Conduct An Internal Analysis Of Tesla Company An Automaker

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Internal Analysis of Tesla
Tesla Company is relatively a young company that builds electric vehicles and provides other professional services in energy management. Established in 2003 by JB Sraubel, Martin Ederhand, Elon Musk, Marc Tarpening and Ian Wright, its headquarters are located in Palo Alto California. However, despite being established in July 2003, the company went public in 2010. It has specialized in manufacturing electric cars. To add value to its portfolio, the company offers a wide range of energy services to its customers. This paper is an internal analysis of Tesla Motors, Inc. based on the VRIO framework. Through this framework, I intend to uncover the core competence of the company and answer the question whether they position the company for sustained competitive advantage.
VRIO FRAMEWORK
This framework help in identifying the operations of a company as either a strength or weakness. To identify these operations, the framework asks four important questions about the operations a company engages in. The four questions deals with Value, Rarity, Imitability and Organization. Therefore, it is from the answers that one gets important information on the internal strengths and weaknesses of a company.
Value
Some of the valuable assets and capabilities of Tesla include the cost-efficient production process, control of the customer experience by encouraging them to learn more about the company’s products, ability to neutralize external threats and a large database that is capable of producing new and improved products. Despite having these potentials, the company does not promise to unveil a new product line anytime soon.
Rarity
The products of the company especially the vehicles are rare in terms of geographic location, structural and availability. It is the only manufacture that focuses on producing Electric Vehicles in the whole world. Additionally, it is the only company that does not utilize outside dealerships. Geographically, Tesla has focused on growing cities with wealthy consumers. Structurally, no other car manufactures that has produced premium cars like those of Tesla around the world. Despite they are expensive, Tesla products are unique both inside and out. In terms of availability, because they are geographically rare, Tesla products especially the vehicles are not available to the average consumer. With the increasing improvements in the state of art production, their availability to the average consumer is likely to decline.
Imitability
Despite the fact that Tesla is the only manufacturer of Electric Vehicles, its imitability rate is very high considering the fact that it opened up the patents. This gives room for the products to be imitated though it will take long time and huge funds. Tesla serves a wide market niche of luxurious, environmental friendly and sportiness. However, although the imitability rat...