Tesla Motors External Analyis

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SWOT analysis is an integral tool which helps management to identify the internal strength and weakness of an organization and make strategies accordingly to grab external future opportunities and fight against external threats (Kerin ,Hartley and Rudelius ,2012). The report here focuses on the external factors of a SWOT analysis of Tesla Motors (i.e. on Opportunities and Threats).
The future external opportunities available to Tesla Motors are discussed as under.
International Expansion: Tesla Motors is a renowned name in United States and has been very successful in the European markets especially Germany. However the company has huge potential and a huge market to cover in the Asian and
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New Competition: Tesla Motors is not just competing with the regular car and automobile manufacture but needs to compete against a technology which has been in use for over hundred years i.e. the combustion engines. Further people are often resistant to change and it is a challenging task for the company to convince their potential customers on the use of electric cars over combustion cars which may take a lot of time and directly affect the sales and revenue of the company (Woodyard, Chris 2008).
Price Skimming Strategy: Tesla Motors had been successful in their marketing strategy of price skimming in the European market however the same may not be the case in Asian market and can act against the company and lead to complete failure of its market expansion strategy in the International market. Limited Charging Infrastructure: Tesla Motors has a unique product of its won in terms of its environment friendly electronic cars and the company may experience a large demand of its products in the international market. However, there is a huge risk of failing in the underdeveloped and developing economies of the globe due to lack of charging infrastructure which may give the combustion cars an added advantage and swipe off large potential market of Tesla Motors.
Thus we see this report clearly highlights

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