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External and Internal Factors of Marketing Environment- Tesla

University: University of Chester

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 5 / Words 1302
  • Paper Type: Assignment
  • Course Code: MAN7AIM
  • Downloads: 740
Question :

This assessment will provide:

  1. What are the external and the internal marketing environment factors in Tesla?
  2. What is the customer decision-making in order to manage the growth?
Answer :
Organization Selected : Tesla


The marketing environment is a very essential element of business that has the power of influencing the decision-making of any company (Okazaki, 2012). It can be defined as a combination of internal and external forces and factors that affects the decision-making of the company. This assignment will analyze external and internal factors of the marketing environment which affect the decision-making of Tesla. The external factors of the marketing environment are political, economic, social, technological, environmental, and legal also known as a PESTLE which is a tool for analyzing external factors. Also, the internal factors can be examined by SWOT analysis which helps to understand the strength, weaknesses, opportunities, and threats of Tesla.

Critically analyze the impact of external and internal marketing environment affecting the decisions for Tesla, UK

Tesla is an energy and automotive company which is specialised in electric cars, solar panelling, and many other products. It was founded in July 2003 by Martin Eberhard and Marc Tarpenning. The respective company is operating across the world with its highest market in UK.

The marketing environment of Tesla is made up of two factors i.e external and internal environment. The internal factors can be controlled by implementing changes in the respective organisation. However, the external factors cannot be controlled by Tesla.

Internal Environment:

The internal factors are consist of all the factors of Tesla that are inside the organisation like management, finance, resources, and many more (Malhotra and Malhotra, 2012). To analyse the influence of these factors, SWOT analysis can be practiced. SWOT is an acronym of strength, weakness, opportunities and threats of the respective company.

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SWOT Analysis of Tesla:


  • Brand recognition- Tesla is a well known company which is famous for its innovative product range. The respective company have a good marketing value because of its services and products which are offered by Tesla in order to maximise the revenue and sales. 
  • Sustainable innovation- Tesla is well known for its innovations that are sustainable and eco friendly. The company has a low carbon emission and promotes an environment friendly product which is a unique selling point of the company (Baines, Fill and Page, 2013).


  • Limited Suppliers of battery- As Tesla cares runs on battery cells, the demand of these cells are high. However, Tesla has only one seller which makes it vulnerable to production delay. It is one of the weak points of the respective organisation.
  • Costly products- The vehicles of Tesla are quite costly than comparing it to other brands ordinary cars. This is why only premium class can afford the product which limits the number of customers of Tesla.


  • Growing demand of sustainable products- As due to environmental issues, customers are getting aware of sustainable substitutes which are environmental friendly. This provides Tesla a scope of growth in coming time as it is one of the most efficient company in providing sustainable products.
  • Exploring low cost product range- All the customers have different range of spending power (Ivanov, 2016). This is why; Tesla can introduce budget friendly cars which will help in achieving more customers and profit earning.


  • Competition- Though Tesla is a well established brand serving electric cars, but the competition is rising among the rivals of the company. This is because other brands like Audi and Porsche are also introducing electronic cars. This is a huge threat to Tesla.
  • Legal- As Tesla serves its products across the globe, it becomes difficult to follow all the rules and regulations of the governing bodies and some of them restricts the growth of the company.

Related Services- Key Marketing Principles by Ralph Lauren Corporation

External Environment:

These are the factors that are outside the respective organisation on which Tesla has no control (Morrison, 2013). These can be studied by PESTLE analysis:

PESTLE Analysis of Tesla:

Political- This factor undertakes the impact of governing bodies and regulations on the company (Brunswick, 2014). There have been many initiatives taken by the government support Tesla for producing sustainable products. The government has provided various subsidiaries which helps the respective organisations in smooth running of the operations.

Economical- This element helps in understanding the impact that the organisation has on the economy of the country. Tesla has provided many job opportunities which raises the employment rate in UK. Also, Tesla plays a major role in the growth of UK economy as it has the largest market share in the respective country.

Social- This factor helps in understanding the factors like lifestyle, trends, demographics and other social element of the society that impacts the demand of the products of the company (Varnali, 2014). The customers are more interested in environmental friendly and sustainable products. Tesla has a good scope of growth which can be depicted by the social factor of macro environment

Technological- This element of PTESLE analysis helps understanding the impact of technology on the respective company which influences its demand and sales of the products. The innovation and technology of the company is quite up to date. Tesla is also planning to launch artificial intelligence in order to fulfil the demands of the customers and raise the quality and technology factor of the products. 

Legal- The legal element includes various laws that are forced by the government of the country like labour law, wages law, etc which the organisation have to follow in order to operate the company in the respective country (Palmer, 2012). Tesla has a clean history of obeying these laws and regulations which helps the respective company in smooth running of business.

Environmental – This factor states the impact of the company on the surrounding environment. As Tesla serves sustainable cars and other products, the rate of carbon emission is very low of the respective company. This is one of the biggest strength

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