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automotive industry. Its production is cost-effective, specialized for electric vehicles and hardto imitate without high costs, while the organization is integrated around production system and employment of valuable resources. Its vertical distribution channels also are rare and provide value based on better understanding of Tesla system and brand. It can be imitated, butwith high costs and it would take a long time to create such system. One more specific is its
STRATEGIC ANALYSIS OF TESLA MOTORS INC.6charging network, which is also valuable, rare, inimitable and hardly substitutable, since it can be only used for electric vehicles that Tesla produces. Tesla uses a direct sale which is also valuable and rare, but it can be replicated. All resources, except the last, provide Tesla a sustainable competitive advantage, while the last resource or capability gives it a temporary competitive advantage.SWOT analysisOn the basis of the external and internal analysis, it can be created SWOT matrix that highlights strengths and weaknesses of the company, as well as opportunities and threats fromthe environment.Figure 1: SWOT matrixSTRENGTHS•brand uniqueness•quality products•eco-friendly technologyWEAKNESSES•lower efficiency and liquidity•high dependence on suppliers•low brand awarenessOPPORTUNITIES•environmental initiatives •growing market segment•global market opportunitiesTHREATS•current competitors' adoption of green technologies•economies of scale and high expertise ofcompetitors•risks of the unreliability of electric carsMain strengths of the company are its brand uniqueness, its quality products, and its green technology. However, as a young company, it faces with lower efficiency and liquidity in comparison to its competitors. It is also very dependent on its suppliers. Since Tesla uses a specific technology, there is a lack of suppliers that can cover its needs. Also, delays in supply increase a time and costs of production. Furthermore, Tesla's weakness is that customers are not so familiar with its products. Apart from the fact they are based on electric
STRATEGIC ANALYSIS OF TESLA MOTORS INC.7motor, they are also very expensive. Thus, they are affordable only to rich people, mostly in Western countries. However, it can be changed with a proper marketing strategy.Also, Tesla has many opportunities in its environment. As first, different environmental initiatives promote its green products. Thus, its market segment is growing constantly and provides many opportunities in the global market. Yet, there are some threats on which Tesla should pay attention. Firstly, there is a possibility that Tesla's competitors, large and strong automotive companies, expand their businesses into green industry. Since they already have economies of scale and large expertise, this represents a large risk for Tesla.