Strategic Plans and SWOT Analysis of Tesla Motors

Strategic Management: Tesla Case Study
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Strategic Management: Tesla Case Study
The founders of Tesla Motors formed the company in efforts to build the world’s best electric car. The idea got support from many individuals, including the government who saw it as one of the best alternatives and a means of combatting the changing climate brought about by pollution from the greenhouse gases. Since its inception in 2003, the company has gained serious traction in 2012 when it began shipping its fully electric car in Model S. Arthur describes the model as “fully electric, four door, five-passenger luxury sedan with an all-glass panoramic roof, high definition backup camera, a 17-inch touch screen that controlled most of the car’s functions, keyless entry, xenon headlights, dual USB ports, tire pressure monitoring, and numerous other features that were standard in most luxury vehicles”(Thompson, 2016). The model introduced the company into the European and Asian markets with China coming out as the chief importer. Purchases of the Model S went on in the next two years to surpass those of other luxury cars such as the Mercedes Benz S Class, BMW’s 700 series, Porsche’s Panamera sedan and the Jaguar XJ. Most of the individuals who purchased the Tesla Model S advocated for a better environment that was being fostered by the movement from gasoline powered vehicles. Basing on the success of the Model S, the company heightened its innovations and developed further models in Model X and Model 3 with the former being an upgrade of the Model S hence more expensive.
The company’s ambitions were being spearheaded by Elon Musk who laid out a three element strategic plan:
* Accelerate the transition to zero polluting electric cars.
* Build a variety of affordable electric powered vehicles.
* Convince the general public of the climatic and appealing value of electric cars.
However, the ambitious plans hit a serious snag in 2016, after the fall of the world’s gasoline prices that made it illogical to purchase the electric cars. Also, the other motor vehicle companies had made substantial improvements to their models and had managed to encroach into Tesla’s market share. The challenge now is to examine whether Tesla’s strategies will be challenged by lower gasoline prices and mounting competition.
QUESTION 1
Strength
* Strong global brand reputation and recognition.
* Largest electric car manufacturer in the world.
* Products of high quality.
* Excellent employee management.
* Steady growth in company value.
* A strong, ambitious CEO and overall top management.
* Environmentally friendly cars that support the fight against climate change.

Weakness
* Most of its models are high end models, hence mostly expensive.
* People think that Tesla mostly cares about making profits and building more luxury cars. (Negative public image).
* Few charge points for its electric cars.
* Mileage limitation.

Opportunity
* Expansion in global market and explore in countries with great market potential.
* Expanding product variety.
* Discovering new distribution channel.
* Adv...