Question

• Assess a company’s competitive strategy and the strength of its competitive position

Identify at least two articles published in the last 6 months that discuss a company’s business strategy/strategies (the articles may not directly indicate that what is being discussed is a company’s business strategy as we discuss it in this class, but you should be able to infer that the company’s business strategy is being discussed). Based on your interpretation of the articles:

• State the main types of business (a.k.a. competitive) strategies.
• Explain which type of competitive strategy this company is using and what the evidence from the article is for the case you are making.
• Is the company’s competitive strategy appropriate or it could be improved? Why?
• Is the company’s competitive position relative to others in the industry strong? Why?

I know what competitive strategies are..etc..but having the hardest time with this post. Help plz :(

Answer 1

Answer:

Let us take into consideration the article of Tesla that is thinking of launching its product in the Indian market and the article of Tesla, again, to manufacture the battery for the cars and other products such as mobile phones for the Indian market published in competition magazine in India in the month of March 2020.

State the main types of business (a.k.a. competitive) strategies.

The main business strategy of Tesla is to launch the product in the Indian market which is experiencing the high fuel rates and making the customers think for the alternate source of fuel. There are no companies in the Indian market that provides the vehicle that runs by consuming other source of fuel than petrol and diesel.

Explain which type of competitive strategy this company is using and what the evidence from the article is for the case you are making.

The company is using the competitive strategy that is based over the cost of the complimentary product of the product under consideration. It is trying to eliminate or reduce the cost of the complimentary product by providing the substitute in the form of battery to them. This is reflected in the article when Tesla CEO said that “Battery charging will definitely charge you lesser than other sources of fuel”.

Is the company’s competitive strategy appropriate or it could be improved? Why?

The company’s competitive strategy could be improved as charging of the battery of the car would consume more energy and would tend to be equivalent to the cost of other fuel for the users who commute less. Company should come up with more comprehensive product and should try to add a solar roof over the car connected to the battery of the car. This will automatically charge the car and it would be another competitive strategy of the company where its product would be sustainable as well.

Is the company’s competitive position relative to others in the industry strong? Why?

The company’s competitive position relative to others in the industry is strong as the customers like the product of the company as it is saving their cost of the complimentary product and they are readily shifting to the product of Tesla, thus increasing its market share.