mgmt 352 tesla case

why would telsa enter such an unattractive industry?

disruptive innovation, competitors, focused differentiation (niche)

how would you evaluate the ev technology?

eco-friendly image, range issue, high battery cost, less parts (simple engines)

competition between ICEs vs EVs?

price parity, ecosystem ready

business ecosystem 

network of organizations - including suppliers, distributors, customers, competitors, government agencies

sixth force beyond porter 5 forces - complementors

industry participants whose business enhance the value of yours

positive network externalities

firms with a large installed base attract developers of complementary goods; a product/service with a wide range of complementary goods attracts users, increasing the installed base

bottleneck

component of the ecosystem that blocks growth of an industry

why has tesla opened up its patents?

to encourage others to innovate in the space & thereby increase momentum in the ecosystem overall

advantages of protection

proprietary systems offer greater rent appoproability, rents can be used to invest in further development, give the firm control over the evolution of the tech & complements

advantages of diffusion

may accure more rapid adoptions if produced & promoted by multiple firms, technology might be improved by other firms

would tesla have a competitive advantage?

cost leadership and/or differentiation

business model innovation

full-self driving, app/contents sales, data plans, tesla insurance