Tesla Inc. was founded in 2003 by certain engineers as an innovativeautomotive company that prospers in the production of electric automobiles and provision of clean energy solutions as well as storage products with the aim of accelerating the world’s transition to sustainable energy (Chen &Yamaguchi). The internal environment of Tesla, according to the SWOT analysis, portrays strengths needed to maintain the company’s profitability levels in the long term. The internal strengths lie in the company’s strong brand, exclusive electric vehicle manufacturer and confidentiality in production processes.

According to the balanced scorecard, Tesla’s performance is outstanding with both sales growth rate and net income increasing periodically indicating its financial strength. Tesla continues to excel due to various factors which include its superior customersatisfaction, and the low cost of resource acquisition in which 90% of manufacturing is done under Tesla. Subsequently, Tesla performs exceptionally due to the empowerment of sales and customer service agents which has led to the rapid innovation rate as well as the increase of the industry’s knowledge.

Tesla’s major strengths are its strong brand, technological and physical assets, firm control on its production processes, it is an exclusive electric vehicle manufacturer, and it is the component manufacturer for other automotive companies entering the electric vehicle market(Chen &Yamaguchi). Consequently, Tesla suffers a few weaknesses which include the limited market presence, limited supply chain and its relatively expensive products which inhibit the firm’s customer base growth and market share(Chen &Yamaguchi). The key resources of Tesla include the product design, software update, management team, sales network, brand and charging stations. Both the tangible and intangible resources provide a broader market base, financial stability, customer satisfaction and rapid innovation of products which facilitate Tesla to gain the upper hand in the electric vehicle industry to achieve competitive advantage.

Tesla Inc. holds the strengths and opportunities necessary to prosper in the industry for the forthcoming years while competing favorably with threats of new entrants in the market. However, I would suggest that Tesla diversify its supply chain to minimize the risk of supply-side, expands its operations in the global market with the aim of exploiting the growth of renewable energy globally, and mostly continue to invest in research and development to produce technologically advanced products.

Work Cited

Chen, W. M., Kim, H., & Yamaguchi, H. (2014). Renewable energy in eastern Asia:          Renewable energy policy review and comparative SWOT analysis for promoting         renewable energy in Japan, South Korea, and Taiwan. Energy Policy, 74, 319-329.

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