The case study of Tesla Motors begins by analyzing the external environmental factors that influence the company. The external analysis will focus on the Macro-level environment, using the PESTEL analysis, and the Micro-level environment, following Porter’s five forces model.
The PESTEL analysis is a tool that is used to determine what factors in the external environment are likely to influence the competitive position of a company. The PESTEL analysis looks directly at six external factors; political, economic, social, technological, environmental, and legal.
Politically Tesla is in an advantage in comparison to other industry leaders. Due to recent regulations set by Environmental Protection Agency, that require manufacturers to make vehicles …show more content…
As the United States economically continues to rise/stabilize following the recession in 2008, unemployment has decreases. This is directly correlated with the spending patterns of consumers. As more consumers enter the automotive market, this can create a need for Tesla must consider the fluctuation of gas prices. Gas
When analyzing the environmental sector of the PESTEL analysis, climate change, natural resource and weather are the main force to consider. Tesla was founded on the on the idea of creating a more sustainable environment. Tesla Motors’ innovative technology is geared towards combating climate change. As consumers become environmentally aware of the effects of climate change, Tesla’s zero-emission vehicles will stand out and provide a competitive edge in the …show more content…
TESLA’s innovative technology is instrumental in sustaining a competitive advantage. While technology continues to diminish at a rapid rate, Tesla has proven to meet the demand for technological advancements. This can be seen through the improvements made on battery range over the years. In 2011 the Tesla Roadster averaged 245 miles per charge, whereas the 2017 Model S has a battery range of 315 miles per charge; a rough 30% increase in battery range. In addition to extended battery range, Tesla has implemented its autopilot feature called “summon.” “ This software is the next step toward developing fully autonomous driving capabilities and delivering them through over-the-air software updates.” (Tesla). Along with the technological advancement of their vehicles, Tesla has pioneered a battery charger for the cars called the Tesla Supercharger Networks. These charging stations allow you to recharge the battery and is priced on a per kilowatt-hour
The PESTEL analysis is a tool that is used to determine what factors in the external environment are likely to influence the competitive position of a company. The PESTEL analysis looks directly at six external factors; political, economic, social, technological, environmental, and legal.
Politically Tesla is in an advantage in comparison to other industry leaders. Due to recent regulations set by Environmental Protection Agency, that require manufacturers to make vehicles …show more content…
As the United States economically continues to rise/stabilize following the recession in 2008, unemployment has decreases. This is directly correlated with the spending patterns of consumers. As more consumers enter the automotive market, this can create a need for Tesla must consider the fluctuation of gas prices. Gas
When analyzing the environmental sector of the PESTEL analysis, climate change, natural resource and weather are the main force to consider. Tesla was founded on the on the idea of creating a more sustainable environment. Tesla Motors’ innovative technology is geared towards combating climate change. As consumers become environmentally aware of the effects of climate change, Tesla’s zero-emission vehicles will stand out and provide a competitive edge in the …show more content…
TESLA’s innovative technology is instrumental in sustaining a competitive advantage. While technology continues to diminish at a rapid rate, Tesla has proven to meet the demand for technological advancements. This can be seen through the improvements made on battery range over the years. In 2011 the Tesla Roadster averaged 245 miles per charge, whereas the 2017 Model S has a battery range of 315 miles per charge; a rough 30% increase in battery range. In addition to extended battery range, Tesla has implemented its autopilot feature called “summon.” “ This software is the next step toward developing fully autonomous driving capabilities and delivering them through over-the-air software updates.” (Tesla). Along with the technological advancement of their vehicles, Tesla has pioneered a battery charger for the cars called the Tesla Supercharger Networks. These charging stations allow you to recharge the battery and is priced on a per kilowatt-hour