Does Tesla Deserve to be The World's Most Valuable Automaker?: The Tesla Empire

The video compares the strategies of Tesla and traditional automakers like Volkswagen. While Volkswagen uses horizontal integration by acquiring other car brands, Tesla focuses on vertical integration within its supply chain. Volkswagen's strategy allows for platform sharing across brands, reducing costs and increasing revenue by appealing to diverse buyers. Tesla's approach aims to control more of its production and distribution processes. The video also highlights the challenges faced by boutique manufacturers in terms of costs and reliability.

What is the primary strategy of traditional automakers like Volkswagen to expand their influence?

• Acquiring other car brands

• Building new manufacturing plants

• Investing in technology startups

• Focusing on electric vehicles

How does Tesla's approach to mergers and acquisitions differ from traditional automakers?

• Tesla buys competitors

• Tesla focuses on its supply chain

• Tesla invests in luxury brands

• Tesla partners with other automakers

What is horizontal integration as practiced by Volkswagen?

• Acquiring technology companies

• Focusing on electric vehicle production

• Expanding into new markets

• Investing in businesses at the same production level

Which of the following is a benefit of Volkswagen's shared platform strategy?

• Exclusive luxury models

• Higher vehicle prices

• Reduced research and development costs

• Increased brand loyalty

Why might boutique manufacturers struggle compared to larger automakers like Volkswagen?

• Inability to share platforms

• Lack of brand recognition

• Higher production costs

• Limited market reach