The PESTEL framework evaluates the external environment variables to identify general opportunities and risks of particular strategies. 3.1 Political
With selling cars in 17 countries ,Tesla Motors has to deal with distinctive political patterns influencing its business operations.One of the major political factors affecting the industry is environmental protection laws to induce production of more environmental cars to meet strict emission levels. The second important factor is US government energy loan programs for research and development of new vehicle technologies. In this case, many auto manufacturers will be interested in entering the market. 3.2 Economic
Economic factors include economic growth in the alternative energy industries and increase in the cost of using the cars mainly due to the rise in fuel prices in the short period. Therefore, the demand for more-efficient cars is higher than before. Next,recovery of GDP and inflation rate in most of the developed countries from the recessionary period has asignificant impact on the customer purchase power.
Social factors are related to increase environmental concerns, attitudes and emphasis on products, which are ‘eco’ friendly. Buyers are losing faith in gasoline fuel and associated cost in production, trying to help the environment. Moreover, undoubtedly the current society judges people based on the type of the car they own and the idea of having electric vehicles improves the social status of an individual. Another social change is increase in ageing population with most wealth and savings, who would likely to spend more money on premium electrical cars (Reuters, 2014).
Technology advancement has taken places within the industry, including the introduction of fully electrical cars and computerization of cars that allowed automotive driving and prevent drivers from accidents . This leads to more improvements in safety and convenience of cars....
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