begins with a SWOT analysis, examining Tesla's strengths (e.g., well-known CEO, electric vehicle innovation) and weaknesses (e.g., CEO's dual roles, lack of dedicated hardware). The analysis identifies opportunities like increasing environmental awareness and threats such as competitor brands and potential loss of government subsidies. The study explores Tesla's diversification strategies, particularly its related diversification and concentric diversification. It also examines Tesla's use of vertical integration, market penetration, and product development strategies. The document highlights key elements like sustainability through innovation and technology-driven culture while acknowledging the increasing competition from other carmakers. The analysis concludes by discussing the challenges Elon Musk faces in sustaining Tesla's business amid growing competition and high costs.
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