Elon Musk Case Study (1)

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Apr 3, 2024

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Burns 1 Dr. Loch MGT 312 Zi Burns March 25, 2024 Elon Musk Case Study 1. Is Elon Musk the greatest strategist on the planet today? Why or why not? I believe Musk is an incredible strategist because he has amazing vision, determination, and creativity. Not only did he see a saitanible future for the car industry but he also decided to enter the rocket industry after realizing that existing companies were not efficient, and he saw an opportunity to succeed. Musk knew he could offer competitive prices and stand out by reusing rocket parts and making them in-house. This approach helped him capture 50% of the market. Despite facing tough times, Musk persevered through challenges that almost led his businesses to bankruptcy. For instance, Tesla, his electric car company, nearly failed when Sedan production and sales were struggling. However, Musk persevered because he believed in the future of electric vehicles. He also chose to manufacture Tesla cars in-house, which was unconventional but turned out to be successful. This strategic move paid off, as Tesla experienced a surge in sales in 2021 while other carmakers struggled. 2. Assess Musk's strategy for SpaceX- What are the strengths and weaknesses of Starlink? Starship? Musk recognized an opportunity within the aerospace industry and created a strategy aimed at advancing rocket production. Instead of relying solely on suppliers, he implemented an approach
Burns 2 of crafting rockets from reusable parts entirely in-house, which gave SpaceX a significant competitive edge. Starlink, an additional venture run by Musk, involves a constellation of satellites designed to provide internet access, particularly to areas with limited coverage. This initiative has drawn substantial attention, leading to government and corporate interest, resulting in over $900 million in subsidies. However, Starlink faces challenges, including the high operational costs of each satellite and their relatively short lifespan, potentially creating pressure for SpaceX's resources. Additionally, Musk's ambitious project, Starship, announced as the most powerful launch system ever developed, has encountered delays and setbacks, raising concerns about SpaceX's financial stability. While the successful execution of Starship could significantly enhance productivity by allowing the launch of numerous satellites, the slow progress poses a risk of financial strain, potentially jeopardizing SpaceX. 3. Assess Musk's strategy for Tesla. What are the strengths and weaknesses of Tesla? Is being the most vertically integrated car company a strength or a weakness? Musk's strategy for Tesla was to acquire SolarCity as part of Tesla Energy in order to achieve Tesla's sustainable energy goals. One of Musk's strengths wehn it comes to Tesla is that he always seems to be developing and trying to improve Tesla whether it be creating a self driving car or being able to generate income by adding your car to the Tesla shared fleet. One of the weaknesses that come with the big ideas and goals Musk has for Tesla is that more often than not he over promises and under delivers. Many times the dates he sets for Tesla releases and launchs are much later than expected. Another one of Tesla's strategies was to build cars from scratch in order to have a competitive advantage over car companies, yet this caused Tesla to fall way behind its production goals. One strategy Tesla used was having fast and efficient shipping of
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