TESLA 

Tesla has taken over the market with the electric vehicle since 2003, its founding year. It has been under the management as well as leadership, in 2004, Elon Musk who followed his top-secret plan known as the “Secret Master Plan” and changed the trend of motoring in the world forever. The founders of Tesla were Marc Tarpenning and Martin Eberhard, who started the business with a unique idea and both were passionate to launch the electric vehicle and change the mindset of the drivers. The aim of the company is to invent an electric vehicle which emits less and even costs less. With this determination, Tesla is competing well in the market. Tesla has the opportunity to improve technologically in the market (Naga R., 2018).

Tesla Motors Inc. got the popularity in 2008 and then went open in 2010 in New York Stock exchange NYSE. In the following year, Tesla got the award for selling the best car with model Tesla S in the market. Afterward, Tesla started manufacturing sports cars and captured most of the market and performed well. The headquarter of Tesla motors is in Palo Alto, California.

TESLA – PESTLE Analysis

It is doubtless to mention that Tesla Motors needs the idea and analysis to overcome the challenges comes across due to external factors. Reasonably, PESTLE OR PESTEL analysis is the strategic management way to know the impact of macro-environment factors on the company.

Political Analysis

It is the major advantage of Tesla Motors Incorporation for having government incentives due to the reason that the technology of the company is emitting the carbon from the vehicle which is insignificant. Additionally, free trade expansion agreement to make the business of Tesla easier to reach every corner of the world. The market for Tesla is stable from the political point of view which helps to boost the sale of the electric vehicle.

Economic Analysis

It is to note here that today there are ideas for renewable sources for energy and the idea is expanding to a greater extent. Therefore, there has been a decrease in the cost of the battery to enhance the business through affordable electric parts. In all apart, Tesla is becoming the most demanding as well as a popular brand among the people to get engage with. Nevertheless, Tesla must keep in mind the growing competition and unstable economies of other countries and based on the fact, it will be performing in the market.

Sociocultural Analysis

In today’s modern era, where everyone is aware of health issues and thus, the emission of carbon dioxide in the air is of paramount importance to keep in mind and then stay away. Socially, and culturally, people are accepting the healthy idea of lesser emission of carbon dioxide in the air and making the environment healthier for the driver as well as other people. It has helped the Tesla motors to expand the business due to the increased demand.

Technological Analysis

Without any doubt, technology is growing all the way and is expanding with the expansion of new ideas. It is helping Tesla to grow better in the innovation and then to come in the market with the unbeatable idea of the vehicle. Due to technological advancements, electric cars are now better to ride on as they emit less carbon and perform well (Isreal, Morawo., 2019).

However, Tesla can adopt the new idea of technology and use it to innovate something friendly and useful for the customers. Tesla is keeping an eye on the technology all the time to see any changes in technological advancement. There is an AI – Artificial Intelligence as well as the automation advantage to integrate into the car and create the unique design the technology for the users.

Environmental Analysis

It is the biggest success for the Tesla company to be rewarded actually. Tesla is determined to produce and design the cars or vehicles which are basically electric and thus emit less or no carbon in the air. From the environmental point of view, Tesla is investing better and creating a healthy environment where the ozone layer in the sky was getting disrupt and thus, people are getting ill due to the emission of carbon dioxide in the air. The major problem is the allergy due to which people are getting skin problems as well as respiratory problems. Thus, keeping this into consideration, the company is contributing the best in society.

The vehicles of Tesla are environment-friendly and therefore, vehicles are fulfilling the requirements of laws and regulations of the environment. People are installing the energy savers everywhere and thus, it is the need for the vehicles too have a safe ride (Karczewski, Mirosław & Szczech, Leszek & Polak, Filip., 2019). Tesla will be changing the business environment where it is not mandatory to harm the environment while innovating something new rather; businesses can create something healthy and unique for the people as well and also can earn profit at the same time.

Legal Analysis

For legal analysis, Tesla experiences increasing international protection for patent rights. Tesla is determined to meet the regulations as well as laws related to the other countries as well to expand the business worldwide. From the working point of view, Tesla is going well in the market and thus, with a good reputation in the market, the company will be performing well in the market. Of course, Tesla can promote vehicles worldwide with their unique idea of electric cars. The company can sell directly as well following the rules and regulations of the country.

TESLA – SWOT Analysis

The following are the factors for the SWOT analysis of Tesla Motors Inc.

Strengths

Top Employer

It is the key advantage of any of the companies to have dedicated employees. Tesla, the Wall Street Journal in 2019 reported that Tesla is becoming the ideal employer for employees due to its encouraging policy for innovative ideas and diversity. Due to this reason, Tesla has been listed among the ideal workplaces for the employees to work in. for the young job seekers, the company is becoming the place for working like dream come true and for this Tesla has become Best Employer 2019 in America published in Forbes 2019.

Leading Company

Despite the fact that Tesla is experiencing a lot of legal pressure, the sales of the company are enhancing every year and have become one of the leading and successful automotive brands at the end of the year 2019. Tesla is delivering around 90,000 cars in a quarter of the year. With the models of Model 3 as well as Model S, Tesla has left behind one of the leading cars such as BMW and Mercedes.

High-Performing Cars

Tesla is manufacturing one of the finest electric vehicles. For the range, Tesla electric vehicles have become the vehicles covering maximum distance. For the comparison, Tesla is running on the third rank in the world for having one of the fastest and reliable electric cars that can travel up to 600 kilometers with a single battery.

Weaknesses

Manufacturing Hitches

Due to the reason that the company solely depends upon electronic manufacturing therefore, it is obvious that it would create the manufacturing faults for the company. For instance, if any of the cars gets manufacturing fault then all the cars under the same model will have the same technical faults and cause major problems for the company as well as for the users or customers who buy. In turn, it will surely hit the reputation or goodwill of the company and can decrease the profitability of the company.

It is obvious to note that the cars do have batteries and thus, the battery can create faults or problems thus, there is a risk in manufacturing the cars totally depends upon the electric way to operate and thus, cars or vehicles of Tesla do not possess gasoline or any other option to ride on.

Not Meeting Customer’s Demands

Due to the fact that the manufacturing of electric cars is a highly complicated process with the experiments to launch the idea in a correct way, there is a problem with the company that it is unable to meet the demands of the customers. Therefore, the company is delivering the fewer vehicles and it has almost dropped the delivery of the vehicles for 31% in 2019 which is the alarming situation for the company as it can affect the goodwill and competence of the company in the market as well as for the customers who trust the brand a lot.

Opportunities

Increased Demands

As stated above that Tesla has the opportunity to increase the sale of vehicles in the market. Of course, more and more customers are demanding Tesla electric cars more especially sports cars, therefore; it is the opportunity for the company to meet the needs of the customers. While meeting the number of demanded cars, Tesla can increase the sale of the company,

Potential Asian Market

Tesla can expand the market in Asia more efficiently as the people of Asia are fonder of racing and sports cars. It is the need of an hour to meet the requirements to expand the business internationally and be well known in the market and compete worldwide. It will surely enhance the financial stability of the company. It will strongly consider the presence of the company in the market.

Threats

Increased Competition

There is increasing competition and one of the threats for Tesla is that the company is unable to meet the demands of the customer and this is where the competition can hit the company hard. If the competition rises and any other company enters the market which will enhance the reputation of that company and will ultimately affect Tesla and will reduce the goodwill in the market.

Loss to Goodwill

As stated above, the company is depending upon the technology for the electric move. The vehicle made with electric technology can be defective. And this defective threat can lead the company towards greater loss therefore; the company has to look after the operations while manufacturing cars.

TESLA – SMART Objectives

It is the claim of the company that it can deploy the power plant which will be free of emission for 250 MW also 1GWh in less than three months. Likewise, Tesla has launched a new product of battery storage specifically made for the utility-scale plans. Megapack introduced by the company will be reducing the emission of carbon and will save the energy which in turn will reduce the conflicts related to the large-scale level of the battery as well as to provide the simple installation with the connection process.

For SMART objective idea with the name of Megapack will be getting a 60 percent increment in the density of energy to get the significant savings I both cost as well as time as compared to the other system of batteries and the traditional style of fossil fuel plants of power supply.

The Megapack individually will come together in the storage of 3 Megawatt-hours as well as 1.5 Megawatt inverter capacities to build the power pack along with interface AC. Tesla claims that this SMART objective will decrease the carbon emission in the environment and will ultimately save energy. The performance of the battery manufactured in Tesla motors will be four times powerful than the usual battery with a long life.

The power plant can also be DC which will be connected to the solar system or plant while creating the energy plants based on renewable energy. The SMART objective of Tesla for introducing Megapack is of paramount importance to be launched in the market with the high performing batteries with the least emission of carbon and saving power. Moreover, the megapack can also save the battery through solar and use further. For which Tesla has introduced its own software to control the installation and monitor as well as operate accordingly. In markets, Tesla’s smart idea is getting popular for sustainable energy saving at a lesser cost.

TESLA Marketing Mix

Tesla motors incorporation has the marketing mix including product, price, place as well as promotion. It is known as the 4Ps. Electric Vehicles EVs are becoming more popular among the people to drive than the usual cars now (Karczewski, Mirosław & Szczech, Leszek & Polak, Filip., 2019). Thus the increasing trend of electric vehicles has attracted most people to buy and ride on electric cars to have less costly as well as safe ride with a unique and new experience.

The marketing mix is used to set strategies for the marketing plan. TESLA is able to maintain a significant place in the market due to the reason that the company is controlling the components related to marketing. Controlling enhances the effectiveness of the company and then increase the profitability of the business as well. For Tesla automotive company, following is the marketing mix:

Product

The particular element in the company identifies the outcome of the company or the sale of the related product to their target customers. Tesla comes under the automotive as well as energy storage to sale in the market. There are profitable products in tesla to earn such as electric cars which are unique in the market and thus customers are demanding more of it. It is notable that the company is gradually inputting in the technology and thus it is adding the uniqueness in the market.

The products of tesla are unique in the way that cars are electric and more of it is the batteries that save energy are rechargeable over the solar system as well. This innovative idea has actually added a lot of value. For competing in the international market, tesla is providing the following products:

§  Automobiles

§  Electric cars including powertrain features

§  Energy-saving batteries

§  Solar system panels

Tesla Motors is known for electric cars and for this, the model s sedan of the company is the most popular electric vehicle worldwide. Apart from the electric vehicles, the company is also manufacturing powertrain features or components which can be used for the electric automobile which in turn will justify as well as satisfy the vision and mission of the company to introduce uniqueness and be at the top as an employer. Therefore, from the product point of view, Tesla is selling the best products in the market.

Price

Tesla motor's incorporation has a premium pricing strategy. The strategy involves the high price of the products based on the uniqueness and quality of the product.  Taking this into consideration, customers are willing to pay more for the Tesla automobiles and batteries as well. There is a fact that even after spending a lot of million dollars on the production, the performance of the battery cannot go beyond the normal performance and thus it will not touch the peak. Even knowing the fact people are purchasing and are willing to pay higher rates for Tesla products in the market.

In this era of modernization and globalization, every person is seeking something unique and thus it is justified that customers are ready to pay higher prices for Tesla products. For sports cars, Tesla is charging higher and earning higher for its innovative products in the market while beating all other reputed brands like BMW. Model S sedan of Tesla got the maximum profit in the market on its sale (Tiwari, Jai Deo., 2017).

Therefore, at the higher prices, Tesla is earning a lot from the customers and most of the customers are willing to pay due to its unique features and use of the technological advancement for its products such as cars and more often the sports cars. The customers are demanding an even number of cars and due to technological issues, the manufacturing unit takes a lot of time to manufacture the perfect product to sell in the market without any fault or hindrance.

Place

For the purpose of distribution, Tesla is following the way to place the products at the owned stores of the company as well as galleries. Moreover, the online order availability is there for the customers who wish to book order online due to some reasons. Furthermore, the company has owned served centers as well to sale the electric vehicles along with the charging stations. Tesla has chosen the right places such as their owned stores to sell the products along with the online option of the website (Tiwari, Jai Deo., 2017). Thus, anyone who is interested in buying the Tesla product can contact the company through the store as well as the website and book the order without facing any of the problems at all.

For the place, Tesla has also decided to enter the international market and come in competition with other players as well to beat them because the new and innovative idea of Tesla has beaten the high-rank brand of BMW in the market and customers want the vehicles of Tesla now. Without any doubt, Tesla will be leading in the international market especially Asia.

Promotion

Tesla motors incorporation follows viral marketing which is significant for the company to gain more attention from the people to get in touch with the company. There is also personal selling where Tesla for its stores where the vehicles and batteries are available to be sold. Likewise, there is a sales promotion through different channels to advertise and sell the products of Tesla. Electric vehicles will affect the automobile industry as a whole (Pressman, M., 2017).

The electric vehicle's transportation system is becoming famous in all over the world due to its less energy cost and more reliability over the solar and batteries (Isreal, Morawo., 2019). Similarly, Tesla is also following the direct marketing of their products in the market. Moreover, Tesla has built a better reputation in the market and thus, the company does not need much more to get advertised in the market because the demands of the customers are already higher for Tesla to meet yet.

The enhancing and building reputation of Tesla in the market is beating all other brands and thus it is competing well. Therefore, for Tesla, it is of utmost importance to keep in the competition and perform well through advanced technology and powerful batteries made of lithium-ion. Anyhow, there is a huge need then to promote the company at the international level as stated above such as the Asian market. People in Asia are fond of racing and sports cars and thus, there is a need for Tesla to enter the Asian market and capture the customers more. Due to its technological advancement and use, the company will be performing well in any of the markets in the world. Thus, Tesla if comes or enters the international market it will eventually perform well without any doubt.

Bibliography

 

·         Chinta, Naga. (2018). Tesla PESTEL Analysis – Harvard Strategic Management

·         Pressman, M. (2017) “FIRST MOVER: HOW TESLA WILL CONQUER MARKET SHARE AS THE AUTO INDUSTRY MOVES TOWARDS ELECTRIC VEHICLES” Evannex,

·         Bihani, S. (2017) “Elon Musk Reveals He Started Tesla After Watching General Motors Destroy Its Own Electric Car” India Times

·         Karczewski, MirosÅ‚aw & Szczech, Leszek & Polak, Filip. (2019). Are We Ready for Electric Cars?. Journal of KONES. 26. 69-74. 10.2478/kones-2019-0059.

·         Isreal, Morawo. (2019). Recent Development of Electric Cars. 10.13140/RG.2.2.34890.41926.

·         Lewicka, D., & Rakowska, A. (2017). Calculative and affective commitment - the case study of the best polish employer "gaz transmission operator". Argumenta Oeconomica, 2(39), 213-237. doi: 10.15611/aoe.2017.2.09

·         Tiwari, Jai Deo. (2017). Marketing Research on Tesla Inc. - Strategic analysis