Tesla’s Strengths and Weaknesses

Tesla’s Strengths and Weaknesses

Global warming due to climate change is an existential threat to the survival of species on earth. The automaker Tesla, led by Elon Musk, has been the first automotive manufacturer that is focused on the use of environmentally friendly and renewable sources of energy. Tesla has brought stiff competition to other automobile makers through its inspiring innovation. The vehicles made are of good quality, and so the prices target the affluent in society. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Tesla’s Strengths

Innovativeness

            Undoubtedly electric vehicles were an idea that seemed far off to be implemented in the near future. Critics such as Bill Gates were steadfast that the manufacture of electric vehicles was not something feasible or dependable on the transport industry, especially on heavy commercial vehicles. However, Tesla has proved that motor vehicles can be electrically powered and is now the leading manufacturer of electric vehicles. Also, the cars are equipped with artificial intelligence that enables automated driving on specific kinds of roads.

Tesla’s response to this strength is very superior, earning a rating of 4

Brand Recognition

            The concept of electric vehicles was popularized by Tesla when it announced the first model of the Tesla Roadster in 2008 with the capacity to drive up to 394km on a single charge that was the first effective electric vehicle to have ever existed (Alghalith, 2018). When electric vehicles are mentioned, it is popularly identified with Tesla as it is one of the large automotive manufacturing that exclusively makes electric cars.

Tesla’s response to this strength is above average, earning a rating of 3

Production Control

The raw materials used in the manufacture of the vehicles are obtained by Tesla, and there are few third-party corporations involved in the provision of key raw materials. The car batteries, a main component of the vehicle, are supplied by Panasonic and LG, but Tesla has a high control of the production. This enables Tesla to reduce the cost of production per unit, increasing the profit margin. Moreover, controlling the factors of production gives Tesla an opportunity to customize the building materials.

Tesla’s response to this strength is average, earning a rating of 2.

 Suitable Working Conditions

            The hourly employee payment rate at Tesla is very lucrative, ranging from $10-$15 hourly pay for menial workers. Many young people are interested in working at Tesla as it encourages an innovative culture in its business activities (Matthews, et al., 2020). The innovative employees who bring a novel idea into the business conduct and how it captures market value are rewarded with cash bonuses and gift hampers. Good morale to the employees ensures quality work and increased customer satisfaction.

Tesla’s response to this strength is above average, earning a rating of 3.

Integration

            According to the constitution, it is a requirement by law that every motor vehicle operating on public roads have at least a third-party insurance policy. Tesla identified the opportunity and diversified their income by partnering with Liberty Mutual, an insurance firm, to provide Tesla users with a personalized insurance policy. Customer trust is increased when the Tesla products are seamlessly integrated.

Tesla’s response to this strength is average, earning a rating of 2.

Tesla’s Weaknesses

Pricing

            The complexity and the uniqueness of the Tesla models are unparalleled. The prices reflect the intricate technology used in the manufacturing of electric vehicles. Teslas are vehicles built to be durable and efficient. The maintenance of electric vehicles is relatively cheaper compared to internal combustion engines, making Tesla sell at a higher price. The middle-upper class can comfortably afford the current production of Tesla models, and low-income earners can own older versions easily.

Tesla’s response to this weakness is poor, earning a rating of 1

Complication in Production

            Tesla is known for its innovativeness in manufacturing through utilizing technological advances. The technology used in the manufacture of Tesla is unique and requires a lot of expertise to develop (Mangram, 2012). In an instance, Tesla halted the manufacture of its vehicles in its manufacturing sites due to productions problems.

Tesla’s response to this weakness is poor, earning a rating of 1

Limited Market Share

            The production of Tesla is low and focused on specific markets. The popularity of Tesla automobile has grown exponentially, and the company would make tremendous sales if they ventured into the manufacture of vehicles affordable to the lower-middle-class earners. Tesla would be able to provide enough vehicles to the market if it manufactured approximately 150,000 units per year.

Tesla’s response to this weakness is average, earning a rating of 2

Shortage of Raw Materials  

            The manufacture of Tesla cars requires batteries that store energy that propels the automobiles. Lithium is the main component that is used in making batteries that store charge. The element is not found in abundance, and this contributes to the temporary discontinuation of production. This makes Tesla lose customers who might require vehicles when the supply is reduced. Alternative materials that can make durable and efficient batteries that can store charge for long periods and have a long life will increase the rate of production.

Tesla’s response to this weakness is poor, earning a rating of 1

Quality Control

            Electric vehicles are a new technology that other automobile manufacturers are joining the bandwagon and trying to comprehend their functionality. The lack of a standard for the development of electric vehicles makes it a hazard as there may be potential health hazards that might be unknown to the users. The government should put regulations on the manufacture of electric vehicles such that there is no potential risk to human life.

Tesla’s response to this weakness is above average, earning a rating of 3

Conclusion

Tesla is a company that has a high potential of increasing its market share by tapping into the market of lower-income earners. The brand has already thrust itself out as a leader in making environmentally-friendly vehicles. This is an achievement of the organization’s goals in developing eco-friendly products. The goals are now extended in attempting to make the production process release the least amount of waste in the environment.

Internal Factor Evaluation (IFE) Matrix

Internal Factor Evaluation (IFE) Matrix
Company Name:
Key Internal Factors	Weight	Rating	Weighted Score
Strengths
1)      Innovativeness	0.12	4	0.48
2)      Brand Recognition	0.1	3	0.3
3)      Production Control	0.1	2	0.2
4)      Suitable Working Conditions	0.1	3	0.3
5)      Integration	0.11	2	0.22
Weaknesses
1)      High price	0.14	1	0.14
2)      Production Complication	0.15	1	0.15
3)      Limited Market Share	0.06	2	0.12
4)      Raw material shortage	0.1	1	0.1
5)      Lack of quality control	0.02	3	0.06
TOTAL:	1		2.07

References

Alghalith, N. (2018). Tesla: innovation with information technology. International Journal of Business Research and Information Technology, 37-51.

Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 289-312.

Matthews, T., Hirve, M., Pan, Y., Dang , D., Rawar, E., & Daim , T. U. (2020). Tesla Energy. Innovation Management in the Intelligent World, 232-249.

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Perform an Internal Factor Evaluation on your chosen corporation. The critical thing to remember about this analysis is that you should develop a thorough understanding of the factors chosen. Your analysis should include a chart similar to the one shown in Assignment #3, with the notable exception that the categories should be “Strengths” and

“Weaknesses” instead of opportunities and threats.

You should review Chapter 3 and take a look at the list of firm capabilities for some ideas of where your firm might excel if you do not know this already. Please remember here that what you are looking to include as strengths are those strategic resources and processes that could be considered firm core competencies. That is, you want to include as strengths only those resources and capabilities about which your firm excels, is in a superior position, and/or is superior to rivals in execution. You do not want to include elements about which the exact same thing could be said about rivals.

With regard to weaknesses, it can sometimes be very difficult to find them as firms are not exactly forthcoming with information about what they do poorly. As such, I would prefer that you find two or three good ones rather than trying to force weaknesses that aren’t there.

IFE

• Do a chart identical to the EFE, except, of course, that the factors will be
• Choose 8-10 internal factors for analysis (or as many as you can discover).
• Less than Four pages
• Double spaced
• Typed
• For each factor, write a paragraph or two as necessary discussing the nature of the factor, how it will impact the firm, and its importance to the future strategy of the firm (i.e., tell me why you assigned the weight and rating score that you did).