Questions
Thinking about Chapter Case 3, answer the following
questions.
1. Which PESTEL factors are the most salient for the
electric vehicle segment of the car industry? Do
you see a future for electric vehicles in the U.S.?
Why or why not?
2. Looking at Porter’s five forces of competition, how
would you assess the profit potential of the U.S.
car industry?
3. Using the five forces model, what implications can
we derive for how Tesla Motors should compete
in the U.S. car industry? What would be your top
three recommendations for Elon Musk? Support
your arguments.
4. Draw a strategic group map for the U.S. automotive
industry. What are your conclusions?