Porter’S Model:. Tesla Motors To Maintain Its Profitability

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Porter’s model: Tesla Motors to maintain its profitability through strategic measures to solve the problems of automotive business analysis outlined in the five armies. Michael Porter 's five-power analysis model is designed as an instrument to understand the impact of external factors on the conditions of doing business and the environment of their industry. Analysis of Tesla 's five armies of external factors in the automotive industry, and how these factors affect the company. As one of the largest participants in the electric vehicle market, Tesla must effectively address these external factors in order to ensure that in the face of domestic and international competitors in the market of long-term power and flexibility. Tesla is an…show more content…
For example, in terms of innovation, Tesla can contribute to their R & D investment, the pace of innovation than competitors. And Tesla Motors (strong) competitive competition or competition Tesla Motors operate in a highly competitive market. This aspect of the review of the analysis of the five armies of influence on the competitive environment of the automotive industry. In the case of Tesla, the intensity of competition responsible for the power of external factors are as follows: • Number of small enterprises (weak) • enterprises are extremely aggressive (strong) • Low switching costs (strong) In automotive operations, there are only a few large companies on the market. Such external factors limit the influence of competition on Tesla Motors and other companies. However, these companies are generally positive about innovation and the promotion of their products. This condition is amplified by the influence of Tesla 's competitors. In addition, customers buy cars from other Low Hinder manufacturers (low switching costs) to further enhance competition. This aspect of the analysis showed that the five armies Tesla rival environment of the automotive industry as a top priority task of strategic considerations. Power Tesla customer / buyer Transactions (medium strength) The impact of corporate customers and the automotive industry in the analysis environment of the five forces in this regard. Customers Tesla is a direct factor that determines the company 's revenue.

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