Assignment 2Marks: 5

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‘Tesla and its flamboyant, and sometimes erratic, innovator Elon Musk have turned the more than a century old industry upside down in a mere 16 years. Traditional automakers are ill prepared to compete in today’s software-centered world. Unlike nimble Tesla, they are big, bureaucratic, slow to respond to customers, dependent on providing customer financing for unit sales growth, and culturally different from a software company. Tesla’s speed in innovation in the market for high-end vehicles is more like a Google or an Amazon than an automaker. And its soaring market valuation is a clear sign to all automakers that they’ll need to develop more innovative, Tesla-like business models in order to survive.’

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Harvard Business Review. February 28, 2020

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As per your Textbook –

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‘Tesla’s cars had rapidly attracted a large and loyal fan base, and sales were growing at an impressive rate. However, designing and launching multiple major car platforms while building a large-scale battery company, a network of charging stations, and operating Solar City was a lot for a company to take on in its first fifteen years. This left some analysts scratching their heads. Was Tesla trying to do too much too quickly?’

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Students are requested to read Chapter 6 Defining the Organization’s Strategic Direction of their textbooks. With the conceptual knowledge from Chapter 6 and your own research, answer the following questions.

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Q1- How would you characterize competition in the Auto Industry? (1Mark) (200 -300 words)

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Q2- What do you think are Tesla’s core competencies? Does it have any sources of sustainable competitive advantage? (2Marks) (300 -500 words)

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Q3- What do you think Tesla’s (or Elon Musk’s) strategic intent is? (2Mark) (300 -500 words)

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Support your answer with valid points from the Textbook and other references.

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NOTE: It is mandatory for the students to mention their references, sources and support each answer with at least 2 peer reviewed journal.

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