Tesla Porter's Five Forces

Tesla Porter's five forces is required for a case analysis. Strategic Management is a required course to graduate in Business Administration. It is a very interesting course. Tesla motors is a California-Based designer and manufacturer of electric vehicles. Ellon Musk is someone who has good ideas and is able to breathe life into risk ventures. He was crowned in 2007 the "Entrepreneur of the Year". He is now the CEO of Tesla Motors and he is incurring serious problems. Rivalry is fierce and he needs to find a new strategy. The company launched the Tesla Roadster in 2008 and later announced plans for the model S. Musk needs capital because cash has been burning rapidly. Tesla ha s problem that Musk needs to face as soon as possible. It is interesting to know that Tesla Roadster was modeled using the Lotus Elise as an example. Tesla had a poor pricing strategy: it was losing 50000$ on each car sold. Roadster cost 65000$ per car, however Musk found out that it actually cost 140000$ to produce. Very bad organization, also mr. Musk discovered major safety issues with the existing design. What should Ellon Musk next step that is the question. Therefore a detailed analysis of the industry is crucial to understand where Tesla Motors should position itself. The auto industry is growing at a fast rate and major issues should be answered. Should Tesla Motors go public, should it merge with an another car company or should it sell it to another company? We will answer those questions shortly after the analysis.