1. Please provide an outline summary of Strength, Weakness, Opportunity, and Thr

Question

1. Please provide an outline summary of Strength, Weakness, Opportunity, and Threat analysis. (Please identify the heading and subheading)

2. What strategy can be used to change the weakness analysis from the reading?

Strength:s Robust design and vehicle engineering capabilities: Tesla enjoys strong leadership position in the electric mobility market on the back of robust design and vehicle engineering capabilities. The company's vehicles offer ranges that are almost double the range of any other commercially available electric vehicle. In addition, Tesla's vehicles incorporate in-house proprietary on-board charging system, permitting recharging from almost any available electrical outlet. Furthermore, the use of a single electric powertrain enables the company to create a lighter, and energy efficient vehicle that is mechanically simpler than currently available hybrid or internal combustion engine vehicles. Therefore, long-range and charging flexibility of Tesla's vehicles help reduce consumer anxiety over range, alleviate the need for expensive, large-scale charging infrastructure, and differentiate its vehicles as compared to its competitors' currently announced electric vehicle product offerings. Thus, focus solely on electric vehicle technology as well as strong in-house engineering and highly vertical manufacturing capacity, enables Tesla to maintain the electric vehicle industry leadership Strong market position of Model S provides significant competitive advantage Tesla is currently producing and selling its second vehicle, the Model S sedan. The Model S is one of the world's first premium sedan built from the ground up as an electric vehicle. During 2016, Model S was the one of the top selling vehicles in North America among comparably priced vehicles. Model S accelerates from zero to 60 miles per hour in 2.8 seconds and has a range on a single charge of up to 288 miles. Furthermore, without an internal combustion engine or transmission tunnel, the interior of Model S has more cargo space than any other sedan in its class. Also, since its launch, Model S has won several awards, including Car of the Year for 2013. Thus, Model S demonstrates the company's ability to produce electric vehicles that offer long-range capabilities and energy efficiency as well as design. This in turn provides significant competitive advantage over its peers in the electric vehicle market Weaknesses Safety concerns with the use of lithium-ion battery cells: Tesla produces vehicles that make use of lithium-ion battery cells. In the recent past, the battery cells have been observed to catch fire or vent smoke and flame. These incidents made the company subject to multiple lawsuits. For instance, the lawsuits filed in 2013 accuse Tesla of making misleading statements regarding the safety of Model S, including puncture and fire risks in the car's undercarriage and lithium-ion battery pack. Moreover, these lawsuits claims that defects in the car led to the battery pack catching fire in specific situations. In 2014, a Tesla Model S vehicle caught fire inside a garage. The reasons for the sparks, which resulted in the fire, were not yet known. Earlier in 2013, three Model S vehicles caught fire. In this regard, the National Highway Traffic Safety Administration

Explanation / Answer

1) The article pertains to the SWOT analysis of Tesla Motors. The individual summaries for each of the aspects are as follows.

Strengths: Tesla has enjoyed a leadership position in the electric car market due to its robust design and engineering capabilities. The Tesla cars have a range that is almost twice than the other competing cars available on the market.

Also the strong track record of the Model S sedan has ensured that the company has a strong demand from customers owing to its range of 250+ miles as well as its design.

Weaknesses: There have always been concerns about the use of lithium-ion battery cells in the cars. There have been incidents where cars have caught fire and have drawn the attention of investigation agencies. All of this has resulted in negative publicity being generated for the company which can have a bearing on the company’s brand image.

Opportunities: The Gigafactory which is being constructed would allow Tesla to ramp its production of existing models as well as widen its range of offerings by introducing new models. The new Model X crossover from Tesla is likely to be introduced in markets outside the US which would drive the sales numbers even higher. The increased demand for electric vehicles in the foreseeable future could lead to expansion of the brand to markets like Western Europe and Japan.

Threats: Competition from established automobile manufacturers like BMW, Daimler, Ford and Mitsubushi could impede business growth, result in price reductions, revenue shortfall and loss of customers. Also the seasonality of business could have a bearing on the performance of the organization.

2) The strategy that can be followed for changing the weakness of Tesla could be come up with fail safe lithium ion batteries which would be fire proof and be subjected to extensive, exhaustive quality checks which would give customers the assurance that these products are safe to be used in cars.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.