Tesla Motors

Topics: Automobile, Electric vehicle, Electric car Pages: 5 (1695 words) Published: October 11, 2012
The Global Business Community
The first macroenvironmental factor that Tesla Motors faces is the society and subcultures. In this day in age consumers worldwide have increased their knowledge and sensitivity about its environment. Numerous companies have catered to this need of becoming more environmentally responsible by offering products that are “green” or environmentally friendly. This new growth amongst people and organizations alike of becoming more environmentally conscious has created an opportunity for Tesla Motors with its brand of product. Tesla Motors produces and sells fully electric cars as well as electric vehicle powertrain components that give off no tailpipe emissions. Also Tesla motor vehicles cut CO2 emissions in half compared to gas burning automobiles that currently dominates the roads today. Environmental consciousness is what Tesla Motors is built on and its pursuit of diminishing dependence upon a diminishing resource for their consumers is what the company values most and depends on most for increasing revenue.

The second macroenvironmetal factor that Tesla Motors runs into is the demographics. The demographics factor may pose as a major problem for Tesla’s success in the future as its product only appeals to those that are able to afford their vehicles. Although Tesla Motors offers a first-rate vehicle when it comes to performance, efficiency, and class the price for the fairly new automobile company is not economically friendly. Currently Tesla’s prices can range from the base vehicle Model S which currently costs roughly $58,000 up to its “signature edition” which is estimated at $105,000. With its above average cost of the high end fully electrical cars Tesla must integrate a more concentrated segmentation strategy in targeting the correct demographics to foster the company’s success. Tesla Motors should also take into consideration of tackling demographics in regions with higher gas prices compared to others. According to the American Automotive Association California, Hawaii, Alaska, Connecticut, and New York are among the states with the highest gas prices (Kurtzleben, 2011). In accomplishing this Tesla will be able to market to demographics that can offer a higher incentive in purchasing their fully electric vehicles.

The third macroenvironmental factor Tesla faces is in regards to the economic factors. One economic factor that can possibly affect the Tesla would be the prices of petroleum dropping to a low cost for consumers and possibly staying at an affordable price. With an affordable price on gasoline, consumers would be less likely to look for alternatives to combat rising gas and oil prices that we see today, making the high-priced fully electric Tesla vehicle even more unattractive. The economic downturn can also be an ailing factor for Tesla Motors as well. The economic collapse has caused the buying capacity of consumers to dramatically decrease making individuals across the country a lot more conscious about the spending their hard earned dollar. The automobile industry as a whole has struggled overall with battling record losses in revenue and waiving workers. Being that it is a fairly new competitor within the industry Tesla will find it very difficult for selling and staying above its break-even point with its high-end luxury fully electric vehicle.

The forth macroenvironmental factor Tesla faces is the natural and physical factors. The increased usage of oil and fossil fuel which is mainly being used for transportation and the decreasing of the resource globally play as an opportunity and advantage for Tesla Motors. “Petroleum currently fuels 95% of the United States transportation sector, a sector that demands nearly 28% of total usage” (Musk, 2012). With Tesla Motors’ fully electric vehicles offer consumers a substantially alternative towards saving money from not ever relying on purchasing gas at an ever increasing price due to its low supply and high demand of...

References: Bullis, K. (2012, February 6). Can Tesla Survive? MIT: Technology Review , pp. 1-2.
Kurtzleben, D. (2011, March 7). The 10 Cities With Highest and Lowest Gas Prices. U.S. News .
Magal, S. R., & Word, J. (2009). Essentials of Business Processes and Information Systems. Hoboken:
John Wiley & Sons.
Musk, E. (2012, January 7). Go Electric/ Environment. Retrieved August 20, 2012, from Tesla:
Woodyard, C. (2012, January 27). Environmentalists laud California 's electric-car mandate. USA Today .
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