Competitive advantage and strength
Tesla Motor deals in electric-powered vehicles which is a product that is totally new in the world market. The world is currently suffocating in carbon dioxide from exhausting cars which are gasoline powered. It is with great pleasure that Tesla has come up with a solution to end such emission by producing cars powered by electricity. Therefore, the biggest competitive advantage Tesla Motor possesses is their ability to produce the much awaited carbon-free vehicles. Apart from carbon free vehicles, the cars are cheaper and safer according to the testimony of most of the customers who have used the products. People are anxiously waiting to join the carbon-free vehicles. From the United States to Europe all the way to China, the wealthy are shifting their attention to eco-friendly car which gives Tesla Motors the a cut above the rest in the market. Tesla Model S was voted as the safest car in the United States in 2013 and 2014. The National Highway Traffic Safety Authority rated the vehicles highly meaning they are recommendable for any user. Therefore, Tesla Motors has a competitive advantage in the market due to the safety, luxury and cheaper prices they offer. Finally, Tesla has a great financial strength and this can be attributed from the high number of the vehicles the company sells annually.
Competitor’s Analysis
Tesla Motors is facing competition from all sides. Both gasoline-powered and electric-powered cars are in the race to command the market. Currently, there are numerous electric-powered cars manufacturing companies around the world which will not rest until they are assured of the market portion. However, out of these companies, Tesla’s Model S has been superior to all their products in terms of efficiency, speed, cost and luxury. Currently, Tesla’s Model X is under production stage and it is believed that it will be better than Model S. This suggests that Tesla is still here to command the electric-powered vehicles market.
Apart from the electric-powered vehicles manufacturing companies, Tesla is facing a big challenge to outdo the likes of Mercedes, Porsche, Lexus and Audi in the market. In 2013, Forbes reported that Tesla was the eight among the 25 most selling zips in the United States. The amount of cars sold by Tesla in 2013 also outnumbered those sold by other luxurious companies such as Mercedes. It can be concluded that Tesla Motors is currently facing a challenge to beat the competitors in the market since the product is new in the market. However, in the future, it will be a real force in the market.
VRIN Analysis
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