IndexIntroductionOrganization OverviewSWOT AnalysisStrengthsWeaknessOpportunitiesThreatsVRIO AnalysisValuableRareImmutableOrganizedPESTLE AnalysisPoliticalEconomicSocialTechnologicalEnvironmentalLegalPorter's 5 Forces AnalysisCompetitive Rivalry (High)Bargaining Power of Consumers (Medium)Bargaining Power of Consumers suppliers (Medium)The threat of substitutes (Medium) The threat of new entrants (Low) Integration of external and internal context of the organization Key issues Current strategies Superior technology Supercharger network Sales strategy Recommended strategies Conclusion Introduction United States has one of the markets largest automobile companies on the planet. In 2018, U.S. light-duty car sales reached 17.2 million units, the fourth consecutive year that sales reached or exceeded 17 million units. Overall, the United States is the second largest market in the world for vehicle deals and creation. In 2018, the United States shipped 1.8 million innovative light-duty cars and 131,200 medium- and heavy-duty trucks (estimated at more than $60 billion) to more than 200 economic sectors around the planet, with additional auto parts tariffs estimated at 88.5 billion dollars. With an open speculation strategy, a huge buyer market, an exceptionally talented workforce, accessible bases, and local and state government motivation, the United States is the leading market for the 21st century automotive industry. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay In mid-2018, the U.S. auto industry was in the beginning stages of what many believed would be a fundamental advancement in how people thought about and used vehicles. The next would be overwhelmed by electronic and independent vehicles. Vehicle ownership where people pay for a solid asset with all its fancy odds and ends would offer an approach to people buying miles on shared vehicles. Fellow benefactor and Tesla chairman Elon Musk had envisioned his organization's electric vehicles driving the company's progress. Be that as it may, the company was spending money at an unworkable rate as it prepared to ship the company's first mass-market electric car, the Model 3. Numerous industry onlookers wondered whether Tesla would have enough cash to stay out from the water and whether Musk was the right pioneer. After a series of innovative victories, Elon Musk has assumed a position of authority at Tesla Motors, an organization committed to commercializing the all-electronic car for the construction market. Tesla's trend-setting product, the Tesla Roadster, is considered the first fully electronic car that can replace a fuel-powered car due to its superior and adequate range. The report intends to focus on the Tesla motor scheme and how it entered the Tesla motor market. the United States. It is intended to conduct the SWOT examination to distinguish the strengths, shortcomings, openings and dangers that the organization faces (Sun, 2019). It also strives to direct the VRIO examination to recognize the Important, Imitable, Uncommon and Association procedure followed by Tesla in research. It also focuses on the direction of the company's PESTEL investigation to distinguish the political, monetary, social, mechanical, natural and legitimate powers affecting the company in the United States market. It also brings the examination of Porter's five forces to recognize the dangers of suppliers, buyers, competitors and the dangers of new entrant organizations.Focusing on this investigation, it provides a concise portrait of the significant issues examined by the organization and suggests techniques for the upcoming future so that the company can maintain the upper hand. Organization Overview In the US market, the value of upscale passenger cars was $270 billion in 2016 at the retail level. In 2008, the industry saw a recession. Millennials have flocked to dealerships. Tesla was founded in 2003 by some engineers. They wanted to show that people don't have to compromise to drive better. Tesla consists of 9 board members who have a close connection with Elon Musk. Several managers left in 2018. Worldwide, Tesla has 34,000 workers. There are also another 1,000 workers working at the Nevada-based Motor and Battery Gigafactory. 10,000 employees work at Tesla's manufacturing plant located in California. In 2010 Tesla went public. At that time the price was $17 per share. The stock was trading at $335 by 2018, August. Tesla's market capitalization was higher. In March 2013, Tesla reported its first profitable quarter. Also in 2016 it recorded the second quarter in profit. Tesla investors wanted its long-term visibility. Tesla builds electric vehicles, scalable storage products, and clear power generation. Three US automakers accounted for 46% of the industry's 46% market share. It included the market share of Ford, General Motors and Chrysler. In the USA, 3 million people were employed in the automation sector. In the case of effective cars, brand loyalty is expected from customers. Tesla's mission is to accelerate the world's transition to sustainable energy. According to Tesla, people need to depend on zero emissions rather than fossil fuels. It must be taken away for a better future. There are various models of Model X, Model 3 and Model S similar to Tesla. The product line has been expanded to satisfy the maximum number of customers. Tesla, focusing on the niche market, entered the automotive industry. In the beginning, Tesla had to deal with quality issues and technological problems. Tesla won the "Motor Trend's Car" award for the Model S. Huge sets of components were produced by Tesla instead of purchasing them from suppliers. The Model 3 is considered the lowest priced product and has a battery range of 310 miles. There are various Nissan Leaf and Chevy Bolt competitors similar to Tesla. Currently, its main competitors are the Jaguar-I-Pace and the BMW i3. Tesla made the cables, power electronics and battery itself. It has been predicted that 605 unique vehicles may be sold out in the United States by 2025. More investments are being made in mobility services and electric vehicles by new entrants. It has been predicted that profits and revenue may be shifted due to the mobility service. Tesla's Model X is considered the fastest and safest vehicle. Tesla employees participate in the multi-day program. This is to ensure the safety and training of workers. It is done to bring about rapid improvements within the organization. In the United States, Tesla consists of 76 service centers. SWOT Analysis Strength Brand Loyalty Wide Range of Products Innovative Tesla has numerous strengths that have enabled it to achieve maximum revenue. One of its strengths is brand loyalty. Considering the niche market, customer satisfaction is at a high level. Tesla's product range is also huge, which has increased loyaltyto the brand. The Roadster was Tesla's first car. Model S, Model X and Model 3 are some of its product range. This caused Tesla to match the sales of the BMW 7 and 6 series. An attempt was made to sell the Model 3 as mass production. It is considered one of the renowned innovative companies. In 2016, Elon Musk revealed the development of a vehicle. It is a self-driving vehicle. The production line is tested before the introduction of a car. The production of the seats is outsourced to satisfy customers. Customers expect to get more technological and profitable products from Tesla. All these aspects have strengthened the organization's brand. Weakness Battery Shortage Production Complications Tesla faces two major weaknesses. One is the battery shortage and the other is manufacturing complications. At the beginning there were some technical problems regarding the production created problems. Production delays prevented the Roadster from being made. It has become difficult to manage suppliers (Ajitha and Nagra, 2021). Even during the launch of the Model X there was a problem in production. The supply of batteries has become limited. It decreased Tesla's production rate. The dealer lobby has hindered the expansion of the affected company. Component quality issues were also recognized. There is a need for many improvements to maintain its position in the competitive market. Opportunities Sales Expansion Low Price Car Models Based on Tesla's website, it has 111 stores. The stores are in 26 different states. The company is working hard to expand in terms of world-class. In 2019, Tesla operated 11,000 superchargers and 1,300 charging stations. In the United States, Tesla has 76 service centers. This way Tesla gains more market share. It has positive future growth. The company aimed to build lower priced cars. Focusing on zero emissions has also increased sales growth. Although Tesla has Tesla stores, the cars were sold instead of going to other dealerships. Threats Competitive Market Adaptation by Customers Tesla is also facing threats that need appropriate improvements. There is stiff competition. Ford and General Motors have also been competitors of Tesla. Currently, the Jaguar I-3 Pace is one of the main competitors. Other brands also provide cars at low prices, which poses a threat to Tesla. The success of a company depends on adapting the nature of customers (Khan et al., 2021) Tesla relies on the will of consumers as the same service is provided by other companies VRIO Analysis Value value is established in the case of Tesla. All of Tesla's financial resources are valuable. Its brand image is an influential source of competitive advantage. Through innovation, making eco-friendly cars and considering zero emissions, it has consolidated its position. The batteries are prepared within the organization. The cars are sold through their own shops and do not depend on external dealers. Tesla employees are also exclusively valuable. There are approximately 34,000 employees. Apart from this, there are more than 1000 workers working in the battery and motor Gigafactory. Development and research to improve customer expectations are also valuable. Self-driving cars were designed by Musk who added value to the innovation. Employees maintaining a good relationship with customers improves Tesla brand loyalty. Tesla is valuable because the consumer experience can be controlled. In this case the competitive advantage is permanent. Employees and financial resources are rareconsidered rare compared to Tesla. The workers here are very well trained. Training programs are provided to make workers more skilled. Through this better quality of service is provided by the company concerned. Financial resources are not carried out by most other companies. Tesla is the only company that does not depend on outside retailers. It sells the product from the shop itself and does not rely on independent parties. Brand expansion is not uncommon. Other brands are also targeting the niche market to gain maximum revenue. To increase brand value, other automotive industries also do it. Global presence is rare because Tesla has a significant market position. It is mostly preferred by customers as environmentally friendly and technology friendly products and services are offered. Immutable Pricing strategies are easily immutable. Low-performance model from Tesla manufacturers. It is also done by its competitors to attract customers. Brand loyalty and global presence are immutable. Competitors, using similar market plans, can improve brand loyalty (Vargas-Hernández and Garcia, 2019). This can make them expand on a global basis. Employees are also immutable. Competitors can also retain workers and maintain effective training. With us the competitive advantage is temporary. In terms of product range, other automotive industries are also working on design and efficiency. It was found to be consistent with a less positive outcome for Tesla.OrganizedTesla is one of the major organized companies in the automotive industry. Tesla focuses on customer education. This is done to make consumers aware of its diverse product range and way of working. The market position compared to Tesla is superior. Thanks to high innovation, Tesla's performance has become stronger. Both Tesla's employees and financial resources are organized. This allows the company to offer better product and service quality. 85,000 Model 3s were produced by Tesla. All jobs are organized to get a bigger profit. PESTLE Analysis Tesla's decision to enter the automotive market in the United States was marked by various factors. It is important to understand the external economic environment of the affected market for Tesla to understand the opportunities and threats facing the company (Liu and Meng, 2017). Political Factors: Will identify the government's impact on Tesla's business and the macro-environmental factors associated with the same. Impact - The US government has shown a keen interest in the development of electric vehicles. Beyond that, the country currently enjoys political stability and has new and fruitful global trade agreements. The political environment favors Tesla's entry into the automotive market. Economic Factors: This will determine the ways in which the economy can influence a nation's business. Market growth, currencies and trade levels are some of its measurement parameters. Impact: Electric vehicle battery costs have decreased as the number of users has increased. Renewable energy resources also do not involve high costs. However, economic stability is not achievable and this could pose a threat to Tesla. Social factors: will determine how the trends of a particular society, as well as consumer behavior, can determine the factors of the external economic environment for a company. Impact: The case study used in the referral for this report indicates the current business situation and the US market which clearly shows the need for electric vehicles and also drivingautonomous, connectivity and the like. These have opened up the opportunity for Tesla to establish a stable position in the automotive market as it is able to meet consumer demands (Dibble, 2018). Apart from that, wealth distribution has improved in developing markets which also present an opportunity for Tesla. Technological factors: will determine how technological innovation has affected a nation's businesses. In the automotive industry, this is particularly evident. Impact: Vehicle electrification and also connectivity demands in the United States have increased in the last two years and the only supplier has been Nissan with its LEAF models. Tesla has an opportunity to innovate and enter the market by bringing its own electric vehicles using technological development. However, they also need to keep up with constant technological changes to stay ahead of the market. Environmental factors: will determine the impact of the environment on the global business. These include global warming, climate change and organizational responsibility to adopt sustainable measures. Impact: Tesla has an opportunity to promote its electric vehicles to address climate change and carbon footprint issues (Schmid, 2017). Legal Factors: Will determine how much a country's trade and business regulations and rules affect its activities. Impact: International patent protection laws have expanded and so have energy consumption regulations. Both are opportunities for Tesla while sales regulations in the US can be a threatening issue for the company. Porter's 5 Forces Analysis Tesla's strategic steps can be improved by analyzing the factors affecting the company's external competitive environment in the United States. Porter's 5 forces analysis will aim to examine the factors that can influence Tesla on its entry into the US market. Competitive Rivalry (High) Although the automotive market in the United States does not have many players, existing companies are aggressive enough to compete for their respective place in the market. According to the study used in the referral of this report, the Nissan LEAF was Tesla's only market competitor and its electric vehicles can enter the market successfully all things considered (Kim, 2020). However, competing companies, even a few, are particular in the field of innovation and promotion and an additional threat is a low barrier or low cost of change. Bargaining Power of Consumers (Average) Consumers are important to any business, but the automotive industry is not entirely dependent on the bargaining power of consumers. Therefore the threat is relatively moderate. It has been found that switching costs are low and therefore the barriers to making purchases from other companies are low - this is a threat. However, the availability of substitutes is moderate, which does not leave the consumer with many options. Bargaining Power of Suppliers (Medium) Future integration, level of supply, and size of suppliers are all moderately threatening in terms of supplier bargaining power in the market. Tesla. The size of the suppliers is medium and therefore they do not have a large impact on the automotive industry in general (Sull and Reavis, 2019). Bargaining power of suppliers should not be the company's primary concern in its strategic management systems. Suppliers often use third parties to enter into supply agreements with Tesla, which reaffirms their position as not so threatening to the company's business. The Threat of Substitutes (Media) There aren't many companies that can be onethreat to the company at the moment and Tesla doesn't find many companies that can replace its products. The competitive factor in Tesla's automotive market comes from the fact that switching costs are low. There are very few substitutes on the market, and they usually don't work well enough to turn consumers away from products made by Tesla. Therefore this threat is relatively medium. The threat of new entrants (low) By studying the competitive market in which Tesla will operate in the United States, it was understood that in the automotive industry the threat of new entrants is relatively low. There are some factors working behind it, such as the costs behind brand development, business development, as well as high economies of scale, all of which work against the prospects of new entrants into the market. Economies of scale benefit established companies like Tesla, and it's difficult for any new entrant to beat them. Integration of the external and internal context of the organization To truly evaluate the state of the market in which Tesla has entered, it is important to study the internal environment of the company in relation and integration with the external environment. The external environment includes political, economic, social, technological, environmental and legal factors while the internal environment is understood by studying the company's existing strengths, weaknesses, opportunities and threats. Tesla is an established company and therefore many consumers are loyal to their brand. They also have a wide range of products and services and have earned a lot of profits by constantly reinventing and innovating their products. In 2018, Tesla held just 0.2% market share, which is relatively low compared to the likes of Ford and Toyota. Some of their weaknesses concern electric vehicles and the main problem has been the lack of battery power. The production system itself has also been identified as slightly complicated, especially regarding electric vehicles which are very popular in the United States and are one of Tesla's main products (Thomas and Maine, 2019). However, the low exchange rate has made the market very competitive for the company, apart from the issue of consumer behavior and adaptability. Tesla can maximize the opportunities presented to the company in terms of sales and prices of the vehicles produced. Political factors reveal an environment in which public investment in electric vehicles has increased. Around 5% of the turnover was invested in the research and development of electric vehicles. The government has also made global trade agreements that can help Tesla even more in its car sales. From an economic perspective, the threat of instability may increase the pricing problem with Tesla. Tesla has a strong supplier base where over 11,000 companies are identified as automotive suppliers. The fact that Tesla cars are priced high, which hinders the competitive pricing strategy will not be improved anyway. At present, the automotive supply business amounts to $2.2 trillion. However, the costs of batteries, as well as renewable energy, are currently significantly low and this may help Tesla change the pricing structure of its products. The threat of consumer adaptability has been identified as an internal problem, but by analyzing it externally it can be stated that consumer behavior is changing rapidly. Social factors highlight the fact that consumers are increasingly interested in low-carbon lifestyles and therefore want to opt for more sustainable processes. This can open up several avenues for Tesla in terms of consumer adaptability and changing thecourse of the issue from that of a threat to an opportunity. Technologically, the pace at which it is advancing and changing can be both a threat and an opportunity for Tesla. . Considering internal factors, Tesla does not seem to have problems investing in innovative aspects and reinventing the models it produces and puts on the market. If Tesla can continue on the path of innovation, this may not pose a threat at all. Environmental factors have only contributed to the opportunities Tesla already has in the market. The company seeks to expand globally and thus can take advantage of environmental factors and promote its electric vehicles in the market so that consumers can enjoy more sustainable options. Legal factors can only be threatening in Tesla's case if sales regulations in the United States do not meet their needs. In all other cases, patent protection and energy consumption regulations can contribute to the opportunity to build less expensive cars for Tesla. Major Issues Some of the issues faced by Tesla Motors are as follows: Insufficient capacity generation: Even the manufacturing office in Fremont as the Gigafactory was not able to operate at maximum volume. Automakers under such circumstances switched to conventional production, which Tesla failed to do. Expensive Autopilot Component: The Autopilot system created by Tesla uses cameras and photo processors instead of viable mapping advances and laser locators used by General Motors and this comes with big budgets. Automakers like Cadillac and General Motors have effectively launched their innovation hands-free spurring Tesla's modest lead. Liquidity crisis: Despite having a solid advertising capitalization, Tesla faces cash issuance and currently accumulates about a billion every quarter. Tesla does not have the talent to create on a large scale due to the blocks encountered in the Gigafactory which however was not able to carry out the full volume of work. Failure to conquer mass markets: Tesla's failure to stop the showcase of electric car offers reports on the justification of large costs contributes negligibly to a small 1% in total of the world's offers. This negates it from the frugality of scale profits. Inadequate Charging Base: The boost messages created by Tesla can be measured as profoundly deficient in the event that you consider the generation and agreed upon deals. Tesla is engaged in the overwhelming task of simultaneously creating a charging organization alongside car manufacturing. Legal fights: Legitimate fights for loyalty to the specific offering of its electric cars is another competition faced by Tesla motors because it involves gigantic expenses. Product Shipping Delays: Tesla has often faced the issue of delays in fulfilling shipments to customers, and at times shipping of unused cars has been substantially postponed. Furthermore, Tesla has taken into consideration aspects related to customer safety needs regarding the use of electric cars. There are concerns about battery life and the accessibility of the charging base. One man demonstrates: Tesla right now is respected as one man seems followed by Musk Elon who wants to regulate the whole thing to Tesla in addition to other consecutive wanderings like Space and sun-based city. This affected Tesla slightly as the administrative skills of other qualified people were not used efficiently. Troubleshooting Mechanics: Even though electric vehicles require less support and less maintenance, it is still criticalfind a capable worker in the range. Unfortunately, 97% of repairers are not competent to work on electric cars. Of the 3%, many work for authorizations. While there are some hybrid cars on the road, they need maintenance services comparable to common gas-powered cars. This means that knowledgeable people employed on hybrid cars are not necessarily knowledgeable about fully electric replicas. Incredibly, electric car owners have fewer alternatives for competent mechanics, thus making them less sought after in US advertising. Current StrategiesMartin Eberhard and Marc Tarpenning, engineering entrepreneurs, founded the famous and famous company Tesla in 2003. The company first experienced cost overruns by producing Roadster which was the first electric vehicle. The company's differentiation strategy is to play the long term by focusing on battery technology, electric car automation, and environmentally friendly services and products, but they have different strategies when entering the US automotive industry. Tesla's master plan is to enter the high-end market of the US auto industry where customers are prepared to pay a premium but then, driving the market down, will charge lower prices in each of their models (Teece, 2018). The first attempt was the Model 3, intended for mass production in the US automotive industry. They had multiple strategies before producing the model in the competitive market. Although their current strategies are similar to those of the past, small improvisations have been made to be successful in the US auto industry in the near future. Their current strategies are as follows. Superior Technology Tesla has planned to make its electric vehicles superior to other competitors. Their strategy is to make motors equipped with the help of proprietary magnets that will make them efficient and economical. Their goal was to focus on niche markets to enter the automotive industry. Their first model called the Model 3 was the lowest priced model, and recent models with a range of 310 miles are also available (Sull and Reavis, 2019). This strategy results in more profits in their business. The company's energy storage system consists of individual lithium-ion batteries and are installed on the bottom of the car so they can be handled easily (Offer, et al., 2020). In fact, Model 3 had a 14% better energy density than the others. The company planned to produce batteries and motors in its own Gigafactory and started with the first model known as Model 3. Thus the time needed to produce the batteries was reduced from seven hours to 17 minutes. long-distance driving is not possible with electric vehicles. Tesla has dispelled this misconception by implementing the strategy of developing supercharging networks which are supercharging stations and these stations offer fast charging of 50% in about 20 minutes (Thomas and Maine, 2019). However, other electric vehicles cannot access Tesla's supercharger network. Sales Strategy Tesla is not only concerned with producing models, but also aims to sell them successfully. Therefore, the company does not depend on retailers to sell its products like other companies follow. They have their own stores where they have appointed salesmen to sell their cars and Tesla has its own 111 stores in around 26 states in Washington DC. This strategy is said to be the most effective strategy as the company receives more responses by selling their cars through their stores in the United States. Recommended Tesla strategies, focusing on core competencies and ina similar period, should study the work adequacy that will offer support to represent the receptivity to the external and internal atmosphere (Musonera and Cagle, 2019). With eye-catching replicas busy showing off, Tesla is expected to accelerate its move to the center, which will likely lead to better results. Tesla would like to sordid its technique on modest elements and see that other automakers with solid financial resources can switch to electric cars in a short span of time. Rising natural tariffs, expanding government support for sustainable transportation, rising oil tariffs, and the expansion of the shift to electric cars demonstrate that electric cars aim to become the vehicle business in the long term (Dana , 2018). Tesla must focus on distinct markets of the United States, and by organizing its production area completely into different regions, it should focus on adopting a low-price management method in such markets to deliver to the mass market. Tesla should focus heavily on the Model 3 generation that captures the key to victory and, by engaging in the mass showcase, will offer the support that has marked customers in the United States making the difference to achieve parsimony of scale. The prevailing business model of offering directly to customers needs to be adapted because it constitutes an obstacle to the development of trade and also includes some recorded statements contradicting Tesla. Tesla should be a fashion company and participate together to fuel its growth. Tesla has refrained from bans in a vigorous promotion method which can be said to be one of the reasons why buyers have trepidation about electric cars. A coordinated presentation communication method would enable Tesla Motors to achieve greater product permeability and lead to greater product awareness. Tesla should continue to focus on research and development and continue to create products like Powerwall that strengthen its maintainability identifications. Tesla has often faced the problem of delays in fulfilling shipments to customers and at times the shipment of unused vehicles has been substantially postponed. Tesla encourages questions related to the safety needs of customers regarding the use of electric cars who fear about battery life. Tesla should focus on this generation issue and should get generation managed quickly by using more talented workers, something else it will need than other competitors. Tesla today is respected as a man appears because it is as it was controlled by Elon Musk who directs everything in the company and as a result, is influencing the administrative capabilities. Tesla should focus on this issue and hire the most excellent supervisors to create an administration that would take its business to a diversified level. The presence of a satisfactory charging base is deeply significant for Tesla. The supercharging stations created by Tesla are considered lacking, so Tesla should focus on this problem and quickly accept the indicators to create suitable charging stations in the United States to strengthen its interest in the US market. Tesla should focus on expanding the creation cap at Fremont and Gigafactory otherwise it won't bring in enough business for the company to maintain the upper hand. The autopilot system created by Tesla uses cameras and PCs instead of the practical planning advances and laser radars used by big engines, and this has resulted in significant expense. It should focus on consolidating progress and planning seekers.