SWOT Analysis for Tesla
As per Tesla SWOT analysis, Tesla business model is a strong symbol of innovation and renewable energy solutions. Tesla business model is known for its high rate of innovation, especially as a world leader of introducing fully electric sports cars. Tesla is an American motor company which is powered by Silicon Valley. Tesla business model aims to become the most dynamic automotive company around the globe. Tesla business model focuses on using and utilizing alternate energy like solar to power cars. Moreover, Tesla focuses on producing hybrid vehicles and battery-powered cars.
Tesla business model specializes in hybrid vehicles and pioneering in utilizing sustainable energy options. The company has a great research and development team of professionals and engineers. Having Tesla business model of employing alternate energy options to power the cars, it has been considered one of the benchmarks in the green technologies and environmental revolution and is one of the prominent factors in Tesla SWOT analysis.
Tesla case analysis
Tesla was established by a group of engineers. Tesla is an American electric vehicle company in California. Tesla business model focuses on manufacturing electric vehicles’ battery energy storage from home to grid-scale. It was founded in the year 2003 by Mark Eberhard and Mark Tarpenning. Because of the Tesla business model adopted by the company, it has resulted in faster growth since 2019. Not only has the sales have increased, but Tesla has also registered many more achievements during the year 2019 by following a robust Tesla business model. Due to its ideal business model, it has enjoyed growth and popularity. Also, the Tesla business model focuses on sustainability and innovation.
Being a leader in both innovation and sustainability, Tesla business model concentrates on passenger safety, and the company’s model claim to be the safest in the world. Tesla business model of being an innovative company has led to its growing popularity among American customers. Tesla business model and Tesla product portfolio is large and includes a plethora of products like solar energy systems, battery packs, dual-motor power trains, energy storage products, and also includes products like the autopilot system. The following Tesla SWOT analysis or Tesla case analysis would help in revealing significant insight into all the aspects of the Tesla business model. Tesla SWOT analysis or Tesla case analysis will be focusing on strengths, weaknesses, opportunities, and threats that the company faces in the internal as well as external environment.
Tesla SWOT analysis or Tesla Case Analysis: Strength
Tesla SWOT analysis or Tesla case analysis includes the positive aspects that have reinforced the position of Tesla in becoming one of the dominant motor companies across the world. Some of the strengths as per Tesla SWOT analysis or Tesla case analysis that have resulted in the profitability, popularity, and expansion as per Tesla business model are as follows:
Top Employer Company: As per Tesla SWOT analysis or Tesla case analysis, it is one of the prominent factors that has led to Tesla in reaching remarkable successful heights. Tesla business model has been framed to focus on employees with diversity and innovation and having an encouraging culture. In recent times through the Tesla case analysis, the company has been listed as one of the leading companies to attract young job seekers having talent and innovative capabilities. Moreover, it was featured in Forbes as the best employer in 2019.
Leading in class electric cars: As per Tesla SWOT analysis and Tesla case analysis, through a robust Tesla marketing strategy, the company has left many competitors far behind. Along with having structured Tesla marketing strategies, the range of cars manufactured by Tesla has been the best by covering maximum distances. Tesla is one of the top three in terms of the range of electric cars.
Top automotive company: Based on Tesla SWOT analysis and Tesla case analysis, through a strong Tesla marketing framework, the sales have also been increased manifolds every year. It has made Tesla one of the leading automobile brands. Due to the Tesla business model following innovation and advancement, it has led to increased sales and has moreover surpassed some exclusive automobile brands like Mercedes and BMW.
Innovative company: Based on Tesla SWOT analysis and Tesla case analysis, the company has the highest rate of innovation, along with employing finest Tesla marketing approach. The products have gained trust by having a wide range of innovative products like electric, semi-electric, and new sports cars.
Distribution channel: As per Tesla SWOT analysis and Tesla case analysis, Tesla marketing and distribution channel focuses on providing robust Tesla marketing and distribution channels. Besides focusing on the Tesla marketing and distribution channel, there are capacity expansion plans from Tesla
Monopoly: Based on Tesla SWOT analysis and Tesla case analysis, one of the Tesla marketing strategies is to cater to very niche segments in energy cars and electric cars. Such Tesla business model and Tesla marketing strategy have resulted in the company having a monopoly in the market. It has led to gaining higher growth than the competitors who have been in the industry for ages.
Tesla SWOT analysis for Tesla case analysis: Weakness
Based on Tesla SWOT analysis Tesla case analysis, some of the weaknesses that Tesla motors face are as follows:
Failing to meet the demands: Based on Tesla SWOT analysis, even after having a strong Tesla marketing framework, the innovation and complicated procedures of production may result in unbalanced supply and demand, thereby leading to failure to meet the demands of the consumers.
Complications in the manufacturing process: As per Tesla SWOT analysis, the innovation results in greater mechanical complications and production risk. Due to innovation and complicated procedures in the manufacturing process, Tesla faces frequent production and manufacturing delays when in terms of launching the new vehicles and other products in the market. Even after having a robust Tesla marketing structure, delay in the manufacturing and production process is one of the weaknesses of the Tesla business model.
Low volume production: According to Tesla SWOT analysis, Tesla is a leader in manufacturing alternative energy and electric cars but lacks in meeting higher production volumes of cars. Due to high innovations in technology, the Tesla business model faces challenges in terms of production and managing of resources resulting in less volume production.
Shortage of batteries: Based on Tesla SWOT analysis, the limited supply of batteries is one of the major weaknesses that has been a major barrier in increasing the volume of the production rate of Tesla automobiles. Moreover, a shortage of batteries has affected the vehicles’ sales and the energy storage system of Tesla.
Poor customer awareness: According to Tesla SWOT analysis, even though having exclusive products, the products of the company are extremely advanced, and therefore the majority of the customers are scared to invest in such technologically advanced products, which tend to be expensive as well. Also, Tesla marketing strategies and promotional strategies have affected sales. Therefore, it becomes very important to enhance Tesla’s marketing strategies as well as the promotional campaigns to make the customers aware of the benefits of driving an electric car.
Limited market presence: As per Tesla SWOT analysis, the company has a limited market presence. The company focuses mainly on the US market, whereas it is very little active in other parts of the country. Thus, Tesla needs to work on expanding its market and also should focus on Tesla marketing strategies to expand its customer base and market share, just like its competitors.
SWOT analysis of Tesla or Tesla case analysis: Opportunities
As per Tesla SWOT analysis, opportunities are those external factors that help the company to improve its management structure, business performance, and the overall growth. Some of the opportunities as per Tesla SWOT analysis are:
Affordable car models: Based on Tesla SWOT analysis, cars are comparatively expensive due to the unconventional and innovative products. However, Tesla has been working continuously to provide more affordable products with the latest innovation and technology. It has been identified as one of the excellent opportunities to expand the size of the market as well as its customer base.
Sales expansion in an untapped market: According to Tesla SWOT analysis, Tesla has presently been dominant in the US market and therefore has a significant opportunity to expand in the untapped markets like Asia where the markets are still unsaturated in terms of electric and alternative energy automotive.
Diversification: Based on Tesla SWOT analysis, diversification would help in improving the company’s performance, by establishing new business units to dampen business exposure to risk.
Introducing battery production technology in – house: As per Tesla SWOT analysis, one of the weaknesses is the lack of battery production resulting in lower production. Therefore, the company should venture into in- house battery production that would help increase production rate and reduce the production cost of the overall automotive production. Panasonic is the primary supplier of the batteries.
Tesla SWOT analysis or Tesla case analysis: Threats
As per Tesla SWOT analysis, the company faces major threats that can hinder the organization’s growth. Some of the threats as per Tesla SWOT analysis are:
Competition: As per Tesla SWOT analysis, the company faces cut-throat competition from both energy vehicles and self-driving technology hybrid cars. The competitors of Tesla are BMW, Mercedes, Audi, and Lexus, which are already well-established brands in the market
Product defects: As per Tesla SWOT analysis, the manufacturing process is a bit complex to introduce such innovative and advanced automotive. As a result, some of the vehicles of Tesla have some major defects, which has created a negative impression on the Tesla image.
Long-term confidence: Based on Tesla SWOT analysis, the company’s competitors are already well-established brands and, therefore, the company suffers from long-term confidence that the already existing companies have. It has resulted in slow business development and expansion of the company.