1. Summarize the case in your own words

2. Answer the following questions

a. What kind of challenges is TESLA facing in its industry?

b. What are the specific challenges that TESLA faces in China?

c. What, if anything, can TESLA Learn from its expertise in the United States and Singapore as it develops an entry strategy for China?

d. Develop a plan of action for TESLA in China

3. Provide conclusions and recommendations based on the situations described in the case using different theories learnt from INB 303 course.

Tesla's strategy allowed the company to offer a compelling customer experience while operating efficiently. The company was also able to capture sales and service revenues that other automobile manufacturers would not be able to attain through the use of the traditional model. Tesla also believed that it would be have better control over the sales process ifit sold its own vehicles. Factors such as the costs of inventory, management of warranty services and the pricing of the products could be better maintained. All of this would serve to strengthen the Tesla brand, and obtain rapid customer feedback. 30 However there was one problem: U.S. law-makers in some states had prevented the direct sale of vehicles to customers by their manufacturers. This created a barrier for Tesla to overcome in its pursuit of company- owned dealerships.' In 48 of the 50 states, Tesla was required to sell and service its automobiles through a middleman franchise a dealer. 32 Once dealers had invested in inventory and facilities, automotive companies could pressure dealers to accept shipments of cars. If the dealer did not comply they could face the possibility of the manufacturer finding another local dealer to use instead. In such a situation, the dealer would lose the money that had been invested in the dealership. To prevent such situations from occurring, the states had begun to enact laws to provide dealers with exclusive rights in local markets. Tesla overcame this obstacle with a revolutionary solution