tesla motors & the us car industry
TRANSCRIPT
TESLA MOTORS AND THE U.S. AUTOMOTIVE INDUSTRYJANNY ANN A. REYES
BA 190 - Strategic ManagementUniversity of the Philippines
Prof. Mita Angela M. Dimalanta
The Big Three in the US
New entries through globalization and deregulation
Large-scale production as entry barriers
Enter Mr. Elon Musk who sidesteps the high entry barriers of traditional combustion technology
TESLA MOTORS, all-electric American car company
Vision: “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.”
Mission: “to accelerate the world’s transition to sustainable energy.”Tesla is not just an automaker, but also a technology and design company with a focus on energy innovation.
Pric
e Ch
arge
d
BMW
Ford
Chevrolet
Performance
Nissan
Tesla Motors
Volkswagen
1. Which PESTEL(Political, Economic, Socio-cultural, Technological, ecological and legal) factors most salient for the electric vehicle segment of the car industry? Do you see a future for electric vehicles in the U.S.? Why or why not?
2. Looking at Porter’s 5 forces of competition, how would you assess profit potential of the U.S. car industry?
3. Using the 5 forces model, what implications can we derive for how Tesla Motors should compete in the U.S. car industry? What would be your top 3 recommendations for Elon Musk? Support your arguments.
4. Draw a strategic group map for the U.S. automotive industry. What are your conclusions?
REFERENCES
• Rothaermel, F. T. (2015). Strategic management (2nd ed.). New York: McGraw-Hill.
• "TESLA Motors - External Analysis Using PESTLE & Porter’S 5 Analysis". SpherePress. N.p., 2016. Web. 29 Aug. 2016.
• Kissinger, Daniel. "Tesla Motors, Inc. PESTEL/PESTLE Analysis & Recommendations - Panmore Institute". Panmore Institute. N.p., 2016. Web. 29 Sept. 2016.