STR 581_Strategic Plan 2_Internal Environmental Analysis.docx

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Strategic Plan, Part 2: Internal Environmental Analysis 1 Strategic Plan, Part 2: Internal Environmental Analysis Ali Johnson STR/581 November 25, 2018 Suchitra Veera
Strategic Plan, Part 2: Internal Environmental Analysis 2 Strategic Plan, Part 2: Internal Environmental Analysis Tesla is quickly taking the world by storm with their unique, innovative electric vehicle concept. Herein, we will perform an analysis of Tesla’s internal environment, including strengths, weaknesses, and an assessment of their resources. Additionally, we will identify the most important environmental factors in the general, industry, and external analysis and assess the structure of the organization and how it affects Tesla’s overall performance. Finally, we will identify Tesla’s competitive position, resources, capabilities, and the inherent possibilities of core competencies. The Internal Environment Tesla’s Human Resources team use the VRIO framework, by doing so they are able to better analyze the internal resources and capabilities of the organization to determine if they can be a source of continued competitive advantage (Jurevicius, 2013). To better understand Tesla's competitive advantages, we will use VRIO analysis. In terms of tangible resource value, Tesla is indeed valuable in that they are essentially the most notorious, and essentially the only, fully electric vehicle manufacturer. Tesla's are considered higher end vehicles and becoming more well priced with the addition of the Model 3 which offer loads of technological features. In addition, Tesla tangible technological resource is found in the focus of creating sustainable and renewable energy sources which are not reliant on petroleum. As Tesla's greater financial resource is affordability within the market as the organization continues to meet the demand for environmentally friendly cars, the organization will only prove itself more valuable in the near future. In terms of Rarity, Tesla is one of the most innovative automotive manufacturers in the world, positioning itself to include its own Supercharging network around the globe largely
Strategic Plan, Part 2: Internal Environmental Analysis 3 devoid of direct competition. Tesla has also vertically integrated their battery production, thereby lowering costs and enticing other larger automotive brands like Toyota to create batteries for them (Hitt, Ireland, & Hoskisson, 2015). In terms of imitability, Tesla exists within the electric car market but is unique in that it is one of the only truly all-electric vehicles with enhanced power and range (intangible). Additionally, Tesla invests heavily into research and development. Although they released all of their patents to the competition (and the world) in 2014, most manufacturers still choose only to compete on the hybrid level (Musk, 2014). In addition, some of Tesla’s intangible strengths included innovation, customer service and leadership.

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