1. Describe the 5 competitive forces in the industry.

2. Draw up a strategic plan of this industry. Include all major players.

3. What are the key success factors in this industry?
4. Which of the five generic strategies best describes the organization's strategy?
Why?
5. What is the financial and ethical issues?

1.

Porter's five forces framework is regarded as tool for analyzing business

competition. Competitive rivalry force facilitates to evaluate how severe the
competition is presently in the marketplace which in fact is determined based on
the capability of existing competitors. Suppliers bargaining power helps to
examine supplier’s potential influence and control on prices which indeed can have
an adverse impact on business profitability.

Customers bargaining power force helps to assess power of purchaser when they
are small in number and there are huge number of sellers to influence pricing and
quality whereas it’s easy to switch from one business's goods or services to
another. 

Threat of new entrants force evaluates how simple or hard it is for competitors to
join the marketplace thus if it’s easier then there will be great risk of business
market share being exhausted. Threat of substitute goods or services force helps to
study how easy it is for consumers based on price and quality to switch over from a
business goods or service to that of competitors.

2.

The initial product launch of Tesla Motors was a high performance electric sports
car called Tesla Roadster where strategy indeed was to enter the high end market
where consumers are prepared to pay a premium and then quickly drive down in
the market with high unit volume and low priced cars with each successive model.

Tesla in their business strategy indeed have invested a huge amount of their cash
flow in research and development adopting latest technology and innovation in
process which in fact have helped to bring down the costs and by rolling out low
priced model cars in the market indeed had facilitated to build good reputation and
brand value.

3.

Technology and innovation devoting all their time and efforts in creating amazing
goods and service have eventually lead to creation of masterpiece there by
providing quality products have helped other car companies to rely on Tesla’s
products. For instance Tesla's battery packs are used by Mercedes-Benz, Toyota
etc. Thus deal from major car companies to produce various parts has proved
lucrative to Tesla business.

4.

Business analysis of Tesla towards the generic strategy reflects the focus on using
advanced technologies in its electric vehicles and related products facilitating to
effectively compete against General Motors, Toyota, Honda, Nissan etc. Whereas
Tesla’s generic competitive strategy is broadly based on product differentiation
strategy which indeed helps to build competitive advantage based on the
development of products that differentiate the company from other firms in the
industry. Tesla, Inc. uses market penetration as its current primary intensive
growth strategy. This intensive strategy enables business growth by increasing
sales revenues in current markets. 

5.

Concerns about Tesla’s cash positions indeed have gone worse where research
analyst Moody have downgraded its debt as useless items and warned more
downgrades could be coming. Standard & Poor's also has warned of the possibility
of a downgrade.

Bloomberg has been tracking production by continuously monitoring the issuance

of vehicle identification numbers issued by the NTSB. It estimates that production
stands at 1,026 a week, a big jump from the fourth quarter but less than half the
2,500 a week target that Tesla had set for the end of the third quarter.

US government and many environmentalists view electric vehicles as key to

combating climate change. But the electric-vehicles and others envision depends
on an immense escalation in the world's capacity to manufacture lithium-ion
batteries, and the race for the raw materials to build those batteries is creating
strains for people and the environment which Washington Post investigation has
found.