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Tesla (electric car company) Marketing Analysis - Essay Example

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Tesla (electric car company) Marketing Analysis

The company has its headquarters based in California, U.S.A, and it has principles aimed at facilitating development of Models in order to attain its objective of first customer delivery (Tesla Motors, 2010, p. 4). This will facilitate the efforts of pursuing new electric power train opportunities and automobile manufactures. In fact, the paper will focus on conducting SWOT, PESTEL, porter’s five forces, marketing mix and marketing action plan analysis on Tesla Company. SWOT ANALYSIS Strength Tesla signed a licensing deal with lotus cars in order to convert one of their sport models in to an electric car, which was lightweight, small car with all the external body panels made of plastic. On the other hand, the Tesla Roadster has become the first mainstream electric vehicle enquired by celebrities, thus bringing a more desirable model S to the market. The company has managed to develop their first electric sport car “The Roadster”, and supplied to other manufactures like Toyota with more technological expertise in the field of electric transmission and train drive (GlobalData, 2012, p. 1). The company has also developed a vehicle, which is entirely in house, whereby sub-assemblies are required. The platform developed for Model S has facilitates the application of the crossover model and any other model. In fact, Tesla was the first company to produce electric vehicle and they have stood by the business model to collaborate zero emissions with quality performance design. Weakness The development of the vehicles and sub-assemblies has resulted to an increment of production cost, hence they do not achieve economic of scale. Products have a higher price than their competitors who sell combustion engine powered vehicles. The Roadster has phased out and the sales have reduced, and this is an indication that revenues will come from the Model S. The models have low brand recognition; hence, there will be difficulties in convincing the customers concerning the superiority of their preferred options of the brand. The other weakness of Model S is that it may not be available until 2012, hence giving a chance to competitors to produce and market their electric vehicles before the release of Model S by Tesla, thus they will take up the market share (Binkiewicz, Chen & Czubakowski, 2008, p. 5). Opportunity The company has been benefiting from support by the government across the globe, since their products are environmentally friendly, thus they have been exempted from duties. The company has also been offered support by the Mercedes Smart car, which has results to leaning the way they can launch in near future. Tesla has a chance to improve the quality control process in order to reduce their cost, hence increasing enthusiasm. The other opportunity relates to the rise of gas prices, whereby people are seeking alternative ways of travelling. In this case, the company acquires a prime opportunity to depict the benefits associated to their products and the cost friendliness to customers. Threats There are difficulties involved in production, distribution and selling of the ...Show more


Tesla Motors Marketing Analysis Name: Tutor: Course: Institution: Date: Table of Contents Introduction 3 SWOT Analysis 3 Strength 3 Weakness 3 Opportunities 4 Threats 4 PESTEL analysis 5 Political factors 5 Economical factors 5 Social factors 5 Technological factors 6 Environmental factors 6 PORTER’S FIVE FORCES analysis 6 Bargaining Power of Suppliers 6 Bargaining Power of Buyers 7 Threat of New Entrants 7 Intensity of Competitive Rivalry 7 Threat of Substitute Products or Services 7 MARKETING MIX (7PS) analysis 8 Product 8 Price 8 Promotion 8 Place 8 Physical evidence 9 People 9 MARKETING ACTION PLAN 9 References 10 Tesla Motors Marketing Analysis Introduction Tesla Motors is a company th…
Author : jaymekshlerin
Tesla (electric car company) Marketing Analysis essay example
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