Business & Finance - Marketing HOMEWORK 2Response

Please critique the 2-discussion topic verbiage below. Cite 2 scholarly resources.

1. Provide a brief description of your approved company and the product you are planning to introduce as part of your marketing strategy plan. 

COMPANY DESCRIPTION: TESLA

Tesla, Inc is a company pioneering in American electric vehicle (EV) and clean energy since it was founded in 2003. Tesla has revolutionized the automotive industry by combining innovative technology with high-performance electric vehicles and a mission to accelerate the world’s transition to sustainable energy through the design and manufacture of all-electric vehicles, solar energy products, and energy storage solutions. In addition to its electric vehicle lineup, they are leaders in renewable energy solutions, reducing reliance on fossil fuels and promoting a more sustainable energy ecosystem. To promote the adoption of EVs, they operate a global network of Supercharger stations, allowing users to charge their vehicles quickly and efficiently. Their commitment to innovation, sustainability, and corporate social responsibility pushes the boundaries of technology to create new products that improve quality of life by reducing its environmental impact (Tesla, 2024).

PRODUCT DESCRIPTION: Electric Vehicles (EVs)

 Electric Vehicles (EVs) offer dependability, efficiency, and provide a revolutionary and exciting driving experience for the future. This vehicle type is designed for individuals who are eco-conscious and value sustainability without compromise to performance. EVs merges with advanced technology and innovative features to deliver a supreme driving experience. Some key features of the EV are its aerodynamic designs, which are manufactured with top-of-the-line material, and finishes which make it stand out among other vehicles. An EV produces zero emissions which reduces carbon footprint, thereby contributing to cleaner air quality. The broad network of fast-charging stations makes it efficient and convenient for EV drivers to recharge batteries quickly. There are also some economic benefits to owning an electronic vehicle. In addition to the incentives that are provided by the government for ownership, there are also savings on fuel cost, as well as the minimal maintenance cost because there are less parts to maintain on the EV.

2. State who you think your major competitor is and what type of products they have on the market.

Although Tesla’s role as the EV market leader remains strong, the rise of formidable competitors signifies an exciting era of innovation and healthy competition in the electric vehicle industry (Tay, n.d.). As more auto companies shift their production towards electronic vehicles (EV), Tesla faces several competitions from various companies in the market, each offering diverse product types. One of those companies is Ford Motor Company with their Ford Mustang Mach-E, an all-electric SUV, and the Ford F-150 Lightning, an electric version of their popular pickup truck which goes head-to-head with Tesla's crowd-favorite Cyber truck. Ford, along with the other competitors in the EV market, are creating a competitive market for EVs as the household automaker commits to full expansion of their electric vehicle lineups, improving battery technology, and investment in charging infrastructure.

3. Provide a few sentences about the importance and reason for SWOT analyses and why you are conducting this one.

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) “is an important process that is used in strategic planning” (Teoli, Sanvictores, & An, 2023). It examines a business’s position in the market, its potential growth and the factors that make the business vulnerable and helps companies assess both internal and external factors that might affect their goals. By analyzing strengths and weaknesses, companies can leverage how they perform and work on the areas that need improvement. Identifying opportunities and threats enables them to anticipate external factors that can negatively affect the company. The importance of SWOT analysis promotes the ability to provide a well-defined process for decision-making among company stakeholders and can help the organization manage its resources effectively, allowing it to make better choices to maintain a competitive advantage. Overall, SWOT analysis helps identify strengths, weaknesses, opportunities, and threats, develop effective strategies, manage risks, allocate resources and gain competitive advantage

4. In a table format, state your company’s strengths, weaknesses, and the outside elements that you see as your opportunities and threats. There are many templates online that you can use for this or create your own.

 

SWOT ANALYSIS FOR ELECTIC VEHICLES (EV)
INTERNAL
STRENGTHS	WEAKNESSES
EVs produce no gas emissions. This helps with reducing air pollution which helps combat climate change and improves air quality	EVs are more expensive upfront compared to traditional cars. Even having government incentives and tax breaks is still expensive to afford.
EVs are more energy-efficient than combustion engine vehicles, as they produce a higher amount of electrical energy that can power all wheels and functions of the vehicle.	Limited range: EVs have a certain amount of limited range in comparison to traditional gas vehicles, which can be a drawback for individuals driving long distances.
EVs are cheaper than gasoline, and EVs have fewer mechanical components than gas vehicles, which translates to lower maintenance costs.	Limited charging Infrastructure, the charging network is not as extensive as gas stations. Charging stations can also be more expensive, and unfortunately, there is not enough infrastructure at the current moment for the entire population to move to EVs.
Governments offer more tax credits, rebates, and other incentives for EV vehicles making them more financially accessible to the community.	EVs take longer to charge compared to quick gas refueling stations. This depends on the type of vehicle and model.
EVs have advanced technology, like regenerative braking, autonomous driving capabilities, and other cutting-edge features (Olabi, et al., 2022).	Battery Degradation. EV batteries can degrade over time, and this can reduce the range and efficiency. Replacing a battery might be too expensive (Olabi, et al., 2022).

 

EXTERNAL
OPPORTUNITIES	THREATS
Growing EV Market: The vehicle (EV) market is on the rise due to factors such as government support, incentives, and a growing focus on environmental sustainability and technological progress. China, the U.S. And European Union nations are pushing forward with plans to gradually replace combustion engines with EVs. This trend offers Tesla an opportunity to increase its market presence (Bloomberg, 2024).	Intense Competition: in the vehicle (EVs) market is on the rise as established automakers like Ford and GM alongside emerging players such as Rivian and Lucid Motors are ramping up their investments in EV technology. The growing competitive landscape poses a challenge for Tesla as it may impact its market share and ability to set prices effectively according to a report by Automotive News (Iliff, 2024).
Expansion of Renewable Energy Infrastructure: The development of energy infrastructure is crucial for Tesla’s objectives as it aligns with the growing trend towards sustainable energy sources and electric vehicle (EV) technology advancement.	Supply Chain Vulnerabilities: Tesla relies on a network of suppliers for materials such as lithium and cobalt, in its supply chain vulnerability scenario described in the Financial Times article from 2024.
Autonomous Driving Advancements: Tesla’s progress in self-driving technology gives them an advantage as autonomous driving technology evolves further into the market of electric vehicles (Jin H., 2023).	Regulatory Challenges: Tesla faces hurdles in countries concerning safety standards, for vehicles and environmental obligations that could lead to higher expenses and disrupt its operations in the global market (Jin H., 2023).
Global Expansion and New Markets: Tesla has opportunities, for expansion in developing markets with electric vehicle adoption, like India and parts of Southeast Asia and South America where potential revenue growth exists according to the International Energy Agency in 2022.	Economic and Energy Market Volatility: Fluctuations in the economy and energy market can influence how much consumers can spend and their interest in vehicles (EV). When electricity prices are high it can make EVs less cost effective compared to cars which could affect Tesla's appeal well (Bloomberg, 2024).
Application to Outside Markets: The investment in EV innovations and new technologies provides an opportunity to apply the improvements and breakthroughs to markets outside of the commercial EV market. Examples include entering the public transportation or taxi market as discussed by Tesla at the "We, Robot" event (Boran, 2024).	Public Perception: Although innovation is key in technologies industries, promising to do to much or push innovations too quickly can negatively impact stakeholder perception. Other factors such as poor marketing or social media issues with company leadership can lead to decreased interest in Tesla products and, therefore, the EVs it creates (Jin & Carey, 2024).

 

Works Cited

Bloomberg. (2024).  Electric Vehicle Sales Are Stumbling. Here’s Why. Retrieved from Bloomberg: https://www.bloomberg.com/news/articles/2024-09-29/electric-car-slowdown-why-ev-sales-are-struggling?embedded-checkout=true

Boran, M. (2024, October 11).  Tesla Cybercab: Five Takeaways as Elon Musk Unveils Robotaxi. Newsweek. Retrieved from Newsweek: https://www.newsweek.com/tesla-cybercab-five-takeaways-elon-musk-unveils-robotaxi-1967466

Financial Times. (2024, October 30). S upply Chain Risks Grow as Demand for EV Battery Materials Intensifies, Say Analysts. Retrieved from Financial Times: https://markets.ft.com/data/announce/full?dockey=600-202410300900PR_NEWS_USPRX____LN44221-1

Iliff, L. (2024, October 16).  Tesla bets on AI for autonomous vehicles, humanoid robots in major strategy shift. Retrieved from Automotive News: https://www.autonews.com/mobility-report/tesla-bets-ai-software-cybercab-robotaxi-optimus-robot/

International Energy Agency. (2022, May).  Global EV Outlook 2022. Retrieved from International Energy Agency: https://www.iea.org/reports/global-ev-outlook-2022

Jin, H. (2023, April 19).  Musk says Tesla likely to launch full self-drive technology 'this year'. Retrieved from Reuters: https://www.reuters.com/business/autos-transportation/musk-says-tesla-likely-launch-full-self-drive-technology-this-year-2023-04-20/

2. Please critique the following topic verbiage

Company and Product Focus

Our team decided to focus on a biotechnology company called Amgen that is driven and operated by developing, constructing, selling, and marketing human therapeutics in many forms of advanced medicines used to treat serious illnesses, including various cancers and diseases that are associated with digestive, skin, lymphatic, musculoskeletal, etc. Amgen also establishes treatment options for existing treatment plans ( Learn about Amgen and Search Our Jobs and Careers in Biotechnology, n.d.).  However, the main focus is inflammation, general medicine, oncology, and other rare diseases where therapeutic can assist. They incorporate human genetics to be more accurate and personalized to better understand the complexities of different diseases and human anatomy. They can take living cells to make biological medicines using technology leading the way in groundbreaking medicine ( Learn about Amgen and Search Our Jobs and Careers in Biotechnology, n.d.). That said, the product (service) we plan to market is human therapeutics. It is a service that provides treatments to fight, treat, and ease suffering, injuries, and diseases. With Amgen targeting specific genetic mutations using technology, human therapeutics can include cancer therapies such as treatment for leukemia ( Oncology (Cancer) / Hematologic Malignancies Approval Notifications, 2024). Inflammation therapies involve treating arthritis, psoriasis, etc. Bone and osteoporosis therapies assist in reconstructing bones and even decrease fracture risks for postmenopausal women (Cleveland Clinic, 2021).  Human therapeutics also involves cardiovascular therapies, where medication is created to treat high cholesterol in patients with heart conditions (Cleveland Clinic, 2023). Nephrology therapies encompass chronic kidneys in patients suffering from anemia (Cleveland Clinic, 2023a).

Major Competitor

Amgen is a multinational biopharmaceutical company which its headquarters is located in Thousand Oaks, California. Amgen must navigate a very competitive landscape while being pressured by regulatory challenges and certain market dynamics. Operating in the biotech industry is intensely competitive and mainly driven by research and development or R&D innovation. A few of Amgen’s top competitors include Abbott, Pfizer, Biogen, Allergan, Johnson & Johnson, and Novo Nordisk.  All these organizations manufacture, develop, and innovate biopharmaceutical products or medicines. These large organizations each have a certain areas of expertise that they specialize in. For instance, Amgen’s major competitive advantages are its strength of its existing products and developing products lines, its global expanding presence, its long-lasting patents, and its dominant market positioning (Stryjek & Pehota, 2018). Amgen also produces biosimilars which help keep it highly competitive, taking market shares away from its competition. A biosimilar is a biologic medication and is considerably similar to a biologic medication already approved by FDA – the original biologic, also called the reference product (Center for Drug Evaluation and Research, 2024). Each of Amgen’s competitors have unique advantages and strategic initiatives which could deeply impact Amgen’s market position. 

Importance of SWOT Analysis

Swot analysis is a vital part of a business planning and operation standpoint. Swot itself has four core points: strengths, weaknesses, opportunities, & threats. Breaking each down strength regarding a business is how well it stacks up against other competitors; this mainly depicts how it surpasses its own competition. Weakness is the opposite, focusing on a company identifying what their shortcomings are, which can be sales of products, manpower capital, etc. Following this are opportunities, which are where a company identifies areas where they can improve themselves as a whole, whether that is changing processing methods, managerial styles, company policies, etc. The last part is threats, which identifies threats to the company's overall success. A SWOT analysis is a valuable tool for informed decision-making and long-term planning. The overall goal of all companies is to ensure that they make it into the future. Proper planning will always be key; This is linked to all the benefits of a SWOT analysis.   

SWOT Analysis: Amgen, Inc.

Strengths 1. Diverse Product Portfolio:  Amgen manufactures 36 medicinal products in a broad spectrum of therapeutic categories. This enables a variety of pharmaceutical therapies and ensures a consistent flow of revenue.  2. Robust R&D Strategy:  Priority funding for research and development utilizing biotechnology and technology.  3. Worldwide Presence:  Amgen global presence in 48 countries, extends its reach to a broad patient base.  4. Financial Stability:  Excellent financial condition, having generated $32.4 billion so far this year. Top four patent selling products: Enbrel, Prolia, XGEVA, Otezla, and Aranesp.

Weaknesses  1. Reliance on Key Products:  A small number of blockbuster medications account for a sizable amount of Amgen's revenue, leaving Amgen susceptible to threats from competitors and patent expirations.  2. Increased R&D Expense:  Although R&D is essential for innovation, its substantial expenses may cause an impact on available funds.  3. Regulatory Threats:  Government regulatory bodies both domestically and internationally have strict regulations governing testing, pricing, marketing, and other operations.  4. Well known drugs are declining in sales:  As of the second quarter of 2024, sales of EPOGEN®, Aranesp®, Parsabiv, and Neulasta® were down 21% year over year.

Opportunities 1. Growth in Developing Markets:  Significant growth prospects for Amgen can be realized by expanding access to healthcare in emerging markets.  2. Innovative Therapy Developments:  Biotechnology and genetics developments open new therapy options.  3. Biosimilars Market:  Biosimilars' increasing demand and popularity may open new revenue opportunities.  4. Strategic Partnerships:  Innovation and market entry can be accelerated by partnerships with other biotech companies and academic organizations.

Threats 1. Patent Expirations:  Competitors may contest, invalidate, or get around the protection provided by our patents and patent applications, or Amgen may lose pending intellectual property lawsuits.  2. Increase Competition:  Numerous businesses are vying for market supremacy in the highly competitive biotech and pharmaceutical sectors.  3. Price Pressure:  The state of the world economy could make certain threats that impact Amgen, which impacts stock prices.  4. Regulatory Challenges:  Entering and growing a market can be difficult when navigating the many regulatory environments in various locations.

(Amgen, Inc, 2020); (Amgen, Inc. 2024); (Amgen, Inc., “Patents for Our Five Top Selling Products”); (Colos, 2024) 

Actionable Strategies:  According to (Amgen, Inc.), the strategic growth through 2030 is to, “increase the percentage of product sales from outside the U.S. and growing portfolio of high-quality biosimilars saves money for the healthcare system, thereby freeing up funds for innovative medicines” (Amgen, Inc., 2024). 

References

Amgen, Inc. “About Amgen.”  Amgen, 2020, www.amgen.com/about?_gl=1. Accessed 28 Oct. 2024. 

Amgen, Inc. “AMGEN OUTLINES GROWTH STRATEGY through 2030 at VIRTUAL BUSINESS REVIEW.”  Amgen, www.amgen.com/newsroom/press-releases/2022/02/amgen-outlines-growth-strategy-through-2030-at-virtual-business-review. Accessed 29 Oct. 2024. 

Amgen, Inc. “Amgen Products.”  Amgen, 2020, www.amgen.com/products?_gl=1. Accessed 29 Oct. 2024.