Tesla: TOWS Analysis in 2021

Jul 21, 2021

I’m going to explain the strategies for the TOWS matrix and use Tesla as an example under each strategy.


The TOWS Matrix is a more advanced version of the SWOT matrix, which encompasses strengths, weaknesses, opportunities, and threats.


The TOWS matrix allows you to combine internal and external factors with each other to develop new strategies.


The TOWS matrix helps both businesses and individuals to enhance their situational awareness. This matrix can help you choose strategies that maximize positive outcomes and minimize negative outcomes.


Those strategies are the following:

Strength-Opportunity Strategies

This involves using internal strengths to capitalize on external opportunities; this is a great way to identify and exploit competitive advantages.


When it comes to Strengths, Tesla Model Y and Model 3 have the most sold units of any electric automobile in the United States by a large margin. And all four of Tesla’s cars have the longest range as well, which is the number of miles they can run before requires refuels.


When it comes to opportunities, countries like Sweden, Germany, China, and Denmark are leading the charge when it comes to the usage of renewable energy sources and will likely develop infrastructures that are highly favorable to the usage of electric automobiles.


Tesla could use its reputation and brand to expand its market share in countries that are most accepting of clean energy sources and have adequate numbers of customers who are willing and able to pay for Tesla automobiles. In fact, Tesla already has a Gigafactory in China and its Gigafactory in Germany will begin production in 2021.


Strength-Threat Strategies

This involves using internal strengths to avoid and minimize external threats.


When it comes to threats, Tesla is about to face some fierce competition by automotive companies that are entering the electric automobile market. In the high-priced luxury segment, Tesla will compete with Mercedes, BMW, Audi, and Lexus. And in the low-priced economy segment, Tesla will compete with Toyota, Ford, General Motors, and Volvo.


However, Tesla is led by one of the most unique and charismatic business leaders in history and Tesla has values and a vision that resonates with many people in a way that competitors can’t replicate at this time. All of that culminates in a brand that could help Tesla minimize the impact from competition.


Weakness-Opportunity Strategies

This involves improving internal weaknesses by using external opportunities.


When it comes to weaknesses, Tesla has delayed the rollout of a full self-driving functionality since it was first promised to launch in 2018.


However, when it comes to opportunities, advances in hardware and software that can make this possible are quickly accelerating, new discoveries are continually being made, and the number of professionals in the artificial intelligence field is increasing year after year.


Self-driving functionality could become possible in most driving situations in the short term with the help those important driving forces that will influence Tesla’s progress in this area.


Weakness-Threat Strategies

This involves avoiding threats and minimizing weaknesses.


When it comes to weaknesses, Tesla has experienced numerous manufacturing delays in the past. And production growth in 2020 led to an uprise of flaws in Tesla Model Y vehicles. Flaws of any type could result in threats such as unwanted lawsuits and product liability claims.


Tesla is already addressing this weakness with the construction of Gigafactories on both sides of the US along with Gigafactories in Germany and China. These new Gigafactories in Germany and China are optimized and more efficient, which should result in fewer production issues along with faster and more efficient production cycles in the future.


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