SOLUTION: Tesla Motors Inc Situational Analysis VRIO Framework & SWOT Analysis Worksheet

Attached.Surname1Student’s NameProfessor’s NameCourseDateTesla Motors, Inc.Situational AnalysisVRIO FrameworkResource and(V) ValuableCapabilityCommoditized Yes(R)(I)(O)RareDifficult toOrganizational CompetitiveImitateexploitationadvantageYesYesSustainableYesBattery PacksType ofcompetitiveadvantageSuperchargingYesYesYesYessystemsSustainablecompetitiveadvantageMega factoryYesYesYesNoUnusedcompetitiveadvantageSurnameDirect salesYesYesNoTemporarycompetitiveadvantageInnovativeYesYesNoYescultureTemporarycompetitiveadvantageElon MuskYesYesYesYesSustainablecompetitiveadvantageRegulatoryYesNocompetitivesupportparityVRIO analysis is used to assess the nature of competitive advantage produced byvaluable resources and competencies owned by Tesla. The framework focuses on both thetangibles and intangibles since they all contribute to the firm’s performance.SWOT AnalysisStrengths•WeaknessesEntrepreneurial endowment (Elon•Lack of physical dealershipsMusk)•High operating costs•Electric car market leadership•Production delays-low output capacity•Innovative technologiesOpportunitiesThreats2Surname•The growing demand for electric cars•Diversification to include more••3Traditional auto companies venturingin the electrical car industrymodels•Dealership regulationVenture in international markets•DebtTesla has notable strengths that can be used to enhance its competitiveness. Theentrepreneurial skills of Elon Musk, the company’s CEO, can be useful in making strategicdecisions to help Tesla overcome competitors. The company is also the market leader in theelectric car segment, providing it with valuable advantages over new entrants. Markedly, theorganization has established a stable market share and reputation. Tesla’s innovativetechnologies, such as the supercharging systems, can be utilized to deliver more novels toenhance consumer experience and challenge opposition.The company’s inherent weaknesses include the lack of physical dealer shops, selling itsproducts online. Customers lack such benefits as a test drive, which is useful in making a buyingdecision. The firm has a high operating budget, mainly through research and development,leading to growing net losses over the years. The firm’s inability to meet production deadlinesand output levels is a major concern to customers, especially those who pay to reserve vehicles.Tesla has the opportunity to capitalize on the growing demand for electric cars due tointernational efforts to combat climate change. The company can also diversify its portfolio toinclude more vehicle classes to meet consumers’ tastes. Tesla can seek to exploit the internationalmarket rather than focusing on the U.S. consumer base onlySurnameExternal threats facing Tesla Include the venturing of such traditional fuel-based vehiclemanufacturers like Nissan, Toyota, and BMW in the EV segment. Their already establishedcapacity can be a significant source of competition for Tesla. Regulations requiring the use ofdealerships can hurt Tesla’s direct selling technique, which has enabled it to minimize expenses.Additionally, high operational costs pose a debt threat to the company, a factor that can lead tofailure.Financial RatiosRatio20112012Gross margin5.06%6.27%Operating margin-10.46%-18.85%Return on assets-3.56%-3.56%Tesla’s gross margin for 2011 and 2012 indicate notable inefficiencies in production.Such figures can be attributed to the high cost of production that limits the revenue realized.Notably, the firm’s performance improved by 1.22% to indicate increased control overproduction costs. However, Tesla’s operating margins for the two years are negative, indicatingits inability to meet non-operating charges, hence a high risk of running into debt. The sametrend is manifested in the company’s ROA, confirming the failure of investments to deliverexpected revenues. An example is the purchase of the Gigafactory, which has not been utilizedexhaustively to cover its cost and produce income.4Surname5Central ProblemTo achieve and sustain long-term competitive advantage, Tesla must address the strategicchallenges facing it. The current cost of operation is undermining the company’s profitability andability to meet customer expectations. Notably, the firm’s main cost element is research anddevelopment, an aspect that …

Order a unique copy of this paper
(550 words)

Approximate price: $22

Our Basic features
  • Free title page and bibliography
  • Plagiarism-free guarantee
  • Unlimited revisions
  • Money-back guarantee
  • 24/7 support
Our Options
  • Writer’s samples
  • Expert Proofreading
  • Overnight delivery
  • Part-by-part delivery
  • Copies of used sources
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

AcademicWritingCompany guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, always

Read more

Zero-plagiarism tolerance guarantee

The paper that you order at is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.

Read more

Free-revision guarantee

The thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy and Security policy

With, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.

Read more

Adherence to requirements guarantee

The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2020 at 10:52 AM
Total price:
The price is based on these factors:
Customer Academic level
Number of pages required
Urgency of paper