TESLA: DISRUPTING AUTO INDUSTRY CASE STUDY Harvard Case Solution & Analysis

TESLA: DISRUPTING AUTO INDUSTRY Case Study Analysis

SWOT Analysis

SWOT Analysis elaborates that the company has the potential of maintaining its performance. The SWOT analysis will suggest the strategic reforms toTesla Inc. and will ensure  long-term success and growth of the company.

Strengths of Tesla

SWOT Analysis of Tesla Inc. manages the business qualities that add to the organizational development and improvement. This is the company’s  internal factor which tells about its strengths and potentials. Tesla has the following strengths:

• Tesla Inc. has a strong brand recognition, which gives the strong symbol of renewable energy solution and innovation. Its brand has the strong optimization as it retains its customers very easily.
• Tesla is very well known for its innovation, as it has introduced the world’s first-class electric cars. This empowers the company to have a competitive advantage in the automobile industry.
• Tesla has vertical integration in its production process. It has full control on the process of production. The organizational structure is centralized due to which, it has an effective decision making.

Weaknesses of Tesla

Despite of having growth, brand recognition and effective production process;Tesla faces a few weaknesses, such as:

• Minimum supply chains.
• High prices.
• Restricted market presence.

Tesla has a very limited market penetration. For example, the organisation earns the majority of its revenue in the United States and has a little presence in China and other emerging countries, limiting its expansion. Tesla's supply chains are constrained, limiting its ability to grow quickly in such industries. Furthermore, Tesla's products are often more expensive than competing automobiles, particularly those with gas-powered engines. Such hefty expenditures prevent the company from rapidly expanding its client base and its share of the overall industry. Tesla's need to adapt its procedures associated with global expansion and development is reflected in the weaknesses found in this SWOT analysis.

Opportunities for Tesla

The factors that are  opportunities which Tesla can avail to further develop its business performance, its executive’s adequacy and key development in different aspects. Its major opportunities are:

• Diversification: acquiring the new businesses in new markets to reduce the risk of exposure in the automotive industry.
• Tesla must consider an expansion in supply chain opportunity, because doing so can enhance its global sales. Like the other larger firms, such as:General Motor, Tesla should also expand its supply chain.
• Global sales expansion is very important, because it can provide an economic growth where the company will exist in future.
• The organization can expand its growth through development in Asian auto- business sectors.

Threats to Tesla

Tesla has a few threats to its operations, such as:

• Competition from competitors.
• Material price fluctuations.
• Regulations in dealership.

Auto associations compete against each other with utmost power. This outer system sabotages Tesla, by thinking about the endeavors of different organizations in assembling electric vehicles. The progressions in material expenses are the utmost danger which Tesla can face in terms of the costs of the lithium and other materials utilized in the assembling procedure. At this point, Tesla clearly offers its products to its customers without display area or showroom association that forms the selling costs. However, in few states like Texas and Virginia, restrict direct deals of the organization's items, which makes show rooms a requirement, which allows the customers to deal with the organization’s products through visiting these showrooms. Tesla should maintain its competitive advantage in order to compete with other players in the automobile industry.

Recommendations

Tesla, Inc. has the characteristics to remain compelling in the business, in the years to come. Nonetheless, as perceived in this SWOT examination; there are various issues that the association should address, to stay aware of its power and to work on its usefulness. Tesla should chip away at its overall presence. For example, new workplaces and arrangements exercises in high-potential emerging countries can further develop business advancement, satisfying Tesla's corporate mission and vision enunciations. Moreover, the association ought to continue with its basic advantages in creative work (Research and development) to convey precisely advanced products and services. This SWOT analysis indicates that Tesla might conceivably fill the overall auto market spaces despite of facing strong competition.

To completely purpose on additional creation of business force, advancement, and improvement; Tesla Inc. is recommended to:

1. Extend its exercises in unfamiliar business areas to exploit the overall improvement of the maintainable power industry.
2. Proceed or increase its speculations for advancement.
3. Expand the inventory network to decrease its supply-based dangers....................

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