Analysis

Tesla incorporated is one of the most popular entrepreneur companies of current times. This American electric vehicle company claims to use clean, environmentally friendly energy. The headquarters of this company is situated in Austin, Texas, and the company was founded by Elon Musk, one of the most well-known entrepreneurs in the world. Tesla specializes in designing and manufacturing different electric cars, battery energy storage for domestic and commercial purposes, solar roof tiles, and solar panels. The company also provides other products related to clean energy and services (Ajitha & Nagra, 2021). The company has been termed the world’s most valuable company and holds the title off what is the most valuable automobile maker with the market capitalization of one trillion U.S. dollars. Therefore, being a large company also provides and has a significant impact on the sustainability factor. This paper will provide a detailed report about the sustainability analysis of Tesla and provide the TOWS and SWOT analysis of the organization. 

The main mission of Tesla is to accelerate The Global Transition towards sustainable sources of energy and minimize the carbon footprint on the environment. The primary objective of this organization is to support the world’s transition towards healthy and sustainable sources of energy and promote the use of healthy and greener sources of energy. One of the most important steps that the organization has taken is that they wanted to introduce and induce the idea that the customers do not need to compromise by making electric cars. Rather all-electric vehicles could be much faster and more efficient than their fossil fuel counterparts. To conduct an efficient situation analysis, the paper would conduct a SWOT analysis and TOWS Analysis. 

Swot analysis is one of the most common and popular forms of situational analysis done by any organization. This helps the organization identify and analyze its efficiency, strategic decision-making, and sustainability. This analysis method provides a complete holistic overview of the internal and external organization. The strength and weakness factors of this analysis analyze the internal marketing environment of the organization, whereas the threats and opportunities factors provide a complete detail about the organization’s external environment. 

One of the organization’s major strengths is that Tesla is the stop-employing company globally. As for Forbes magazine, the company has been elected as the best American employer of 2021. As reported by the Wall Street Journal, the company is one of the ideal companies for employees as the organization has a huge amount of diversity and innovation encouraging culture within them(McCain, 2019). 

SWOT Analysis

The next strength of the organization is its brand name. The company has become one of the most valuable automatic companies globally. The market capitalization of the top five automaker companies, including Toyota, Volkswagen, Daimler, Ford, and General Motors. The company collected a market capitalization of one trillion U.S. dollars. 

The product quality and standards also become one of the organization’s key strengths. The company’s electric cars at one of the finest cars even challenged the efficiency of the other diesel vehicles. As per the recent analysis, it has been found that Tesla is one of the top three companies in terms of cars. Model S of Tesla company is well known for its high efficiency and distance coverage up to 600 kilometers in a single charge. Which, when compared to other organizations, had provided only 520 kilometers.  

Another key strength of the organization is its inclination towards innovation. Tesla is the world’s most innovative company, constantly innovating and bringing out new and out-of-the-box ideas end products (Lee, Lee & Jung, 2020). Therefore, the company’s products are unknown to help the organization sustain over the long term. Along with it, the other strength of the organization is the brand positioning. The brand is positioned so that the organization can survive various economic uncertainties compared to other automakers in America. 

The last but not least strength of Tesla is that it uses highly unconventional yet effective strategies to sustain itself in the market. The marketing strategy of Tesla is unique yet highly effective. For example, the company hires only the smarter and the most innovative experts for the organization. And holds them accountable for setting up the organization’s short-term goals. 

As far as the organization’s weakness is concerned, multiple weaknesses prohibit and pose a great threat to the organization’s stainability. 

The first and the most important weakness of the opposition is they’re manufacturing computations (Aityan, 2022). As the organization has a very high standard of innovation, there is a lot more risk related to infrastructural availability. Moreover, the higher innovation often leads to higher mechanical complications along with a production risk factor 

The second weakness of the organization is the lack of high-volume production. As the organization is more focused on innovating and bringing out new technology, most of the resources are diverted towards innovative strategies that starve the organization’s production department. The organization had failed to produce a high volume of their car models. This brings to the hard weakness of the organization that is its inability to meet the demand of their customers. As the organization fails to produce a high volume of its products, it often suffers from an unbalanced supply and demand. 

Strength

Even though the organization has an immense capability at a high market capitalization value, the poor supply and demand of the organization put it in a high financial instability. The organization is currently in debt of $5.38 billion. Therefore, if the company cannot meet the demands and repay the debt, the organization may fail or delay its expansion (Kumari & Bhat, 2021). They would lose their capability of investing in future projects. 

The organization is an innovative company with many opportunities for future expansion. One of the first major opportunities for the organization is expanding itself into untapped and ventured market areas. The most lucrative market for the organization is the Asian market, where electric vehicles are new and unsaturated. Hence, it provides a great opportunity for the organization to expand itself in this area. 

The next opportunity for the organization is that the organization could well introduce various in-house bracket production technology that would diversify their products even further, allowing them to market a wider range of customers (Li, 2018). 

The growing craze of environmental friendliness and cheap solutions for the environmental problems could be used effectively by the organization to expand themselves further into the market. One of the recent examples is the company’s model 3, which is a cheap variable of Model S. 

The company could also introduce various heavyweight automobiles powered by electric batteries to expand their market. According to a study, this has been found that 17.6% of the total automatic market consists of pickup trucks. 

As there are opportunities, there are also various threats to the company that may create a big problem for the organization to function properly and efficiently. 

One of the major threats to the organization is product liability claims. Even though the company assures a high standard of product quality, there have been many cases where product liability claims have been made. 

The automobile industry is a very high competitive market with various big organizations such as Mercedes, BMW, Audi, Toyota and Ford and already existing and enjoying a very strong position in the market (Dana, 2018). However, most companies do not have any self-driving or environmentally friendly alternatives, giving Tesla a certain competitive edge. 

As the product is very new in the market, customer adoption is still at high risk for the organization. The governments and the customers have highly scrutinized the company’s idea of self-driving cars. Most governments have questioned the safety of self-driving cars. 

Weakness

Tows Analysis is also one of the most popular forms of situational analysis that involves understanding the implementation and analysis of various aspects of the organization to counter various threats and weaknesses of the organization 

The model 3 and the Model Y of Tesla company or one of the most sold units of the automobile in the United States which becomes a great strength for the organization at the same time as far as the opportunities are concerned countries like Sweden, Denmark, Germany and China add willing to accept renewable sources of energy and that provides various opportunities for the development of infrastructures that favors electric automobiles (Stobbe , 2019). Therefore the organization could use the reputation to expand the market share in these countries and create a huge market. 

The company operates in a very highly competitive environment where various automobile giants perform efficiently. Yet the unique selling point of the company and the environmentally friendly alternative could provide an edge to the organization over its competitors and help the organization create history (Agnihotri & Bhattacharya, 2022). As the organization is very highly innovative, the company’s technologies could be very difficult to replicate, hence minimizing the rise of competition. 

The organization’s delay and inability to meet the deadlines for introducing self-driving cars has been one of the organization’s greatest weaknesses body brand image (Maiyusril, 2018). However, the fast-growing technological advancement both in terms of hardware and software along with AI technology provides a great opportunity for the organization to overcome its weakness and function even more efficiently in the market 

One of the greatest weaknesses of the organization is that it could not meet the prescribed applied and demand balance, which has led to multiple delays in the past (Adži?, 2020). This has created a lot of lawsuits and liability claims over the organization, along with the various legal threats that the organization is facing and the construction of their gigafactories in various other countries. 

As for the above discussion, it has been identified that the organization has a very strong focus on their innovation and development of strategies, which often balances their ability to produce a high volume of products. This is often creating a very big weakness for the company (McGee & Crowley-Koch, 2021). The organization is constantly unable to meet the demands of the public hence creating a bad image for their organization. At the same time, the organization is also facing many issues in terms of self-driving cars and the construction of gigafactories all across the globe. 

Opportunities

At the same time, the organization has also created a strong brand image and market positioning, which attract customers from all across the globe. Moreover, the unique idea of electric cars with such high-tech features provides the organization with a competitive advantage over its other competitors. 

Few of the recommendations that the paper wants to look forward to helping the organization overcome its weakness and threats are as follows 

the organization could hold innovative strategies for a while and focus its resources on high volume production, which would help the organization meet the supply and demand balance. 

As the organization is also facing serious concerns about the self-driving car, the organization code provides various standard results that would help them ensure that they sell driving cars that meet all the required criteria in the given country. 

The organization could go in that is strategy collaborations with other organizations and research facilities to help them in their research and effectively meet the deadlines of any given project. 

Conclusion 

From the above discussion, this could be concluded that Tesla is unique and one of the best-performing companies in the world. This innovative company has already created its impact worldwide with its sustainable business ideas. However, the organization has fewer flaws than obstruct it from performing efficiently in the market. Hence, it will provide recommendations that the organization could get every bit to get over their flaws and market efficiently. There are a few areas where the organization fails to acknowledge their weakness and hence have a very poor performance in that case. 

Reference

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Agnihotri, A., & Bhattacharya, S. (2022). Tesla Innovation and Growth at the Cost of Quality?. SAGE Publications: SAGE Business Cases Originals.

Aityan, S. K. (2022). Comparative Analysis. In Business Research Methodology (pp. 395-411). Springer, Cham.

Ajitha, P. V., & Nagra, A. (2021). An Overview of Artificial Intelligence in Automobile Industry–A Case Study on Tesla Cars. Solid State Technology, 64(2), 503-512.

Dana, C. (2018). A Strategic Audit of Tesla, Inc.: Electrifying our Future or About to Run out of Energy?.

Kumari, D., & Bhat, S. (2021). Application of Artificial Intelligence Technology in Tesla-A Case Study. International Journal of Applied Engineering and Management Letters (IJAEML), 5(2), 205-218.

Lee, J., Lee, S. J., & Jung, K. (2020). Balanced SWOT: Revisiting SWOT Analysis through Failure Management and Success Management. Available at SSRN 3612519.

Li, Z. (2018). Strategic Audit on Tesla.

Maiyusril, M. (2018). Formulating Business Strategy and Innovative Business Model of Mobile Broadband Services through TOWS Matrix and Cross-Industry Innovation. Sustainable Collaboration in Business, Technology, Information and Innovation (SCBTII).

McCain, C. (2019). A Strategic Audit of Tesla, Inc.

McGee, H. M., & Crowley-Koch, B. J. (2021). Behavioral systems analysis in organizations. Applied behavior science in organizations: Consilience of historical and emerging trends in organizational behavior management. Kalamazoo, MI: Association for Behavior Analysis International.

Stobbe Jr, J. J. (2019). A Strategic Audit of Tesla.