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Table of Contents
1. Market Structure of Tesla........................................................................................................................3

Oligopoly Structure.................................................................................................................................3

Monopoly................................................................................................................................................3

2. Porters Five Force....................................................................................................................................4

3. Tesla Supply Chain..................................................................................................................................6

References...................................................................................................................................................7

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1. Market Structure of Tesla
In this approach different sectors are divided or distinguished depending on the extent and kind
of rivalry for commodities is known as economic organization.

The market economy, oligopolistic marketplace, monopolistic retail sector, as well as

monopolistic competitive environment are the four most common market arrangements. The
oligopoly business strategy wherein Tesla Motors operates is oligopolistic. The fact that Tesla
interacts with some other automotive firms in modern marketplaces makes this an oligopolistic
industry framework [ CITATION Jai17 \l 1033 ].

Oligopoly Structure
Tesla operates inside an oligopolistic, which means there are few competitors and several firms
dominate the significant share of the industry producing comparable products. Tesla, Inc.,
introduced the Model "S" on June 22, 2012, a five-door electric vehicle.

The key features of an oligopolistic market structural elements Throughout the marketplace,
there have only been a few significant companies. In either situation, Tesla fights with many
other significant automobile manufacturers in the industry.

Monopoly
Tesla has established a virtual monopoly in the automobile sector.

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Tesla will be the only new vehicle company in years, and this has grown to create a monopoly
for luxurious all-electric automobiles as a result of its survival. The worst anybody has ever
made in terms of monopolizing the United States market, although to be honest, infringement
concerns were considerably stronger back then. GM Sherman Antitrust act in 1890 as well as the
Justice dept. provided sanctions to become too huge (Abdou, 2019)

Tesla's accomplishment is remarkable, although it is fleeting, given the very competitor US

vehicle industry. GM is still the largest carmaker in the United States in terms of revenue, but
only commands around 20% of such industry. This intensity of the conflict has also been great
for customers; there is a lot of options when it relates to purchasing and renting new cars in the
USA.

2. Porters Five Force

Tesla Inc. is a California-based electric vehicle manufacturer. Tesla must emphasize intense
competition as one of the most relevant of the factors through its worldwide business climate,
according to this 5 Forces study (Porter's framework). This economic paper also outlines
pressure on competitors, suppliers, or purchasers. [ CITATION Moh21 \l 1033 ].

Competitive Rivalry

Tesla, Inc. operates in a highly competitive market. This portion of such porter ’s 5 forces
considers the effects of rivalry just on automotive or electrical systems sectors.

a limited amount of jobs (weak force)

Firms with a high level of aggression (strong force)

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 Low-cost shifting (strong force)

Tesla's Customers' Bargaining Power

This porter's five forces Assessment considers the impact of consumers on industries as well as
the car, batteries, & solar cell industries. Tesla's clients have a direct influence on the
corporation's gross profit.

Low-cost changing
Availability of substitutes is minimal
Sales are infrequent

Bargaining Power of Tesla’s Suppliers

The achievement of Tesla Inc. is reliant on on the excellence of its vendors. This component of
porter's Five Approach validates how providers effect the business strategy by moving the
accessibility of supplies mandatory by enterprises.

Progressive inclusion that is mild

Manufacturers of a modest size
Supplies are modest

Threat of Substitutes

Alternatives affect just on automobile or energy services industries, according to Tesla, Inc.
(Chinta, 2018). The strengths of external influences that pay to modest effect of the risk of new
entry in contradiction of business are addressed throughout this part of the Five Forces, as shown
in:

Low-cost shifting
Availability of substitutes is limited
New entrants' efficiency is modest

New Entrants and New Entry as a Threat

New competitors are startups that have an effect on the company or impact the achievement of
businesses such Tesla Inc. The exterior elements that form the minor influence of danger of
potential entrants are recognized in this constituent of the Five Forces assessment, as shown in:

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 Brand reputation is expensive
Doing operations at a high price
Large-scale profitability

Tesla's company is challenging to deal with, particularly due to the expense of product
development as well as Elon Musk's celebrity.

3. Tesla Supply Chain

Tesla uses a vertically integrated system to develop, produce, sell, or repair their cars, avoiding
typical production phases.

Tesla's specialized supply chain is working to reconfigure its Fremont Plant to incorporate high
degrees of robot technology into multiple production processes. As per a source briefed, on the
aspect, Tesla is dealing with major supply chain challenges as a result of port backlogs with
strong snowfall impeding ground transportation (Aslan, 2021).

Their lean stock management strategy will help them save money while also ensuring flexibility.
If it's Tesla's leaner inventory control methodology or not, their technology helps companies
handle their inventories in a design that maximizes meets their habits and goals.

The major consequences of commuting, as per Harvard University, were locally and globally
pollutants, oil reliance, road congestion, or road accidents.

Externalities include traffic and resource prices, disaster costs, poor air quality expenses,
pollution expenses, global warming costs, charges for wildlife and landscapes, expenses for
water contamination, prices for soil contamination, and expenses of energy reliance as per a
meta-study done at Delft Institute [ CITATION Pie17 \l 1033 ].

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References
Abdou, D. M. S., 2019. Insight for the market driving forces: Case of Tesla Model- S. INTERNATIONAL
JOURNAL OF BUSINESS ECOSYSTEM & STRATEGY.

Aslan, Y., 2021. Analysis of Tesla Inc. Entering German Market from the United States.

Chinta, R. N. N., 2018. Tesla - Porter Five Forces Analysis (Harvard). Tesla Strategic Competitive
Analysis, Future predictions on sustainance.

Pietro Gianesello, D. I. a. D. B., 2017. Closed-loop supply chain simulation with disruption
considerations: a case-study on Tesla. International Journal of Inventory Research.

Tashakkori, M., 2021. STRATEGIC MANAGEMENT PORTERS 5 FORCES ANALYSIS on TESLA

Motors.

Tiwari, J. D., 2017. Marketing Research on Tesla Inc. - Strategic analysis. Strategic Engineering
Management.