TeslaCase Study Description
Tesla Company hasvarious strengths and opportunities, and at the same time it hasvarious weaknesses and is faced with different threats which may leadto its collapse if not worked on. One of strength is that Tesla stillenjoys greater sources of capital. The company can access a varietyof loans at no interest. Tesla Company still enjoys its image inpublic, a reason as to why each inventory it comes up with, isreadily accepted in the market. Such include the Seven City ElectricVehicle, Model X, Tesla Roadster 2 and prototype Model S FamilySedan. The Model S Family Sedan attracted more than 2000 customersleading to increased incomes fetched by the company. The company alsobenefits from its increased number of sales. However, Tesla has alot of weaknesses. One of the weakness is poor leadership. Elon Muskits overall leader is more concerned with his personal interestrather than that of the company. It has limited infrastructure. Thecompany faces difficulties in building its charging stations for itselectric cars in each and every part of the country. The company isunable to meet the demand for its customers. This is due to the lowscale production of its new inventories like the upcoming Model X andModel S. This leads to the unsustainability of its business model.
Despite theweaknesses, Tesla is surrounded by various business opportunitieswhich it needs to identify and make use of to survive. Theopportunities include its image in public and the industry as awhole.
Some of the Tesla’sthreats include the competition from various car companies. Forexample, the Japanese and Korean car makers. The decline in gasolineprice is also a boost to production of gasoline-fueled cars whichhave continued to raise the competition gradient.
Tesla’s strategicoptions have been constrained by its overall leader, Elon Musk. Muskis concentrating more on personal agenda rather than he is dedicatedto the company. He is a critic to the invention of the hybridelectric vehicle instead of supporting the initiative. As a leader,he should work towards promoting the initiatives and giving more roomfor great opportunities. Tesla needs short term objectives tosurvive. It needs to lower the price of its products for it tocompete favorably with other car producing companies. The companyneeds to compete on price and not on technology alone. Forconvenience, the company is required to increase the number of itscharging stations across the world. Internal expansion projects arealso necessary. This includes the establishment of the Panasonicelectric giants. It needs to partner with other companies in the sameline like the Germany automotive energy power company to reducecompetition. The company needs to employ experienced managers. Toincrease profits, the Tesla Company needs to get rid of franchiseddealers.
To overcomeweaknesses, Tesla leaders have to adopt strategic plans. Thisincludes employing long term managers and not involves them in firingCEOs now and then just like it is done by Elon Musk. To benefit fromopportunities, the company should seek on methods to source for largescale infrastructure to increase its production so that it can curbthe customer’s high demand.
If the company has to thrive well, there is need eliminate thecompetition, one of its greatest threat, as much as possible. Teslaneeds to strengthen their position among customers to ensure thattheir greatest threat which is competition from another car producingcompanies is eliminated or curbed.