Assignment
Case Study: Tesla Motors and the U.S. Automotive Industry.
Questions
1. Which PESTEL factors are the most salient for the electric vehicle segment of the car industry? Do you see a future for electric vehicles in the United States? Why or why not?
2. Looking at Porter's five forces of competition, how would you assess the profit potential of the U.S. car industry?
3. Using the five forces model, what implications can we derive for how Tesla Motors should compete in the U.S. car industry? What would be your top three recommendations for Elon Musk? Support your arguments.
4. Draw a strategic group map for the U.S. automotive industry. What are your conclusions?
5. Why do you think that Tesla's market capitalization (Share price × Number of outstanding shares) is roughly 50 percent that of GM, while GM's revenues are more than 50 times larger than that of Tesla Motors?