Industry analysis on Tesla
Porter’s 5 forces industry analysis for TESLA Automotive APA with references 1) Rivalry among existing competitors — (a) Number and names of major competitors (approx 4-5), (b) Industry Growth Rate, (c) Exit barriers, (d) Access to distribution, (e) Differentiation, (f) fixed costs vs, variable costs (g) Rivalry = High or Low – possible moderate (Explain why) 2) Threat of New Entrants — (a) Entry barriers — government policies/regulations (b) access to suppliers, (c) distribution channels–access to, (d) obstacles that deter new competitors from entering the industry, (e) Threat of New Entrants = High or Low – possibly moderate (Explain why) 3) Threat of Substitute Products and Services — (a) what is the availability of other products that a customer can purchase from outside the industry? (b) what is the buyer′s propensity to substitute? [unique_solution](c) Threat of Substitute Products/Services = High or Low – possibly moderate (Explain) (d) Consumer switching cost = high or low? (Explain why) 4) Bargaining Power of Suppliers — (a) differentiation of inputs, (b) switching costs of suppliers and firms in industry, (c) threat of backward integration by firms in the industry, (d) availability of substitute suppliers (e) Bargaining Power of Suppliers = High or Low – possibly moderate (Explain why) 5) Bargaining Power of Buyers (Customers) — (a) When are the customers in an industry powerful? (b) ability to backward integrate, (c) switching costs, (d) bargaining leverage, (e) buyer sensitivity to changes in price, (f) Bargaining Power of Buyers (Customers) = High or Low – possibly moderate (Explain why)