Question

Does Tesla use related diversification or unrelated diversification?

Answer 1

With respect to the concept of diversification strategy, Tesla’s has followed a related diversification model. Tesla has been using this strategy to grow as an organisation by utilising its resources where it can strategic “fit”. Tesla also has been following this strategy to transfer resources to new areas or new market or new industry in a manner that it would result in the growth of the organisation as whole due to a sustainable competitive advantage results. It has been using the concept of synergy” where related diversification would result in greater benefits than in unrelated diversification.