Case 16: Tesla Motors in 2016: Will Its Strategy Be Defeated by Low Gasoline Prices and Mounting Competition? by Arthur A. Thompson (page C-197)

Read the case and then respond to the case questions given below.

In addition to using the case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s website, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Be sure to cite all sources according to APA guidelines.

Note: For assistance with analyzing any financial data in this case, Table 4-1 (Key Financial Ratios: How to Calculate Them and What They Mean) in your textbook is a useful reference.

Please limit your analysis to 4 pages (1000 to 1100 words), double-spaced.

Students please note: Feel free to bring in any recent news or current events concerning this company into your answer.

Case Questions
1-Evaluate the business processes and strategies of Tesla. Determine which of the five generic competitive strategies best applies to the company. Explain and justify your selection.
2-Musk has stated that the near-term strategy of Tesla was to sell about 500,000 vehicles by the year 2020. Explain how this goal can be impacted by the external forces brought by competition and/or gasoline prices.
3-Can Tesla be clearly described as a first mover? Review the five conditions where first-mover advantages can be realized. Be sure to provide examples of such conditions at work at Tesla.
4-As the current time, Tesla has largely rejected creating any definitive strategic alliances, except for some single-source suppliers and purveyors of specialized services. Is such a stand alone orientation serve Tesla well, or not? Justify your response.
5-Examine and describe the concept of outsourcing value-chain actions in within business operations. Such practices can have a strategic benefit in several ways. Of those strategies, identify one that can be applied to Tesla and provide an example of how that strategy is utilized at Tesla.