Strategic Management for Competitive Advantage Report 2022

Strategic Management

Table of Contents
Introduction................................................................................................................................1
The strategy triangle in 2028......................................................................................................1
Competitive advantages (How it is trying to win the game)..................................................1
Positioning..............................................................................................................................2
Resources...............................................................................................................................3
Structure of industry in 2028......................................................................................................3
Stage of the industry in 2028.....................................................................................................3
Relevant forces for the electric vehicle industry........................................................................4
Evolving world and its impact on the industry..........................................................................5
Forecast for the industry and firm..............................................................................................5
References..................................................................................................................................6
Appendix....................................................................................................................................9
List of table
Table 1: VRIN analysis of Tesla................................................................................................9
List of figure
Figure 1: Porters' five forces analysis of Tesla in future............................................................4

Introduction
Strategic management is significant for the competitive edge of the businesses by
prioritizing business activities and resource competencies (Ansoff et al. 2018). In this
context, the present report is based on the strategic management of Tesla in 2028. For this
purpose, the future strategic management of Tesla has been assessed by considering the
current scenario. Apart from this, the future dynamics of the electric vehicle industry have
also been assessed in the report.
The strategy triangle in 2028
The goal of Tesla in 2028 is to gain a leading position through sustainable
technological products because it aims to enhance the world’s shift to sustainable energy
(Tesla, 2019). This goal will make a reputed position with high profitability. In this regard,
Porter (1996) proposed the strategic triangle which indicated that the resources such as
human, technical and capital resources are crucial to ensure the positive positioning.
However, the firm might face the restriction over the capital resources because the
convertible debt of Tesla has increased up to 2.7 billion dollars in May 2019 (The Economist,
2019). The higher debt will affect the flow of capital which consequently harms the routine
operation such as production. Further, the unpredictable demand will also create challenges
for the organization in 2028. Apart from this, the ranking of the company got declined by 39
spots in the Axios and Harris poll of brand reputation. It will make the challenges for the firm
to survive against the competitors in 2028. Although, Tesla makes the unique position in the
market by rendering the eco-friendly vehicles that have high performance. These basic
components of Tesla’ s strategic triangle including goal, resources and position reveals that
the firm can face several challenges in 2028 in terms of resources and positions.
Competitive advantages (How it is trying to win the game)
As per the sustainable competitive advantage model of Wiggins and Ruefli (2002),
the sustainable product provides competitive advantages to Tesla because its products have a
negligible carbon footprint. Besides sustainability, the products also have innovative features
like high speed and autopilot which offer the generic differentiation advantages to the
business (Forbes, 2018). In this context, Porter and Millar (1985) proposed the generic
differentiation advantages model and noted that innovativeness supports to gain consumer
loyalty despite premium pricing. However, due to some safety issues in the product, the
company lost the life of a driver which consequently decreases the market share of the firm
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(The Economist, 2018). Although, the organization continuously innovates its products and
services that will augment the competitive edge by facilitating the safety issues for 2028.
Apart from this, several other car manufacturers like Jaguar also targets to launch the electric
SUV. It can increase the competition for the brand because other leading companies diversify
the product portfolio by launching electric vehicles which might increase the consumer
switching. In the same manner, the company face the challenges in finding new customers for
its Model 3 car which makes it even harder to survive in 2028. It depicts that increasing issue
of sustainability and positive impact of the electric vehicle may enhance the competition for
Tesla motor. However, the business would be flourished with its leading position and variety
of vehicles.
Besides the product innovation, supply chain management highly contributes to
providing a sustainable competitive edge to the business. For this purpose, the firm adopts
different strategies such as collaborating with those partners which rarely work with auto
manufacturers like battery suppliers (Tradegecko, 2019). This strategy will also support Tesla
in future by increasing the competitive advantages in manufacturing of customized products
through determining strategic supply chain (Lopez and McKevitt, 2017). Apart from this, the
company also collaborates with other car manufactures for making the low cost of a basic
component of cars. It provides cost advantages to Tesla (Tradegecko, 2019; Lopez and
McKevitt, 2017). However, as the electric vehicle industry will grow then the supply side
will also be growing which can facilitate the firm to select the appropriate supplier for the
products. Therefore, the organization may have several supply-side opportunities in 2028.
Positioning
As per the Porters’ generic strategies, Tesla occupies a strong leading position
because the firm considers technological innovation in developing sustainable products
(Tradegecko, 2019; Tanwar, 2013). It increases the self-esteem of the individuals for buying
electric cars (Groener, 2016). It will also support the businesses to attract the segments in the
future. In contemporary scenarios, Tesla is forefront in technological innovation in the
automobile sector. The continuous innovation in future facilitates to maintain the
differentiating position in 2028. Even it also facilitates to use the focused differentiation for
different narrow segments of customers. However, the consumer services provided by Tesla
are not appropriate (Salinas, 2019). For this purpose, the firm will increase its focus on
improving consumer satisfaction by rendering excellent services. Therefore, innovative
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