SWOT analysis of Tesla Inc. company EXTERNAL ENVIRONMENT FACTORS I N T

SWOT analysis of Tesla Inc. company
EXTERNAL ENVIRONMENT FACTORS
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Opportunities
Threats
Strengths
SO- strategies; Tesla should use its internal strengths to competitively meet external opportunities; Attack
ST-strategies; Tesla should focus on its strengths to effectively avoid or control external threats; Defend
Weaknesses
WO- strategies; Tesla should effectively its internal weakness to achieve external opportunities; focus on improving; Improve.
WT-strategies-Tesla should focus on reducing, avoiding, or moving away from threats; Exit.
SO Strategies:
Expanding sales internationally
Implement new designs to help broader market categories
Alliance with battery manufactures
ST Strategies:
WO Strategies:
Expand sales to different market
WT Strategies:
Higher price than competitors which limits customers
Although the Model S of the Tesla Inc. company was labeled as the trending motor in 2013, the company still faces numerous challenges. From the analysis of the SWOT analysis of the company, it shows that the company consists of strengths that enable it to remain competitive. The company comprises some internal factors that are referred to as the strengths that empower it to compete against its rivals and ensure the company’s profitability in the long term. For instance, the strong brand of Tesla Inc. company supports the company’s expansion to the global markets. Certain strengths tend to shape its capability to be competitive in the automobile industry, such as its strong brand, strong control of its production processes, and being highly innovative. The strong brand of the company has increased its value. This is depicted in the company’s sales revenue in the first quarter of 2013 (Karamitsios, 2013). Due to the increase in the company’s sales and profitability, its market capitalization was pushed far ahead of the market cap of its rivals, such as Ford and General Motors. A better position in the company is another major strength. Better positioning of the company has enabled it to survive the economic uncertainties compared to other United States automakers.
Some internal factors tend to limit the performance of an organization. These internal factors may even the competitiveness or growth of a given organization. Despite Tesla Inc. having a strong brand that boosts the company’s value, the company still suffers from numerous weaknesses. For instance, the company is faced with a limited market presence, high prices, a limited supply chain, and low volume production. In the case of limited market presence, this is depicted because the company generates more revenue from the markets located in the United States. Those located in some parts, such as China and the developing world, generate little revenue. This is a weakness of the company since it tends to limit its supply chain, thus not expanding in various markets. The company’s products are also more expensive than the other competing companies. High prices hindered the company from increasing its customer base. These weaknesses tend to reflect the need of the company to come up with some strategies based on the global expansion and growth of the company.
Opportunities in the organizations present the potential for growth and development. Utilizing the organization’s opportunities has helped boost the performance of the businesses and the strategic growth. Tesla Inc. has numerous opportunities that helped the company improve its financial position by posting high profits during the first quarter of 2013. Some of these opportunities include global expansion of sales, expansion of the supply chain globally, diversified business, and new automated technologies. Concerning Tesla’s weaknesses, the company needs to consider the opportunity for global expansion of sales. For instance, the United States and China tend to generate the most sales for the company. Tesla company still has the opportunity of expanding its sales to the Asian markets, which seem to be fast-growing markets. This strategy can help the company increase its sales, thus being competitive.
Despite the company being a pioneer in the automotive market, it faced some threats from its rivals. Tesla’s threats include aggressive competition, shortage of materials, claims based on the company’s product liability, and leadership problems. Various market manufacturers in the automotive market, such as Ford and General Motors, are bringing fierce competition. Most of Tesla’s competitors have managed to catch up with the technology, offering low prices, thus attracting Tesla’s potential customers. There is also the threat of scarcity of needed materials such as Steel, Lithium, Cobalt, and Lithium-ion cells. Various threats have been filed against the company’s products being technically defective. This has resulted in the company facing some financial problems.