External Environments Analysis: Tesla Electrical car

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Word Count

3000 words


Marketing Environment Analysis


4 Days

Assignment Criteria

Effective marketing strategies and plans are based on a comprehensive analysis and evaluation of the marketing organisation’s operating environment. The purpose of this task is you to undertake an analysis of the external environment for a specific product or service of your choice.

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Assignment Solution


For the purpose of constructing better marketing strategies, there is a huge requirement of understanding the external business environment. The impact of the external environment is always immense upon the company’s decision making and strategy formulation process (Palmer & Hartley, 2011). In the current report, the impact of an external environment on a particular product has been assessed. The selected product in a present report is an electric car. The applied management theory to understand an external environment for an electric car is PESTLE analysis. The possible limitation of the study is that it focuses only on one product for a company. It can create a gap in understanding the whole positioning of the company in the market.  The scope of the study is wide as it includes the global market for the company.


Tesla is a renowned American company that has a huge level of market base and is basically deals in the automotive industry. The organisational structure of the company is the functional structure, and they have regional as well as departmental head for the smooth functioning of their work. The electric car introduced by the company is highly popular and is accepted by people all around the globe. The market segment for the company is those people who are concerned towards the environment and prefer to drive high-performance cars on the road. The product range for the company is very wide and is in the manufacturing variety of cars (Tansel, 2016). Further, Tesla has developed its market image in terms of manufacturing eco-friendly electrical cars.  

Theoretical framework:

The external market environment analysis is very crucial in terms of understanding the external market situation for a particular company in particular boundaries. This environment is usually uncontrollable for the companies and mostly helps in identifying the challenges and formulating concrete strategies to handle unforeseen events. In an external environment, the companies generally analyse about the political, social, technological and economical environment and legal environment (Hamilton & Webster, 2012). It is important as it informs about the external business situations and helps in taking right decisions.

Environmental Analysis: PESTLE:

Political environment: The political environment for the company is highly favourable. They have got support from the US government to conduct their research and development programs so that eco-friendly cars can be introduced or launched. It is highly significant for the company to establish its business in various countries to earn more profits and increasing chances for more customer acquisition. However, the company operates in North America, Asian countries and European territory, so it becomes tough for them to manage between the political affairs of these countries and formulating business strategies accordingly (Kew & Stredwick, 2005). The toughness can be witnessed due to political environment diversity. Still, the political environment is not much challenging for the company as they launched electric cars which are their major strength.

Economic environment: Tesla is targeting rich people, so it not much important factor for the company. The electric car has become a necessity due to its features, and people prefer to buy it (Tansel, 2016). The manufacturing cost for the electric car is not high for the company, and they got supported by the government as well. Thus, electric cars are much beneficial and economical for the cited organisation. The capacity and the willingness of people to buy electric cars is increasing. 

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