Final Plan

Title: SWOT analysis of Tesla Inc.

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TESLA INC

STRENGTHS

A business strength is that aspect of the business that contributes to its own growth and improvement. They can be best described as the internal factors that enables a company compete with other companies through empowering the company and giving it an added advantage over others. (Sarsby, A. 2016). In the case of Tesla Inc., its strengths originate from the following aspects. For one the company has strong brands which are highly preferable to consumers because of the quality. Secondly the company also has high rates of innovation. This is demonstrated by the company’s ability of introducing the first world’s fully electric sports car. Their creativity in innovation is part of their major strength in the global market. Tesla’s Inc. third strength is that it has a strong control over its process of production. It manufactures automobiles together with many of their components thereby acting as a one stop shop which has made them gain strength in the market. This strength has minimized issues related with third party involvement and therefore many consumers prefer it.

WEAKNESSES

Tesla Inc. weaknesses reduce its competitiveness in the market in one way or the other. Despite having strengths such as strong and quality brands, it also has weaknesses that tend to limit its growth and performance. For one is limited market presence. Tesla Inc. has limited market presence in China and the developing world and generates most of its revenues in the US. Limited markets tend to limit the growth of business because the overseas market tend to expose a business to the rapid economic development. Also serving as the company’s weakness is limited supply chain. Perhaps this could be the factor preventing the company from investing in the overseas market. High prices is also another weakness of the company. Their prices tend to be much more expensive than others in the market. Their cars that have internal combustion engines have been especially identified to be more expensive in the market.

OPPORTUNITIES

To improve its performance and financial state in the global market, Tesla Inc. should embrace the following opportunities. The company should consider indulging in global sales expansion, global supply chain expansion and business diversification.

THREATS

Tesla Inc. should address the threats that it is likely to experience so as to remain strong in the market share. For one it is faced with aggressive competition by other automotive companies. Prices of materials such as lithium also keep fluctuating. Regulations on dealerships is also another threat facing the company. This is rising from the fact that some states like Texas and Virginia requires all companies sales must go through dealerships and hence prohibits direct sales of products from company’s which don’t comply.

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REFERENCES

Sarsby, A. (2016). SWOT analysis.

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