Question 1 (20 marks)

Read the case study below and answer the questions that follow:

How can Electric Vehicles become the Dominant Design? According to Memisoglu and Pelyhe (2011), due to technological developments and raising environmental concerns, the vehicle industry is in a transformation process. The current dominant design in the industry is the internal combustion engine vehicle but there are already different alternative vehicles like electric vehicles (EVs), hybrids, and vehicles running on ethanol or hydrogen. As these alternatives have started to expand, they are competing to have a strong position in the market. The question is which technology (EV, hybrid, ethanol) will have an important position in the future? Many manufacturers are interested in EV technology and have started to invest in the technology to have a strong position in the future. Although EVs are ready to expand, some obstacles are still in their way. Some of these problems can be solved in a short term, while others, mostly technology-related improvements, still require time.

Note: use the marking rubric that follows to see how marks will be allocated.

1.1 Using theory and ANY additional source of research, provide one reason to justify why Tesla currently holds the dominant design for EVs. (1)

1.2 Using ANY additional three (3) sources of research and information from the case study, apply the different stages of the dominant design model to Tesla. Demonstrate your understanding of the model by providing one industry example at each stage. (4 1 = 4)

1.3 To become a dominant design EV, manufacturers must protect their designs from competitors by applying five different appropriability measures. With one practical example for each appropriability measure, describe how EV manufacturers can protect their interests to achieve the dominant design. (5 1= 5)

1.4 Using ANY additional three (3) sources of research, describe how Tesla uses its EV technology to leverage their complementary assets to gain and maintain competitive advantage. Support your answer with a minimum of five complementary assets associated with Teslas EV technology. (5 2 = 10)

	MARKING RUBRIC: SECTION B
Assessment criteria	Marks
Tesla dominant design for EV ____/1	0	1
	Vague or no justification of dominant design.	The justification for Tesla dominant design is argued succinctly.
Dominant design model _________/4	01	2	3	4
	Unsatisfactory discussion of the dominant design model and industry examples.	The dominant design model is vaguely outlined, and industry examples are provided.	A satisfactory outline of the dominant design model, and industry examples are provided.	The dominant design model is captured succinctly, and industry examples are provided.
Appropriability _________/5	01	23	4	5
	1 or no attributes of the appropriability mechanisms is vaguely described.	About 23 appropriability mechanisms are described with some supporting examples.	34 attributes of the appropriability mechanisms are (fairly well) explained, with some practical examples being provided.	4 or 5 attributes of the appropriability mechanisms are succinctly explained and are supported by practical examples.
Advantages of complimentary assets _________/10	02	35	67	810
	1 or no advantages of complimentary assets is vaguely described.	About 23 advantages of complimentary assets are described with some supporting examples.	34 advantages of complimentary assets are (fairly well) explained, with some practical examples being provided.	4 or 5 advantages of complimentary assets are succinctly explained and are supported by practical examples.
				Total: /20