This compulsory paper covers the most relevant aspects of strategies and strategizing at Tesla, Inc., with a focus on supply chain management, manufacturing services and technology. It supports to identify industrial drivers and leverage strategic opportunities effectively. The reader will learn how to formulate, synchronize, manage and control corporate strategy with regards to business models, goal orientation, environmental fit and stakeholders’ requirements. The reader will learn how to apply state-of-the-art innovation frameworks and techniques.
The electric vehicle market has captured worldwide consumer interest. This market segment was according to Kumar valued at $118.864.5million in 2017 and is expected to reach $567.299.8million by 2025, growing at a compound annual growth rate (CAGR) of 22.3%. Further claims that this rising interest rate is believed to be achieved because of an outperformance in regard to the conventional vehicle, since it provided higher fuel economy, low carbon emission and maintenance, convenience of charging at home, smoother drive and reduced sound from engine.
This market segment is still in its growing phase, since it must convince people that it will work and is practical. Therefore, the market for all-electric vehicles is globally small, at roughly 1% of total sales, but Tesla has been doing its part to double it. In late December 2018 (Business Insider, 2018) stated that Tesla, Inc has created a micro-monopoly. Nowadays, according to DeBord,, one of the biggest challenges of Tesla is to maintain the electric vehicle (EV) market they have created.
Table of Contents
- 1 Introduction
- 1.1 Tesla, Inc
- 2 Currently Executed Strategy
- 3 Identification of Opportunities and Threats
- 3.1 Macro-Environment – Pestle-Analysis
- 3.1.1 Political
- 3.1.2 Economic
- 3.1.3 Social
- 3.1.4 Technological
- 3.1.5 Legal
- 3.1.6 Environmental
- 3.2 Micro-Environment – Five-Forces-Analysis
- 3.2.1 The Threat from New Entrants
- 3.2.2 The Bargaining Power of Buyers
- 3.2.3 Threat of Substitution
- 3.2.4 The Bargaining Power of Suppliers
- 3.2.5 The Intensity of Rivalry in the Industry
- 3.3 Diagnosis of Opportunities and Threats
- 4 Industry Analysis
- 4.1 Resource and Capability Analysis
- 4.1.1 Financial
- 4.1.2 Technological
- 4.1.3 Physical
- 4.1.4 Research and Development
- 4.1.5 Marketing
- 4.1.6 Engineering
- 4.2 Diagnosis of Strengths and Weaknesses
- 5 Management Recommendations and TOWS-Matrix
Objectives and Key Themes
This paper aims to analyze Tesla, Inc.'s position in the electric vehicle (EV) market, identifying its strengths, weaknesses, opportunities, and threats to determine its ability to maintain its leading position. The analysis will use PESTLE and Porter's Five Forces frameworks to assess the external environment and a resource and capability analysis to evaluate Tesla's internal strengths and weaknesses.
- Tesla's current market position and executed strategy in the EV market.
- Opportunities and threats facing Tesla in the macro and micro environments.
- Tesla's key resources, capabilities, strengths, and weaknesses.
- Strategic recommendations for Tesla to maintain its competitive advantage.
- Assessment of the risk to Tesla's ability to drive the world's transition to electric vehicles.
Chapter Summaries
1 Introduction: This chapter introduces the rapidly growing electric vehicle market and Tesla's prominent role within it. It highlights the market's potential and Tesla's unique position as a major player, setting the stage for a deeper analysis of the company's strengths, weaknesses, opportunities, and threats.
2 Currently Executed Strategy: This chapter details Tesla's current strategic approach, focusing on its unique business model that emphasizes high-quality, high-performance vehicles. It discusses Tesla's direct sales model, its investment in research and development (R&D), and its vertical integration efforts, particularly in battery production. The chapter showcases Tesla’s initial strategy of targeting a price-insensitive market segment to establish a strong brand identity and generate significant profit margins before expanding to a wider range of more affordable vehicles.
3 Identification of Opportunities and Threats: This chapter utilizes PESTLE and Porter's Five Forces analyses to identify the opportunities and threats facing Tesla. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the EV market, while Porter's Five Forces framework assesses competitive intensity, buyer power, supplier power, the threat of new entrants, and the threat of substitutes. The analysis provides a comprehensive overview of the external factors that could impact Tesla's future.
4 Industry Analysis: This chapter delves into an analysis of Tesla's internal resources and capabilities, identifying its strengths and weaknesses. It assesses Tesla's financial standing, technological advancements, physical resources (factories and infrastructure), R&D capabilities, marketing strategies, and engineering prowess. This internal assessment complements the external analysis from Chapter 3 to provide a holistic view of Tesla's position.
5 Management Recommendations and TOWS-Matrix: This chapter presents management recommendations derived from a TOWS matrix, which synthesizes the opportunities, threats, strengths, and weaknesses identified in previous chapters. The recommendations offer actionable strategies for Tesla to capitalize on its strengths, mitigate its weaknesses, exploit opportunities, and address threats in the competitive EV market.
Keywords
Electric vehicles (EVs), Tesla, Inc., PESTLE analysis, Porter's Five Forces, competitive advantage, market share, innovation, research and development (R&D), sustainability, business model, supply chain, marketing strategy, financial performance, threats, opportunities, strengths, weaknesses, TOWS matrix, competitive landscape, economies of scale, brand image, technology, automation.
Tesla, Inc.: A Comprehensive Analysis - Frequently Asked Questions
What is the purpose of this document?
This document provides a comprehensive analysis of Tesla, Inc.'s position in the electric vehicle (EV) market. It aims to identify Tesla's strengths, weaknesses, opportunities, and threats, ultimately assessing its ability to maintain its market leadership.
What analytical frameworks are used in this analysis?
The analysis utilizes several key frameworks, including PESTLE analysis to examine the macro-environment, Porter's Five Forces to analyze the micro-environment and competitive landscape, and a resource and capability analysis to evaluate Tesla's internal strengths and weaknesses. A TOWS matrix is also employed to synthesize findings and develop strategic recommendations.
What aspects of Tesla's business are covered?
The analysis covers a wide range of aspects, including Tesla's current market position and executed strategy, opportunities and threats in both the macro and micro environments, key resources and capabilities, strengths and weaknesses, and ultimately, strategic recommendations for maintaining a competitive advantage. The risk to Tesla's ability to drive the world's transition to electric vehicles is also assessed.
What are the key chapters and their content?
The document is structured into five chapters:
- Chapter 1: Introduction: Introduces the EV market and Tesla's role.
- Chapter 2: Currently Executed Strategy: Details Tesla's current strategic approach, business model, and market targeting.
- Chapter 3: Identification of Opportunities and Threats: Uses PESTLE and Porter's Five Forces analyses to identify external factors impacting Tesla.
- Chapter 4: Industry Analysis: Analyzes Tesla's internal resources and capabilities, identifying strengths and weaknesses.
- Chapter 5: Management Recommendations and TOWS-Matrix: Presents strategic recommendations based on the SWOT analysis for Tesla to capitalize on opportunities and mitigate threats.
What are the key findings or conclusions of the analysis?
The key findings and conclusions are synthesized in the management recommendations and TOWS matrix within Chapter 5. The specific strategic recommendations are not explicitly detailed in this preview but are derived from the comprehensive analysis of Tesla's external and internal environments across the preceding chapters.
What keywords are associated with this analysis?
Key words include: Electric vehicles (EVs), Tesla, Inc., PESTLE analysis, Porter's Five Forces, competitive advantage, market share, innovation, research and development (R&D), sustainability, business model, supply chain, marketing strategy, financial performance, threats, opportunities, strengths, weaknesses, TOWS matrix, competitive landscape, economies of scale, brand image, technology, and automation.
- Arbeit zitieren
- Sebastian Neumann (Autor:in), 2019, Tesla, Inc. and the world's transition to electric vehicles. Risks, strenghts, opportunities and strategic reccommendations, München, GRIN Verlag, https://www.grin.com/document/918398
