1 of 9

Tesla Motors Inc. Case Analysis

Phillip Souza

Taylor Jordan

Nick Bryant

Josh Carson

Ruairi McCann

2 of 9

Introduction

Founded in 2003, Tesla is a sustainable energy company whose distinctive competencies reside in its innovative technology, batteries, and electric vehicle manufacturing.

As Tesla has shifted its market from affluent car enthusiasts to appeal to a greater audience, Tesla and CEO Elon Musk have faced several new issues and competitors.

Tesla has maintained their leading position in their industry as a result of their strengths, differentiation, and innovation-focused culture.

3 of 9

Analysis & Secondary Research

The following sections will provide comprehensive insight into various areas of Tesla’s internal and external environments.

​

SWOT analysis will play a vital role in developing alternatives and evaluating ending conclusions.

4 of 9

Tesla’s 5 Forces

  • Competitive Rivalry (Strong Force)
  • Power of Suppliers (Moderate Force)
  • Power of Buyers (Low-Moderate Force)
  • Alternative Products and Services (Low-Moderate Force)
  • Threat of New Entrants (Weak Force)

5 of 9

SWOT Analysis

Strengths

  • Engineering and Innovation
  • Brand Image/Reputation
  • Supercharger network and diversification

Opportunities

  • Increase Global Sales
  • Global Supply Chain Expansion (Asia)
  • Diversification Extensions

Weaknesses

  • Production and customer service Issues
  • Customer Service
  • Lack of Global Presence
  • Inconsistent Leadership

Threats

  • Elon Musk
  • Bad Press
  • Debt Concerns
  • Rising Competitors

6 of 9

Alternatives

  • Global Business Strategy
    • Become transnational: focus on cost (moderate) and local responsiveness (low) pressures
  • Related Diversification
    • SolarCity, Gigafactory, Tesla Semi
    • Continue using this strategy
  • Unrelated Diversification
    • Heavy R&D focus with production issues
    • Current=.81, Quick=.47, Turnover-=1.59
    • Future plan not current

​

​

7 of 9

Alternatives (cont.)

  • Bad Alternatives
    • Franchising
    • Focus on wholly owned
  • Spin-off
    • Range Rover vs. Land Rover
    • Maintain prestige
  • Marketing
    • Communicate innovations
    • Attract to newer markets (Cold regions/Russia)
    • Build protection with loyalty

8 of 9

Recommendations

  • Short-term
    • Protect brand image
    • Improve production efficiency
  • Long-term
    • Innovate to protect market share
  • Limitations
    • Banned from direct sales
  • Risks and Mitigations
    • Lawsuits from faulty equipment/misuse

9 of 9

Thank You!