Assess how a given business has responded to changes in the market
In this merit assessment, I will be assessing the impact of changes within the EV industry and
assess how Tesla has responded to these changes:
Change 1 within Tesla marketplace:
Tesla respond to Increase level of competition within the Eva market
Tesla has responded to many changes within the Ev industry. One being in the increased level
of competition within the electric vehicle industry. As we know that Tesla is the electric vehicle
pioneer, on this there is no debate, being the first influential and leading electric car company
to influence and really impact the electric vehicle industry. Tesla was able to convince the
gasoline industry and its consumers that electric cars are far better than normal gasoline
powered vehicles. This led to consumer behaviour changes, and the transition from gasoline to
electric vehicles as consumers were now emphasising that they demand clean cars and long-
term zero-emission objectives. As well as being the influence in many increased numbers of
manufacturers invested extensively in electric vehicles. However, with legacy auto makers
realising electric vehicles. Tesla is facing increasing competition from large companies such as
Toyota, Mercedes, BMW, Ford and many more. As these established and major automakers
expand their focus on electric cars (EVs), competition in the EV market has increased, with
Toyota already coming out with their new Toyota SUV which is fully electric, and Mercedes
upping their production game in the EV market. As well as that Ford Motor Company said
earlier this month that it will invest another $4.5 billion on electric vehicles by 2020.Ultimately
as large automakers enter the Ev market, Tesla will start to lose market share, and market share
will become more divided. All of this due to consumer behaviour changes, as consumers are
emphasising that they demand clean cars and long-term zero-emission objectives, demand for
electric vehicles is substantially high. As well as being the influence in many increased numbers
of manufacturers invested extensively in electric vehicles. The way Tesla has responded to this
shift, where there used to be a low level of competition within the EV market to later become a
highly competitive market, has influenced Tesla to ensure that they always deliver high-end
quality electric vehicles to its users, in order to fulfil customer satisfaction and demand, to stay
and maintain that position it has on its market, as well as to keep customer retention. Tesla has
also employed price strategies that give them competitive advantage over other competitors
No other company has an electric car on the market that comes close to the performance/price
ratio of the Tesla Model 3 and its in-house permanent magnet synchronous reluctance motor.
Tesla sold almost three times more units of the Model 3 than the second bestselling electric car
in the world in 2019. The Tesla model 3 accounted for 14% of World’s Electric Vehicle Sales in
