SWOT
Internal factor analysis
Strengths
• Strong management team and technological expertise – the management team of Tesla is very strong with CEO Elon Musk spearheading it who has earlier also founded companies like PayPal and SpaceX which are doing quite well in their domain. They recruit the best of the employees to have the desired result. They also have a strong technological expertise in the area of electronic transmissions and drive train.
• Unique position in the auto market – Tesla is not known just as a car manufacturer but manufacturers of one of the most innovative cars in the market till date. It has also dominated the market for luxury, long range electric automobiles
• High control on vehicle production – Tesla has the ability …show more content…
This strategic factor would involve establishing new businesses to reduce Tesla’s risk in the automotive sector.
• Cost-reduction initiatives - In order for Tesla to finally begin posting profits, it will need to bring down costs. It is making moves to accomplish this goal. As we mentioned earlier, the company is in the process of building a Gigafactory, which will allow it to build batteries for its vehicles at reduced costs, possibly up to 30% lower than what it currently pays.
• Increasing oil and gas prices – as the current auto industry is mainly using non-renewable sources of energy i.e. petroleum, diesel and gas, there is increase in the price of it almost everyday because of the ever growing demand. This would be a huge opportunity for Tesla as it is a battery operated.
Threats
• Strong competition - Automotive companies aggressively compete against each other. This external strategic factor threatens Tesla, considering current efforts of other firms to develop and produce fully electric vehicles. Since these firms have much larger market share and brand recognition they have a larger financial resource and can survive longer giving Tesla a tough
Internal factor analysis
Strengths
• Strong management team and technological expertise – the management team of Tesla is very strong with CEO Elon Musk spearheading it who has earlier also founded companies like PayPal and SpaceX which are doing quite well in their domain. They recruit the best of the employees to have the desired result. They also have a strong technological expertise in the area of electronic transmissions and drive train.
• Unique position in the auto market – Tesla is not known just as a car manufacturer but manufacturers of one of the most innovative cars in the market till date. It has also dominated the market for luxury, long range electric automobiles
• High control on vehicle production – Tesla has the ability …show more content…
This strategic factor would involve establishing new businesses to reduce Tesla’s risk in the automotive sector.
• Cost-reduction initiatives - In order for Tesla to finally begin posting profits, it will need to bring down costs. It is making moves to accomplish this goal. As we mentioned earlier, the company is in the process of building a Gigafactory, which will allow it to build batteries for its vehicles at reduced costs, possibly up to 30% lower than what it currently pays.
• Increasing oil and gas prices – as the current auto industry is mainly using non-renewable sources of energy i.e. petroleum, diesel and gas, there is increase in the price of it almost everyday because of the ever growing demand. This would be a huge opportunity for Tesla as it is a battery operated.
Threats
• Strong competition - Automotive companies aggressively compete against each other. This external strategic factor threatens Tesla, considering current efforts of other firms to develop and produce fully electric vehicles. Since these firms have much larger market share and brand recognition they have a larger financial resource and can survive longer giving Tesla a tough