Tesla Motor analysis (Essay Sample)

Tesla Motor analysis
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Tesla Motors is an American company that is involved with the manufacturing of electric cars and power trains. It is a public company and in 2013, for the first time since inception recorded profits.
SWOT analysis
Strengths
Some of the strengths that Tesla Motors possesses include: developing The Roadster, the pioneer electric sports car. It also supplies electric vehicles components to other car manufacturers like Toyota. Most significant is that, Tesla Motors has strong technological expertise in the field of electric transmission and also the ability to completely assemble their products. Their platform for Model S can be used in future models.
Weaknesses
Due to their mode of production, full assembly including sub-assembly, production costs scales up the roof and economies of scale are not achievable; prices of their products thus tend to be double of a gasoline equivalent. Recently, other big players like BMW and Audi are embarking on green energy. This renders Tesla Motors in a highly competitive nature; other imported cars prices are lower than Tesla’s.
Opportunity
Despite the weaknesses, Tesla Motors could also leverage from the numerous opportunities it has. Support by governments across the globe for eco-friendly automotive through exemption; also support from Mercedes “smart car” which can help the users learn. Improvements in quality control process would help reduce the manufacturing. The fact that it does not rely on conventional advertisement rather on user’s word of mouth is a bonus as only authentic information will be given to prospective clients. Furthermore, partnership with other giants like Panasonic is a great opportunity for success and share information.
Threats
Their current business model does not allow them to do all the processes; produce, distribute and sell to average customers. Price skimming is also unfamiliar in auto industry. The high pricing also makes it less affordable and more like a luxury car. The most significant threat is the competition that it faces from combustion engines which have been used over a long time and is relatively cheaper.
Organizational structure
Tesla Motors with its headquarters located in Palo Alto, California, adopts a corporate structure ruled by a Board of Directors. The Board of Directors sets the standards for the company’s employees as well as the officers and directors. The Board of Directors is bestowed the legal trust for the company’s shareholders.
Tesla uses a different franchising model to sell its products. It operates stores in shopping malls. These stores act exhibition centers for Tesla Motors products where prospective customers can ask questions about the products. Customers buy the products directly from the manufacturer through mail order. In the US Tesla Motors is the only automaker that sells directly to its customers in the US without passing through known dealers.
Tesla Motors has also been faced with few management issues in its operation. Some of the key management issues include; funding, finding partners and also afforda...