Question

Complete SWOT Analysis on Tesla company and provide Recommendations

Answer 1

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****

SWOT Analysis on Tesla company:

STRENGTHS

First, Tesla Motors CEO Elon Musk has in the past formed several of those companies that are thriving in their success, including: the SpaceX and PayPal, this is a strong indication that the CEO has some good track record. Looking at these companies that have been created by the current CEO and how they perform in their respective market lines, it presumed without a doubt that Tesla Motors has a person who values hard work and performance.

He is also a car enthusiast and has owned, among many others, a Hamann BMW, a 2007 model Porsche 911 Turbo, 1 1967 series Jaguar E-type, an Audi Q7 and a McLaren F1. This interest in cars is a major note in the growth of the auto industry as the CEO will be promoting creativity and innovation in trying to produce new and exciting models on the market.

In comparison to Detroit, Tesla Motors is having its vehicles built in California. Electric vehicles can be called hybrid in that they combine the latest computer and gasoline car technology, which is why they are likely to attract qualified and latest computer and electrical engineers in California. This can not be the case for less creative Detroit as compared to California.

Tesla Motors is very popular among many celebrities such as Arnold Schwarzenegger, David Letterman, Google founders, George Clooney and many more. This gives the Tesla Motors an upper hand in marketing because these celebrities are well-received and appear to be influenced by what they eat, drive and even wear.

WEAKNESSES

The current CEO of Tesla, Elon Musk, apart from working only for Tesla he is also working for SpaceX as its CEO and CTO. This by itself makes him makes him so busy since he has many issues to attend to in both companies and it is very difficult to get a new CEO. Before the assumption of Elon Musk into office as the CEO of the company, they had already fired one CEO, two CEOs worked on interim basis and they had interviewed at least 20 people for the position of the company CEO eventually Musk decided to take the position himself.

The batteries used also have to improve. From history batteries have been observed to be improving at a rate of eight percent each, but in the future it is not guarantee for the batteries to improve. This poses a great danger to this company because their motor cars entirely depend on batteries for their survival.

Another big downside for Tesla Motors is its lack of competitiveness and poor profits. Automotive business has been among the most diverse industries. Despite the Tesla Motors' outstanding marketing campaigns, major orders and revenue profits are not guaranteed. When looking at the Swedish-based Saab car manufacturer it can be clearly seen. They built outstanding cars, and the safety checks were among the best. Worse still, customers didn't purchase the car as expected, causing the firm to make bankruptcies and finally selling to the Chinese.

Currently Model S is the only brand of car of being manufactured by Tesla Motors, though Model S is undergoing design which can complement the Model X. People will like variety as they would prefer to have unique models contrary from the ones owned by their peers and friends.

OPPORTUNITIES

The world is likely to run out of oil soon. The prices of oil are on the increasing side because of the reduction of its supply, as it is known oil is an exhaustible natural resource this has made many countries like the U.S be depend only on oil which is imported from other countries. When this will happen people will tend to go in for the electric cars and that will give Tesla Motors an upper hand in the car industry.

Toyota and Daimler have started buying the vehicle technology on electric cars from the Tesla Motors and also more manufactures on the line of automobile products are likely to do same in the future. Nowadays people are more onto the environmental issues and since oil products are a big contributor to the pollution of the environment, many are turning onto the electric cars which are deemed to be environment friendly.

THREATS

Many of the auto manufacturers are in the process of releasing their own cars which are deemed to be more environmental friendly. Some of these companies have huge financial muscles and resource bases and are large as compared to Tesla Motors, which gives them an upper hand in the marketing section and command of the state of the art technology in the manufacture of up to date cars. This means that they are able to survive longer if the oil prices will not get to the increasing side in the future.

Customers may be scared away by the many accidents which are related to electric vehicles. This is spurred by the media reporting and the general perception of the public. For instance fire involving one battery may form the front-page news, on the other hand, more than 700 accidents related to combustion engines occur daily but they don’t form front-page news. This makes people cow away from the electric vehicles thinking that they are more dangerous that those running on combustion engines.

RECOMMENDATIONS

The company should educate the public on the importance of the electric cars as opposed to the ones using combustion engines and help kill the perception that the accidents involving electric vehicles is worse compared to the ones using combustion engines. Tesla Motors should maximize their sale through advocating for environmental conservation, which the combustion engines are the core contributors of its pollution. In order to survive the tides of competition in the car industry the company should recruit competent staff, rich in skills in order for them to manufacturer the best products.

To attract a large fan base, Tesla Motors will take advantage of the actors who use its products as marketing tactics. To contend favorably with car makers with well-developed financial resources, they can collaborate with financial institutions to acquire venture funds and even ask for client shareholding. If the company is involved in the manufacture of a few vehicle models, the range of vehicles it manufactures will be opened up because this should improve the number of buyers, as often consumers want a choice because individuality. They should also distinguish themselves in maintaining the output of car batteries, as their cars depend entirely on this for service.