Question

4. How dynamic is the industry in which your company is based? Is there evidence that industry structure is reshaping competition or has done so in the recent past?

My company is TESLA

Answer 1

TESLA is basically into automotive manufacturing and energy. TESLA is known mainly to introduce path-breaking innovations to make the world a better place in terms of automobiles. It specializes in electric cars. Through its subsidiary SolarCity TESLA has also ventured into Solar Panel manufacturing.

The industry of cars is a highly dynamic. This can be attributed to the technological innovations that happen day in and day out. TESLA specializes in electric cars and hopes to make them more energy efficient. The industry of electric cars is getting as competitive as it can get. All the big automobile names are entering this segment as they can clearly see the trend of making automobiles energy efficient and less fossil fuel reliable. This is all part of the initiative to reduce global warming. The industry is continuously being reinvented in terms of the price of the cars, efficiency of the battery in which the electricity is being stored for the car, performance of the car. The electric cars are being innovated to the level to make them a lucrative alternative to petrol and diesel run cars.

The industry is reshaping competition as all major players are entering. Once during a time only TESLA was venturing into this field and it may have definitely had some go ahead relative to others in terms of technology. Increased competition only means that TESLA would not have to innovate faster and develop cars which are more efficient. It needs to leverage on the advantage that it already received and develop path-breaking technology to challenge the likes of GM, Ford and others.