Introduction
SWOT analysis is an effective method for assessing the primary performance factors of an organization or business. The purpose of the use is to identify the areas of opportunity and the main threats to the enterprise, covering all the necessary aspects (Clark, 2017). SWOT analysis includes strengths, weaknesses, opportunities, and threats.
This paper will analyze Tesla, one of today’s most successful and profitable organizations. Using the example of this business, one will be able to effectively define the structure of the SWOT analysis and demonstrate the main task. In addition, it will help to reveal the features and central aspects of Tesla’s activities.
Tesla’s SWOT Analysis
Table 1. Tesla Company SWOT Analysis
Strengths
As shown in Table 1, one of Tesla’s strengths is its strong position in the stock market. It is formulated by the fact that the organization’s shares have a high price, articulating the impact on other companies and the possibility of financial operations. Further, the company has a high level of innovation, can elaborate on products, and is a market leader (Dobrev, 2020). It is also worth noting that the business model is well-developed, focused on customers, and minimizing costs. Finally, the company’s brand is one of the most recognizable worldwide, fostering employee trust (Dobrev, 2020).
Weaknesses
Among the company’s weaknesses is the lack of sufficient customer confidence in the products. Thus, many people believe that gasoline engines are more profitable. Moreover, Tesla is experiencing difficulties in some production processes and cannot release the announced products. Besides, the company’s sales are falling in some regions of the world, which is why it is weak.
Opportunities
However, as one can notice in Table 1, the company has several opportunities that consider external factors and business characteristics. First, an eco-friendly trend worldwide opens up new opportunities for electric cars in the markets. Moreover, the market for electric vehicles is free, which allows the Tesla company to take an even stronger position. Further, despite the vast territory covered by the company’s sales, many potential countries still exist to start selling in. Tesla has the opportunity to launch cheaper family cars, which will help increase profits through new customers.
Threats
At the same time, the company has threats, such as, as seen in Table 1, business model limitations. It includes the impossibility of selling products in some regions due to peculiarities in the laws. Finally, competition is growing, which worsens the dependence on raw materials suppliers to manufacture products.
Conclusion
To conclude, SWOT analysis effectively visualizes the most important aspects of a business or company. Using Tesla as an example, one demonstrated the main parts of the analysis and opportunities and threats for the company. These include developing due to the eco-friendly trend and increasing levels of competition, new markets, and business model constraints. In addition, Tesla’s strengths and weaknesses were identified in the work, which is the primary purpose of the SWOT analysis.
References
Clark, W. (2017). Walt Disney world SWOT analysis. Web.
Dobrev, I. (2020). Tesla’s current state and brand potential. How to derive a brand meaning and create a future that inspires. GRIN Verlag.