Assignment #2
Summer 2017
Prof. Kang
Tesla & SolarCity – Sustainable Advantage?
Due Date: Wednesday, June 21
The purpose of Assignment #2 is to give you practice evaluating potential bases for
sustainable competitive advantage due to Resources, Size-based leadership and
Timing-based leadership.
Our focus is the combination of Tesla Motors and SolarCity into the new Tesla, as
described in the article, The Real Story Behind Elon Musk’s $2.6 Billion
Acquisition Of SolarCity And What It Means For Tesla’s Future–Not To Mention
The Planet’s”. A link to this article is in the assignment description on Questrom
Tools.
Tesla and Elon Musk have been unusually successful, compared to prior attempts to
produce a viable electric car. As the article makes clear, their goal is much more
ambitious than simply making cars: roof tiles are the latest component of Musk’s larger plan to wean us off fossil
fuels “[This] can solve the whole energy equation.” To him, this future—in which his combined companies will save us from the
destructive forces of climate change—is simply “logical” and “quite obvious.” “It’s totally logical that we’ll have sustainable energy in the long term,
because unsustainable energy, by definition, is unsustainable.”
Unfortunately, logical inevitability is not a reliable basis for strategy, so the goal of
this assignment is to evaluate whether or not there appear to be reasons to believe
that the combined Tesla and SolarCity increases the potential of a sustainable
competitive advantage beyond what the companies may have had individually.
Part 1 – Resource-Based View
Tesla and SolarCity control many “valuable” resources, but do any of these resources
clearly pass the VRIO test? Use the VRIO framework to evaluate the following
resources of Tesla/SolarCity in the stated context: Elon Musk
SolarCity’s business model (as described in the article)
SolarCity’s Buffalo factory (GigaFactory 2)
SolarCity itself, as a new resource for Tesla Don’t worry about being 100% correct – the focus is on your evaluation using VRIO. Part 2 – Leadership (Dis)Advantage
Tesla and SolarCity are early movers and the current market share leaders in their
respective industries and, of course, as a combined entity. For each of set of
Advantages/Disadvantages in Coughlan’s article, evaluate whether or not you think
there is a potential for sustained competitive advantage.
For Size-based Advantages, evaluate whether or not you think SolarCity gains
additional size-based advantages or reduces likelihood of size-based disadvantages
by now being part of Tesla. Size Advantage Size disadvantages Scale Economies Incumbent Inertia Scope Economies
Network Effects
Learning Effects
For Timing-based Advantages, evaluate whether or not you think that the
combination of Tesla and SolarCity gives the combination additional time-based
advantages or reduces time-based disadvantages beyond what they had individually. Timing Advantages Timing Disadvantages Preemption Pioneering Costs Reputation Effects Demand Uncertainty Buyer Switching Costs Technological Uncertainty Patents or Institutional Barriers
***
You should use the following pages as the template/form for your assignment.
Please do not include this page and prior page in your submission. Assignment #2 Name: Part 1 – Resource-Based View (please do not break tables across page boundaries when handing in)
Resource: Elon Musk
Valuable
Rare
Costly to
Imitate
Organize to
capture
value
Conclusion/Insight:
Resource: SolarCity’s business model
Valuable
Rare
Costly to
Imitate
Organize to
capture
value
Conclusion/Insight: Assignment #2 Name: Resource: SolarCity’s Buffalo factory (GigaFactory 2)
Valuable
Rare
Costly to
Imitate
Organize to
capture
value
Conclusion/Insight:
Resource: SolarCity itself, as a new resource for Tesla
Valuable
Rare
Costly to
Imitate
Organize to
capture
value
Conclusion/Insight: Assignment #2 Name: For Size-based Advantages, evaluate whether or not you think SolarCity gains additional size-based advantages or reduces likelihood
of size-based disadvantages by now being part of Tesla. Size Advantage
Scale Economies
Scope Economies
Network Effects
Learning Effects Size disadvantages
Incumbent Inertia Assignment #2 Name: For Timing-based Advantages, evaluate whether or not you think that the combination of Tesla and SolarCity gives the combination
additional time-based advantages or reduces time-based disadvantages beyond what they had individually. Timing Advantages
Preemption
(note type or
types)
Reputation
Effects
Buyer Switching
Costs
Patents or
Institutional
Barriers Timing Disadvantages
Pioneering Costs
Demand
Uncertainty
Technological
Uncertainty

• 1498186137-Assignment_2-Kang.docx

SuperTutor

(15)

Status NEW Posted 23 Jun 2017 02:06 AM My Price 20.00

-----------

Attachments

file 1498186140-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------on�-----------�th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer