‘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.’
Q1- How would you characterize competition in the Auto Industry? (3Mark) (200 -300 words)
Q2- What do you think are Tesla’s core competencies? Does it have any sources of sustainable competitive advantage? (3Marks) (300 -500 words)
Q3- What do you think Tesla’s (or Elon Musk’s) strategic intent is? (4Mark) (300 -500 words)