Running Head: Tesla Market report analysis

Tesla Market report analysis

Tesla Market report analysis

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Running Head: Tesla Market report analysis

Table of Contents
1.0 Introduction..........................................................................................................................................3
1.2 Case Study- Operations and Marketing Practice....................................................................4
1.3Tesla Market operations and marketing practice....................................................................................4
1.3 Tesla Marketing strategy...................................................................................................................5
2.0 The Analysis..........................................................................................................................................6
2.1 Porter five force.....................................................................................................................................6
2.2 SWOT analysis......................................................................................................................................7
2.3 Tesla’s PESTLE Analysis......................................................................................................................9
3.0 The value chain....................................................................................................................................11
4.0 Recommendations...............................................................................................................................12
5.0 Conclusion.......................................................................................................................................13
6.0 Bibliographies.....................................................................................................................................15

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Running Head: Tesla Market report analysis

1.0 Introduction
One of the most crucial components of the business is managing operations and
marketing. To have a higher chance of succeeding in fostering organizational growth, the
organization must effectively manage its operations and marketing strategy. Every organization
strives to improve its operational management procedures so that it may concentrate on the
organization's general structure and its methods for achieving business growth (Aithal 2017).
Operational management is a process that combines business principles with operational
management to deliver the best level of efficiency within the organization. The company
employs a variety of tactics to maintain tight control over its business operations and marketing
campaign. It includes the operational management dimensions of money, customers, learning,
and innovations. Within their "value chain," Tesla primary operation is the construction of
vehicles, which includes putting together parts like engines, bodywork, and chassis.

Elon Musk owns the majority of the stock in Tesla, an American firm. This American
business operates in the electrical vehicle market, which Elon Musk's Tesla company dominates
and is steadily becoming into a major industry. In 2018, it was expected that EVs (Electric
Vehicles) would account for 5% of light vehicles, which is outstanding given how young the
market is. Despite being the industry leader in EV production, Tesla nevertheless faces
competition from manufacturers like Nissan and BMW of Germany. Mono-segmentation, the
term used to describe Tesla's target market segment, refers to the company's singular focus on
the high-end all-electric sports vehicle market. Wealthy middle-aged consumers, mainly men
who enjoy trying exotic cars, make up this niche market's target audience. This niche market
meets their wants as exclusive consumers. Tesla is starting to make plans to transition to a
mainstream market, which, if successful, will increase their revenues. The Maslow hierarchy of
requirements explains that wealthy middle-aged males, who make up the target market for Tesla
consumers, have an inbuilt need to maximize their quality of life.

The corporate office is located at England. The study will give specifics on Tesla
operational management strategy and marketing tactics. It will provide more explanation of the
organization's value chain and analysis. Finally, there are suggestions for the company to
improve its market success. Also, the report will delve on the The first section of this report is a

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case study of Tesla operations and marketing strategy, while the second section presents an
analysis utilizing Porter's Five Forces. SWOT and analyses are used throughout the value chain
portion to assess the company's weaknesses and either internal or outward strength. The report's
final section displays the advice, which is crucial to the expansion and profitability of the
business (Brown , Crosno, and Tong, 2019).

1.2 Case Study- Operations and Marketing Practice

1.3 Tesla Market operations and marketing practice

In order to succeed in the market, Tesla operational strategies are centered on offering the
greatest customer services to the relevant industries. The automobile market is expanding
quickly, therefore it is crucial for businesses to concentrate on customer service as well as
offering business methods that will help them retain clients for a longer period of time. To get
better results, it is crucial for the business to look for operational strategies that support both its
primary and secondary operational processes. To carry out the organizational operations, the
industrial units needed infrastructure and technologies of the highest caliber. The business also
wants to produce goods quickly and offer services that can assist in resolving consumer
problems. The firm must quickly integrate new technology into their production divisions in
order to focus on client satisfaction. It aided them in accelerating the production of their autos
and delivering services more quickly so that the client may benefit from the firm's offerings. By
creating new opportunities for innovation and working with new operational teams to monitor all
the activities, Tesla is expanding their overall business plans. It has to be completed for the
management procedure of the company (Lyyra and Koskinen, 2017)

The operating strategies comprise the company strategies, key competitive strategies,
prioritization strategies, and plans for developing new goods and services. In order to offer a
wide range of services to the target market, the company must take into account all feasible
development strategies. to enhance their market standing and increase their profitability (sedk et
al., 2018). The Tesla corporation wants to provide its clients with the best experience in the
vehicle sector. The operational management techniques also cover the development of supply
chains for the workplace, the design of jobs and human resources, and the management of
quality. For Tesla to ensure the improving the supply chain process and working on inventory

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management are crucial. To deliver top-notch services to their audience, who is paying the
organizations for the services the company provides, they must work in the automotive industry
and offer the greatest inventory and logistics rates of services. Also according to (Zimmerman
and Blythe, 2017) one of the most crucial components of every business is its supply chain. Tesla
is improving its supply chain operations to better serve its customers by increasing its overall
strategy for stocks and logistics and by providing services more quickly. Both scholars alleges
that quick service and solutions for the problems the audience is experiencing assist the firm
increase customer satisfaction. The operational management teams must concentrate on the
market competition, and as a result, strategies must be developed that will provide them
tremendous control over the market environment as well as have a general impact on the firm
(Nessel , 2019)

1.3 Tesla Marketing strategy

The business strives to advertise its services on many levels in print media and social
media platforms in order to draw in a sizable audience from the market. They must create and
make use of the technology that will enable them to improve the entire marketing management
process. One of the key elements that might aid an organization in reaching its overall aims and
goals is marketing. To offer their services in the new market and draw customers, Tesla company
must use technology and software and more persons in total. Additionally, it aids in promoting
the company's after-sales and other services that are provided with its products. Customers learn
about the services that the company provides to the market, and it also aids in luring in new
clients for the business. Various numbers of individuals are employed by the company to manage
its marketing strategy (Lepkowska et al., 2019)

The business employs a variety of strategies, including sponsored advertising that

combines several methods of market marketing. To improve relationships with other businesses
and accelerate overall development, the organization also works on relationship marketing and
cause marketing strategies (Dodgson et al., 2021). The increasing expansion of competition in
the automotive business is having an impact on the market's profitability, so Nissan Motors
needs to improve on their marketing methods. These tactics include include transactional
marketing, Internet marketing, marketing for diversity, and word-of-mouth. By working on the
value creation process into market research, the company is attempting to increase their market

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awareness. Dodgson foresights that all of the organization's decisions and planning are made
throughout this process in order to improve understanding of the state of the market. The
organization also the whole thing on the seven-piece process, which consists of the following:
people, product, pricing, place, and promotion. The marketing mix assisted the company in
comprehending every component of the market that could directly affect the performance of the
company as a whole. Tesla must create a comprehensive strategy as they work to develop their
organization's marketing process in order to provide more information about their goods and
services to the public fresh market. This contributes to an increase in audience from new markets
and locations. As one of the biggest platforms for working on the process we can help in product
and service advertising, social media marketing is one of the key processes of marketing for the
company. Additionally, in order to interact with a bigger audience, the Tesla organization needs
to design various strategies and make use of social media channels. One of the key tactics a firm
must employ to establish its brand in the marketplace is marketing. In order to give services to
them, they can draw in more clients and grow their overall customer base (Okon, 2020) p 75-76.

2.0 The Analysis

2.1 Porter five force

The process of analyzing and determining the competitive forces in an industry is
called the Porter's Five Force Model. One of the methods used to comprehend market
circumstances and market competitiveness is this one. It has five forces.

 Threat of substitute product

Because the automotive industries offer a wide range and variety of products,
including new technologies, hybrid products, and electronic products, the threat of substitute
products is low. The corporation must be aware of the many ranges of goods and services
available and maintain tight control over the level of market competition.

 Power suppliers

Tesla has been in business for a very long time, up to three decades. The corporation
has excellent supplier control and a wide range of suppliers, which gives them leverage.
Suppliers have little market power, whereas the organization has a lot of authority over its

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suppliers. Eventually, Tesla increase their entire supply by working on a variety of

production and manufacturing projects, and their strong reputation helps them gain an
advantage over their suppliers. They must oversee the entire process of entering the market
by date a growing power off business.

 Power of buyer

Customers have a lot of purchasing power in the automotive industries. Because of

the intense rivalry in the market, businesses are attempting to cut their pricing. The number
of organizations is growing while the audience is getting smaller, which has an effect on the
entire purchasing power of high-end consumers, which directly affects profitability and
productivity.

 A new player in the market

The number of new market entrants is large because technologies are developing quickly
and because some businesses are moving their operations to the automotive sector. Tesla must
evaluate all the new competitors and their potential for market entry. It may have a direct effect
on the Tesla’s company's overall profitability and market productivity. There are businesses that
are developing new technologies and artificial intelligence while launching new brands. The
market is becoming more competitive as a result, therefore the company needs to understand it
well. The company working on the overall development process needs to have a solid
understanding of the market for services and the new competitors who might affect their total
revenues.

 Suppliers' negotiating leverage with auto and truck manufacturers –

Suppliers will demand higher prices from Tesla if they have significant bargaining leverage. It
will affect Tesla's ability to continue making above-average earnings in the auto and truck
manufacturing sector.

2.2 SWOT analysis

SWOT analysis is a tool used by organizations to understand their internal environmental
elements, including their strengths and weaknesses. For the overall plans to be more effective,

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Running Head: Tesla Market report analysis

Tesla’s organization must have a thorough awareness of its internal variables. The internal
elements might influence the working process both directly and indirectly (Lira et al., 2019).

 Weakness

Tesla failure to make use of the resources available for marketing and advertising is one
of their biggest flaws. To promote its brands, a company must make use of its marketing and
advertising resources. Tesla needs to concentrate on raising brand awareness through marketing
and advertising so that people are aware of the services the company is providing. The
company's extensive product recall in the EU, which negatively harmed their reputation and is
now impacting their total operations in the market, is one of their other problems. Every firm
must be aware of the steps involved in entering the market and managing product recalls.

 Strength

An effective alliance is one of Tesla strengths. The organization has a strong reputation in
the market, which is assisting them in boosting their total commercial tactics. The business
successfully transformed into the world's bestselling electric automobile. The firm has a
substantial position in the top vehicle market, which is extremely amazing. It aids the company
in creating Better Business for the future and discovering the best method of operation for
assisting the society with sustainable merchandise. Creating overarching strategies and altering
the working environment can benefit the firm and boost Better Business.

 Opportunity

The company is in a strong position for the future as a result of increased government
regulation of the car industry and the strengthening of the EU economy, both of which can be
extremely beneficial for Tesla. The business must recognize that in order to succeed, it must
concentrate on and act in accordance with audience trends and preferences. They may be able
to increase market sales of the goods and services they are providing by focusing on
producing things that are in-demand. The neighborhood can concentrate on promoting
innovative product designs and models that can aid in improving the business's economic
stability.

 Threat

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The rise in competition and the value often has triggered main concerns to the
organization. Tesla must comprehend the market dynamics affecting the labor market. The
natural disaster needs to be under control. Low gasoline prices must be addressed by the
corporation since they may have an adverse effect on leaf sales.

2.3 Tesla’s PESTLE Analysis

It serves as a foundation for analyzing an industry thoroughly. The objective is to
identify all the forces: political, economic, social, technological, legal, and environmental—
that have an impact on the business environment. PESTLE can be used to help determine the
important areas on which the attention of a marketing strategy should be concentrated (Reid,
2019).

Political, Economic, Social, Technological, Legal, and Environmental is referred to as

PESTLE. This method looks at a company's history, cultural setting, and major competitors.
PESTLE is a term that frequently refers to these five components. This approach can be used
to assist others in evaluating the environment they intend to enter or the market conditions at
the time.

Political Factors Affecting Tesla’s Business

The effects of the government on firms and their remote or macro-environment are
identified in this section of the PESTEL/PESTLE Analysis of Tesla. One of the major
societal influences that has an impact on businesses and industries is the government. For
instance, trade policies may impose restrictions on the company's revenue growth and
industry performance. In this instance of external analysis, Tesla and the automobile and
energy solutions industries are affected by the following political external factors:
Governmental subsidies for electric cars, new accords for global trade, and the majority of
large markets have stable political environments.

Economic Factors

In this section, PESTLE Analysis of Tesla Inc., the effects of economic conditions on
the remote or macro-environment are taken into account. These circumstances include
market expansion, trade volume, currency fluctuations, and other elements that affect the

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automotive industry. For instance, the growth rate of the solar energy industry affects the
potential for expansion of the company's solar panel division. The following economic
external issues that affect the automotive market need to be addressed by Tesla: Cost
reductions for batteries, lowering the cost of renewable energy, and concerns with economic
stability.

Social/Sociocultural Factors
Social trends and conditions have an impact on a firm's remote or macro environment
through its employees, clients, and investors. This component of the PESTEL/PESTLE analysis
of Tesla Inc. takes into account how the company aligns with social trends in its target markets.
The organization's managers must ensure that strategies are carried out to maximize the financial
benefits of such outside effects. The following sociocultural external factors are critical to Tesla's
operations: The acceptance of low-carbon living is growing.
Technological Factors
This section looks at how the macro-environment or remote environment may have an
impact on the company. How far Tesla's automotive and energy solutions businesses develop
will depend on current technologies. For instance, the performance and economics of the
company's batteries are governed by materials engineering technology.
Ecological/Environmental Factors

The remote or macro-environment of the global business can be affected by the

ecological conditions outlined in this section of the PESTEL/PESTLE Analysis of Tesla, Inc.
Ecological developments, for example, have an impact on the availability of resources used in
the company's production operations. In this PESTEL/PESTLE study, ecological factors are
considered as significant forces on the industry environment of Tesla, Inc. The company might
promote its electric vehicles in light of concerns about climate change, expanding environmental
programs, and stricter standards for waste disposal, for example. The company's electric
vehicles, batteries, and solar panels are believed to appropriately address these external factors
relating to corporate sustainability and ecologically beneficial products.

Legal Factors

In this portion of the PESTEL/PESTLE Analysis, the effects of regulatory factors on

the remote or macro-environment are evaluated. Laws and legal systems have an impact on

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managerial decisions and business expansion. The 4Ps or marketing mix, for instance, are
used in accordance with the law. Legal constraints are followed in the administration of the
organization's human resources and its business partnerships. Tesla has the capacity to
expand its business responsibly internationally, particularly if it thinks about extending its
patent protection to other countries. The opportunity to advertise the company's electric
vehicles and energy solution goods is also highlighted by this PESTEL/PESTLE research,
which is based on the energy consumption regulations that the client businesses must follow.
The business also has the opportunity to grow through direct sales, which are legal in several
US states.

3.0 The value chain

The various tasks and procedures involved in producing a good or providing a service
are discussed in the value chain analysis. There are various stages of a product's or service's
lifecycle included. The value chain analysis consists of various parts. The primary activities
and the secondary activities; the inbound are among the primary activities. Logistics,
operations, outbound logistics, marketing, sales, and after-sales services. Procurement,
technical advancement, resource management, and infrastructure are examples of secondary
activities.

3.1 Secondary activities

In order to make primary operations more efficient, secondary activities are carried
out. Additionally, it aids in giving the main activities a strong competitive advantage. It
covers the purchasing process, where raw materials, equipment, and services are sourced.
The company working in the automotive industry needs to have excellent access to raw
materials or the necessary tools to provide the services. The logical progression of Digna is
affecting all industries as the business benefits from the rapid advancement of technology.
work more quickly. In order to work on improved product designs and have a fantastic
market research procedure to bring a creation to market, the business needs to make use of
several technologies. In order to help the organization achieve its overall goals, human
resource management tries to provide the best human resources. The organization must have
the resources necessary to complete the task at hand, and for that reason, human resource

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management works to identify the most qualified candidate and the role of organization in
bettering aims (Finger et al., (2021)

By creating higher-quality services for the market, the value chain analysis process
increases the organization's overall value to the market. In order to provide superior services
and support the growth of the brand name, the company must offer a diverse variety of
services. Every firm must give their customers value with each change they make. enhancing
the organization's customer satisfaction process and creating higher client retention for a
longer period. Understanding the value chain's significance is crucial for the company if they
want to make a lasting impact on the market.

3.2 Primary activities

The major activities during the value chain process were those that the business
engaged in to handle inbound logistics. The receiving, warehousing, and inventory
management of the supplies and parts that are necessary for the organization are all aspects
of inbound logistics. Tesla’s operational activities include the transformation of raw materials
into completed goods for distribution to customers. sales and marketing I'm referring to the
marketing process used to sell goods and services, which entails a variety of advertising,
pricing tactics, and other promotional activities. The organization's distribution, packaging,
sorting, and shipping processes are included in the outbound logistics so that they can focus
on the next phase of their primary activity. And last, the company provides after-sales
services, which are provided after the activities are completed or after the sale of the product,
and which may also comprise product installation, high-quality repair, or customer services.
The primary services are crucial for the firm to have a strong foundation during the value
chain process. The firm needs to comprehend the significance of the major operations that
can directly affect its overall manufacturing and production process. The organization must
track many metrics so that it can effectively manage the value chain process (Cuevas, 2018).

4.0 Recommendations

According to (O'Connor, Yang, and Jiang, 2018) in the delve in the crucial
recommendation is to make a recommendation, that the organization should concentrate
on boosting the anticipated capacity by introducing extra lines. O’Connor asserts that

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Tesla creating a technique to expand the plant's capacity will enable them to provide a
range of services in one location. Tesla has to expand I production lines to increase its
capacity. To have a direct impact on the market, the corporation must comprehend the
competition in the market and provide a number of options for its customers. Acquire a
competitive advantage over their rivals in the market.

In order to offer a wide range of items and have the production or final product
meet the demand in supply, the organization needs to spread out its production at a new
location. The business must concentrate on offering the greatest products and services in
a variety of locations to assist them to draw in a wide range of clients. Additionally, the
corporation needs to reduce the amount of recalls. The company must offer the highest
quality services available on the market, and in order to do that, they must offer superior
quality items. The company's reputation in the market would be negatively impacted if it
frequently recalled its products. The business must offer services that inspire audience
confidence. The target market seeks out services they can rely on for a longer time
(Assadinia et al., 2019).
For instance, Tesla must make use of both markets to attract a wide audience to
the market where they can sell their services and make more money. The company must
manage a diverse consumer base and provide better business chances in the marketplace.
You must have in-depth understanding of the organization's workings in order to obtain a
competitive edge and to keep up your capacity to satisfy demands.
The market research is something that Nissan Motors should focus on doing in
order to better understand their rivals. Different technologies are being offered by new
companies and brands to the automotive industry, which is assisting them in expanding
their market. People are turning to their rivals, which may have a detrimental effect on
Tesla’s operationaTesla’scedures. The business must create broad strategy to better
understand the market and varied tactics to acquire a competitive advantage over rivals in
the market.

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5.0 Conclusion
Tesla is a top automaker, especially when it comes to electric cars. They are
working extremely hard, and it is obvious from their actions that they are capable. Tesla
believes that it is better to invest in its customers by providing them with high-quality
products than than spending millions of dollars on marketing and promotion. Bravo to
Tesla for continuing to successfully execute its innovative zero-dollar marketing strategy
without encountering any major issues. If you've read this far, you've proven that you're a
Tesla supporter.
It is found that Tesla is one of the largest manufacturers of electric vehicles with a
solid market reputation for its sustainable and eco-friendly solutions. The industry's
external market analysis helped to uncover that the current rise in demand for electric
vehicles is mostly driven by growing environmental sustainability concerns. However, it
is also found that several external market factors, including the US-China trade war,
COVID-19, etc., have caused a supply shortage, necessitating an improvement in the
efficiency of the company's supply chain to fend off competitive threats and the risk of
running out of inventory.
The business should also establish a market development strategy. Generally, the
flourishing of the Tesla company has evolved to the dynamic transitioning of
technological advancement. Its prior adaption to the revolution in the production of its
automobiles in regard to the cost and strategies implemented. The acquisition of the
available resources to the company has contributed greatly to its success. Tesla as a
company also has to consider the achievements and goals established and foresee the
right action that can be deployed. Both the analysis and the research conducted should
provide more ideas and techniques to ensure that the intended objectives are attained.

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6.0 Bibliographies

Aithal, P.S., 2017. Company Analysis–The Beginning Step for Scholarly Research. International
Journal of Case Studies in Business, IT and Education (IJCSBE), IGCSEpp.1-18.
Assadinia, S., Kadile, V., Gölgeci, I. and Boso, N., 2019. The effects of learning orientation and
marketing programme planning on export performance: Paradoxical moderating role of psychic
distance. International Small Business Journal, 37(5), pp.423-449.
Brown, J.R., Crosno, J.L. and Tong, P.Y., 2019. Is the theory of trust and commitment in marketing
relationships incomplete? Industrial Marketing Management, 77, pp.155-169.
Cuevas, J.M., 2018. The transformation of professional selling: Implications for leading the modern
sales organization. Industrial Marketing Management, 69, pp.198-208.
Dodgson, M., Ash, S., Andrews, J. and Phillips, N., 2021. Managing technology-enabled innovation in a
professional services firm: A cooperative case study. Academy of Management Discoveries, (ja).
Falát, L. and Holubčík, M., 2017. The influence of marketing communication on the financial situation
of the company–a case from the automobile industry. Procedia engineering, 192, pp.148-153.

Fan, D., Xiao, C., Zhang, X. and Guo, Y., 2021. Gaining customer satisfaction through sustainable
supplier development: The role of firm reputation and marketing
communication. Transportation Research Part E: Logistics and Transportation Review, 154,
p.102453.
Ferrell, O.C., Hartline, M. and Hochstein, B.W., 2021. Marketing strategy. Cengage Learning.

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Finger, M.E., Lacerda, D.P., Camargo, L.R., Piran, F.S., Cassel, R.A. and Morandi, M.I.W.M., 2021.
Impacts of marketing decisions on delivery performance and flexibility of the operations area.
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Hall, S., 2022. Innovative B2B marketing: new modepriceroce,sses, and theory. Kogan Page Publishers.

Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
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Lepkowska-White, E., Parsons, A. and Berg, W., 2019. Social media marketing management: an
application to small restaurants in the US. International Journal of Culture, Tourism and
Hospitality Research

Lim, J.S., Darley, W.K. and Marion, D., 2017. Market orientation, innovation commercialization
capability, and firm performance relationships: the moderating role of supply chain
influence. Journal of Business & Industrial Marketing.

Lira, S.M., Biermacher, J.T., Whitley, E. and Ford, D., 2019. 185 Strategies for managing open beef
cows. Journal of Animal Science, 97(Suppl 1), p.63.

Lyyra, A.K. and Koskinen, K.M., 2017. With software updates, Tesla upen the product life cycle in the
car industry. LSE Business Review.

Nessel, D., 2019. Request for investigation of deceptive and unfair practices in advertising and
marketing of the “autopilot” feature offered in tesla motor vehicles.

O'Connor, N.G., Yang, Z. and Jiang, L., 2018. Challenges in gaining supply chain competitiveness:
Supplier response strategies and determinants. Industrial Marketing Management, 72, pp.138-
151.

Okon, E.E., 2020. Employability skills competence of business education graduates in managing
businesses. American Journal of Management Science and Engineering, 5(6), pp.70-78.

Lepkowska-White, E., Parsons, A. and Berg, W., 2019. Social media marketing management: an
application to small restaurants in the US. International Journal of Culture, Tourism and
Hospitality Research.

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Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John Wiley &
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Šedík, P., Horská, E., Skowron-Grabowska, B. and Illés, C.B., 2018. Generation marketing in strategic
marketing management: case study of the honey market. Polish Journal of Management
Studies, 18.

Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global

perspective. Routledge.

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