Question

What are at least two major STRATEGIC CHALLENGES or ADVANTAGES for Tesla (e.g., entry into new markets or SEGMENTS, relationships or partnerships with Preferred Provider Networks, preparing for different expectations of the next generation of residents, human resource recruitment and retention, new alliances with suppliers, physicians, or other partners; introduction of new technologies, changes in the health care environment that impact the organization’s delivery of services, changes in strategy, or other challenges or advantages)?

Answer 1

Ans

The two major strategic challenges for Tesla are:

i) With crude prices down to historic lows and likely to remain lower for the foreseeable future, the demand for electric vehicles might plummet as foreseeable and choice wise fuel powered vehicles are still superior. Saving on fuel cost is a major draw for customers and low prices does not help the Electric vehicle (EV) industry.

ii) The competition in the EV industry is much more fierce now as Tesla has proved the viability of the business model. Companies having huge balance sheets like General Motors, Toyota and Ford are running their EV programs and are likely to invest significantly going forward. Thus the future for Tesla looks increasingly competitive.