Question

For Tesla:

a. Conduct a SWOT analysis of the organization. b. Conduct a Porter’s Five Forces analysis of the organization. c. Based upon the two analyses, recommend a strategic approach for the organization. Explain why you have selected that approach based on the analysis results. Incorporate the concepts covered in the course in your response.

Answer 1

Answering the first question as per Chegg Guidelines:

SWOT Analysis of Tesla Motors Inc.:

• Strengths:
  • The company enjoys leader position in electric car segment
  • Sales growth of the company is quite high
  • The company enjoys a dedicated customer base
• Weaknesses:
  • The debt load of the company is increasing day by day
  • Battery of the electric cars produced by the company does not last long
  • There has been manufacturing complications witnessed by the company
• Opportunities:
  • The company can find an untapped market for electric cars in Asian market segment
  • The company can come up with less expensive cars so as to attract the middle class segment
• Threats:
  • There is high competition to Tesla electric cars by hybrid cars
  • The company is struggling to maintain its customer hold due to various product liability cases
  • Customer acceptance of electric cars is quite low