Competitive Analysis and Challenges: Tesla's Business Project Report

This report provides a comprehensive analysis of Tesla's business operations, focusing on its competitive advantages and the challenges it faces, particularly in the context of cross-border trading. The report begins with an introduction outlining the objectives and scope of the analysis. The main body is divided into two parts. Part 1 includes a competitive analysis, utilizing Porter's Five Forces model to assess Tesla's position in the market, considering factors such as suppliers, buyers, new entrants, substitutes, and existing competitors. Part 1 also explores the various challenges Tesla encounters when trading across borders, including differences in culture, language, market trends, and government regulations. Part 2 focuses on points the company needs to consider to enhance its business. The report concludes with a summary of key findings and insights, supported by references. The report examines Tesla's strategic approaches to achieve a competitive edge and navigate the complexities of international business, providing valuable insights into its market dynamics and operational strategies.

Business Project

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................2
PART 1............................................................................................................................................2
A) Competitive analysis of company competitive position in various market and various
activities which helps in achieving competitive advantage. ......................................................2
B) Explain various challenges which a company needs to consider at the time of trading
across borders. ............................................................................................................................5
PART 2 ...........................................................................................................................................8
Explain various points which company needs to considered for enhancing their business........8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Main objective of this report is to understand the concept of competitive advantage and
various challenges faced by an organisation at the time of trading across borders. An
organisation includes a group of people who all are working together for the achievement of
common goal. For success of any organisation its very important that all departments of an
organisation are working together with their full efficiency. An organisation can achieve higher
growth by expanding their business throughout various countries. Expanding business area helps
an organisation in increasing their sales of product and services and enhancing their business
revenue. Companies use various strategies and tools which helps in achieving competitive
advantage in market. This is because when an organisation operates its business activities in
different countries the competition is also increased (Afzal and et. al. 2019). An organisation
faced many problems at the time of operating its business outside the countries. This is because
there is a big difference between one country culture, language, religion, taste and preferences,
market trends, values and so on to another countries. These differences between countries create
a problem for company to successfully operates its business in other countries. For success of
any organisation its very important that they achieve competitive advantage in market.
Competitive advantage means attracting customers by offering something different from other
competitors so that customers are prefer to buy their product as compare to its competitors.
Competitors are the external factors which influence the growth of an organisation because of
which an organisation face a big loss. For this report Tesla is taking into consideration. It is an
American electric vehicle and clean energy company. Which is founded in 2003 and its
headquarter is in Palo Alto, California, United State. It has around 35 numbers of location and
around 70,757 numbers of employees are working with it. Its product list includes electric cars,
battery energy storage from home to grid scale, solar panels and solar roof titles. The name of
Tesla is consider in one of the world best selling plug in and battery electrics passengers car
manufacturer. The vision of Tesla to provide a pollution free car to the society. This report
includes competitive analysis of selected company in various market and various tools with the
help of which a company can achieve competitive advantage in market. Other that this it includes
various challenges considers by company when trading across countries.
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MAIN BODY
PART 1
A) Competitive analysis of company competitive position in various market and various
activities which helps in achieving competitive advantage.
Competitive analysis refers to a process of categorizing and evaluating competitors for
better understanding the strength and weakness in comparison of company (Arner and et. al.
2019). Competitive analysis helps a company by providing offensive and defensive strategic in
context to identify available opportunities and threats for an organisation. This analysis helps
company to better understand their competitors in market and make effective strategies which
helps in effectively facing competition in market. In context of selected firm they innovate a
unique product in market which is protect environment from pollution. This will create a good
image of company in society and earn higher profit. Their vision helps them in achieving higher
growth but their new technology will attract more competition in market. In current scenario
selected company face a huge amount of competition in market which will effect its future
growth. For effectively facing competition in market selected company needs to analysis
competitors. For better analysing competitors selected company use porter five forces model
which is discuss below:
Porter five forces model- This model is developed by Michael E Porter in 1979 in
Harvard business review. The publication of this model will change the understanding of
strategies among enterprises, organisations or even in various countries (Wellner and Lakotta,
2020). These five forces of this model helps an organisation in analysing the industry
attractiveness, the affect of market trends on industry competition, for which type of industry a
company needs to compete, how a company can achieve higher success through positioning
itself in market. This porter five forces model is a strategic tool which is developed to give a
global overview to organisation rather than providing a detail business analysing technique. This
model helps selected company in analysis its strength in market position based on the five forces
of this model. This model is better work when a company looking at the entire market sector
rather than its individual business or on a few competitors. The main objective of this model is
that an organisation can obtain higher competitive advantage through profitability of the industry
in which the organisation is located and relative competitive position of company in the industry.
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In context of selected firm, their primary task is to select a high profitability industry by
analysing five factors which are suppliers, buyers, current competitors, alternatives products and
potential entrants. After this selected company needs to select one strategies out of three
available strategies which are low- cost, production dissimulation, competitive strategy. One
strategies is selected on the bases of strength and comparison of five forces (Bruijl, 2018). This
model has a wider impact on corporate strategy formulation. By applying this model in analysing
competitive strategy helps selected company in effectively analysing the customers competitive
environment. This model includes the large number of different factors which helps in better
analysing basic competitive landscape of an industry. In context of selected firm, five main
sources of competition included in porter model are discuss below:
 Bargaining power of suppliers (Moderate Force)- In context of selected firm, their
business is depends on the reliability of suppliers. The five forces model helps company
in analysing how a supplier will shape industry environment through influencing the
availability of raw material which is required by firm. Selected company suppliers have
a low level of forward integration. Another external factor is moderated level of supply
which are empower suppliers to affect Tesla, but only to a limited degree. This force of
porter five forces model analysed by selected company indicates the bargaining power of
suppliers as a secondary strategic management priory (Chen, Karamemis and Zhang,
2021).
 Bargaining power of buyers-(Moderate force)- In this aspect of porter five forces
model, its automotive, battery and solar panel industry environment and influence of
customers on firm is accounted. The customers of selected company are the direct factors
which determined the sales and revenue of company. Various factors are forces the
bargaining power of customers on the company. Low switching cost will reduce barriers
for customers of selected firm to buy cars from other providers. This factor has a strong
force against the company and other players of automotive industry. Because of moderate
availability of substitutes there is a limited bargaining power of customers. Other that this
the volume of purchase is low because each customer will buy one or two cars only
which will reduce the influence of customers on Tesla. Form this factor of porter five
forces model it is analysed that the intensity of external factor reflects the bargaining
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power of customers as a moderate force and a secondary management priority (Clark and
Cavatorta, 2018).
 Threats of new Entrants-(Weak Force)- In context of selected firm, new entrants
means new firms, which will influence the industry environment and defines performance
of company. Selected company face many difficulties because of high cost of brand
development and high popularity of Elon Musk. Other than this the auto-mobile
manufacturing require a high cost, which will create a barrier for new firms. Along with
this selected company helps in increasing economy of scale, which new firms only
achieves when they exceeding a production threshold. Form above discussion it is
analysed that there is only a minor strategic management concern related to new entrance
(Coulthart, 2019).
 Threats of substitutes- (Moderate Force)- In context of selected firm, they experience
the impact of substitutes on automotive and energy solution industry environment.
Through this model it is analysed that this factor has a moderate force of the threats of
substitution against company. From this it is analysed that Tesla low switching cost
enable competition. In this external factor low switching cost enable substitutes in easily
attracting new customers. This factor create a string force against selected company
industrial environment. Other then this because of moderate availability of substitutes
will limit the influence of suppliers. While many substitutes have only a moderate level
of performance in satisfying needs and wants of customers (Graziano and et. al. 2018).
 Competition of existing competitors in the industry (Strong Force)- In context of
selected firm, it operates its business in a highly competitive market. This factor helps on
analysing the influence of competitors on automotive and energy solution industry
environment. Inn context of selected firm there are only small number of firms which are
operating in the automotive market. This external factor will limits the effect of
competition on company. Selected firm has a strong force and aggressive towards
innovation and promotion of their product. Other than this low switching cost for
customers to purchase product of other manufacturers will increase the force of
competition (Holslag, 2019).
Competitive advantage- In context of selected firm they can achieve competitive advantage in
market by adopting a effective strategies and policy related to their products. Achieving
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competitive advantage in market helps an organisation in enhancing their sales and profitability
in market. Now a days customers are more attach towards environment and selected company
design cars which does not create pollution and produce a environmental friendly car which will
attract more and more customers towards company as compare to its competitors. Selected firm
can adopt a effective pricing strategy which will attract its customers towards its product. In
context of selected firm if company wants to achieve competitive advantage in market then its
needs to effectively understand the five forces of porters model. This will helps selected
company to develop effective and unique strategies after considering all factors such as
suppliers, customers, substitute, competitors and chances of new entrance. This will helps
selected firm in achieving competitive advantage in market which will helps company to
enhance its market share and revenue for company. By producing environmental friendly cars
selected company also fulfil its corporate social responsibility. Which will attract customers
towards company and help company in achieving competitive advantage (Khajezadeh and et. al.
2019).
B) Explain various challenges which a company needs to consider at the time of trading across
borders.
Cross border trading provides various opportunities for an organisation to expand their business.
It gives benefits of selling products across the globe and for import and export of different
commodities to different countries. While its very difficult for a company to expand its business
in other country or sell its goods and services to other market. A organisation face many
difficulties at the time of trading accessors boarder because when a company trade its goods and
services to another countries it will face different culture, religion, market trends, taste and
preferences of customers and most important rules and regulation of government of that country.
At the time of trading across boarder company needs to follow various rules and regulations such
as import export policy, taxation policy, carriage policy, shipment policy, foreign exchange
policy and so on (Zanfrini, Zanfrini and O'Riordan, 2019). All these policies are different from
each countries. So company needs to follow all these rules and regulation related to cross boarder
so that they can achieve higher growth in other market. In context of selected firm, they need to
effectively analysed the various cross boarder factors which influence the process of trading
across boards. Their are various challenges faced by a company at the time of trading based on
the factors such as taste and preferences of customers, market trends, competition level, culture
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of country which includes their language, values, religion etc. and various other factors which
are create problem for an organisation at the time of trading across boarders. In context of
selected firm if they want to achieve they needs to effectively analysis the influence of these
factors and needs to properly considered these factors. Effectively considering the challenges
which will influence company at the time of trading helps company in successfully achieving
their goal and also save unnecessary cost and time of selected company. In order to trade
internationally, Tesla needs to consider challenges while trading across borders which are given
below-
Less number of expertise regrading the local market: The selected company is
necessary to research the foreign market and also have to gain full knowledge before trading into
the international countries. The company should know and study the foreign trading patterns and
their methods of payments. Tesla will be very new to the foreign market and to be in the pattern,
they have to follow their trends and strategies for trading. The international markets are heavily
influenced by their country's festive season and different occasions in which Tesla can come
across with many backlashes as they cannot align with the needs and demands of the customers.
The company will face problems with catering of the local as they are aware about the facts and
figures of the market and their pricing strategies. It will be difficult for the customers to accept
the international company and their products in terms of their pricing and marketing strategies.
Tesla has to accept the trends that the local market has in order to cater the international markets
(Kinlock, 2019).
Logistics and shipping: Logistics and shipping is considered as the most important
factor while expanding the business into international countries. The product sells into
international countries shows the brand credibility and viability. It is important for the selected
country to package the commodities and selling in the international marketing with the help of
shipping partners. These shipping partners helps with the shipment of different commodities to
international borders with offering various discounts on them. It is difficult for the company to
trade internationally which the helps of only single shipping partner. The internation shipment
process is expensive in nature which also affects in the prices of the commodities that are selling.
Overhead and additional cost: The company considered various challenges when
trading internationally in which they have to bear some additional costs. The company has to
understand their pricing strategies and its structure which is following by the international
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countries. They have to make sure about the currency convertor so that the commodities they
offers should not above or below from that price which the customer can bear. In addition to this,
Tesla has to maker sure that they know the language of that country so that it can assists in
knowing what the product is ordered by the customers with that price. Along with this, they also
have to keep in mind the taxes and customs that they need to face which can lead to the increase
of overhead costs to the company. Moreover, the amount invested by the company for the
materials and resources that are used for trading internationally will also gradually increases
(Olga, Olga and Julia, 2018).
Payment method- This is the most important challenge faced by a company at the time
of trading their goods and services in other countries. When a company sells its products to
customers of different country then they face of problem related to the payment method. For
example- Tesla is an American company which is fully developed and their companies offer very
unique and effective payment method because their customers are also prefer this type of
payment method which save their time. In America customers are prefer to pay online in
exchange of any goods and services. But its not necessary that selected company can use this
same payment method in another country. This is because it not necessary that customers of that
country are prefer that type of payment method. In some undeveloped countries peoples are
prefer to use traditional method of payment that is by cash. So its very important for selected
company to considered this factor effectively so that they do not face any problem. Selected
company needs to analysis that people of that country are prefer which type of payment method
most and use that method at the time of trading across boundaries. The consideration of this
factor helps selected company in effectively trading its product in other countries.
Local promotion and marketing- This is the another important factor which influence
the business growth at the time of trading its goods and services in different countries. So
company needs to effectively analysed this factor. It very important for company to analysis and
understand the demand of target audience before trading their goods and services to them. When
a company or seller trade with different countries it face a difficulties at the time of attracting
customers towards their product and make them to buy their product from their store. When a
seller trade its good and services to different country then its very important for company to
analysis the market trends of that place. The market trends is dominated by various factors such
as culture, festivals, speciality in the area and so on. These market trends are different from one
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country to another. So its very important for selected company to analysis these market trends
and selected company needs to interact with the target audience before presenting their product.
In context of selected firm, this is an important challenge which cause failure of product in other
country so its very important for company to effectively analysed the local promotional and
marketing tool of that country so that they can effectively and efficiently sell their product in that
country and achieve higher growth (Tatham and Christopher , 2018).
From above discussion it is analysed that selected company needs to considered all these
challenges which are occurs at the time of trading across boundaries. These factors cause failure
of product in other country because of which company can face a huge amount of loss. A failure
of product in other country will effect the image of company and its market share. In context of
selected firm, the trading of goods to different countries will include a huge amount of
investment so its very important for company to keep in consideration all these challenges.
PART 2
Explain various points which company needs to considered for enhancing their business
For success of any business its very important to consider effective tools and factors so
that an organisation can enhance its business. If a company wants that its business is run for long
period of time then its important to regularly expand their business. Which will also helps in
generating revenue for organisation and increase its market share (Dawes, 2018). In context of
selected firm, it face a huge competition in market so its very important for selected company to
effectively considered various theoretical tool so achieving competitive advantage in market and
expanding their business. In context of selected firm, they needs to considered various factors
and Ans-off matrix which helps in expanding their business. Various factors of this matrix is
discuss below:
Ansoff matrix- This matrix is developed by Igor Ansoff in 1957. It offer a simple and
useful way which helps an organisation in its growth. It refers to a strategic planning tool which
provide a framework to organisation managers, seniors and market advisers which helps in
formulating effective future growth strategies (Tennent, 2020). This matrix is also known as
product or market expansion grid matrix. Through this method a sustainable growth rate can be
calculate by multiplying the company earnings retention rate by its return on equity. This matrix
includes four important growth factors which are market penetration, market development,
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product development and diversification. In context of selected firm all these factors are discuss
below:
 Market Penetration- In context of selected firm, this strategy focus on increasing sales
of existing products to an existing market. Selected firm needs to consider this factor
effectively so that they can make strategies and policies related to promotion of their
existing product in existing market. Selected company make environmental friendly cars
for their customers and with the use of appropriate tool they can promote their product in
existing market which will attract their customers towards company product. Selected
company can effectively considered promotion and distribution efforts which attract more
and more customers and helps company in expanding their business through increasing
sales of their product and earn high revenue (Wang and Zhan, 2019).
 Product Development- In con5text of selected firm, product development strategy
means focusing on introducing new product to an existing market. In this strategy
selected firm needs to develop new product in existing market for long term survival. For
this selected firm needs to consider more focus on extensive research and development &
expansion of company products range. By considering this factor selected firm attract
more and more customers by providing something unique as compare to its competitors
which helps in achieving competitive advantage in market and helps in expanding their
business(Gardiner and Scott, 2018).
 Market Development- It refers to an marketing strategy in which an organisation is
focus on entering in new market by using their existing products. This strategy helps an
organisation on expanding their business in new geographic regions, customers segment
and so on. By considering on this tool selected organisation can easily expand their
business. This marketing strategies includes various approach such as company catering
to different customers segment. Enter into new domestic market by expanding reasonably
and entering into a foreign market by expanding internationally (Vrtaňa, 2019).
 Diversification- It refers to a marketing strategy in which an organisation is focus on
entering a new market with the introduction of new product. By effectively considering
this factor selected company will increase its revenue. This factor is divided into two
parts which are related diversification and Unrelated diversification. By considering this
strategies selected company can easily expand its business (Alyamani, 2020).
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CONCLUSION
From above discussion on this report it is concluded that an organisation face a huge
amount of competition at the time of offering its goods and services to customers. For success of
any organisation its very important that they can effectively analysed their competitors. Because
competitors re the external factors which influence the growth and success of a business.
Competitors are the person or organisation which offer similar products to customers and try to
make other company customers of its own. So if a company wants to achieve competitive
advantage in market it require to adopt a unique and effective competitive police in their
company so that they can effectively attracts its customers towards company products and
achieve competitive advantage in market. In this report porter five forces model is used for
competitive analysis which includes five factors that are bargaining power of suppliers,
bargaining power of customers or buyers, threats of new entrance, threats of substitutes and last
one is competition of existing competitors in the industry. By effectively considering all these
factors an organisation can analysis its competitors and make effective decision and strategies so
that thy can achieve competitive advantage in market. Other than this from this report it is
analysed that an organisation face various challenges at the time of trading across boards. So its
very important for company to keep in consideration all these factors. So that company can
successfully sell its good and services in other country competitors. Their are various challengers
which needs to be considered by company at the time of trading its goods and services across
boarder such as lack of local market expertise, shipping and logistics, additional & overheads
cost, payment methods, local promotions & marketing and so on. All these concepts influence
the growth of a business in international market because every county has its own culture, market
trends, taste and preferences, values, language, religion, rules and regulation etc. other than this
its is analysed that there are various tools which needs to be considered by company so that they
can enhance their business. Their are various theoretical tools such as using innovation strategies
which helps an organisation to innovate new and unique products and achieve competitive
advantage in market which will helps an organisation in enhancing their business. Other than this
an organisation needs to considered social factors, economical factors, technological factors
which helps an organisation in enhancing their business.
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