Tesla Case
1. The PESTEL framework:
Political factors:
· The federal tax credit was summed up to 7,500$ for what is called qualified plug-in electric drive vehicles.
· The U.S. government imposed taxes and at the same time boosted in investment by supporting it through the $1.3 billion invested in the hydrogen powered research.
· The government also imposes regulations which might form/deform the shape of the industry thus affecting it negatively positively. Economic factors:
· The vehicles that are being sold are expensive so selling such products would have a good impact on the economy.
· The economic crisis of 2008
· The gasoline price increase in U.S.
Sociocultural factors:
· The trend today between people and in the U.S. environment is buying such types of cars.
Technology factors:
· Technology is highly used and thus ready to assist in the availability of these cars.
Ecological factors:
· The cars that are produced by tesla are environmentally friendly. Legal factors:
· The regulations in the U.S. help the growth of such a business.
2.For the Tesla Company, in order to analyze the industry’s environment, one has to cover each aspect of the Porter’s 5 forces. First force is the competitive rivalry which is considered very high in this industry. All companies are searching for the new market in the car industry which is the electric line. The industry is limited to specific players which make it saturated as every player has huge resources, reputation, image… Thus it is an oligopoly as there are 3 big US companies, along with the German, Japanese, Korean, and Chinese car companies. Second force is the threat from new entrants which is low. The barriers to entry are high due to the high capital requirement to manufacturing cars. Also such an industry need brand equity and image along with needing a wide distribution channel. Also one needs the technological
Political factors:
· The federal tax credit was summed up to 7,500$ for what is called qualified plug-in electric drive vehicles.
· The U.S. government imposed taxes and at the same time boosted in investment by supporting it through the $1.3 billion invested in the hydrogen powered research.
· The government also imposes regulations which might form/deform the shape of the industry thus affecting it negatively positively. Economic factors:
· The vehicles that are being sold are expensive so selling such products would have a good impact on the economy.
· The economic crisis of 2008
· The gasoline price increase in U.S.
Sociocultural factors:
· The trend today between people and in the U.S. environment is buying such types of cars.
Technology factors:
· Technology is highly used and thus ready to assist in the availability of these cars.
Ecological factors:
· The cars that are produced by tesla are environmentally friendly. Legal factors:
· The regulations in the U.S. help the growth of such a business.
2.For the Tesla Company, in order to analyze the industry’s environment, one has to cover each aspect of the Porter’s 5 forces. First force is the competitive rivalry which is considered very high in this industry. All companies are searching for the new market in the car industry which is the electric line. The industry is limited to specific players which make it saturated as every player has huge resources, reputation, image… Thus it is an oligopoly as there are 3 big US companies, along with the German, Japanese, Korean, and Chinese car companies. Second force is the threat from new entrants which is low. The barriers to entry are high due to the high capital requirement to manufacturing cars. Also such an industry need brand equity and image along with needing a wide distribution channel. Also one needs the technological