Marketing Analysis Tesla

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Although Tesla currently has many key advantages in the market, there are still a few concerning weaknesses and areas of improvement. Being that Tesla was started by two computer science and software engineers, the amount of knowledge that the company has in the automotive industry is very limited. Tesla has been learning the way of the industry as they go which has cost them more than a few pennies a time or two. This is also related to the large fluctuations in Tesla’s company stock which is considered to be a significant weakness in comparison to their competitors such as Honda and Chevy. Tesla has the opportunity to find new ways to reduce their production costs, possibly through vertical integration. Vertical integration would also make Tesla less reliant on their current suppliers who have great leverage over them because of Tesla’s lack of economy of scale. There is also opportunity for government incentives and grants that could help fund their alterations that would help protect them from future threats.

One of the greatest threats that Tesla faces is that their main competitors are currently earning profits. Tesla was brand new to the industry and has also bared the cost of being the first to successfully implement electric technology. Other large automotive companies have been in the industry for decades and have a huge capital backing to fund further research and development into the electric market. While Tesla still has some time for its competitors to launch comparable products, Tesla is still receiving some resistance from consumers because the fear of change and the lessening concern with gas prices after recent decreases in oil costs. Despite the threats Tesla faces, they still have a wide range of opportunities that could position them to stay in the lead if they play their cards right.