Question

for Tesla Motors- For Tesla Motors, -Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market. c) Describe the market structure for this firm and analyze how this affects the firm’s ability to influence the market. VI. Recommendation a) Develop a recommendation for how the firm can manage its future production by synthesizing the data presented. b) Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action. c) Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity

Answer 1

Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on your firm’s future in the market.

Barriers to entry in this market for new entrants:

• High requirements of capital to adopt the latest technologies.
• Continuous innovation in the field of technology in order to stand ahead of the competition.

Impact of these barriers on the firm’s future in the market will be – these barriers will be present throughout the life of business organization because Tesla has a strong position in the market already, and it will be very difficult for my firm to cope up with its capitals and innovation technologies. These barriers will continue to impact the future of my firm.

Describe the market structure for this firm and analyze how this affects the firm’s ability to influence the market.

The market structure in which Tesla motors operate is Oligopoly. In an Oligopoly, there are few firms in the market that forms a group and decide the prices of its goods and services together. In an Oligopoly, one firm has the ability to influence the market. This is because there is a small number of sellers, and all are dependent on each other, so if one firm changes its strategies, it will affect the strategies of other firms and the market as a whole.

Develop a recommendation for how the firm can manage its future production by synthesizing the data presented.

Development recommendation: A new firm will only be able to manage its future production if:

• It manages its capital in an efficient way.
• Adopt the latest technologies.
• Innovate continuously
• Hire highly-skilled employees
• Maintain good customer relationships.
• Adopt corporate social responsibilities.

Suggest how the firm’s position within the market and among its competitors will allow it to take your recommended action.

If the firm is not able to make enough profits in the market than its competitors, it will induce the firm to take up the recommendation plan.

Describe how the firm can sustain its success going forward by evaluating the findings from demand trends and price elasticity

The firm can sustain its position in the market by understanding the demands and needs of the people in the market. By analyzing the demand and price elasticity of the goods and services in the market, the firm will be in a better position to make decisions and develop new ideas in order to sustain its success in the market for a longer period of time. Demand will help the firm to produce only those goods that are needed by the people, and understanding price elasticity will help the firm to understand how the demand changes when there is a change in the price. Therefore, after analyzing these two concepts, firms will be able to create new policies in order to ensure it is success.