Investigation Related To Automobile Market

Political: Processes and actions of government bodies. Tesla have been through ups and downs in their business. During the times of the debt, Government intervened and provided $465 million low interest loan which also provided the company a boost in their operations. Since Government was interested in fuel efficient electric cars, they provided incentives for electric cars. This also lets Tesla to expand globally.

II. Economic: Largely macro-economic. Economic factors like growth rates, price stability became major factors because of which energy vehicles by Tesla became popular in a short p of time. Rising fuel prices, and rising population let the people direct their choices to cost effective source of energy. Fuel efficient, lower battery costs, and decreasing renewable energy costs made Tesla’s products more attractive to consumers.

III. Sociocultural: Sociocultural factors played a major in affecting Tesla’s business as people now are more aware of the clean, green and eco-friendly environment so they prefer electric cars. These external factors helped Tesla in its growth opportunities.

IV. Technological: Technology advancement by creating new products and processes. Tesla has a big advantage in technology advancement by introducing electric cars, automated cars. They are the brains behind the automotive innovation which leads to more growth opportunities in the car industry of electric cars.

V. Ecological: Ecological factors involve environmental issues mainly. Tesla’s purpose is driven to make eco-friendly cars so ecological factor plays an important in role in promoting their market. Over last few years, people are more concerned about the global warming and environment issues because of which they switch their priorities to eco-friendly cars. Tesla electric cars, solar panels, batteries are considered safe for environment.

VI. Legal: Official outcomes of laws and legal systems. Some states in the U.S have banned Tesla from offering test drives to customers. Tesla has the opportunity to grow its sales globally through direct sales, which is allowed in some states but others they can only sell through third party dealership which can be seen as a threat.

2. Using VRIO analysis, evaluate whether Tesla has a sustained competitive advantage.

I. Valuable: Tesla has got an edge over many other companies in a short time. They are continually coming up with improved advancements of battery issues, they are making batteries that provide consumers long mileage with short p of charging the batteries. They are also coming with various technologies to overcome environmental issues by introducing solar city and spacex.

II. Rare: Tesla is the master of innovation in their field. It is the first company that started selling electric cars. They are the only automobile company that is not only working towards the automobile but also solar panel manufacturing and space innovations. In general, tesla cars are rare in itself, only consumers can afford to buy it.

III. Costly to Imitate: The technology that Elon Musk’s brings on the table is very hard to imitate. Tesla’s improbable success is the reason of its unique technology, R&D capabilities, and innovation in fuel efficient cars. Tesla has reached at a stage which is not easy for its competitors to take place.

IV. Organization: Elon Musk is the brain behind this game changer innovation so they possess strong organizational capability to sustain their competitive advantage.

• Brand Recognition: Tesla has become famous in a very short p of time, it has gained recognition globally now. The popularity of Tesla known for its sustainable vehicles has risen in the last few years. They have brought innovations not limited to vehicles only but also in energy products which has helped Tesla gained recognition in no time.

• Fast growing super charger network: Tesla is the only brand to become fast growing super charger network. These super chargers are high speed chargers that charge Tesla products instantly. It has been successful in installing fast charges in Asia, Europe, and USA. There were network of 4000 chargers in 2015 and plans to go more than 7000 in 2018.

II. Weakness

• High Prices: Tesla’s products are quite expensive when compared to its competitor’s products. Middle class consumers cannot afford Tesla’s cars which can be considered a weakness in their growth.

• High production and operation costs: Tesla’s production and manufacturing costs are high. The Model S roughly takes up to $28,000 to build the car. They are still working to reduce the cost of productions.

III. Opportunities

• Growing demand of Sustainable products: Tesla’s main opportunity is the awareness of fuel efficient electric cars and its sustainable products. People are more concerned about the environment change, global warming, and the increase in the fuel prices so this automatically direct consumers towards eco-friendly vehicles.

• Autonomous driving technology: Autonomous driving is next big thing coming up in the automobile market. Tesla is planning to launch its first automated driving vehicle by 2019.

IV. Threats

• Competition: Automobile market is a very competitive market. Tesla face competition from BMW, Audi, Daimler, electric vehicles of Nissan, and Chevy. Tesla is still considered new in the market but they have in the market for over many year so they are more financially stable and face huge demands because of their affordability.

• Dealership regulations: Tesla does face dealership regulation which is a big threat for them as in many U.S states they are not allowed to sell their cars directly to consumers instead have their orders executed by a third party. 

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
Customer 452773, February 23rd, 2023
Human Resources Management (HRM)
excellent job
Customer 452773, July 17th, 2023
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
excellent job
Customer 452773, August 12th, 2023
Business and administrative studies
Excellent job
Customer 452773, March 17th, 2023
Data 564
excellent work
Customer 452773, April 11th, 2024
English 101
great summery in terms of the time given. it lacks a bit of clarity but otherwise perfect.
Customer 452747, June 9th, 2021
Business and administrative studies
Excellent work ,always done early
Customer 452773, February 21st, 2023
Human Resources Management (HRM)
excellent work
Customer 452773, July 3rd, 2023
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
Business and administrative studies
excellent job
Customer 452773, March 12th, 2023
Customer 452773, January 25th, 2024
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp