Swot Analysis Of Tesla Motors

Tesla now offers a solution to these issues. With an increase in government regulation and environmental awareness, electric vehicles are growing in popularity; Tesla is and will continue to be the leader in electric vehicles because of their innovation, technological advancements, and brand recognition among the population.

It is important to mention as well the expertise the company has been able to create, and the culture of innovation it aims to sustain. Since inception, the strategic positioning of its company in an environment that feeds of innovation has proven to attract many necessary and ambitious key players that cooperate both externally and internally to the company. The best example, Tesla teamed with Lotus to manufacture the Tesla Roadster, a vehicle that successfully tackled unlike predecessors and current competitors, range and performance. The company is aware of the threat of other company’s intentions to lunch hybrid or electrical vehicles, most likely priced for mass distribution, creating a very competitive environment for years to come. At this point the company is already competing not only with overall automobile market but with already established marketed “green “cars, such as hybrid vehicles and plug-in hybrids.

Based on the product portfolio of Tesla, it is evident the targeted customers are mostly millennials from the middle income to upper middle-income population segment, who are enthusiastic to try the car based on innovative technology(Korosec,2015). While Tesla isn’t facing much competition at present, but the Competition is brewing up. Tesla’s existing competitors in the existing market are Chevy Bolt and Nissan Leaf (Trainer,2018) and the emerging competitors include lot of big players like GM, Volvo, Audi, Jaguar, Mercedes Benz Volkswagen etc., who are all investing heavily in the electric autopilot segment. Tesla’s core strategy comes with the value proposition built based on the truly futuristic technology used in designing the car, which give taste of exciting self-drive auto

Big Bang disruption can be described as the use of simplicity to swiftly change the market. Tesla is only a small California electric car company, but is special because it set out to change the effect technology can have on cars and car buying. Tesla Motors went after a different type of customer with their dealerships and sold them a very different kind of car. While it can be argued that Tesla is still only a small California electric car company, it can’t be argued that Tesla disrupted the car retail experience. Their model lead to more than “1 million store visitors in a single year, 15,000+ Model S reservations made in-store and online, +85% increase in revenue in the first year, and the Model S being named “Motor Trend Car of the Year”” These results are why the big bang theory applies to the Tesla dealership model.

Company Background Tesla Motors was founded in 2003 by a group of intrepid Silicon Valley engineers led by successful business owner, Elon Musk as another one of his top successful ventures over recent years past. They utilized Nikola Tesla into their brand name because their engine model was created using his personal models and technology. Musk’s goal revolves around accelerating the world’s transition towards electric mobility through providing a range of increasingly affordable electric vehicles, while simultaneously catalyzing innovation within the industry. The company designs, manufactures and sells electric vehicles and electric vehicle powertrain components. They are also the only automaker providing highway capable electric vehicles in North America and Europe.

INNOVATION IN INDUSTRIAL PRODUCTION Topic Innovation in Industrial Production-Forbes News Main Theme Tesla’s Innovation are transforming the auto Industry Main World Region America Subthemes Desirable Electric Vehicles (EV) and Transforming Auto Industry from ICE vehicles to electric vehicles Introducing Main Theme The main theme in this article is how Tesla’s innovations are transforming the auto industry. The company has innovated and produced desirable electric cars like Model X doors. The proponent of this argument hold that the losses that Tesla has had are just short run and hold that Tesla is producing extremely needed electric automobiles. These vehicles have fast speed and go long distance over other rechargeable cars (Gregersen, 2016).

Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker, with the goal of eventually offering electric cars at a price affordable to the average consumer. Lithium- ion cell commoditization and high-end product strategy shield the company from significant interdependence and integration risk. Tesla Motors is a public company that trades on the NASDAQ stock exchange under the symbol TSLA. In the first quarter of 2013, Tesla posted profits for the first time in its ten year history. Tesla raised $60 million and spent about $25 million developing its two-seat Roadster vehicle that sells for $109,000.

Understanding the consumer and how they view business helps Ford to continue improvement ("Marketing strategy", 2010). Ford is a first-rate example of good marketing techniques. They know how to sell a vehicle to a consumer, as displayed by their position in the top eight of U. S. auto makers. New technology paves the way for new ideas, and new ideas do best when they use existing models. That is why the relatively new concept of battery operated cars should look to already successful auto makers for example.

Tesla is at an advantage since they now sell their patented powertrain components to rivals and is focused on building the market to bring prices down for the average car buyer (Hurst, A). Audi "we delight customers worldwide" is more consumer based where it offers more luxury to the customers and have yet to evolve fully into the manufacturing of eco-friendly cars. Toyota aims to be the most successful car company like Tesla that is why they have also gone in electric cars and now severed ties with Tesla. Weaknesses Tesla has a lack of liquidity. Tesla lost 70 million in 2013 even with the high sales of model S to debt and failure to attain arranged price deduction and operating fees.

Electric cars are attempting to bring on an uprising. A modern company, Tesla Motors, is bringing the all-electric car to life. Tesla has been very successful in the past couple of years, engineering a vehicle that will impress safety standards. Although it has been quite a bumpy ride along the way for CEO and founder Elon Musk of Tesla Motors. Tesla has big plans for the future.