Question

Identify one opportunity and one threat to Tesla in the general environment and briefly explain why.

Do you think the automobile industry is attractive or unattractive for incumbents? I know you want to explain with all five forces, but please give me two reasons related to any industry forces.

Identify one strength and one weakness of Tesla and briefly explain why.

Test the strength you found above with the VRIN framework, and conclude if it provides a competitive advantage, disadvantage, or parity to Tesla.

Answer 1

S.W.O.T. Analysis of Tesla

As we all know that probably, every company has its own strength, weakness, Opportunities and Weakness, but the main motive of any company should that how do they handle their analysis, and work according.

Basically, first we will be discussing on the Strength of Tesla, Inc, talking about the strength og a company, we can know the the ability of that company and the positive reinforcement of the company, Here Tesla truly believes that their strongest parts had lead them to their Profitability, popularity and expansion for a long time.

It has the top employees, which is the key factor of the company that their company had organized the best employee out the best. It also had a mind set that to recruit young jobseekers, because having warm blood, is a positive way for the betterment of the company. And they also had the leading automobile company, it was never found that their sales had degraded, they also had increase in sales, probably till 2019, they delivered around 367,500 vehicles.

Next we come up to the weakness of Tesla, they always faced the problem of mechanical complication, the more they try to innovate with better technology and advancement, the more they faced difficulties in mechanical complication and obviously it will tend to production risk factor, definitely when they will focus on innovating their model, their will somewhere lack in supplying their products, thus they will degrade in supplying the demand, which will tend imbalance. Tesla had delivered approximately 63,000 cars in the first quarter of 2019, which had dropped to aroung 31% from the last quarter of 2018.

Next we come up with the Opportunities of Tesla, thus it emphasizes on the opportunities of growth for the company, the company should be focused on the business performance, strategic growth and management structure and many other aspects. The huge opportunity which Tesla is having, the Asian market, they do not have that consistency in Asian market, thus they need to expand their market globally. Basically Tesla manufactures expensive cars, because their main focus was always on innovation for the comfort, but the only model they had cheap, is the model 3, the affordable version of the S model, they have manufacture this model with less power with lesser features and range, but it is affordable, so its oppotunity is to expand the size of the audience market.

And the last is obviously the threats of Tesla, there are few threats which Tesla faces, because of their phenomena of expensive and cheaper cars, The biggest threats they have faced with their expensive cars, are the autopilot vehicles, which ensured of less accident, but it did not happened in few cases, thus the company had to face many liabilities claims related to their failure of the installed technology in their product, in a lawful manner. Whereas they also faced many product defeats, because of their innovating design, many a time it tended to defected products, which leads to design and manufacturing and other features weakness.

Now we know the strength, weakness, opportunities and threats of Tesla, and by that we can say the Tesla is an attractive company, because its model are attractive and the SWOT analysis is acceptable for any individual, for relying on to Tesla.

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