Crafting & Executing Strategy: The Quest for Competitive Advantage Assignment and Solution

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Crafting & ExecutingStrategy: The Quest for Competitive Advantage

ISBN: 978-1-260-36797-3

Graded Project

Read through Case 16: “Tesla Motors in 2016: Will Its Strategy Be Defeated by Low Gasoline Prices and Mounting Competition?”

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The challenges of Tesla to overcome and built on a strategy is to produce fuel-efficient cars and value for money cars (Madsen, 2016). Tesla also needs to diversify and innovative electric vehicles.

SWOT Analysis


Tesla is known for brand innovation, advanced technology  & has got extended government political support. The company known to innovate and adapts to new environment. It integrates the most unique marketing and product technology. It tends to also globally progress by integrating the backward and forward supplies. It keeps on investing in the advanced technology and has expanded through the diversification roles. The strategy is mix of internal and external innovation.


It has poor liquidity as it keeps on investing, low capacity issues and also poor customer awareness.


Integration of innovative technology such as hybrid, electric and green vehicles


It faces stiff competition.


The recommendation is to expand its brand horizon and launch more products under its umbrella

The second is to produce fuel efficient and value for money cars globally. 

Mercedes-Benz acquiring a stake in Tesla and strategic partnerships from your text, what are the potential pitfalls of this alliance?  Do these pitfalls apply in Tesla's case, given their patent policy? Explain why. 

The potential pitfalls would be of creating a monopoly and the strict governmental rules. The pitfalls of Tesla would be to lose out its own identity and market to its competitors.

3. What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain why. Does Tesla Energy's new business meet the three tests of corporate advantage?

The diversification strategy which would launch Tesla Energy is related to technology diversification. It has integrated the advanced strategies and techniques to pass the three tests of the corporate advantage.

4. What kind of vertical integration strategy did Tesla choose for its distribution and supply chains: backward or forward integration? What are the advantages of its chosen strategies? What are the disadvantages? 

The vertical integration is the integration of the distribution and the supply chains which are part of the backward and forward integration. This has allowed growth and global access deliverables. Any challenges related to overcoming of distribution and supply chain would be overcome as it would allow a smooth flow of car sales. The advantages are the ready access of the resources while the disadvantages are that it can lead to extra costs. 

5. In reviewing Tesla's manufacturing strategy, does the part of Tesla's value chain it outsources make strategic sense? Explain why or why not.

Tesla's value chain outsourcing helps in better management and dealing with the strategic sense. Any deviations or challenges can be overcome, as it is only a  small unit which has been taken care off (Acquaah, 2016).

 6. Which of the five generic strategies is Tesla pursuing with its marketing strategy? Explain. 

The five generic strategies which Tesla is pursuing are the high tech cars, diversification, market development, product development and keeping an eye on an external/internal framework.

7. What are the key elements of Tesla's culture? What problems do you foresee that Elon Musk will have in sustaining that culture amid growing competition? Explain.

The key elements of Tesla's culture are that it is dynamic and it has been viewed to be adaptive per the growing cultural needs. The problems foreseen are that the company does not bring its culture to various places, rather adapt to the global environment and offers similar benefits.

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