SWOT-Analysis Of Tesla Inc.

Introduction Promotion of the brand in many aspects depends on the organization of the marketing researches which helps the marketers and managers to determine what strengths can be used for the creation of the competitive advantage.

As argued by Daniel, Tesla Inc. is a company that changed the traditional thinking about the US automotive industry. In particular, it started to manufacture energy and solar technologies that contributed to its branding (Daniel, 2020). In order to ensure customers the best quality and modern design, the core focus of the company is innovation. Tesla Inc. designs the cars taking into account the visions how the electric cars and other vehicles will look like in the forthcoming years and what customers will expect from their design and functionality.

Among the weaknesses, it is necessary to note that the Tesla Inc. spends “zero dollars” on their promotional and marketing campaigns. Relying on the public attention is not always enough for the company to retain target consumers and attract new buyers. The company challenges strict competition from the giant automotive manufactures like General Motors, Ford, Toyota, Volkswagen and others. According to, DeBord, Tesla Inc. lacks about $300 bln in value compared with its competitors (DeBord, 2020). As claimed by Salinas, Tesla Inc. major weakness is problems with customer services. The scholar calls is “company’s Achilles’ heels”. According to the annual surveys the number of satisfied customers reduced from 85% to 80% during 2018. Approximately 42% of Tesla Inc. target customers describe their buying and service experience as excellent. The major issue of concern is necessity to wait for appointments long. Especially, the weak customer service is observed outside the United States (Salinas, 2019). In the opinion of Michael Wayland, the company has the problems with quality of its vehicles (Wayland, 2020). According to the scholar, most of the owners of Tesla cars reported about the problems with their use during the first 90 days after the purchase. 

Tesla has a lot of opportunities to improve its competitive advantage and increase its market share. In particular, the company is going to build factories which will ensure the entire process of the automobile production. Expansion of manufacturing facilities can make Tesla Inc. production more sustainable and independent on the external supplies that potentially can contribute to the decrease of prices on the end product. Earlier the company relied mostly on one factory located in Fremont, California. In addition, Tesla Inc. has opportunity to expand its market share in the segment of eco-friendly cars (Fru, 2019).

Among the threats of the company, there is still the threat of sales reduction. As it is known, Tesla’s cars are expensive, and in case of the households’ incomes reduction, the profits of the company can reduce. For example, during Covid-19 pandemic outbreak which hit the United States, the unemployment rate significantly increased, while the incomes dropped. Therefore, people spend more on food and health care products rather than on the purchase of a new car.

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