In this assignment, I will recommend one country that Tesla could potentially target and
operate in for international trade, through understanding the market position in particular
countries such as Japan and Spain via justifying recommendations as to hence why Tesla should
go into trading within the country. Where in the last task, I undertook a well-rounded
situational analysis of Tesla for that country. However In this report, I will utilise and
underperform extensive research on that country by undermining the situational analysis that I
had conducted for both countries, Japan and Spain. The country that I've chosen to operate in
is Japan because of multitudes of reasons, which will be discussed in depth and
comprehensively in this assignment.
Introduction:
One of the world's top producers of electric vehicles is Tesla. The enterprise has been
developing internationally and has seen success in several regions. I shall suggest Japan as a
viable market for Tesla's foreign commerce in this article. I will back my judgements with
situational analysis, such as SWOT, 5Cs, and Porter's five forces, and offer thorough reasoning
for why?
SWOT Analysis:
Strengths:
One of Tesla's biggest strengths is its brand reputation. Tesla is known for producing high-
quality electric vehicles that are environmentally friendly. The company has developed a
devoted consumer base because of its emphasis on innovation and sustainability. Tesla's strong
financial position is another strength. The company has a large cash reserve and is profitable.
This gives Tesla the ability to invest in research and development, which is crucial in the rapidly
evolving electric vehicle market. Tesla is a well-known and respected brand in the automotive
industry, with a focus on innovation and sustainability. The company's reputation for creating
high-performance electric vehicles has garnered a loyal following and positive media
coverage.Tesla's innovative technology and eco-friendly image align well with Japan's focus on
sustainability and innovation. Japan has set ambitious goals to reduce greenhouse gas
, emissions and promote renewable energy sources, which creates an opportunity for Tesla's
electric vehicles to appeal to Japanese consumers.Japan's strong economy and high purchasing
power provide a good market for luxury electric vehicles. Japanese consumers are known for
their affinity for luxury brands, and Tesla's high-end electric vehicles can appeal to this
demographic.
Weaknesses:
One of Tesla's biggest weaknesses is its high prices. Tesla vehicles are expensive compared to
other electric vehicles in the market. This limits the company's customer base to affluent
individuals. Another weakness is the company's limited production capacity. Tesla has struggled
to meet the high demand for its vehicles, resulting in long waiting times for customers.High
import taxes and regulations may increase the cost of Tesla's products in Japan, making them
less competitive compared to domestic brands. Japan has strict import regulations and high
tariffs on foreign-made vehicles, which can make Tesla's electric vehicles more expensive than
competing domestic brands. Japan's preference for compact cars and limited infrastructure for
charging stations may pose a challenge for Tesla's larger electric vehicles. Japanese consumers
tend to prefer smaller vehicles due to the country's narrow roads and parking limitations, which
may limit the appeal of Tesla's larger models. Additionally, the limited infrastructure for
charging stations may make it difficult for Tesla to provide a seamless experience for EV
owners.
Tesla's limited presence and brand recognition in Japan may hinder market penetration. Tesla
has a small market share in Japan compared to other international markets, which may make it
difficult for the company to establish a strong foothold in the country.
Opportunities:
One of the biggest opportunities for Tesla in Japan is the government's push for electric
vehicles. The Japanese government has set a target of having electric vehicles account for 50%
of all new vehicle sales by 2030. This presents a significant opportunity for Tesla to expand its
operations in Japan. Another opportunity is the growing demand for electric vehicles in Japan.
As more people become aware of the benefits of electric vehicles, demand for Tesla's vehicles
