Tesla: SWOT Analysis and Strategic Growth Options

Strategic Issue for the Brand from the SWOT Analysis

Based on the SWOT analysis conducted, one can assume that Tesla needs an appropriate strategic development plan to overcome the competitive barrier and address existing legislative issues. While taking into account such indicators as the high cost of component materials, the use of information technologies is necessary to solve problems with expenses.

According to Alghalith (2018), this measure may be effective since the introduction of IT innovations can help optimize several production processes, including the assembly mechanism. The increase in sales volume depends on the companys pricing policy directly, and if Tesla manages to save money at the design stage and sell their electric cars at a lower price, this will expand the sphere of influence and make it possible to sell more goods in the international market. Therefore, creating optimal conditions for solving the issue of expensive assembly is a potentially significant objective.

Another significant goal that needs to be achieved is the solution of legislative conventions and problems with regulatory requirements, which impede the development of the company and contribute to growing the aforementioned costs. In particular, the lack of business expansion opportunities in Asia is due to existing barriers in local markets.

To solve these challenges, Välikangas (2018) recommends paying attention to solving the accompanying competitive difficulties and notes that, for instance, the Chinese market of electronic vehicles is independent and develops separately, which complicates the implementation of Tesla.

The need to follow existing legislative nuances can be mitigated by the establishment of partnerships with target regions for selling more products and, thereby, enhancing power opportunities. This move can help increase sales and achieve even greater brand recognition to extend the spheres of influence and strengthen Teslas position in the international market as a trustworthy corporation.

Current Marketing Mix Effectiveness

At the moment, Teslas marketing communication is advanced and sufficiently effective to attract a large target segment and maintain a high level of brand recognition. As Falát and Holub
ík (2017, p. 152) argue, the marketing mix or 4Ps (Product, Place, Promotion & Price) helps the company to build public relations by the current needs of the market and create in-demand offers. To analyze the current situation in the Tesla company, this assessment strategy may be applied. In Table 1, the basic information is given regarding the corporations marketing mix effectiveness from the standpoint of the 4Ps technique.

Table 1: The 4Ps Strategy for the Tesla Company.

Product	Place	Promotion	Price
Teslas products are narrowly oriented and limited, which, in turn, allows the companys marketers to promote the goods for the target audience and make unique offers due to creative design approaches and brand recognition.	Most of the outlets are concentrated in the USA, and some stores are located in Europe and Australia. However, in the Asian market, Teslas products are almost not supplied, which limits sales and creates inconvenience for establishing partnerships with local distributors.	The promotion of Teslas products is largely due to active marketing campaigns in the Internet space. The personality of Elon Musk, the CEO of the corporation, is world-famous, and his social media accounts have millions of subscribers, which increases brand awareness and creates the conditions for successful advertising.	The price of Teslas goods is high in comparison with other projects in this market segment. In addition, high costs for components are real and inevitable. However, positioning the company as a premium brand makes it possible to involve wealthy customers and, at the same time, advertise vehicles as economical ones by using electricity instead of gasoline. Additional offers are also proposed to increase buyer interest, for instance, low-cost models.

Reference List

Alghalith, N 2018, Tesla: innovation with information technology, International Journal of Business Research and Information Technology, vol. 5, no. 1, pp. 37-51.

Falát, L & Holub
ík, M 2017, The influence of marketing communication on financial situation of the company a case from automobile industry, Procedia Engineering, vol. 192, pp. 148-153.

Välikangas, L 2018, Forum on Tesla and the global automotive industry, Management and Organization Review, vol. 14, no. 3, pp. 467-470.

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