Management Research And External Analysis of Tesla

External analysis of Tesla, Inc. Company
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External analysis of Tesla, Inc. Company
Introduction
The company designs develop, manufactures and sells electric vehicles and energy storage products in the United States and other international markets. Primarily, the company operates in Automotive, and Energy Generation and Storage. Tesla, Inc. The company promotes its sales through a network of company-owned stores and galleries and the internet. The company gained widespread attention immediately after the production of Roadster, electric sports car. After the Renault-Nissan Alliance, Tesla Inc. The company is rated second largest global electric car manufacturer. In varying capacity, the company also manufacture Solar Panels and Solar roof tiles for home and industry application. The company has achieved massive revenue growth over the recent past. Its products are environmentally friendly with massive popularity. The company has a fundamental mission of moving from a mine-and-burn hydrocarbon economy towards a sustainable, solar electric economy.
Tesla Inc.’s Five Porter Forces Analysis
The company has had a steady inflow of cash and profits through various strategic measures. The following are some of the external factors significant to Tesla Inc. The company about its products. These external factors have to be extensively addressed to enable its long term competence and resilience within the domestic and internal markets. The successful growth of Tesla Inc. within the domestic and international market could be a clear reflection of the organization's strategic effectiveness in handling external factors. The five factors include Competition (strong force), bargaining power of buyers (moderate force), bargaining power of suppliers (moderate force), threats of substitutes (moderate force), and the threat of new entrants.
Competitive Rivalry
The effects of competition can face out firms from operating in the market. Tesla Inc. as the leading manufacturer of environmentally friendly automotive is the world have got weak competition in the market. Tesla Motors has relatively few competitors struggling for the same customers and resources. Moreover, Tesla has various sales centers across the world. These sales centers allow it to prosper without having to steal market share from each other. Notably, there are only a small number of significant firms manufacturing electric cars. Tesla Motors, Inc., therefore, face little competition. Moreover, Tesla Motors is extremely aggressive in innovating and promoting their products (Mangram, pg. 291, 2012). The improved creativity and innovation within Tesla Motors strengthen the effects competitors against the firms. Apparently, Tesla customers are reluctant to purchase cars from other manufacturers. This low switching costs further strengthen the immunity of Tesla Motors against the competition. Precisely, competitive rivalry is a significant strategic consideration in the automotive industry.
Bargaining power of Tesla’s Custome...