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

Burns 3 their vehicles which gave them a leg up on competitors who are not as effcient in shipping and convience. Aside from the setbacks that Tesla had it has remained in high demand at a high price as a product of the ambitious sustainbility goals as well as high qaulity and convenience. Now they are working towards making charging stations more accessible and creating ways for people who do not have garages to charge their cars at home which will help make Tesla a more accessible and reasonable car to purchase. Tesla being the most vertically integrated car company comes with a variety of strengths and weaknesses yet overall I would say it is a strength because it allows Tesla to innovate quickly while also maintaining quality control which overall increases sales and puts pressure on competitors. 4. Do you agree with Musk's decision to buy Twitter ("X")? Why or why not? I do not agree with Musk's decision to buy twitter because of the amount of liability that came with it. Although Musk had many visionary ideas about improving twitter such as increasing the number of users by 2028 and increasing revenue by adding premium features, although I do not think this will be enough to make Twitter more successful. In addition to this Musk had to take out $13 million in loans which is a substantial amount of loans to not only take out but also pay back which leads to a lot of risk. Twitter also may struggle in different countries that have limited freedom of speech, especially online. Given all of this information, it does not seem like a very smar or reasonable deal on Musk's part.

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