Tesla Motors External Analyis Essay

946 Words Apr 24th, 2014 4 Pages
SWOT ANALYSIS OF TESLA MOTORS
SWOT analysis is an integral tool which helps management to identify the internal strength and weakness of an organization and make strategies accordingly to grab external future opportunities and fight against external threats (Kerin ,Hartley and Rudelius ,2012). The report here focuses on the external factors of a SWOT analysis of Tesla Motors (i.e. on Opportunities and Threats).
Opportunities
The future external opportunities available to Tesla Motors are discussed as under.
International Expansion: Tesla Motors is a renowned name in United States and has been very successful in the European markets especially Germany. However the company has huge potential and a huge market to cover in the Asian and
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Further oil is not a sustainable energy resource and governments and companies all across the globe are looking forward an alternative energy opportunity (Lakhal, Pasin and Limam , 2006). Partnership: Recent news and industry analysis has clearly spelled that Tata Motors one of the renowned names in Asian countries is much interested in a partnership alliance with Tesla Motors thus making an easy and safe entry for the company in its future targeted Asian markets.
Threats
Tesla Motors similar to other organizations faces an external threat which can attract detrimental consequences for the company. The same is discussed as under.
Increasing R&D Expenditure by Competitors: One of the biggest threat which enables Tesla Motors to gain sustainable competitive advantage is its environment friendly and electronic cars. However, recently large motor companies are devoting much of their funds on their R&D department to electric cars and cars fuelled by other alternatives making an intense and stiff competition for Tesla Motors.
Continue Economic Downturn: The world on an economic basis is experiencing global downturn which has a direct impact on the income and savings of the people and their demand for expensive cars, thus having a direct impact on the sales and profitability of Tesla Motors.
Lower Cost Competitors or Imports: The recent financials of the company makes a clear distinction of

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