What would you add to your Five Forces Analysis in activity C5_M1 after reading and studying the Notes on Coopetition and the Value Net document? Show your answer in the form of no more than 10 bullets of information consisting of no more than 100 words each.
In this case, Brandenberger and Nalebuff observe that interactions among firms can sometimes enhance profits and emphasize the many positive interactions that Porter generally ignore. Let us analyze these positive interactions that may affect Tesla and its sector.
· In Tesla’s case, I would say that it has been a company that has made great efforts to set technology standards. It was the first company that implemented the electric cars and it was a change of the paradigm because the competitors did have to make an effort in order not to stay behind in this kind of product offer. The whole industry changed because of Tesla’s implements.
· Regarding the cooperation among firms, we have to mention the cooperation between Tesla and Panasonic. They made a Gigafactory in order to improve efficiency and share costs and profits. This one was created in 2013 and in this graph[1], we can see that Tesla’s revenue increased considerably from this year.
In support of these ideas, we should introduce the concept of the Value Net. This consist of suppliers, customers, competitors and complementors. This analysis assesses opportunities. It encourages firms to work toward common goals by showing how each firm can prosper even while cooperating with erstwhile competitors.
· Regarding the suppliers, we should mention the different suppliers of the different inputs that Tesla uses in its production. These are AGC Automotive (windshields), Brembo (brakes), Fisher Dynamics (power seats), Inteva Products (instrument panel), Modine Manufacturing Co. (battery chiller), Sika (acoustic dampers), Stabilus (liftgate gas spring) and ZF Lenksysteme (power steering mechanism).[2] However, there are more suppliers not included in the list, but these are the most important ones.
· Talking about the customers, we should analyze the “model-type” consumer of Tesla. Because the price of Tesla’s cars is quite high, the average consumer has to be wealthy and able to afford a high investment on a car. However, there has to be something else. In this link[3] there is a research that gives us the answer. In this marketing research directly from Tesla it was discovered that its consumers are likely to be “business executives and entrepreneurs who are city dwellers, tech-savvy and green-friendly… wealthy, early adopters in the upper to middle class.”
· As a summarize of Tesla’s competitors, we should mention specially Volskwagen, Nio, BYD, Hyundai and Nissan. We saw in previous assignments that there some clear competitors, but there are also others that have relevance but not as much as these ones. There are so many competitors that they all have the challenge to adopt the best competitive advantage in order to obtain as many customers as possible, taking into account the services they offer and the price the customers are willing to pay for those services.
Great insights! Congrats Patricia!
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