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Ife and Efe Matrix for Tesla Motors

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IFE and EFE matrix for Tesla MotorsThis essay aims at completing both IFE and EFE matrix for Tesla

Motors, a company that manufactures electric vehicles. These two strategic frameworks will help carry

put an in depth analysis of the company by identifying the opportunities, strengths, weaknesses and

threats that the company experiences. External Factor EvaluationThe external factor evaluation matrix

aids in the analysis of a company’s external environment by evaluating the threats and opportunities of

the company. The matrix also provides how the company responds to its opportunities and threats.

Below is the matrix detailing theanalysis.External Factor Evaluation Matrix for Tesla Motors Inc.External

factorWeight Rating Weighted score Opportunities Greenhouse gases emission .103.3Expansion to

international market (China, Europe).204.8Expend addressable market .2541Threats Competitors’

electric vehicles division .101.1Diversification to China market (tariffs,regulations).152.3

The first macroenvironmental factor that Tesla Motors faces is the society and subcultures. In this day in

age consumers worldwide have increased their knowledge and sensitivity about its environment.

Numerous companies have catered to this need of becoming more environmentally responsible by

offering products that are “green” or environmentally friendly. This new growth amongst people and

organizations alike of becoming more environmentally conscious has created an opportunity for Tesla

Motors with its brand of product. Tesla Motors produces and sells fully electric cars as well as electric

vehicle powertrain components that give off no tailpipe emissions. Also Tesla motor vehicles cut CO2

emissions in half compared to gas burning automobiles that currently dominates the roads today.

Environmental consciousness is what Tesla Motors is built on and its pursuit of diminishing dependence

upon a diminishing resource for their consumers is what the company values most and depends on most

for increasing revenue.

The second macroenvironmetal factor that Tesla Motors runs into is the demographics. The

demographics factor may pose as a major problem for Tesla’s success in the future as its product only

appeals to those that are able to afford their vehicles. Although Tesla Motors offers a first-rate vehicle

when it comes to performance, efficiency, and class the price for the fairly new automobile company is

not economically friendly. Currently Tesla’s prices can range from the base vehicle Model S which

currently costs roughly $58,000 up to its “signature edition” which is estimated at $105,000. With its

above average cost of the high end fully electrical cars Tesla must integrate a more concentrated

segmentation strategy in targeting the correct demographics to foster the company’s success. Tesla

Motors should also take into consideration of tackling demographics in regions with higher gas prices

compared to others. According to the American Automotive Association California, Hawaii, Alaska,

Connecticut, and New York are among the states with the highest gas prices (Kurtzleben, 2011). In

accomplishing this Tesla will be able to market to demographics that can offer a higher incentive in

purchasing their fully electric vehicles.

Essays

Business

SWOT Analysis of Tesla

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1774 words (7 pages) Essay

15th Feb 2019 Business Reference this

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Tesla, Inc. is an American company that specializes in electric automobiles, energy storage, and solar

panel manufacturing. Founded in 2003, Tesla has recently disrupted many industries, most notably the

auto industry. Tesla’s focus on electric power vehicles, lithium-ion battery, and energy storage set itself

apart from their competitors; “Tesla has expanded its focus from simply building the best electric car to

paving the way for autonomous vehicles, solar power, and so much more” (Houser, 2017). This

demonstration of leadership and shared knowledge expresses their overall effort to “accelerate the

advent of sustainable transport” (Musk, 2013). While it isn’t common for a company to hope their

competitors copy their products, this is exactly what CEO, Elon Musk, hopes for. While Tesla is a

business, it is more interested in the fundamental good of getting the auto industry as a whole to move

towards sustainable transport faster; the first step in doing so would be to get their competitors to

follow suit. As defined in the text, a SWOT analysis is “a technique through which managers create a

quick overview of a company’s strategic situation” (Pearce, 2015). Tesla, Inc., like any company, has

strengths, weaknesses, threats, and opportunities that are unique to their company specifically.

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(S)trengths

The strengths of a company are focused on proficiency, skill, and the advantages of an organization.

Tesla, Inc. stands out against competitors due to their unique position in the market. Tesla has created a

market for cars that are both luxurious and long range electric. By doing so, they have set themselves

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IFE and EFE matrix for Tesla MotorsThis essay aims at completing both IFE and EFE matrix for Tesla Motors, a company that manufactures electric vehicles. These two strategic frameworks will help carry put an in depth analysis of the company by identifying the opportunities, strengths, weaknesses and threats that the company experiences. External Factor EvaluationThe external factor evaluation matrix aids in the analysis of a company’s external environment by evaluating the threats and opportunities of the company. The matrix also provides how the company responds to its opportunities and threats. Below is the matrix detailing theanalysis.External Factor Evaluation Matrix for Tesla Motors Inc.External factorWeight Rating Weighted score Opportunities Greenhouse gases emission .103.3Expansion to international market (China, Europe).204.8Expend addressable market .2541Threats Competitors’ electric vehicles division .101.1Diversification to China market (tariffs,regulations).152.3 The first macroenvironmental factor that Tesla Motors faces is the society and subcultures. In this day in age consumers worldwide have increased their knowledge and sensitivity about its environment. Numerous companies have catered to this need of becoming more environmentally responsible by offering products that are “green” or environmentally friendly. This new growth amongst people and organizations alike of becoming more environmentally conscious has created an opportunity for Tesla Motors w ...
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Tags: external factor evaluation Tesla Motors greenhouse gases emission macroenvironmental factor brand of product