CASE STUDY

Incorporated in $2003,$ Tesla declared in its mission statement that its goal is $"$to accelerate the world's transition to sustainable transport," and it has proven itself a leader in green technology in the automotive sector. In its initial business plan, by co$-$founder Martin Eberhard, the electric sports car company promised to provide the value of a high$-$end sports car at a lower cost to the customer and a lower environmental cost to the planet. Electric vehicles were seen as inferior to standard vehicles prior to Tesla's innovations in creating powerful cars that piqued consumer desire. The generic automotive manufacturing business model relies on collaborative manufacturing with industry partners and a distribution model dependent on third parties. Standard cars are aimed at people and businesses with individual transportation needs. This model is commercially viable because of custom$-$equipped addon features to the per$-$vehicle prices.

A$.$ Tesla's business model is different. Identify at least three ways in which the Tesla model differs from the traditional automotive business model?

B$.$ On the ${29}^{mn}$ of April, $2021,$ Zambia and the Democratic Republic of Congo signed an Agreement to jointly produce Electric Battery Vehicles and in that agreement they have planned to attract foreign investment in that Area. Tesla hires you as a consultant to manage their Africa investments as they plan to invest in the Zambia DRC battery production to provide their cars with batteries.

i$)$ What should the Government of Zambia do in terms of taxation to attract Tesla investment?

ii$)$ What are the risks that will come with investing in the DRC by Tesla?

iii$)$ What strategy$($s$)$ can you advise Tesla to use in managing the risks you have identified in $($ii$)?$

iv$)$ How would you implement the type of strategy$($s$)$ you have identified above? Mention the actual steps, activities, tools or programmes you would implement.

C$.$ Does Tesla need a marketing strategy? Yes$/$No In One paragraph support your answer