Question

In: Operations Management

What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain...

What type of diversification strategy does the launch of Tesla Energy represent: related or unrelated? Explain why. Does Tesla Energy’s new business meet the three tests of corporate advantage?

Solutions

Expert Solution

Unrelated diversification is the diversification strategy that Tesla Energy represents because it is slowly moving towards shifting entirely to the energy business.

Three tests of corporate advantage

1. Tesla Energy meets the three tests of corporate advantage because the energy industry is a lucrative industry and with the advanced technologies and innovation, this industry can bloom in no time. Furthermore, reliance on battery technology will be significant.

2. Tesla Energy is considering to move from the automobile company to an energy company and this will cost a significant amount of capital for Tesla

3. The new unit will provide a new identity to Tesla and the entire company will emphasize on energy solutions.

keosha answered 2 years ago
Next > < Previous

Related Solutions

Explain in depth "unrelated diversification".
Explain in depth "unrelated diversification".
How is profit generally achieved with an unrelated diversification strategy
How is profit generally achieved with an unrelated diversification strategy
Explain the difference in related and unrelated diversification. Identify two companies that have achieved earning's growth...
Explain the difference in related and unrelated diversification. Identify two companies that have achieved earning's growth through related diversification and two that have achieved such growth in unrelated diversification. Explain the basis for your examples.
Explain the difference in related and unrelated diversification. Identify two companies that have achieved earning's growth...
Explain the difference in related and unrelated diversification. Identify two companies that have achieved earning's growth through related diversification and two that have achieved such growth in unrelated diversification. Explain the basis for your examples.
Define the following terms: a) Related diversification b) Unrelated diversification and c) Strategic fit. Which one...
Define the following terms: a) Related diversification b) Unrelated diversification and c) Strategic fit. Which one would you apply as the best method and why?
Under what conditions will a related diversification strategy not be a source of competitive advantage for...
Under what conditions will a related diversification strategy not be a source of competitive advantage for a firm? Instructions Write a paper addressing the question of related diversification strategies and competitive advantage. Your paper should be at least 300 words long. Reference sources used to support answer.
What is the type of diversification does each acquisition involve?
What is the type of diversification does each acquisition involve?
Under what conditions will a related diversification strategy notbe a source of competitive advantage for a...
Under what conditions will a related diversification strategy notbe a source of competitive advantage for a firm? Instructions Write a paper addressing the question of related diversification strategies and competitive advantage. Your paper should be at least 300 words long. Step 1 – Re-read the section in the text on the types of corporate diversification. Step 2 – Choose a position in response to the question. Step 3 – Research real-world examples to support your position. The web is a...
Explain the factors that influence expansion strategies:concentration strategy or diversification strategy.
Explain the factors that influence expansion strategies:concentration strategy or diversification strategy.
Although the related diversification strategy good for companies in developed countries, it is argued that the...
Although the related diversification strategy good for companies in developed countries, it is argued that the unrelated diversification strategy may be a better option in developing countries? Do you agree? Why?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT