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Tesla Strengths and WeaknessesTesla’s strengths start with the business model. Every aspect of the firm is company owned to include sales, service, and warranty. Maintaining control gives the organization full power to control their brand, image, and reputation. From there, Tesla only hires the best and brightest engineers. The engineers are the team that develops the state of the art technologies and designs unique to Tesla. Tesla understands their niche in the automotive market and tries very hard to protect the advantage they have. Because of the luxury target market, celebrities often seen driving Teslas reinforce notoriety and provide acceptance for the brand.
TESLA MARKETING PLAN4Tesla’s weaknesses begin with the limited models available. Consumers would like to see expansion in the models and options available. Further, manufacturing limitations are a concern. Tesla has a small number of manufacturing plants. A rapid increase in market demand could result in not being able to keep up. In addition to internal concerns, other weaknesses are possible because of the consumer. The buy-in of the all-electric car concept is a challenge. People are either worried about the range they can travel or concerned with the pollution caused by used battery cells. Additionally, government incentives pose a risk to Tesla. Incentives createan advantage for consumers in the form of tax breaks and rebates. Restricting the incentives, at the federal and state level, may slow sales substantially.Competitor’s Strengths and WeaknessesTesla doesn’t have a direct all-electric competitor in the performance, premium, or small premium luxury automobile markets, but they do have some competition in the form of small, compact all-electric vehicles. The biggest strength of competitors is they target a market segment Tesla cannot reach. Current competitors pricing is substantially lower than all of Tesla’smodels. Full acceptance of the all-electric vehicle puts these companies in a position to expand into Tesla’s market share. Other all-electric manufacturers have the backing of the main automobile manufacturers. Name notoriety and marketing efforts can be piggybacked off of existing structure without a substantial increase in cost. Manufacturing limitations are minimal for big named leaders.Competitor weaknesses include providing an indirect advantage to Tesla (Trefis Team, 2016). Large manufacturing companies expanding into the all-electric industry provide information about the overall product to a wide array of people. Marketing to the masses will draw attention to consumers who were not aware of the technology. Once the attention is gained,
TESLA MARKETING PLAN5Tesla may be able to win some of their customers due to their branding. Other manufacturers do not have the track record for all-electric technology that Tesla has. Not being able to generate a brand following, based on success, presents a risk.