Case Analysis

One of the most powerful tools in corporate strategy and strategy in general nowadays is innovation. As we emphasized, innovation is not just about new technologies, but also how to adapt and tweak the business model. An innovative mindset is critical to business success in today’s world.

Please use the tools and frameworks you have learned in Chapter 10 to analyze Case 10: Tesla Motors: Disrupting the Auto Industry?

Write your analysis to the following questions.

Do you think electric vehicles will disrupt internal combustion engine vehicles (meaning that eventually the majority of cars will be electric powered)? Do you believe that electric vehicles can grow share from less than 1 percent to more than 33 percent of new cars sold in the United States in 10 years? Why or why not?
Is Tesla foolish to pioneer a new architecture and make everything themselves? Does this lower or increase their risk? Why is Tesla’s factory so different than many other factories around the world?
Why has Tesla opened up their patents? What are the pros and cons of such a move? If Tesla has opened up their patents, why are there no tours of the giga factory? What does this tell us about their strategy?
At the end of the day, what factors do you think are most important for predicting Tesla’s future success? Do you think Tesla will be successful even if all incumbent automakers successfully produce electric vehicles that are comparable in cost and quality to Tesla’s vehicles?

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(It’s important to display critical and independent thinking in your analyses, and please refer to the rubric for details on the evaluation. Length guideline is roughly one page length, and quality of thinking is valued more than quantity, and you are encouraged to use bullet points and short sentences.)

attachment:

1-Tesla Motors (case)

2-CH 10

3-Rubric

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Solution preview

Electric vehicles will ultimately disrupt the internal combustion vehicle engines in the long-run, may grow from the current less than 1% to 33%, but that may not happen within the next decade. Notably, people are enthusiastic about curbing climate change, but the cost of doing so is simply too high. This is because Tesla’s production inefficiency has often resulted in high priced products, inaccessible to the majority of car owners in the country. Therefore, it becomes a challenge for them to change the combustion engines. However, as the company makes

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