Tesla Porter's Five Forces Essay
Please develop thorough profiles of the company’s main customers and competitors in that country. The international market place offers a world of business opportunities for the companies which would like to expand their services, operations and products worldwide. The decision to go international is driven by a number of various exogenous and endogenous reasons. The high rate of competitiveness as well as the saturation of local markets urges companies to search for new trade areas. However, entering a foreign market often presents difficulties. It is influenced by a number of factors, among which can be economic, social, cultural and environmental. To achieve its goals, a company must make sure that the chosen strategy allows fully exploiting …show more content…
Porter five forces model is a widely used framework to make a qualitative evaluation of a firm‟s strategic position (Sven Rosenhauer, 2008). These five competitive forces consist of three “horizontal” competitive forces which are from entrants, substitutes, and established rivals; two “vertical” competitive forces which are from the power of suppliers and the power of buyers (Porter, …show more content…
From this can be concluded, that all this gives the power to Panasonic, since it would be hard for Tesla to find worthy substitute with the same quality and amount. Panasonic depends on the large orders from the company, so it can not dictate its terms. From the other side, Tesla depends on the quality of suppliers of goods. Therefore, both parties want to keep a good relationship and not misuse their power
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