TESLA Model X , SWOT - Essay Example

This in itself is a source of competitive advantage for the company. The company is unique in that there is not yet any other player in the industry that has manufactured a vehicle that matches Tesla’s innovative vehicle. As noted by Porter (1985), differentiation strategy gives the company a competitive edge over other players in that its products cannot be matched by other rival competitors. This will help the company to appeal to the interests of many customers by virtue of possessing unique features which make the vehicle exceptional.

The other advantage of the company is that Model X car is efficient as a result of the fact that it is an electrified vehicle. This means that the customers will experience fewer expenses in the future since the vehicle does not use any form of fossil fuel. This comes against the background of rising fuel prices across the globe. However, the major weaknesses of this model car are that it is electric and it is expensive. The price is high as a result of the fact that it is expensive to manufacture.

Honestly, there may be very few customers who may be ready to fork out more than $60 000 buying a vehicle. The price is too much such that ordinary people may not be in a position to afford it. it can also be seen that the automobile industry is also characterised by other players some of which are reputable such as Toyota and Daimler. These cars also have their own hybrid cars that do not use fossil fuel and they may pose a threat to Tesla Motors. According to Robson (1997), competition in the environment is one major threat that can impact on the viability of the organization.

This is the case in terms of Tesla since the other competitors can also offer their hybrid cars that can also attract many customers since they are environmental friendly. Therefore, it is imperative for Tesla motors to capitalise on its strengths and opportunities in order to gain a competitive advantage while at the same