What is the competitive strategy used by Tesla Motors company?

October 26, 2022

Christopher R. Teeple

Learning Outcomes:

§ Distinguish between different types and levels of strategy and strategy implementation environment of hypothetical and real-world organizations. (CLO3)

§ Gain insights into the strategy-making processes of different types of organizations (CLO4)

§ Understand the contribution of various functional areas e.g. production, marketing, purchasing, and supply management to the overall well-being of the organization. (CLO5)

§ Understand issues related to strategic competitive advantage in diversified organizations (CLO6)

This assignment includes 2 sections:

I. Case study

Assignment Question(s):

Read carefully the mini case No 18 from your textbook (entitled ‘Tesla Motors Inc.) and briefly answer the following questions: (1 mark for each question)

1. What is the competitive strategy used by Tesla Motors company?

2. Use the five forces of the M. Porter matrix to describe the industry that “Tesla Motors” belongs to.

3. Describe the different functional strategies of the Tesla Motors company.

4. Describe the relationship of Tesla Motors with its primary stakeholders.

5. Describe the market position of Tesla Motors.

6. Describe the core competency of Tesla Motors.

7. Describe any strategic alliance (acquisition, outsourcing, joint venture, ….) used by Tesla Motors? Was it successful? justify.

8. What are the main challenges that Tesla Motors faced?

9. Assess the competitive advantage of Tesla Motors in its market.

10. Recommend solutions for Tesla Motors to improve its competitive advantage.

II. Mini-project

From real national/international market, choose an example of acquisition and answer the following questions: (1 mark each question)

1. Briefly introduce your chosen firms, and partners of the acquisition (industry, nationality, size, market position…). Max 100 words

2. Explain the different reasons for this acquisition.

3. What is the method used by the acquiring firm to manage its culture after acquisition? underline the pros and cons of this method.

4. Is this acquisition successful? Justify.

5. Give three challenges that can face a firm that uses an acquisition strategy.

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