Business essentials are considered as the important components that plays an important role in maintaining the functioning of the company in a logical and coherent way. Along with the operations required, it also makes involvement of the skills and talents of the employees so that it can help in increasing the overall processing of various procedures (Winzar, Baumann and Chu, 2018). The report is about discussing the competitive advantage along with the analysis tools that can be used by Tesla for an increased rate of productivity. There are various frameworks and models that can help in analysing their position and competitiveness in the market place. Also, It involves various factors that Tesla can include in order to have an improvised set of factors.
Tesla Inc. is an American Multinational Corporation, founded in 2003 by Elon Musk and his friends, that has the expertise in electric cars, energy storage solutions and solar panel manufacturing. The major aim of the company is to provide the affordable electric cars and power solutions to the average customers and users. The Tesla S model of the electric car segment offered by the organisation is the best selling Plug in charge enabled electric car that has seen the highest demand in recent years due to its effective safety features and technological advancement. Other than this, the company is planning to launch affordable space travelling facility for the common people with collaboration with NASA (Guffey and Loewy, 2015).
Tesla is the Primary market leader in the electric car manufacturing and selling and thus is well known for the effective market share in these segment. Besides this, the company also offer Model X, which is a hybrid cross over of a Sedan and SUV that has seen a tremendous response from the customer base and thus had enabled the company to sale up to 300,000 units since its launch in 2013. Other than this, the firm also enjoys a leading position in the American market for its solar panels and power storage solutions. Take assignment assistance from UK writers
The organisation has the effective competitive benefits over its rivals as the cited firm is the most successful firm in electric care segment. Other than this, the brand value, image and loyalty is the major and core strength of the organisation. The trust of its customers towards its products and services has helped the business entity to gain a significant market position and meeting out the need sand demands of its customer’s by coming up with more advance and innovative product and services (Ragas and Culp, 2014).
Despite the high pricing and waiting period of the delivery of the products. The firm has the big opportunity to handle the operations and thus will support a good rise in the operations and meeting of the targeted aims and objectives set by company, involving the measures to provide a good and high quality products and services that are been taken in consideration by the organisation (Anderson And et.al., 2014).
The effective assessment of the business environment and condition that are been managed by Tesla Inc. is been taken in effective consideration that will help in good rise in the operations and thus will support an effective rise in the meeting of the targeted goals and actions that will help in good rise in the effectiveness of the firm to handle the business operation's and thus will support a good handling of the business functions. The effective assessment of the various impacting and environmental factors are:
Porter's five forces
Porter's five force framework is considered as an essential framework that can help Tesla to analyse their competitiveness in the market place. Different aspects of the model are discussed as under :
Bargaining power of customers
It is important for the company to analyse and keep a check over its buyers in order to analyse performance of company and demand of products. It is determined by the sales revenue of organisation. Low switching cost is the major opportunity which restricts buyers to shift to other brands. Strong control over prices in automotive industry is the biggest advantage which assist in controlling customers preferences and shift to substitute automotive. Tesla ha holds the advantage over buyers because the firm has limited the bargaining power of customers due to which the auto mobile firm controls buyers shift to other companies (Guffey and Loewy, 2015). Thus, the intensity of external force states that the power of buyers with company and its product is moderate which denotes lesser chances of shift. Thus, it is the reason firm ha been considering this factors of porter forced as second priority of management.
Bargaining power of supplier
The business and functions of auto mobiles company relies on suppliers. From this analysis it has been identifies that suppliers of automotive shapes the functioning of industry and therefore holds strong control and advantage over organisation and its functions. The suppliers of Tesla have low level of forwards integration. Further, it reflects limited control over sell and distribution of raw material (Ragas and Culp, 2014). However, there are suppliers who are moderately sized and have limited influence on the automotive industry environment. In accordance to analysis, it has been identified that management of supplier is also second priority of firm because the firm incorporates use of corporate governance which helps the organising in managing supplier satisfaction. This strategy of firm assist in controlling suppliers shift and price hike on raw materials.
Threat of new entrants
It is obvious that there is a huge amount of competition in the industries of electric vehicles and manufacturing of these components, so various competitors are trying to bring something different in market so that they can be able to attract the customers (Baker, 2016). Therefore, this can act as a threat to Tesla. Therefore, it is important that Tesla make involvement of proper techniques and strategies so that even if new companies will come in the market, they can be able to cope with them.
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Threat of substitutes
Due to a wide range of competition in the market place, there are chances that the rivals or competitors try to develop a range of substitute products of the ones that are being provided by Tesla. They can involve the substitutes at a lesser range so that they can be able to get the customers of Tesla (Harvard Business Review, 2014). This can act as a strategy by the competitors but the fact that is to be ensured here is that Tesla can take the copyright of their products or also with the help of trademark, their customers will be able to know the difference between the original and the fake one.
There are enormous number of organisations dealing with the manufacturing and processing of motor vehicles etc. So, to let Tesla down, there can be the possibility that the competitors make involvement of different ways such as they can lower the overall pricing. Also, they can make involvement of such tactics to let Tesla down. Therefore, it is important that Tesla should include and implement various ways and techniques so that they can gain a trusted amount of customers who cannot get affected by the tactics of the competitors (RONALD, EBERT and RICKY, 2018).
Political Factors: Tesla Inc. has the major political advantage as the government initiative to promote the development and usage of electric vehicles that will help in the proper rise in the of the demands and sales of the products and services of the cited enterprise. It is the major opportunity for the firm to develop and sell the electric products and services that will help in good rise in the operational capability of the organisation. Other than this, the political support and getting incentives for the development of the innovative products and services is also a big benefit for the firm. Also, the firm has the chance to enjoy the free trade agreements without any restriction facilitating the international expansion of the business enterprise.
Economic Factors: On the economic front, the enterprise is in the benefit as the reduction of the prices of power sources and technologies has been the major factor that has impacted the performance of the cited business entity in a positive aspect. The development of the latest and cheaper power alternatives have been the major advantage for the firm that has improved its performance and growth in a better way. Besides this, the rise in the new economies in Asia and Europe have opened the path of big markets for the firm. However, the economic instability on the global level is the major threat factor for the company that has to be taken in consideration by the firm.
Social factors: At the social level, the firm has the advantage that the awareness about the use of renewable energy sources like solar energy among people is increasing in a very effective way. This will help the firm to carry out the operations and measures that will help in good rise in the sales and manufacturing of the products by the organisation. Other than this, the effective and better wealth distribution in many developing market in Asia and Europe is the big opportunity for the firm that helps in the good rise in company's market share (Hair Jr and et.al., 2015).
Technological factors: As the pioneer firm in the technological products and services, these factor is very crucial for the organisation that will support an effective rise in the functional capacity and the revenue generation of the firm. Tesla Inc. is susceptible to the threats and challenges related to the change in power technologies and thus will help in good rise in the operations and meeting of the targeted goals by the organisation. This can emerge as both opportunity and the threat factor for the firm. Other than this, the rise in automation facilities are been the major factor and field of advantage for the cited business entity. Apart from this, the increase in popularity of the firm to use the mobile operated services is been the major factor that has helped the organisation to grow and develop (Scarborough, 2016).
Environmental Factors: this is the most advancing factor for the firm that will help in good rise in the operational capability and thus will lead to the rise in the operational capability of the organisation. As the firm is a pioneer in the usage and manufacturing of the renewable energy products that have been the major commodity that is been manufactured by the firm. The rise in pollution through the over consumption of fossil fuels and need of management renewable energy sources will help in effective handling of the needs and demands of the customers in an effective and better way.
Legal Factors: The legal obligation associated with the trade will be the major factor that can impact the operations of the organisation in the effective planning of the business activities that are been followed buy the firm that will help in good rise in the functionality and thus will support a good rise in the meeting of targeted goals and operations buy the firm.
Various recommendation and evolving factors are been taken by the organisation for the proper handling of the business operations and handling of the business operations in a very effective way. Some major recommendations that can be followed by the firm can be as follows:
- Regular adaptation of the latest technology will help in good rise in the meeting of targeted operations and meeting of the operations in a better way (Ebert and Griffin, 2016).
- Effective planning of pricing and marketing strategy will help in good rise in the operations of the organisation will help the firm to gain the sustainability for 2- 5 years in advance.
Thus, from the report it can be concluded that, business essentials plays an important role in maintaining the functioning of the company in a logical and coherent way. Along with the different operations required, it also makes involvement of the skills and talents of the employees so that it can help in increasing the overall processing of various procedures. The report has covered the discussion over the competitive advantage along with the analysis tools that can be used by Tesla for an increased rate of productivity. There are various frameworks and models that can help in analysing their position and competitiveness in the market place. Also, It has involved various factors that Tesla can include in order to have an improvised set o