Swot analysis of benz

Concept[ edit ] Michael Porter's Three Generic Strategies Porter wrote in that strategy targets either cost leadershipdifferentiationor focus. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies of porters. The breadth of its targeting refers to the competitive scope of the business.

While the electric vehicle manufacturer has reported operating losses in every year since its IPO, the company has certainly been exciting auto enthusiasts. As an investment, Tesla is an interesting selection, as well.

The stock also has a good amount of risk. One of the primary questions that investors are asking is when will the company finally turn a profit?

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The stock price has been very volatile over the last few quarters, but will it be able to climb steadily higher, thanks to the new Model 3? Are the shares are a good long-term investment, given the fierce competition and production-related concerns? We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.

The Business Tesla Motors designs, develops, manufactures, and sells high-performance fully electric vehicles and energy storage products. It has established its own network of vehicle sales and service centers, as well as Supercharger stations around the world to accelerate the widespread adoption of electric vehicles.

As of December 31,it operated locations, along with Supercharger stations in North America, Europe, and Asia. The company currently produces and sells two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle.

As of December 31,Tesla has delivered overnew Model S vehicles worldwide, after its first shipment in June The Model X was first delivered in the third quarter of They are sold through a network of Tesla stores and galleries, as well as through the Internet. The company also sells energy storage products, including the 7 kWh and 10 kWh Powerwall for residential applications and the kWh Powerpack for commercial and industrial applications.

These products, marketed under the Tesla Energy brand, were first delivered in the third quarter of As of December 31,the company had 13, full-time employees and was headquartered in Palo Alto, California.

The company was founded in and had its IPO on June 29, Strengths Unique Position in the Auto Market: Tesla is not just in the business of selling cars. It is transforming the way we drive, and the company is delivering innovative new technologies to do so. While Tesla is not the only auto manufacturer that offers electric vehicles, it has created, and dominated, the market for luxury, long-range electric automobiles.

This market is distinct from the one for less expensive electric vehicles, as well as the market for luxury gas-powered vehicles.

The extraordinary growth has been driven by strong global demand for the Model S. First-quarter orders for the Model X, which was introduced in the third quarter ofincreased fivefold on a sequential basis.

Management plans to deliver 80, to 90, of these two brands in However, the new Model 3 has been stealing the spotlight in recent weeks.

Weaknesses Burning Through Cash: Tesla has been burning through significant amounts of cash over the years. This is largely due to the significant investments it has made in research and development for the transformative technology in its cars.

It is also the result of the rapid expansion the company has experienced in just a handful of years. Because of these large cash outlays, Tesla has reported negative free cash flows and earnings for nearly every year since its IPO. As a result, Tesla has been forced to raise more debt and sell more shares.

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The company has a relatively high debt load. Interest payments on this debt are fairly significant, and will likely continue to cut into earnings. If the company is unable to satisfy its debt obligations, because of insufficient cash flows, it may have to reduce or delay investments and capital expenditures, which could hamper future growth.

While this is still out reach for many consumers, the price tag puts the vehicle in the same price range as lower-end Mercedes-Benz and Audis. It will also be one of the safest cars on the road.

This car could transform the company from one which produces 70, to 80, cars, its current estimate for this year, to one that manufactures ten times that in a few years.Automobile Industry Analysis Essay. Introduction The automobile industry is one of the leading industries at the global level.

Companies need that special something to draw in new customers and keep them coming back. Learn about competitive advantage and the different ways a company can have it. mercedes-benz _opportunity:capitalize _strength:maintain _threat:defend _user-generated About initiativeblog.com initiativeblog.com is a collaborative research and analysis website that combines the sum of the world's knowledge to produce the highest quality research reports for over 6, stocks, ETFs, mutual funds, currencies, and commodities.

A SWOT Analysis of A Sample Business Plan Angela Acton Foundations of Business Mr. Dennis Keegan January 23, Abstract When an entrepreneur comes across an opportunity to open a new business, there is a lot of planning that must be done in order to be successful in the new venture.

Porter's generic strategies describe how a company pursues competitive advantage across its chosen market scope. There are three/four generic strategies, either lower cost, differentiated, or focus.A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating itself along dimensions valued by customers to command a.

Strengths in the SWOT analysis of Mercedes. High TOMA: Mercedes is a well established brand & is part of the “German Big 3” luxury automakers, along with Audi and BMW, which are the best-selling luxury automakers in the world.

Mercedes focuses its sponsorship spending on .