Reference no: EM133246348

Tesla's Entry into the U.S. Auto Industry

1. How do you assess the competitive rivalry in the traditional automobile industry? Explain with precise arguments

2. How do you assess the threat of entry in the traditional automobile industry? Explain with precise arguments

3. How do you assess the power of suppliers in the traditional automobile industry? Explain with precise arguments

4. How do you assess the power of customers in the traditional automobile industry? Explain with precise arguments

5. In your opinion, why are substitutes not mentioned in the competitive analysis of the traditional U.S. automobile industry? Explain with precise arguments

6. How do you assess the potential of profitability of the traditional automobile industry? Explain with precise arguments

7. How do you assess the action of public authorities in the traditional U.S. automobile industry? Only regulator or one more player? Explain with precise arguments

Competitive analysis of Tesla strategy

8. The entry strategy of Tesla was "to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model". Based on the specific competitive features of the traditional U.S. automobile industry, explain the strategic rationale of this strategic move.

9. For the Model 3, Tesla implemented a strategy of vertical integration. Explain why.

10. In Master Plan, Part Deux, Tesla proposes the development of a completely self- driving vehicle. How can this innovation be interpreted in terms of new business model in the industry?

11. How would you describe Elon Musk leadership style? you can use the transactional versus transformational dichotomy. Justify your answer.