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STRATEGIC ANALYSIS OF

TESLA

By :- Abhinav Mishra
SECTION :- E
ROLL NO. :- 52
MBA (GENERAL)

Table of Contents
Contents
STRATEGIC ANALYSIS OF TESLA....................................................................................................................1
Introduction.................................................................................................................................................2
Mission and Vision Statement Analysis.......................................................................................................3
Vision Statement.....................................................................................................................................3
Mission Statement...................................................................................................................................3
Organisational Structure Analysis................................................................................................................4
Features of Tesla Motors, Inc.s Organizational Structure...................................................................4
Global Hierarchy.................................................................................................................................5
Global Centralization...........................................................................................................................5
Minimal Regional Divisions................................................................................................................5
Teslas Organizational Structure Implications, Advantages & Disadvantages.....................................6
External Environment Analysis....................................................................................................................7
PESTAL Analysis........................................................................................................................................7
Political................................................................................................................................................7
Legal....................................................................................................................................................7
Technological......................................................................................................................................7
Social...................................................................................................................................................8
Economic.............................................................................................................................................8
Ecological............................................................................................................................................8
Industry Analysis - POTERS 5 Force Model...............................................................................................9
Government.......................................................................................................................................10
Threat of substitution.........................................................................................................................10
Supplier power...................................................................................................................................10
Buyer power......................................................................................................................................10
Threat of new entry............................................................................................................................11
External Factor Evaluation.........................................................................................................................12
Competitive Analysis.................................................................................................................................13
By Company...........................................................................................................................................13
General Motors..................................................................................................................................14
Competitor Response Profile:............................................................................................................14
Actions:.............................................................................................................................................14
Toyota................................................................................................................................................14
Competitor Response Profile:............................................................................................................14
Actions:.............................................................................................................................................15
BMW.................................................................................................................................................15
Competitor Response Profile:............................................................................................................15
Actions:.............................................................................................................................................16
Daimler AG.......................................................................................................................................16
Competitor Response Profile:............................................................................................................16
Internal Environment analysis...................................................................................................................17
Tesla performances................................................................................................................................17
Organizations resources........................................................................................................................17
Tesla Motors Financial/Physical resources:.......................................................................................17
Tesla Motors Technological Resources:.............................................................................................18
General competences and capabilities..................................................................................................18
Electric Vehicle Manufacturing.........................................................................................................18
High Performance Battery manufacturing.........................................................................................19
Capability to draw a consistent future...................................................................................................20
Transformational leadership..............................................................................................................20
Internal Factor Evaluation..........................................................................................................................21
SWOT Analysis...........................................................................................................................................22
Strength.................................................................................................................................................22
Opportunity...........................................................................................................................................22
Weakness..............................................................................................................................................22
Threat....................................................................................................................................................23
TOWS Matrix.............................................................................................................................................23

Introduction
Tesla Motors Inc is a relatively young public company which build electric vehicles and provide
services for personal and professional energy management. Founded in July 2003 by Martin
Ederhard, Marc Tarpening, JB Straubel, Ian Wright and Elon Musk Current CEO the
company is based in Palo Alto California and went public in 2010. The manufacturer whose
name pays tribute to the scientist Nikola Tesla is specialized in commercializing high quality
electric cars empowered by high performing battery packs. Moreover, Tesla sells powertrain
components and produce battery charging equipments to complete its offer.

Tesla Motors started its business by launching its electric sport car called the Tesla Roadster in
2008 which is known to be the first car using lithium-ions for its battery instead of classic fuels;
The Tesla Roadster shined in the competition of Monte-Carlo (competition for the alternative
energy) where it arouses interest of some powerful individuals. Since, Tesla has expanded its
vehicle offer with tree additional models, the S, the X and the III, whose deliveries began
respectively in 2012, 2015 and 2017. On the long term, Elon Musks goals is to produce a large
range of models, counting more affordable cars (the Tesla Roader is worth 84 000) although
keep producing luxury ones. Furthermore, a highly transformational leadership from Musk
consists in making Tesla not only a car maker but more widely a sustainable lifestyle provider.
Emphasizing the move toward ecologic solutions using solar electric energy, which is today
considered as the more reachable sustainable solution, Tesla thus plans to be able from now to
2020 to produce a complete sustainable package including electric cars, smart batteries and
efficient solar cells technologies.
To achieve its transformational vision while remaining financially reliable, the company is facing
many opportunities. Whether by the sales expansion of its cars from a B2C to B2B, by selling
patented electric powertrain components to automakers just entering the electric car market or by
developing self-driving software making customer experience improved, Tesla electric car
manufacturing know-how is a huge asset in a market still very young. On top of that, Tesla has
applied diversification to its business and has settled some partnership to produce battery power
packs for domestic and professional applications (Panasonic) as well as highly competitive solar
panels with Solar city next acquisition.

Mission and Vision Statement Analysis

Vision Statement
Our vision is to create the most compelling car company of the 21st century by driving the
worlds transition to electric vehicles.
The statement clearly enables us to understand the companys desired future state, dream,
aspiration, where does it want to go and see it self in years ahead. The vision statement of an
organization should tell one how the org. wants to be perceived in the future and what success
looks like, which this statement clearly does. This statement clearly is an expression of the desire
end state and challenges everyone, their employees and other related people, to reach for the
significant envision. The long term focus provided here for the entire organization is the
creation of the most compelling car company of the 21st century and the guiding philosophy is
by driving the worlds transition to electric vehicles.

Mission Statement

Our mission is not the safety of our vehicles, which can be easily replaced, but for the safety of our
customers and the families they entrust to our cars and to accelerate the worlds transition to electric
mobility with a full range of increasingly affordable electric cars for all consumers. Our mission is to
accelerate the worlds transition to sustainable energy.

The mission statement of the company is short and to the point clearly explaining what type of
organization it is, about its product, services and the needs they are going to fill. It clearly
explains their direction, purpose, and reason for being that is to be focused towards the safety of
their customers so that they entrust to their cars and to accelerate the worlds transition to
sustainable energy and electric mobility with a full range of increasingly affordable electric cars
for all consumers.

Organisational Structure Analysis

Tesla Motors, Inc. has an organizational structure that supports continuous business growth. A
companys organizational or corporate structure is the design and system that defines the patterns
of interactions among the companys components. In the case of Tesla, the organizational
structure takes a traditional form, considering the companys limited approach to its production
facility development. As a major producer of fully electric automobiles, Tesla uses its corporate
structure to facilitate extensive control of the organization. The company also maximizes its
ability to implement new strategies and manage its operational activities through its
organizational structure.
Teslas organizational structure creates business capabilities that enable strong managerial
control despite growing international operations. Thus, this organizational structure supports
Teslas mission and vision statement, which emphasize global leadership for electric products in
the automotive market.

Features of Tesla Motors, Inc.s Organizational Structure

Tesla has a functional organizational structure. This structure involves organizational function as
the main defining factor. Other characteristics observable in other types of organizational
structure are also present in the firms structure, although at a less significant extent. The
following characteristics are significant in Teslas organizational structure:

1. Global hierarchy (most important)


2. Global centralization
3. Minimal regional divisions

Global Hierarchy: The most significant characteristic of Teslas corporate structure is global
hierarchy. Global hierarchy involves functional teams or offices that oversee domestic and
international operations. This feature is typically observed in traditional organizational
structures, where companies aim to maintain strict control of their operations. In Teslas
organizational structure, the following functional offices direct and represent the global
hierarchy:-
1. Chairman & Chief Executive Officer
2. Chief Financial Officer
3. Chief Technology Officer
4. Vice President Vehicle Engineering
5. Vice President Powertrain Operations
6. Vice President North America Sales
7. Chief Designer
8. Vice President Manufacturing
9. Vice President Autopilot Hardware Engineering
10. Vice President Worldwide Services & Deliveries
11. General Counsel

Global Centralization: Tesla Motors, Inc. uses global centralization in its organizational
structure. The emphasis of global centralization is control on the entire organization through
decisions that a central group or team generates. In this case, the head of each office of the global
hierarchy form Teslas central headquarters, which directly control all operations. In this
organizational structure, the company does not support autonomy of its regional or overseas
offices. Instead, Teslas headquarters make most of the decisions for overseas operations.

Minimal Regional Divisions: This characteristic of the corporate structure focuses on the
extent of divisions in Teslas automotive business. These divisions are used to implement
different strategies and marketing campaigns, and to organize financial records and reports.
Teslas organizational structure has the following divisions mainly used for financial reporting:
1. United States
2. China
3. Norway
4. Other

Teslas Organizational Structure Implications, Advantages & Disadvantages


Tesla Motors, Inc. benefits from its organizational structure in terms of effective control of global
operations. Another advantage is the ease of implementing new strategies throughout the
organization. Also, the minimal regional divisions support not just financial reporting and
analysis, but also possible future regionalization of strategies and tactics in the automotive
business. These advantages empower Tesla to use its organizational structure for further
international growth.

However, a disadvantage of Teslas corporate structure is the rigidity that limits rapid adjustment
in the organization. For example, global centralization is a structural characteristic that limits the
ability of overseas offices to readily respond to issues they experience in their respective regional
markets. To address this disadvantage, Tesla can reform its organizational structure to increase
the level of autonomy of overseas offices. Also, an organizational structure with a higher degree
of decentralization tends to be more effective in creating competitiveness against local firms in
overseas markets.

External Environment Analysis

PESTAL Analysis

Political

Many governments today are looking for reducing CO2 emissions and consequently are setting up public
subvention policies to support their citizens in buying zero emissions vehicles. In France, there are fiscal
advantages and even discounts on the buy price if the products are ecologically responsible. In the US, car
makers must distribute a minimum of ZEV credits which encourage them to produce zero emissions
vehicles. These ZEV have however been recently threatened by Donald Trump, US elected president, but
Musk says it could even have positive impacts on Teslas activity. Remain the Border question which is a
threat for most of US car makers disposing plant in Mexico in contrast to tesla which has plant only into
the US territory.

Legal

The risk of Lawsuits engaged by patent trolls is still present. The development of new products by Tesla
must be conducted carefully being aware of intellectual property barriers. Nevertheless, Tesla open-
source shift can discourage most of these dangers. Another legal involvement for Tesla is an important
lack of legislation in artificial intelligence decision making which is yet used in tesla auto-pilot. If
problems related to self-driving decisions would become too much frequent, it could be a bad new for
tesla which could see its deliveries postponed.

Technological

The general cost for lithium-ions cells is decreasing which allow Tesla to build for lower cost and
increase its profit margin. The demand for solar panels is rising around the world and the market is
astronomic (78,2% of the global energy is from fuel, 19% is from renewable, including only 0,7% of
solar). Tesla Electric Vehicles need charging stations which must spread proportionally to car sales. On
top of that, Tesla self-driving software as well as various uses of artificial intelligence always more
autonomous raise ethical issues concerning decisions making, and Microsoft, Amazon, Google and IBM
just gather within Partnership for AI to discuss about these problematics.

Social

Advertising campaigns and attacks against fuel energies begin to affect people and the Millennials
generation is deeply engaged in this problematic. Energetic transition is accepted as must happen as soon
as possible by citizens and plenty companies, not by Trump. A general distrust in the current system and
especially in finance creates a large will to become autonomous as well on energy than on finance or
commodities.
Economic

A global uncertainty leads the market around the world although US recently show historically high result
on stocks indexes (S&P 500 break up its highest records). Oil prices are low, since their major fall in 2014
West Texas Crude oil and Brent didnt break their $60 resistances, which means that when oil prices will
surge again, certain people could be economically constraint to transit toward renewable.

Ecological

Ecological findings make a global consensus symbolized by the cop 21 agreements signed by 183
countries. These agreements engage countries to do their maximum to limit the global warming under
2C in 2100. On the shorter term, the 20,20,20 goal is the common objective. Meaning minus 20% in
fuel consumption, 20% of global energy being renewable from here to 2020. Ecological consequences of
human activities are numerous and each day a scientist review alert about effects far more irreversible
than what we can think of
Industry Analysis - POTERS 5 Force Model
Government
Safety norms for electronic products empower the government to legally delay deliveries.

Ethical issues concerning Self-driving decision making empower the government to sue tesla for AI
problematic decisions.

Financial participation and help provided by governments make tesla's activities leveraged by public
decisions.

Threat of substitution
Considering electric car market (no matter H2, biofuel, biogas), medium potential of substitution driven
by commun transports, bicycle trends or low cost car subscription programs (Automobile').

Considering widely sustainable life-style market (a relatively young market), low potential of substitution
evidenced by small amount of available alternatives in providing intelligent energy management services
to individual and professionals.

Supplier power
Engineering are produced by tesla and Lithium ions cells are supplied by Panasonic with which tesla
conclude a partnership to build a Giga factory in Nevada decreasing battery final cost by 30% from here
to 2018.

Solar panel for Solar Roof are provided by solar city which will soon merge with Tesla. - demand is
growing with the accessible model 3 (35 000$) and tesla forecast a production growth from 100 000 in
2015 to 500 000 in 2020. Competition is important in various car engine supplier but a necessity to shift
could cost tesla a lot in delivery postponing.

Buyer power
Buyers are spreading around the world in several countries with different jurisdictions. Collective actions
in order to push price down have consequently low probability to occur.

In case of important defaults, they could gather their miscontent to force tesla decrease its prices. - Due to
an aggressive price strategy, arguments to push prices even lower are rare. -Delivery processes are long
and deadline often delayed what could make customers clamming for discount.
Threat of new entry
High financial barriers for new entrants in the car industry making new entrant very occasional.

Traditional car manufacturer will entry the electric car market as soon as 2017 or already did. They
embody a high short-term threat on electric car market.

External Factor Evaluation

Opportunities

External Factors Wgt. Rating Wgt. Score Comment

The world is running out of oil.


0.35 5 2
Electricity is a renewable energy.
People care more about environmental 0.05 2 0.2
issues.
Can use their battery technology in
other areas, such as storing power from 0.1 4 0.6
solar panels.
The growing support by governments
across the globe for environmentally 0.1 3 0.3
friendly vehicles
Large International Market Potential
0.2 4 1
Particularly Europe, Asia, and Canada.

Threats
External Factors Wgt. Rating Wgt. Score Comment
Very Strong competition with Like BMW, Mercedes, and Lexus
0.3 2 0.6
less operating Costs expected to join the market soon
Electric cars are still expensive and
Economic slowdown 0.15 2 0.3 a new recession, like the one in
2008, may limit the demand
Limited supply for raw
0.3 2 0.6
materials
Limited Experienced resource
0.15 4 0.6
pool
Awareness of importance of Large Segment of the market is not
0.1 3 0.3
EV is not well propagated aware of the importance of the EV

Competitive Analysis

By Company

Market 21.98B 61.33B 49.41B 202.81B


Cap: 51.57B
2964 106870 276044 213000 333498
Employees:
Revenue 1.32B 76.45B 114.20B 152.84B 289.95B
(ttm):
EBITDA -156.36M 10.48B 13.32B 7.90B 36.35B
(ttm):
Operating -16.38% 10.34 5.51% 1.39% 7.54%
Margin
(ttm):
Net -219.99M 5.17B 6.64B 4.53B 15.68B
Income
(ttm):
EPS (ttm): -1.95 7.88 6.22 2.79 9.90
P/E (ttm): N/A 9.97 9.22 12.79 12.93
PEG (5 yr 16.13 2.26 N/A 0.60 0.34
expected):
P/S (ttm): 16.61 0.68 0.54 0.32 0.70

General Motors

Competitor Response Profile:

GM represents a significant future threat to Tesla, if, as planned, Tesla decides to enter the small
premium market near the $30,000 price point
The current development of the Volt, although it is not a true electric car, indicates that GM remains
interested in the electric/hybrid car market, and will continue to pursue the market in the foreseeable
future

Designed for approximately 40 miles of battery powered driving before the 1.0L turbocharged gas
engine automatically begins to recharge the battery, thus extending the range of the Volt to up to 640
miles of highway driving

Actions:

The only way for Tesla to compete effectively would be through differentiation, which would focus
mainly on technology

Toyota

Competitor Response Profile:

Toyota Motor Companys has a longstanding hybrid technology and possible entry into the plug-in
hybrid and fully electric car market

Toyotas Prius first took the road in Japan in 1997, arrived in America in 2000, making it the most
prevalent hybrid car

Tesla should be wary of Toyota offering a larger battery pack and a home charging station as options for
the Prius, as this could eventually lead to Toyota offering a full electric version of the Prius.

This would cut into Teslas plans to offer fully electric sedans at different price points

Actions:
Tesla should focus on improving their technological advantage in fully electric cars so that by the time
Toyota enters the electric car market, Tesla has a technological advantage.

BMW

Competitor Response Profile:

Teslas one of the potential competitor is BMW, which continues to put effort into entering the luxury,
highperformance, low-emissions, low-consumption auto market In August it unveiled the production
version of the i3

The companys first all-electric series production vehicle will be available next year some time before
June and at a seriously competitive price.

Moreover, the i3 is not merely but the first of a line of EVs planned to deliver individual mobility
thats what the i brand stands for

BMW has designed and built its own electric motors for its models

Actions:
Tesla should improve brand awareness and Global expansion before the most serious threats vehicles
from European companies enter the game
Daimler AG

Competitor Response Profile:

The Mercedes-Benz B-Class Electric Drive will go on sale in the US and Europe from early next year

Most of the systems that charge and run the little B-Class will be shared with the upcoming SLS AMG
Coupe E-Cell.

Mercedes-Benz product R&D manager Dr Thomas Weber says electric vehicle technology will move
quickly enough to make dedicated electric vehicles viable even for those who want to travel longer
distances and not pay a premium over a traditional petrol or diesel car.

Mercedes-Benz has partnered with Tesla for its electric motor and battery technology

Internal Environment analysis

Tesla performances

Tesla Motors performances are quiet encouraging. A steady growth in revenues comes to balance a
negative net income what suggests a future ability to create value. Moreover, investments in R&D,
Capital expenditure and operating expenses have steadily increased since 2010 to pick in 2015 explaining
an important decrease in cash flows this precise year. By and large, Tesla performance are significantly
related to its position relative to the general industry life cycle. Indeed, according data, Tesla is slipping
from its Birth phase to its Growth phase meaning that ultimate investments required to face substantial
growth and then profit just happened and require a few years to show sufficient returns. Tesla is therefore
in transition and need more than ever to build a consistent and long-term strategy for its growth and
maturity phase.

Organizations resources

Tesla Motors Financial/Physical resources:

According the Tesla Balance Sheet, Tesla Motors has $1.2 billion in cash reserve for a total $8 billion in
total assets. The company owns its factory, the Tesla Factory which is in South Fremont California and
can produce 2000 cars per week for a total of 100 000 per year. Another factory located in Nevada, the
Gigafactory which has been financed by Tesla and some of its partners including Panasonic, is currently
operational and should reach its optimal activity by 2018 thus pushing down batteries costs by 30%. The
17th of November 2016, the merger with the solar cells manufacturer Solar city a firm whose board of
director is close to Tesla has been validated by both executives. This merger should allow Tesla to
become a leader in solar cells market. Ultimately, Tesla is discussing with the German automated
manufacturer Grohmann Engineering for an eventual acquisition which should allow Tesla to reach a 500
000-annual production and meet the current 300 000 demand.

Tesla Motors Technological Resources:

What we consider as intangible asset for Tesla Motors is mostly Intellectual Property, Brand Valuation
and Valuable Know-How. Concerning Intellectual Property, Tesla policy is clear and consistent with Elon
Musks long term vision; All our patent are belong to you titles an official tesla publication from the
July 12 of 2014. This open source shift means $0 will be made on tesla numerous patents. The brand
value question is far more complex. A HEC study conducted in 2016 compute the Tesla Motors brand
value by combining Benchmark, Costbased, Market-based and Income-based methods. Results expose an
average Brand value of 14 634 million, with a minimum of 2 823 million and a maximum of 28 517
million. These important variations depending on the computation methodology highlight something
especially relevant concerning Tesla Brand Value; those who are long on TSLA stock are especially more
optimistic than the short side and claim that Tesla Motors has an incredible value as a brand, embodied by
a high visionary strategy led by its CEO Elon Musk. In addition, the tesla know-how concerning electric
car and energy storage is critically useful knowing almost every traditional car makers will produce
electric car as soon as 2018.

General competences and capabilities

We can split Tesla Motors competences and capabilities in tree sub categories. The two firsts, Electric
Vehicle Manufacturing (EVM) and High Performance Battery Manufacturing (HPBM) are proper
competences which materialize in concrete Strategic Business Units, while the third one is one intangible
capability involving a more abstract Tesla power; The capability to draw a consistent future.

Electric Vehicle Manufacturing

Tesla Model S
Tesla Model X
Tesla Model III
Tesla Motors offer in electric vehicles consists in tree high quality models all equipped by last high
technologies; self-driving, smart decision making, High interaction with the car through beautiful screen.
On top of that, each model has a high-level design and an exceptional traction power supported by an
ultra-efficient electric propulsion. The Model S is the luxury sport model of Tesla which has the highest
acceleration on the current car market (0 to 100 in 2,7 seconds) and which is sold between $70 000 and
$150 000. The Model X is a luxury SUV equipped with the same technology than the model S with a
higher autonomy and a lower acceleration than its sister S (3,1 seconds against 2,7) although this feature
is still exceptionally high on a SUV. The Model III has been unveiled on march the 31 of 2016 and should
start to be delivered in early 2017. Unlike his two luxury sisters, the model III is targeting middle classes.
Starting from $35 000, it is positioned on top of the range rather than in luxury. Design and quality are
impeccable but the main sacrifices are made on the proper performances.
High Performance Battery manufacturing
Tesla Power Wall
Tesla Power Pack
Tesla Solar Roof
At the same time, Tesla Motors diversifies its activity and have chosen to use its know-how in battery
manufacturing to develop smart energy management services. Combining its high efficient batteries to
smart software built by American best engineers, the firm extends its offer by proposing Smart Power
tools. The Powerwall (currently in version 2) consists in a compact box available for $6 000 to $7 000
which allows household to manage its energy consumption; stock the electricity produced by renewable
energies, make it usable for domestic applications, smartly manage flux to sell surplus in low-need period
and keep reserve for periods especially voracious in energy. Tesla also makes available the professional
version of its Power Wall; the Tesla Power Pack. Especially designed for companies needs, the Power
Pack consists broadly in the same utilization than the Power Wall but is built for being integrated in every
company with multiple configurations and flexible options. Tesla Solar Roof has been announced on last
October before the confirmation of an eventual merger with Solar City. Despite that we dont have much
information now, ones we have are quite attractive; Solar Roof should consist in real like tiles based on a
technology that allow us to see transparency to reach solar cells only if we are under a certain angle
with the tile. Otherwise, we see the colour originally applied to the raw material replicating classic tile
colours from Slate Black to Tile Orange. Elon Musk evoked that their tiles should cost even less than
traditional one, we will remain cautious on this information.

Capability to draw a consistent future

Transformational leadership

Tesla Motors CEO Elon Musk is a brilliant entrepreneur involved in many successful tech companies
(Zip2, PayPal, Space X, Tesla Motors, Hyperloop, Powerwall, Open AI). Through these projects, Musk
engaged himself in Financial autonomy, Space exploration and especially Mars conquest, Ultra-speed
transportation technology, Sustainable life-style and Artificial Intelligence. These problematics are all
critical for the next future and the fact to be involved in each of them is for Teslas CEO an incredible
source of world-wide influence. Dubai recently signed with Hyperloop to build a high-speed network in
its growing capital what suggest financial support shouldnt be an issue for Musk outlooks. By drawing
this future through its engagements, Musk creates a long term optimistic scenario within which every
business he has developed have a high-potential to broadly improve the world-wide situation. This
transformational leadership could be the hidden feature of Musks businesses; it may be the hidden Brand
value of Tesla, the reason why investors invest in hyperloop or even the only path toward an
interplanetary transportation system. Who knows up to where a great mind can change a world?

Internal Factor Evaluation

Strengths
Wgt.
Internal Factors Wgt. Rating Comment
Score
Strong R&D department
0.45 4 1.8
Calibers
The CEO Elon Musk has earlier founded
Strong Management
0.3 4 1.2 companies like PayPal and SpaceX, so he has
Team
a good track record
The Model S won the 2013 Motor Trend's Car
Excellent Designs 0.1 3 0.3
of the Year award
They are building their cars in California .
Great Location, close to
0.05 3 0.1 They can find many computer- and electrical
best calibers in the US
engineers in California

Large Production Ability to develop vehicles completely in


0.1 2 0.3
Capacity house including the sub-assemblies required

Weaknesses
Wgt.
Internal Factors Wgt. Rating Comment
Score
Relatively High Priced
0.25 3 0.75
compared to fuel cars
Tesla Motors are doing their best to change this
Few Charging stations 0.2 2 0.4 by building Superchargers, which are like gas
stations but for electric vehicles only.

Low Battery Range 0.3 2 0.6

Battery Charging could take around 30


Slow Charging Process 0.3 1 0.3
mins/170 mile
Lack of Brand
The company is just ten years old ,Compared to
Recognition &Limited 0.05 3 0.15
fuel cars manufacturers
operating history

SWOT Analysis

Strength
Product: fastest and most energy-efficient electric car on the market
Innovative technology
Brand image
Positive strategic partnerships

Opportunity
Growing market
Increasing oil & gas prices
Rising consumers sentiment
Government support
Young industry with no set standards
Large International market potential
Increasing awareness and support for environmentalist

Weakness
Scale of operations, no economies of scales, low sales volume
Dependent on continuing innovation
Financial profile
Deep pocket competition

Threat
Large motor companies devoting more resources to developing electric cars and cars
fuelled by other alternatives
Increasing Internal Combustion Engine efficiency
Limited EV support Infrastructure
Concentrated industry
Auto buying dynamics
Loss of government subsidies
TOWS Matrix
Strengths Weaknesses
External Factors EFAS S1: Strong R&D department W1:Relatively High Priced
Calibers compared to fuel cars
S2: Strong Management Team W2: Few Charging stations
S3: Excellent Designs W3: Low Battery Range

Internal Factors IFAS S4: Great Location, close to best W4: Slow Charging Process
calibers in the US W5: Limited operating history
S5: Large Production Capacity
Opportunities SO Strategies: WO Strategies:
O1: The world is running out of oil. Electricity is a Focus on new product
development with new
renewable energy. technologies and be ahead of the Outsourcing some operational
O2: People care more about environmental issues market (S1,3,5+O1,2)
activities to a low Cost (O5,W1)
Expand in new
O3: Can use their battery technology in other areas, markets(S1,3,5+O5)
such as storing power from solar panels. Develop new products in an Promote the awareness of
industry different than the environmental friendly
O4: The growing support by governments across company's core operation cars(O1,O4,W1)
the globe for environmentally friendly vehicles (S1,S5+O3)
O5: Large International Market Potential.
Particularly Europe, Asia, and Canada.
Threats ST Strategies: WT Strategies:
T1: Very Strong competition with less operating Develop new products attracting Follow Cost reduction strategy to
the different segments (S1,5+T5) decrease costs(T1,W3)
Costs Develop new technologies to Sell the company with a good
T2: Economic slowdown decrease overall operating costs bargain (T1,T2+W3,W2,W1)
(S1,5+T1)
T3: Limited supply for raw materials
T4: Limited Experienced resource pool
T5: Awareness of importance of EV is not well
propagated