Benefits of Tesla Motors

The forces examined in this study provide an overview of the elements that have fueled Tesla Motors’ expansion. The corporation has made significant investments in recyclable items. The plan has made it possible for the business to launch pricey, high-end car items. For instance, the Roadster variant sells for US$109,000, while the starting price for the Model S is US$47,400. In order to compete with 150-year-old businesses, modern technology is used in the construction of the automobiles. Additionally, Tesla Motors has embraced vertical integration for its goods, producing only the motors while sourcing the rest of the vehicle from trusted manufacturers. Thus, technology invested remains one of the strengths of Tesla Motors.

`` Direct sales of the Tesla products to the customers enable the company to reduce the unnecessary costs associated with the middlemen. Thus, the company has opened over 200 galleries and stores both in the United States and other developing and developing countries to increase the number of potential customers. Moreover, the automobile company has an online store where customers place their orders and goods are delivered to their respective destinations.

Management of disputes determines whether a company will succeed in a competitive market. The company has a customer care department that deals with the issues raised by the buyers. In case their product has problems with a period of time, the company timely compensates the customers. In so doing, and in addition to their direct customer relationships, the company can reduce the number of cases raised by the buyers.

Weaknesses

In the year 2017, the Business Insider reported that Tesla Motors had been affected by low-income levels that threatened it to being declared bankrupt (Muller, 2015). In 2008 the company recorded negative profits, a common problem with many American modern businesses that are affected by poor management and high competition. However, the company was able to recover, and in 2016/2017 financial year, it recorded profits of US$30 billion. The major falls of the company by the year 2017 as registered by the Business Insider were categorized as financing, management, and production. The focus of the Tesla’s next financial year is how to overcome these three threats. Lack of skilled labor force has also been a major challenge to the company.

Opportunities

` Expansion of the market is one of the possibilities that Tesla needs to explore. In 2016, the French minister for energy and environment offered a nuclear power plant site to the Tesla Motors. The plant was supposed to be used for the production of all raw materials required to produce the Tesla products. Thus, there are great investment opportunities in countries like France, Germany, China, and Africa that have not been fully explored. Tesla should take such opportunities to increase it s production and sales.

Threats

` Due to the high levels of technology required in the production of Tesla automobiles like Model SUV X and S that requires the high standard of professionalism. Getting the kind of staff necessary to produce the cars remains a challenge especially when it wants to increase the volume of its sales per year. The products’ potential buyers are affluent consumers who don’t complain much about the prevailing prices provided the quality is classy. Thus, a close look at the managerial decision to invest in technological products has enabled the automobile company to earn high revenues and remain competitive in the market.

References

Muller, F. (2015). Tesla Motors, Inc (Doctoral dissertation).

Cyclical, S. C., & Year, F. (2013). TESLA MOTORS INC.

Tang, Y. (2010). U.S. Patent No. 7,739,005. Washington, DC: U.S. Patent and Trademark Office.