Reference no: EM133232225

To maximize profits, a new niche market start-up company is planning to use Tesla built all electric semi-trucks to transport products/goods for standard shippers. They plan to reserve 50 semi-trucks throughout the preproduction phase to have a massive number of trucks coming over the next ten years. Since the diesel trucking industry is inefficient, increased costs & outdated, electricity costs less than half that of diesel and requires fewer systems to maintain, Tesla said. Compared to its competitors, this company performs better in:

• Fleet Flexibility
• Lower Per Mile costs
• Lower costs for operations and reduced down time
• Less Breakdowns and required maintenance down time
• No Diesel engine repair needed

The question is, why would it be imprudent to chase this seemingly solid investment opportunity and should reject it for investment? Please explain the answer based on the ideas of "Tradeoffs and Activity Fit that include Competitive advantage and Sustainability" and the Michael Porter strategy summary video on YouTube. Please answer the following examples in the explanation as well: can the company build enough activity network complexity to make the company both unique and valuable, and why? Does the company make enough tradeoffs (what competitors do that it chooses not to do)?