Ayan answered on
Jul 31 2023
WRITTEN ASSIGNMENT 8
Table of contents
Value Net Framework 3
SWOT Analysis 4
Quantitative Financial Analysis 6
Building an Organization Capable of Proficient Strategy Execution: Three Key Actions 8
Factors Affecting Competition from Substitute Products 9
The Five Components of Corporate Social Responsibilities Strategy 10
CEO's Recommendations 12
In this article, we will examine Tesla's present situation as of the summer of 2023. To fully comprehend the company's position in the market, we shall utilize five analytical frameworks. The Value Net, SWOT analysis, quantitative financial analysis, creating an organization capable of expertly executing a plan, and determining variables affecting competition from replacement items are a few examples of these frameworks. Additionally, we will examine Tesla's approach to corporate social responsibility and provide suggestions to the CEO.
Value Net Framework
A strategic research tool that offers a thorough grasp of the market Tesla plays in is the Value Net Framework. In the summer of 2023, Tesla will be operating in a competitive environment that includes both established manufacturers and newcomers to the electric vehicle (EV) sector. Tesla must successfully negotiate these complications since regulatory agencies also significantly influence the development of the sector. The main participants in Tesla's ecosystem are at the centre of the Value Net Framework. Customers, suppliers, complementary, and rivals are some of these participants. Customers are essential because they create demand for Tesla's products, including its electric automobiles. Customers will be more interested in high-performance, environmentally friendly transportation options in 2023, which will increase demand for Tesla's technologically sophisticated EVs. Suppliers are important stakeholders for Tesla's success since they offer required parts, such batteries, and electronics, for the manufacturing of electric vehicles. To guarantee a consistent supply of high-quality components, minimize manufacturing delays, and uphold product standards, it is essential to establish solid and trustworthy connections with suppliers. Entities that complement Tesla's offers are those whose goods or services make them more valuable. This includes firms providing charging infrastructure solutions, producers of renewable energy, and businesses developing autonomous driving technology for Tesla in 2023. Working together can boost Tesla's total value offer, advance the infrastructure for charging, and improve the customer experience. Competitors are a key factor for Tesla in this cutthroat environment. Tesla's market dominance is under threat from traditional manufacturers' aggressive EV market entry. Additionally, new players have entered the market with creative products, thus escalating the rivalry.
To stand out from the competition and keep its position as the market leader, Tesla must thoroughly analyze the plans, strengths, and weaknesses of its rivals. Additionally, regulatory agencies are quite important in influencing the EV market. Policies concerning pollution, EV adoption incentives, and infrastructure development may have a big influence on Tesla's business. For Tesla to develop and succeed in a sustainable way, it is essential to comprehend and abide by these rules. For Tesla to maintain its competitive edge, its relationships with battery providers, providers of charging infrastructure and energy corporations are crucial. Through these partnerships, Tesla is able to increase the infrastructure for charging, establish a dependable supply chain for its batteries, and investigate prospects in renewable energy and energy storage technologies. Tesla may acquire important insights into its ecosystem, pinpoint sources of value generation and destruction, and make wise strategic decisions by implementing the Value Net Framework. In the summer of 2023, Tesla will be able to capitalize on opportunities, manage problems, and preserve its position as a trailblazer in the global EV industry by comprehending the dynamics between customers, suppliers, complementary, competitors, and regulatory authorities.
Tesla's present position in the market might be analyzed using a SWOT analysis in the summer of 2023.
· Strengths: Tesla has a number of advantages that have helped it succeed in the EV industry. First off, the business has developed a strong
and identity and is well known for being a pioneer in electric vehicles and environmentally friendly transportation. Second, Tesla has been able to keep ahead of rivals because to its constant focus on technical innovation, notably in battery technology and autonomous driving. Localised manufacturing and delivery are also made possible by the company's growing network of Gigafactories and worldwide presence, improving operational efficiency. Additionally, Tesla has a committed network of devoted supporters and consumers, which contributes to its powerful word-of-mouth marketing (Khalilov & Timoveev, 2021).
· Weaknesses: Despite its advantages, Tesla has certain flaws that can be cause for concern. Its reliance on a small product range, which mostly consists of high-end electric vehicles, is one major issue. Due to its limited product offering, Tesla is susceptible to changes in customer demand and the state of the economy. Furthermore, Tesla's profitability continues to be impacted by high manufacturing costs even though it has made tremendous progress in cost reduction. Additionally, there is a risk of disruptions in the company's supply chain, notably in the case of essential minerals needed for battery manufacture (Ni et al., 2023).
· Opportunities: Tesla competes in a market with a lot of exciting potential. A...