The STEEP analysis is a great way to achieve a complete perspective of the market. Downhill in the economy and lack of innovation investment may lead to a negative impact on the strategic alternatives of an organization. STEEP is the acronym for Social, Tech, Economical, Ecological, and Political. To know and obtain a better overview of how these aspects will influence the planning process of an enterprise, strategic analysts implement STEEP analysis to improvise the current strategic plans. These five factors of the market will give an insight into what is happening in the surroundings and what is possible. This article is a template of STEEP analysis for the car company TESLA.
Social: Initially, the marketing strategy attracted a high-class customer base and positioned the premium products. Most of the primitive customers favored their Prius model. Tesla has introduced lower-priced cars so that most of the masses can have access to their cars. It is also seen that there is a rise in the sale of electric cars in the USA.
Technology: Tesla has updated its battery, self-driving and charging features making all their cars ahead of the trends and more desirable. Most of the cars making companies have not yet figured out the design of the vehicle when compared to Tesla. The self-driving technology has placed the brand well in the trends of autonomous vehicles in place of traditional cars.
Economic: In today’s world, most car manufacturers are promising electric cars and powerful batteries which were accomplished by Tesla years ago. Many states are still offering lucrative incentives for the optional power sources that return to the grid and for using electric vehicles. On the contrary, many manufacturing facilities of the car industry are fighting to cut down the start-up costs by reducing the subsidies and other taxes.
Ecological: The usage of fossil fuels is decreasing due to sustainability development. Due to less damaging effects on the environment, electric power is gaining mass appeal from the customers in the market. The ecological manufacturing costs of the batteries counterbalance some of the benefits of the fuel.
Political: Sometimes it is very difficult to introduce some big innovation due to the involvement of the competitors with the governing authorities. Most of the reputed oil and automaker organizations are investing their money in the existing technologies. They also currently are working on the recent legislation to extend the service warranty of the current models of the vehicles. Pressure remains on the political parties and ruling candidates to demonstrate pledges to the voters on the ecological changes and issues.
Thus we can observe that the STEEP analysis can be considered as a strategic tool for the evaluation and identification of different external factors that can have an impact on the industry. The STEEP analysis helps to get a clear understanding of each of its factors that can affect the planning process of an enterprise.