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Tesla Case Study Analysis

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This memo discloses strategic assessment for Tesla Inc and recommended changes to the market structure and business model to ensure the continuous dominance of Tesla in the Electric Vehicles (EVs) market. In effort to increase its marketshare, improve profitability and long-term dominance, the following recommendations are suggested:

1. Global market expansion
2. Aggressive marketing
3. Continuous investment in R&D
4. Strategic positioning of charging station

Background
Over the last few years, the anxiety of high cost of fuel (increase in crude oil price) and the environmental impact of the petroleum-based transportation system, has led to renewed interest in an electric transportation infrastructure. The renaissance of EVs in the 21st …show more content…

Investment in R&D – EVs are technology driven, continuous investment is R&D to improve on the safety, accidents prevention and system hacking.
4. Strategic positioning of charging station

Basis for Recommendation
The above strategic recommendation were arrived upon completion of the SWOT analysis.
Tesla SWOT analysis shows the company has the brand and strength to improve its profitability in the long term. It also suggest required actions and improvements to maintain its competitive advantage and dominance in the global automotive market.
Tesla has the required ingredients to remain successful in the EVs business in the coming years. But, as acknowledged in our SWOT analysis, there are issues that the company must also address. Tesla must improve its global presence to expand its customer base through building new facilities and sales operations in high-potential developing countries like Asia can boost business growth, fulfilling it’s mission and vision consequently improve profitability.
Also, the company must continue its significant investments in research and development (R&D), continue to innovate and produce technologically advanced products. The SWOT analysis shows that Tesla can potentially grow in the global automotive market despite aggressive competition. …show more content…

There is noteworthy chances to improve its financial standing and global appeal in the market

• Favorable global trend in the market (population preference/ environmental accords)
• New models (penetration into different market segments)
• Ability to reduce cost

Threat
The below threats need to be addressed immediately by Tesla if it wants to keep his brand as the leader in the EVs market. • Dedicated parking availability
• Capacity of electric infrastructure
• Need to raise more capital
In addition to the SWOT analysis we conducted the PEST analysis to determines the effects of the industry’s environmental factors on the company.

Tesla Inc. is strategically positioned to improve its operations in the global automotive market and profitability. As expressed in the PEST analysis below, there are opportunities that facilitate further growth of the business. A good example is the global trade relations for Tesla target market in Asia and Europe coupled with available government rebates within the markets. Thus, a recommendation for Tesla to globally expand its operations. It is also recommended that the company should increase its marketing aggressiveness to increase its marketshare beyond the United

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