NAME: JEAN PAUL DUSINGIZE 麦克

STUDENT NUMBER: 2022Y90400008

Activity # 1 – Think of an industry known to you. Do an analysis of the environment it is facing in terms of
Porter’s five forces model. (Describe it around 50 lines).

Tesla company

1. Introduction
Tesla Porter's five forces model gives an insight into a company's core competitive position as well as
the future stronger position to which the company may aspire.
2. Background of Tesla
Martin Eberhard and Marc Musk founded Tesla Inc in 2003. Elon Musk, JB Straubel, and Ian Wright
were also named co-founders by Tesla. Even though Tesla is a young company, it has made significant
contributions to the industry, with a market capitalization of around $28 billion.
3. Tesla Porter's Five Forces
The car industry is a very vibrant business with its own set of challenges, and Tesla's success speaks
volumes about its competency and effectiveness. Let us go over Tesla Porter's Five Forces in greater
depth.

 Competition in the industry (Strong Force)

Because the car industry is so competitive, industry competition is a strong force. Let me go
over some of the potential forces in Tesla competitor analysis.

 The number of competitors in the industry is a weak force.

 The market is dominated by aggressive competitors.
 The threat of new entrants (Weak Force)
Many factors deter new entrants from entering this industry, some of these factors are:
 The automobile industry necessitates a significant amount of capital to function.
 Another weak force is large economies of scale. Economies of scale benefit established
market players; however, they do not benefit new entrants.
 Bargaining power of suppliers (Moderate Force)
Tesla relies on suppliers to keep its supply lines running smoothly. As a result, suppliers have
an impact on the business, and the forces at work are as follows:
 The force of forward integration is moderate.
 Tesla sources from multiple suppliers, so it is not entirely reliant on one. As a result, it is
a moderate force.
 Bargaining power of customers (Moderate Force)
In Tesla Porter's five forces model, various factors influence customer bargaining power.

 Low switching costs are a powerful force because they increase the bargaining power of
 buyers. They can switch to any vehicle at no extra cost.
 A moderate force is one with moderate substitute availability. There aren't many electric
car suppliers on the market, and those that do exist are powerful.
 The threat of substitute products or services (Moderate Force)
The threat of substitute products is a moderate force in Tesla Porter's five forces because
Tesla Inc.'s market substitute options are moderate and limited. Let examine the contributing
factors.

 The most important factor is low switching costs, which increases competition among
competitors.
 A moderate force is one with a limited number of substitute options.