03 May WHAT DOES TESLA NEED TO DO TO “CROSS THE CHASM” AND BECOME A MAINSTREAM PLAYER IN THE CAR INDUSTRY?
Please review the attached article about Tesla and answer the following questions: (2000 words are required)
1. Using the industry life cycle model, elaborate on the stage of the life cycle that the car industry was in prior to Teslas entry. How was Tesla able to enter this industry? What competitive advantages has it created along the way?
2. What does Tesla need to do to “cross the chasm” and become a mainstream player in the car industry? What are likely to be the key sources of resistance (consumer/supplier/distribution/etc) that it will encounter, and how can it overcome them?
3. Specify three key strategies that Tesla needs to implement to stay ahead of the competition and ensure its viability in the long run.
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