Analysis of Tesla's Strategy and Competitive Advantage Report

This report provides a comprehensive analysis of Tesla, focusing on its strategic position and competitive advantages in the electric vehicle market. The report begins with an overview of Tesla's background, including its mission to promote sustainable energy. It then delves into external factors using Porter's Five Forces to assess the competitive landscape, including threats from new entrants, the bargaining power of buyers and suppliers, and the intensity of rivalry. An internal analysis examines Tesla's resources, capabilities, and dynamic capabilities, leading to a strategic analysis of Tesla's current approach. The report concludes with strategic recommendations, such as the importance of recruiting a chief operating officer, initiatives towards mobility, and focusing on profitability. Overall, the report highlights Tesla's strengths and suggests areas for future growth and improvement in the competitive electric vehicle market.

Running Head: MANAGEMENT 0
MANAGEMENT STRATEGY AND DECISION MAKING

MANAGEMENT 1
Conclusion
The study has thoroughly analysed the environment condition of the organisation. Tesla has
been successful start-up which has further become one of the leading edge corporations as of
the innovative ideas and management of good leadership in relation with manufacturing of
electric vehicles. From its commencement, Tesla focus is on bringing environmentally
friendly products rather than profit. The company lives in a highly favourable environment
both at macro and micro level. In addition to this, it is also found that the competition has
increased largely due to which it has to face the high bargaining power on the side of
employees. The company was initiated from building of electric cars but it has now indulged
into development of various energy efficient products and battery operated vehicles. In spite
of the huge competition, it is able to gain the competitive advantage in the pioneering
production methods, as well as in the battery production. In relation with external
environment of Tesla, there is a threat of various new entrants in the electric cars segment
such as Nissan, Toyota and Ford. The company diversification in the area of supercharger
and battery storage helps in gaining competitive advantage over its competitors. It also
enables Tesla to use its internal resources in an effective manner while achieving economy of
scale. As per the VRIO analysis, the company has sustained competitive advantage in various
areas showing its strategic capabilities and success in manufacturing. Hence, it can be noted
that Tesla motors are achieving the competitive edge by building technological value in their
product but to ensure future sustainability and growth, the company is required to extend its
reach to the new markets and brings out more environment friendly products.