Pestel Analysis: Tesla Motors
PESTEL framework analysis assesses the external environment variables to identify the opportunities and risks of certain public strategies, because the changes in these factors can lead to a significant shift of industries, especially in the long term (Witcher and Chau, 2010). PESTEL sheds light political, economic, social, technological, environmental and legal factors set.
With the sale of cars in 17 countries from North America, Western Europe and Asia (Tesla 0.2014), Tesla Motors has to deal with the outstanding political patterns that affect their business operations. One of the key political factors that affect the industry and environmental protection laws to induce the production of more environmental cars …show more content…
2004). Buyers are losing confidence in gasoline and costs associated with the production, in an effort to help the environment. Moreover, undoubtedly people judge the current society "based on the type of car they own” (Autospies.com, 2008), and the idea of having electric vehicles improve the social status of the individual. Social change is another increase in the number of elderly people with the most wealth and savings, and who are likely to spend more money on premium electric vehicles (Reuters …show more content…
First, “The Threat from New Entrants”: The threat of new entrants is very high. Log electric car industry in 2003, faced the same challenges Tesla being a newcomer to the market and there are many financial problems that require high capital investments, brand building and distributions channels. However, manufacturers established with great economic power to enter this market is relatively low due to its capabilities and support for a government program to develop electric car (Shirouzu, 2011).
Second, “The bargaining power of Buyers”: The ability of buyers to the overall modest bargain. According to the annual report Tesla (2014), they rely on their relationship with Daimler and Toyota (Brown 0.2013). Partnership is very important to Tesla, because the supply of these companies make up a high percentage of the profits, and therefore, they cannot lose them, which makes high-strength considerably. However, they also sell their cars to individual customers, and many of the incentives offered by the government to give potential customers a tax credit deduction (Ministry Of Transportation, 2010). These programs stimulate demand of electric vehicles that make