Tesla Motors Case Study. As Pressure Increases The Need

1740 WordsMar 26, 20177 Pages
Tesla Motors Case Study As pressure increases the need to develop alternative forms of powering the worlds petroleum powered vehicles a new company is attempting to disrupt to auto industry with a business model that challenges the status quo and force entrenched incumbents to alter their current vision for the future of the automobile market. Tesla was created to directly address the challenge of creating a viable alternative to the internal combustion engine. Tesla is the first company that commercially produced a federally compliant electric vehicle with the design styling and performance characteristics of a high-end performance automobile. (Citation) This case study will examine Tesla motor company’s strategies as well as assess…show more content…
To become profitable the company must increase sales volumes to achieve economies of scale and reduce cost. Tesla’s sales volume currently pose little threat to the much larger automobile manufacturers. Tesla will eventually be in direct competition with the higher capacity automakers, placing its growth strategy in peril. An evaluation of the external environment illuminates the challenges the organization has no direct influence, however it must navigate successfully to survive. This analysis can assist in identifying specific opportunities that may arise and the threats that exist to achieving strategic goals. The external environment includes political, economic, societal, technological, legal and environmental. Political Tesla is coming of age at a time when governments across the world are coming to grips with effects of carbon emissions on the sustainability of life on the planet. These pressures are shaping the legislation and government efforts to limit the impacts of automobiles. The governmental mandates have improved the political environment has provided an incentive for automakers to be innovative and capitalize from creating alternatives. The United States government currently provides subsidies and special financing options for companies that develop innovative technologies that address alternative energy concerns. Economic The major

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