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Running head:INDUSTRY EXTERNAL FACTORS AND INTERNAL VALUE CHAIN TOOLS1Tesla Company: Industry External Factors and Internal Value Chain ToolsStudents NameInstitution of Affiliation
INDUSTRY EXTERNAL FACTORS AND INTERNAL VALUE CHAIN TOOLS2Tesla Company: Industry External Factors and Internal Value Chain Tools1.Using the external Industry Success Factors Tool identify industry conditionsthat either support or limit Elon Musk's ambition to change auto transportation.The external industry success factors that favor or limit Tesla’s ambition to change autotransportation can be analyzed using the Porter’s Five Forces Analysis. Competition from rivalryautomaker companies such as Honda, Volkswagen and BMW can limit Musk’s ambition ofautomating Tesla’s motors. Although the competitors are few, they are aggressive in innovationand marketing of their products and this is a major concern for Tesla in strategizing onautomation. The industry’s moderate bargaining power in customers is maintained by lowerswitching costs and unavailability of substitute products. The intensity of these factors can favor