Swot Analysis Of Tesla Motors

Good Essays
Tesla Motors, Inc. the Silicon Valley-based designer and manufacturer of electric automobiles pride itself on energy efficiency, environmental responsibility and attractive industrial designs. Tesla Motors, a relatively new auto company has a name, trademark, and a product with unique features but lacks the history as some the other competitors like General Motors (GM), Toyota or Honda. The Tesla brand will be formed when the product is uniquely associated with customer experience, the advertisements, newspaper articles, magazines, and conversations with friends. Over time, the product builds history. Whether intentional or not, Tesla is building a powerful new brand in order to align with the hyper-connected, over-saturated, and peer-influenced world we live in. It is making bold promises and is clear on it’s purpose. The most significant advances in brand value come from identifying opportunities in the environment around us like consumers, technology, infrastructure etc. Brands act as symbols that express values and identities and can serve as the center of communities. Companies like Coke, Dove and Zappos: they all have a higher-order purpose beyond the products or services they are pitching. We think Coke and connections, Dove and empowerment, and Zappos and unconditional service, for Tesla, it is about a revolution in automobile industry.

Brand culture is developed as brand stories, images, associations pulse through networks. The amount of buzz Tesla has gotten over the last year has out paced any traditional mass media “campaign” in recent times. Tesla was ranked above any other luxury brand in Consumer Reports, magazine’s measurement of “brand perceptions” by American consumers. Tesla’s Model S owners gave the vehicle 99...

... middle of paper ...

...d highlight the fall in value of the product in future. Tesla Motors has responded to fire incidents with improved car’s safety and fit every new and existing Model S with added titanium and aluminum protection plate. Demand for Tesla’s vehicles because of its cutting edge technology and brand name could pose long-term production constraints. Other auto companies are catching up in the meantime. Many of its competitors have incumbent advantage of manufacturing and production. Furthermore, they have well established service networks and have developed strong customer loyalty over the years. In my opinion, Tesla Motors are headed in the right direction with building their brand but with time, diversification of their product line, creating and maintaining competitive advantage, establishing electric car culture in society will decide their fate as a successful brand.
Get Access