Question

PESTLE of TESLA

Answer 1

TESLA as we all know, is a big name in motor industry for its continuous innovation in its field.

PESTLE Analysis is an analysis tool that is helpful in determining the aspects related to political, economic, social, technological, Legal & environmental fields. By performing such analysis, it helps Tesla to enhance its long-term success strategically keeping in mind all the logical aspects. Below is the explanation of PESTLE factors:-

1. Political Factors:- The most important factor that can be considered while analyzing success of an org, political factors play a key & vital role. These factors either directly or indirectly affects the business. Political/ governmental approvals should be kpt in mind. For TESLA, the political factors might include free trade agreements; stability in giant markets; incentives aligned for TESLA.
2. Economic factors:- This factor can affect the fortune/future of business if not dealt appropriately. TESLA is rising as a brand due to several reasons. As the economic activity rises, employment also rises & which led to higher spend on products. As this increase people tend to earn more, spend more on luxury category & the demand rises & hence economic factors does affect the TESLA’s profits. During recession a drop in sales was observed, which is a clear sign that economic conditions does hold ground in evaluating the business of an organization. Although due to high prices of TESLA, they need to think & design a motor for middle class customers as well.
3. Social factors:- Socio-cultural factors sometimes hold major influence on demand of the products/ goods. These factors play vital role in certain societies & people acquire acceptance as per the society. If people of a certain class & age like to have comfortable & safe journey with speed, sustainability keeping in mind, TESLA will be greatly demanded in that sector of social circle.
4. Technological Factors:- Technology is a factor which keeps growing & is changeable with due course of time. In order to keep a hold in market, TESLA must be up to date always with technological aspect. It affects all the departments of an org, production, sales, marketing & operations etc. It helps in building efficient business strategies & eventually helps in creating competitive platform. It is a measure by which competitiveness of an org can be measured. TESLA’s business & sales is equally dependent on the technological factors. Automation for processes is key towards growth & success of TESLA’s.
5. Environmental Factors:- No matter how big is the invention, environmental factors should & are always kept under check. Business growth & success is important but not at cost of environmental hazards. Lately, the brands which are keeping in view the ecological factors while production, are growing in terms of sales. TESLA has always considered this factor as it has products ranging from energy saving, fuel saving & sustainability. TESLA is continuously working towards its operations so that more sustainable processes can be achieved.
6. Legal Factors:- Legal aspect is also important keeping in mind if any legal factor is not met, it could lead to closure of the org. Copyrights, patent protection, logo protection, labor laws…etc needs to be compliant enough so that any organization can effectively run its supply chain process. TESLA must include these factors so that they can expand their business overseas keeping intact all the patents & copyrights.