Swot analysis and the vrio framework form the basis to define the strengths, weaknesses, unique recourses and capabilities of bmw and tesla. Apr 24, 2016 to better understand the market environment, tesla can use a pestel analysis to analyze macroenvironmental factors. The pestelpestle analysis is a strategic tool that determines the effects of the industrys remote or macroenvironment on the company. Another helpful tool in finding the case solutions is of porters five forces analysis.
Tesla motors is a new age automotive company which manufactures alternative energy vehicles like solarpowered cars, hybrid vehicles, and battery operated vehicles. For example an industry may be highly profitable with a strong growth trajectory but it wont be any good for tesla, inc. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and companys longterm solvency. Tesla motors has maintained its reputed position in the market and have been given tough competition to its competitors. The pestel framework will help to analyze and evaluate these characteristics. Tesla case study help case study on tesla motors by. The aim of this paper is to provide an indepth analysis of tesla to assess whether its high share price and market capitalization can be justified. Some of the major competitors of the company are the 2018 volkswagen egolf, 2018 bmw i3, 2018 nissan leaf, 2018 hyundai ioniq ev, 2018 kia soul ev, and 2018 chevrolet volt ev. Tesla s mission is to accelerate the worlds transition to sustainable energy. Tesla has employed roundabout 48016 people to manage different operations of the company in 2020. Is tesla s share price as of 31st december 2019 based on fundamentals. May 21, 2019 pestel analysis of brazil this detailed pestel analysis of brazil aims to explore some of the political, economic, social, technological, environmental, and legal factors affecting brazil today.
Straubel and ian wright, all of whom are retrospectively allowed to call themselves cofounders of the. Tesla s biggest problem at the moment is the low profitability compared to the sales volumes. Mandatory assignments with their layouts and complete kwl1 know, want to know, learned. Also, expanding free trade agreements will make it easy for tesla to reach different zones of the world. What youll learn learn how to perform strategic analysis leverage classic frameworks like swot and five forces to analyze tesla understand why tesla has a brand following that is second only to apple apply the 4ps framework and understand what. A pioneer of sustainable energy options tesla motors is backed by a very strong research and development team and. Pestel analysis provides great detail about operating challenges tesla, inc. International economic development council 5 eleeccttrric vveehhiicclle ess bccrreeaatte jjoobss at this point it is difficult to reliably estimate the total job creation potential of electric vehicles. May 15, 2015 this success of the company is contributed to elon musk, the ceo and product architect of tesla tesla, 2014, who has a very strong vision of companys future. Tesla also faces the problem of limited presence in markets outside the u. Pestle analysis of tesla inc the growth of the eco. This can be an interesting element to include in your innovative tesla motors case study. Apart from this, the report will conduct analysis of the internal business environment as well with the utilization of resource based view rbv, vrio analysis, and value chain.
Detailed pestel and porter analysis of the chest system 8 1. Summary of financial analysis overall tesla is rapidly developing, which seen through its very aggressive usage of leverage through debt to fuel its expansion. There is a distinct market segment for such products. The companys name was derived from physicist nikola tesla. Pdf this paper is a strategic analysis of tesla motors, inc how tesla motors inc. This is also a strategic tool that is used to analyse the competitive environment of the industry in which tesla motors operates in. Apart from technologically innovative vehicles, the brand also makes energy products. Having an electric car is a good idea that will increase social status. Tesla was founded in july 2003, by engineers martin eberhard and marc tarpenning, under the name tesla motors.
This is the pestle analysis of the american company tesla. In early series a funding, tesla motors was joined by elon musk, j. Mostly people are judged based on what type of the car people own. We are pleased to share our strategic management analysis of tesla motors, an inspiring company with a bold vision. Now, let us look into the four popular models of tesla that stand for sexy as explained earlier. Tesla motors case study about electric car strategic management. Despite the futuristic appeal, the car was not profitable. According to kpmg 2019, the most crucial markets for the automotive industry in. As a result, general motors gm created the ev1, the first massproduced electric vehicle.
Hence, the research question is defined as follows. Pestle analysis of uber analyses the brand on its business tactics. The particular report aims to analyze the success of the tesla motors company from several perspectives. Tesla case study help case study on tesla motors by expert. Figure below illustrates all crucial external factors, which need to be considered while doing external analysis. Pestle analysis of tesla inc the growth of the ecofriendly.
Conduct a pestel analysis to identify which pestel factors are the most salient for the electric vehicle segment of the car industry. The report will portray the use of pestle analysis, and porters five forces analysis for effective evaluation of the external business environment tesla deals with. Tesla motors has maintained its reputed position in the market and have been given tough competition to. We have taken the case for tesla motors for this pestle analysis example. Apr 22, 2019 tesla automobiles are environmentally sustainable. The pestelpestle analysis is a strategic management tool that determines the effects of the industrys remote or macroenvironment on the company. Pestel analysis porter five forces analysis swot analysis recommendations references. Tesla is currently one of the most valued automotive brands in the world. Moreover, the overall results of this analysis also include strategic reforms in light of all the swot factors, i. In the late 1990s the state of california had proposed a zeroemission law, by which standards manufacturers were forced to provide a zeroemission vehicle to continue production.
Tesla pestle analysis pestel analysis of tesla mba skool. Detailed pestel and porter analysis of the chest system. Tesla was founded in 2003 by a group of engineers who wanted to prove that people didnt need to compromise to drive electric that electric vehicles can be better, quicker and more fun to drive than gasoline cars. Jul 09, 2020 let us look at a pestle analysis example to illustrate this model. Tesla pestle analysis examines the various external factors like political, economic, social, technological pest which impacts its business. Porter five 5 forces analysis for consumer goods industry threats of new entrants new entrants in auto manufacturers major brings innovation, new ways of doing things and put pressure on tesla, inc. Today, well discuss the pestle analysis of tesla motors inc. Bus 690 spring 2021 tesla takes over the auto industry one robot at a time tesla takes over the automobile industry by. Pestel analysis political tesla has had their success and failures at the hands of politicians.
Report contains the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis, ansoff matrix and mckinsey 7s model on tesla. Pestel analysis is a viable tool used to examine an organisation environment and is crucial in the identification of key areas of improvement as well as potential problems likely to emerge yuksel, 2012. Uber pestle analysis pestel analysis of uber mba skool. External analysis pestel analysis in order to distinguish and break down the fundamental elements of the companys external environment it is suggested to use pestel analysis academy, 2015. Brazil is the fifth largest country in the world by area. Feb 22, 2019 a five forces analysis porters model of tesla inc. Pestel means political, economic, social, legal, technological and environmental factors analysis.
Apr 18, 2020 pestel or pestle analysis, also known as pest analysis, is a tool for business analysis of political, economic, social, and technological factors. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business. Dec 18, 2020 tesla has employed roundabout 48016 people to manage different operations of the company in 2020. Strategic management case study 1 tesla motors studocu. Mar 22, 2020 tesla has emerged as one of the most discussed and analyzed companies among business enthusiasts. Tesla is now well known for its sustainable innovation business model. You could qualify for tax credits when buying a tesla vehicle. In this way it appeals to a large audience that likes sustainable products. Mandatory assignments with their layouts and complete kwl3 know, want to know, learned. Global transition to renewable energy climate change legal. They are constantly reinvesting in research and development. Tesla pestel analysis involves the analysis of potential impact of these factors on the longterm growth prospects of the alternative fuel vehicles manufacturer.
In this report, we provide an indepth picture of tesla s operations, followed by a comprehensive analysis of the landscape tesla faces at present. This swot analysis of the very organization will reveal all the significant insights regarding every factor of tesla business model. Purpose and scope the pestel analysis describes the political, economic, social, technological, environmental and legal boundary conditions of the electricity market, in particular with respect to the integration of the chest technology. Let us do the pestle analysis example for tesla motors. Figure 5 development of total amount of electric cars worldwide. Figure 4 sources of co2emissions of a typical household.
Regulations regarding business behaviour abide by legal guidelines including social corporate responsibility pestel analysis of tesla. Oct 04, 2018 pestel is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Tesla s supply chain management strategy focuses on a longterm growth strategy involving production, inventory management, and distribution. Tesla must conquer the challenges that are related to the external factors that are shown in the pestel analysis. Growth strategy tesla s growth strategy is mostly driven by the anticipated high demand for model 3. A tool that can assist companies in analyzing environmental factors that affect the environment of the automobile industry is the pestel analysis. Pestle analysis is also referred to as pestel analysis. Moreover, the report contains analyses of tesla s business strategy, leadership and organizational structure and ecosystem. Aug 10, 2020 this is swot analysis of tesla motors. The pestle analysis highlights the different extrinsic scenarios which impact the business of the brand. The weaknesses recognized in this swot analysis shows that tesla needs to reform its strategies related to global. Mandatory assignments with their layouts and complete hscc chapter two reflection culture activity 1 cultural acvtivity 2 having to read documents online from other countries. Doc external analysis pestel analysis unrevealed unrevealed. As well as their strengths and weaknesses in the industry.
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