Tesla Strategy Analysis

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Using the information in the Case PDF execute, document and include the following requirements: 

  • Foundational work:

    • Create a value chain diagram for Tesla followed by a brief analysis of each area overviewing assessing/describing the impact of strengths and weaknesses
      • Remember: Value chains span everything from materials and supply chain to production, distribution and the end-user/customer
      • Keep an eye out for where Tesla is vertically integrated (meaning they are doing the work in-house as opposed to using partners or outsourcing)
    • Perform Porter’s Five Tests of a Good Strategy by looking at your value chain analysis and analyzing where Tesla does and does NOT meet the requirement of each “test”. For your convenience the Five Tests are pasted below. 
    • Perform a Five Forces analysis of Tesla – HINT: Five Forces is just bullet points – each rated low/med/high – also substitutes are NOT rivals (a sub for Starbucks is NOT Alfred’s it’s Red Bull IF caffeine drinkers are drinking a non-rival for the same benefit)
  • PAPER: (Remember, write titles each section, succinct like a report to management in the real world)
  • Based on the analysis above write your strategic analysis case paper using the following prompts: 

    • Describe Tesla’s strategy to enter the US auto market and how do they intend to compete for the next 5-10 years
    • Describe the US auto market and how it is evolving.

      • Be sure to then describe where Tesla fits into this evolving market
      • Identify who the best customers are for Tesla and describe their purchase behavior (use needs-based segments / motivations NOT demographics alone)
    • Analyze the competitive environment for Tesla detailing which are the most impactful strategic issues and why you believe this to be the case. 

      • Keep an eye out for non-traditional competition
      • Identify actions that competitors have done well or executed poorly
    • Analyze Tesla’s activities (or activity system’s – “The How”) that support their US auto market entry strategy

      • Outline key activities and do connect activities relate to Tesla’s overall strategy and/or the market they are entering 
      • Describe why there was “production hell”
      • From the Roadster to the Model 3 and beyond describe Tesla’s 5-10 year plan as you’ve ascertained
    • Final Step: YOUR Recommendations
      • By now you have read all the Exhibits in the case, performed your foundational work and the analyses that follows
      • Taking into account everything you’ve examined (make sure you don’t let your own insights fall through the cracks) perform the following:
        • Take the position that you are a senior consultant writing to senior management – they want to hear what you have to say
        • Provide 4-5 detailed recommendations that you believe will 1) help ensure sustainable competitive advantage 2) mitigate key risks and/or 3)  solve key strategic dilemmas or issues
        • Make sure that you tie your recommendations to the opportunities or issues you believe matter most and what you think the potential (beneficial) outcome will be from your recommendations.