Global Strategy and Sustainability Assignment Sample 2024
Introduction
In the modern era, it is the duty of every organization to select proper marketing strategies which will provide sustainability to the company in the global market. In this report, the strategy review of Tesla will be discussed and the impact of these strategies in ensuring the growth and opportunity of Tesla will be elaborated in detail.
Task 1 – The External and Internal Environment
Analysing the external and internal environment of Tesla
External environment analysis
| PESTLE factors | Impact of the factor on Tesla |
| Political | Tesla is one of the most renowned electric vehicle manufacturing companies of the world which is situated in the USA and established in 2003 which implemented the approaches is sustainable energy in cars (Tesla.com). The government of the USA always provides sustainability which results in the sustainability and increasing competitiveness of the business |
| Economic | The USA has one of the most developed economies in the world as the amount of GDP (Gross Domestic Product) of the USA is near about $20.953 trillion which helps the company in increasing the sales of the car in the USA(Data.worldbank.org. 2022)
|
| Social | The population of the USA is extremely concerned about reducing the use of gasoline-powered cars and for that reason, the use of electric vehicles is nauseating in the nations which impacts the sales of Tesla |
| Technical | USA is one of the most technically advanced countries in the world as the American government always supports the company in order to use more innovative techniques which increase productivity and reduces the production time |
| Legal | US government also provides patent protection to Tesla which helps to provide optimum sustainability to the business |
| Economic | The management of Tesla needs to follow the environmental regulations of the country to maintain the stability of the business |
Table 1: PESTLE analysis of Tesla
(Source: Self-created)
Internal environment analysis
| Strength
Tesla maintains a strong brand image which increases the sales of the company. The technical advancements and innovative management are the assets of the company which makes it the most valuable electric automobile manufacturing in the world
|
Weakness
Manufacturing complexity is one of the main weaknesses of Tesla which increases the production costs and makes it extremely expensive |
| Opportunity
The electric vehicle market is growing day by day and the demand for an electric car is also rising which may provide multiple opportunities to Tesla in the future (McCain, 2019) |
Threat
Growing competition is one of the main threat of Tesla |
Table 2: SWOT analysis of Tesla
(Source: Self-created)
Factors derived from critical analysis
The US economy plays a crucial role in increasing the sales of the company as most of the people of the country have the credibility to purchase the cars of the company. The technical supremacy always helps to improve the condition of battery and charging system work of electric cars. Due to the political stability in the USA the company has the opportunity to expand in all over the countries which enhance the profit level of Tesla.
Evaluating the current competitive advantage of Tesla
According to the current status and marketing condition of Tesla it has been found that the sales of cars are increasing day by day which denotes the competitive advantage of the company in this sector. Due to the increasing sales of cars the magnet of Tesla has taken the decision to increase the production of the cars as the production of Model S/X and model 3 are increasing since 2015 (Tesla.com. 2022).
Task 2 – Strategy in the Global Environment
Evaluating the entry of Tesla in foreign markets and the impact of this strategy on Tesla
It is immensely essential for the company to take a proper approach which may help Tesla enter a new market. The company mainly execute a direct selling strategy which is immensely effective in indexing the sales of the colony in the local market. In addition to that, during the entry in the foreign market the company needs to improve the Supply Chain Manager and after that popper market entering strategy needs to be selected by the company.
Tesla is one of the biggest and most renowned electric vehicle making companies in the world which improves the brand reputation in the market and for that reason the company may use a direct exporting strategy by opening new selling channels in foreign countries. Joint ventures may be treated as one the most innovative and effective market entry strategies which may be beneficial for the growth of the company in the global market.
One of the main features of joint venture entry mode is that in this case the home country generally searches for the same business in the target nation which may help the organization of home country to achieve success in the target country. The management of Tesla needs to find and target the potential customers who have the ability to buy the cars of the company and after that a strategic business partner needs to be selected for the growth and success of the business in the target country (Akanden and Khadka, 2018).
Recommendations for the improvement of Tesla
The recommendations are as follows:-
- The direct selling strategies of Tesla needs to be more improved to achieve more sustainability and competitiveness in the global market
- It should be recommended that Tesla needs to hire more technical experts to improve the longevity of cars
- Tesla Needs to reduce the price of cars or requires to launch an economy car model to target all levels of customers
- In some countries, Tesla needs to execute a joint venture strategy to minimize the risk factors in the new foreign market
- It should be advised that the company needs to select proper raw material suppliers to prevent the distribution of car manufacturing
- The marketing and promotional strategies of Tesla needs to be improved to increases the sales of cars in the global market
Conclusion
From the above discussion, it may be concluded that it is one of the main responsibilities of the management of Tesla to design sustainable strategies which may help the company in ensuring the growth and success of the company in the international market.
References
Akande, O. and Khadka, B., 2018. Market entry strategy: Case company-MAMTUS.
Data.worldbank.org. 2022. GDP (current US$) – United States | Data. [online] Available at: <https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US> [Accessed 7 March 2022].
McCain, C., 2019. A Strategic Audit of Tesla, Inc.
Tesla.com. 2022. About Tesla | Tesla. [online] Available at: <https://www.tesla.com/about> [Accessed 7 March 2022].
Self-evaluation
In this report, I have briefly discussed the global strategy and suitability of Tesla which will help me to understand the current competitiveness of the company in the global market. I have also implemented the PESTLE and SWOT model and identified the internal and external environment of the company and also implemented a foreign market entry strategy for Tesla. Additionally, a recommendation is also provided for the company growth of Tesla in the upcoming days in the global market.
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