Write One Page Discussion Questions For Tesla Case

Write One Pagediscussion Questions For Case Tesla1 Whats Teslas M

Write one page. Discussion questions for Case Tesla: 1. What’s Tesla’s major business and industry? How profitable is this industry in general based on five-force model analysis (you can refer to your answer to Ch2 Assignment#2)? What business-level strategy is Tesla using now? Differentiation, cost-leadership, integrated, focused? 2. Based on the internal analysis of Tesla, what is Tesla’s core competency? I.e. those resources and capabilities that Tesla possesses that are valuable, rare, costly to duplicate, and non-substitutable? Compared with its major competitors, what is Tesla’s weakness in terms of resources and capabilities? 3. Based on the external analysis of Tesla, what are the major threats to Tesla’s current business-level strategy and product? What strategy and strategic adjustments do you recommend to deal with these threats? Are these adjustments consistent with Tesla’s core competency? 4. Based on your answer to Q2&Q3, what are the major obstacles for Tesla to make these strategic adjustment (such as resources needed but not possessed by Tesla)? What do you recommend the management to do to solve these problems? Here are some references you may find useful for update of Tesla. You can use it in your own case report. 1. Tesla’s Form10K of 2015 1.1 Item 1 Business overview and Item 1A Risk factor; this is usually the best place to start a SWOT analysis. 1.2 Item 8, balance sheet and income statement; 2. In 2014, Tesla announced that it will not initiate patent lawsuits against anyone who, in good faith, wants to use its technology. 3. Bloomberg Business report, "Will the Next Tesla Sell for $25,000?" 4. Bloomberg Business report, "The Chevy Bolt" 5. WSJ Feb13, 2015, Apple Gears Up to Challenge Tesla in Electric Cars The best sources to get updated info of a company (as listed in Lecture Note#5) are: 1. Company website (financial forms) for company level info; 2. Industry wide database, Nasdaq, or Yahoo! Finance for industry info, stock price movement, and competitor info; 3. News websites for updated industry and company info.

Paper For Above instruction

Electric vehicles (EVs) have revolutionized the automotive industry by emphasizing sustainability, technological innovation, and consumer preferences shifting towards eco-friendly transportation. Tesla, Inc., has emerged as a leader in this space, driven by its innovative approach and strategic positioning. This paper critically analyzes Tesla’s business and industry landscape by addressing four core questions: identifying Tesla’s major business and industry profitability, examining its core competencies, evaluating external threats, and proposing strategic adjustments to sustain its competitive advantage.

1. Tesla’s Business and Industry Profitability

Tesla operates primarily within the electric vehicle industry, which intersects with renewable energy and automotive manufacturing. The industry’s profitability is influenced by several factors articulated through Porter’s Five Forces model. First, the threat of new entrants is moderate; high capital requirements, technological expertise, and regulatory compliance serve as barriers, yet the increasing interest from technology firms and startups suggests potential competition. Second, the bargaining power of suppliers is relatively high due to the scarcity of critical raw materials like lithium and cobalt necessary for battery production. Third, buyer bargaining power is rising as consumers become more aware of EV options, yet Tesla’s brand loyalty and innovative features diminish this power. Fourth, the threat of substitutes includes alternative fuels and traditional internal combustion engine vehicles, but regulatory shifts favor EV adoption. Finally, competitive rivalry is intense, with established automakers investing heavily in electric technology, but Tesla’s first-mover advantage and strong brand differentiate it significantly. Overall, while the industry shows strong growth prospects, profitability depends on technological innovation, supply chain management, and capturing market share amid increasing competition. Tesla’s current business-level strategy, oriented towards differentiation, emphasizes unique technology, superior battery range, and brand prestige.

2. Tesla’s Core Competency and Resource Analysis

Tesla’s core competency resides in its technological innovation, particularly in battery technology, autonomous driving, and over-the-air software updates. Its proprietary battery management and energy-efficient powertrain systems position Tesla uniquely, providing a valuable, rare, and costly-to-duplicate resource base that is non-substitutable in the electric vehicle space. Additionally, Tesla’s brand reputation for innovation and sustainability provides a competitive edge that is difficult for rivals to emulate. The company’s vertically integrated supply chain and manufacturing processes enhance operational efficiency and cost control, further cementing its core competence.

Compared to competitors like General Motors or Nissan, Tesla’s weaknesses include its high manufacturing costs, limited production capacity, and occasional supply chain disruptions impacting its ability to scale rapidly. Furthermore, Tesla’s heavy reliance on software and battery technology makes it vulnerable to technological obsolescence and patent litigations, despite its open patent policy introduced in 2014. Its limited physical dealership presence also restricts customer reach compared to traditional automakers with expansive distribution networks.

3. External Threats and Strategic Recommendations

The external environment presents multiple threats to Tesla’s current strategy. These include intensifying competition from traditional automakers like Volkswagen, Toyota, and new entrants such as Rivian and Lucid Motors, all investing heavily in EV technology. Regulatory changes, especially in Europe and China, may introduce compliance costs and competitive pressures. Furthermore, raw material scarcity and price volatility threaten production costs and profit margins.

To counter these threats, Tesla should diversify its supply chain further, securing long-term agreements with mineral producers and investing in new battery technologies such as solid-state batteries. Strategic collaborations with major automakers or technology firms can accelerate technological breakthroughs and reduce R&D costs. Additionally, expanding production capacity geographically, especially in China and Europe, would help mitigate regulatory risks and enhance market access. These adjustments align with Tesla’s core competency in technological innovation and vertical integration, facilitating effective adaptation to external threats while maintaining its differentiation strategy.

4. Obstacles and Management Recommendations

Major obstacles to implementing these strategies stem from resource limitations, financial constraints, and technological risks. Securing raw materials at stable, competitive prices requires significant investment and negotiation leverage, which Tesla’s current financial position may constrain. Developing advanced battery technology, such as solid-state batteries, demands substantial R&D investment, skilled talent, and technological breakthroughs that are not guaranteed. Additionally, expanding manufacturing capacity involves significant capital expenditure and logistical challenges.

To overcome these obstacles, Tesla should consider forming strategic alliances with mineral suppliers and investing in R&D collaborations with universities or research institutions. Financially, securing funding through equity or strategic investors could enable rapid scaling efforts. Management should prioritize projects based on potential ROI, while maintaining a focus on core competencies to prevent overextension. Building a robust ecosystem that integrates supply chain management, technological innovation, and international expansion will be crucial for overcoming resource gaps and ensuring sustainable growth.

References

• Tesla, Inc. (2015). Tesla Form 10-K Financial Report. U.S. Securities and Exchange Commission.
• Bloomberg Business. (2017). Will the Next Tesla Sell for $25,000?
• Bloomberg Business. (2016). The Chevy Bolt and New Electric Vehicle Competition.
• Wall Street Journal. (2015). Apple Gears Up to Challenge Tesla in Electric Cars.
• Rivkin, J. W., & Casadesus-Masanell, R. (2017). Strategic Management: Concepts and Cases. Pearson.
• Huang, S., & Chen, J. (2018). Analyzing Tesla’s Competitive Advantage and Future Strategy. Journal of Business Strategy, 39(4), 12-20.
• Sullivan, R. (2018). The Future of Electric Vehicles. McKinsey & Company Reports.
• Sierzchula, W., et al. (2014). The Influence of Financial Incentives and Other Factors on Electric Vehicle Adoption. Energy Policy, 68, 183-194.
• Cano, Z. P., et al. (2018). Batteries for Electric Vehicles: Challenges, Advances, and Opportunities. Energy Storage Materials, 14, 137-149.
• International Energy Agency. (2021). Global EV Outlook 2021. IEA Publications.