Business Report: Analysis of Tesla Motors' Competitive Advantage - A2

This report provides an analysis of Tesla Motors' competitive advantage, focusing on the period before the launch of a new product or service. It delves into the company's performance, employing Porter's generic strategy and a SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. The report examines the company's approach to dealing with competition in the electric vehicle market, emphasizing its investment in advanced technology and differentiation strategy. The report analyzes Tesla's financial performance and market position, considering its efforts to penetrate the competitive market and expand its operations. It references key publications to support its claims, providing a comprehensive overview of Tesla's strategic decisions and their impact on its competitive advantage. The report highlights the company's ability to innovate and adapt to the changing technological landscape, while also acknowledging potential challenges and opportunities in the industry.

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Tesla Motors
(Insert names)
(Institutional affiliations)

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Introduction
Tesla Incorporated is one of the most valuable companies in the stock market judging
from the billions of dollars invested. The company was started by Elon Musk in conjunction with
other inventors such as Martin Eberhard in the year 2003. It is however important to note that,
the company first went public in 2010, with the investments being directed towards building new
models (McDermott, 217, 48). Unfortunately, the motor vehicle market is saturated with big
players such as General Motors. It is hence for this reason that the company had to seek ways of
dealing with the big players.
Competitive Advantage
In the two years preceding the company’s launch of the first car saw deep research in
ways to deal with competitors. It is at this point that the company adopted porter’s generic
strategy to deal with competition. The big players in the automotive industry such as General
Motors had mastered several tricks to navigate the competitive industry. It is hence for this
reason that Tesla chose to invest in advanced technology as a way of dealing with competition
(Guillaume 2014, p. 18). The decision to invest in advanced technology proved critical in the
company’s penetration of the competitive market.
According to McDermott (2017, p. 30), in the fiscal year 2017, Tesla Inc. was able to
produce and deliver around one hundred and three thousand units. The numbers might not seem
very high compared to the sales made by General Motors and other competitors. It is, however, a
positive indication of the progress made by the company over the years. In the past, the company
found it difficult to penetrate certain markets due to skeptics with poor understanding of the
market. The use of advanced technology has, however, played a huge role in swaying the

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masses. A high investment in technology has played a huge role in boosting the company’s
fortunes.
The electric car market has been gaining popularity in the recent past with other brands
seeking ways of entering the market. Tesla has, however, improved its ratings in the field by
positioning itself as a key player in the energy industry and the sharing economy. The company
has built a gigantic factory with the aim of producing batteries in Nevada (Gross 2016, p. 309).
The company is slowly positioning itself as the ultimate player once electric machines become
popular. The differentiation approach has played a key role in improving the company’s
competitive advantage.
SWOT Analysis
Tesla has however been able to grow over the years, thanks to its ability to identify its
strengths compared to other players. The use of advanced technology in its products has played a
huge role in improving the company’s fortunes. According to McDermott (2017, p. 28), the
company has been able to grow thanks to its ability to focus on this strength. Unfortunately,
overlooking the middle income earners in its products is likely to prove a challenge, hence one of
its weakness. The company has over the years focused on top earners and may in the end lose its
dominance in the industry.
A recent decision by the company to produce low cost models is however one of the
opportunities that exist in the company. The company has the potential of dominating the electric
car market with the introduction of low cost brands. The newly built battery factory in Nevada
should also be spread to other parts of the nation. In doing this, the company is likely to improve
its ratings amongst various parties (Seifer 2015, p. 32). Unfortunately, changing technology is

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likely to prove the biggest threat to the company. The company has over the years invested in
advanced technology to power their vehicles. The ever-changing technology field is however
likely to prove the biggest threat to the company’s growth.

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References
Gross, M. (2016). A planet with two billion cars. Current Biology. 26(8), pp. 307-310.
Guillaume, D. (2014). Tesla: Inventor of the Electrical Age. Canadian Journal of History. 49 (2),
pp. 12-45.
McDermott, E. (2017). Examining the effects of policy interventions on increasing electric
vehicle adoption in California. Master's Projects and Capstones. 567 (2), pp. 3-68.
Seifer, J. (2015). Tesla: Inventor of the Electrical Age. The Historian. 77 (2), pp. 5-56.