Running head: MILESTONE THREE: SWOT ANALYSIS & COMPETITIVE ANALYSIS 1

Milestone Three: Swot Analysis & Competitive Analysis

Jennifer Brown

Southern New Hampshire University

2 September 2019
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Milestone Three: Swot Analysis & Competitive Analysis

SWOT Analysis for the marketing environment of the Front Break Light Indicator through Tesla Co.

Strengths Weaknesses

 Front Break Light Co can partner with Tesla who has  Limited variety in Tesla fleet.
strong free cash flow.  Financial Statements project future losses
 Strong distribution network
 Product development
 High Customer Service Rating

Opportunities Threats

 Current cash flow strong  Lack of skilled workforce in certain global markets
 Consumer behavior suggest safety and innovation are at threaten growth potential.
the Top of Tesla consumer lists.  No regular supply of innovative product ideas
 Electric Vehicles decrease the cost of transportation
 New environment regulations in Europe will assist Tesla
in gaining new market share overseas.
 Open Innovation
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Internal Strengths

With Forbes describing Tesla as an innovative company who is transforming the auto industry. Front Break Light Co. realized that a

partnership with Tesla Co would create a highly successful relationship for both organizations. When assessing the market share of

Tesla Co, the following was discovered (Dyer, 2016):

 Strong Free Cash Flow: that provides resources for Tesla Co to expand into new project categories.

 Strong distribution network: Tesla’s large distribution network can disburse the Front Break Light Indicator to a large amount

of its potential market.

 Tesla Co has a successful track record of developing innovative new products.

 Tesla has great brand equity and high customer satisfaction ratings, more innovative technology that will further improve that

rating.

Internal Weaknesses

 There is a mediocre variety in the product range sold by Tesla. This lack of options can give a new competitor an edge in the

market.

 Financial Planning has murky forecasts: Financial statements suggest that Tesla may expect future losses (DeAngelo, 2016).
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External Opportunities

 With Tesla having a stable cash flow, there is more opportunity to invest in innovative technologies such as Front Break Light

Co.

 Trends in Tesla consumer behavior suggest that safety and innovation are among the top priorities that a consumer has in mind

when purchasing their vehicles. Front Break Light Co would be a “no-brainer” in regard to package features for Tesla

consumers.

 Because electric vehicles do not require gasoline, they essentially have a ‘lower cost of transportation’ over time. These lower

costs can also bring down the prices of the Front Break Light. This would give Tesla Co the option to increase profit revenues

for the year or pass the savings onto their consumers.

 New environment regulations will assist in gaining market share.

 Open innovation is a new concept that will enable Tesla Co to find more creative ideas from outside of the organizational

talent.

External Threats

 It has been determined that there is a lack of a skilled workforce in the global market which could impact steady growth and

profitability of Tesla Co.

 A lack of new innovative product ideas could create stagnation in sales.

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Competitive Analysis

The two potential competitors that I have selected are Advanced Auto Parts and Discount Auto Parts. Advanced Auto parts is

one of the leading competitors in its industry. And is known for providing various trinkets to customers that attach to their vehicles.

US Auto Nation runs second to Advanced Auto Parts and is known for providing the same automotive product selection to customers

at an even deeper discount. The target market for these auto parts companies is rather vast considering that almost everyone owns a

car or other vehicle (White, 2018).

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Advanced Auto Parts 2014-2018 10K Report

(Woodcock, 2019)
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US Auto Nation 2017- 2018 10K Report

(Washington, 2018)
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References

DeAngelo, C. (2016). Advance Auto Parts SWOT Analysis Matrix [step by step] Weighted SWOT. Retrieved September 2, 2019,

from Fern Fort University website: http://fernfortuniversity.com/term-papers/swot/1433/293-advance-auto-parts.php

Dyer, J. (2016, September 27). Tesla’s Innovations Are Transforming The Auto Industry. Forbes. Retrieved from

https://www.forbes.com/sites/innovatorsdna/2016/08/24/teslas-innovations-are-transforming-the-auto-industry/#4910397519f7

Washington, D. (2018). UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K (Mark One) ☒ ANNUAL

REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 of Principal Executive

Offices) (Zip Code) Registrant’s Telephone Number, Including Area Code: (424) 702-1455 Securities registered pursuant to

Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, $0.001 par value per

share The NASDAQ Stock Market LLC (NASDAQ Global Market) Securities registered pursuant to Section 12(g) of the Act:

None. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_PRTS_2018.pdf

White, C. (2018). Advance Auto Parts Inc. - Investor Relations - Annual Reports. Retrieved September 2, 2019, from Corporate-ir.net

website: http://phx.corporate-ir.net/phoenix.zhtml?c=130560&p=irol-reportsannual

Woodcock, M. (2019). 6/*5&%%45"5&4 4&$63*5*&44"/%%&9$)"/(&&$0..*44*0/ 8BTIJOHUPO %$ ’03. Retrieved from

http://www.annual-report.advanceauto.us/2018/AAP_2018_Form-10K.pdf