Question

If you utilized Porter's 5/6 Forces model as the Ford Motor Co., to deal with the emergence of Tesla as a competitor during the early 2010's, you would be considering them as which element's of Porter's model? Group of answer choices

a.New Entrants Suppliers
b.Substitutes Suppliers & Substitues
c.Substitutes & New Entrants
d.New Entrants & Suppliers

Answer 1

Ford would consider Tesla as both a New Entrant and a Substitute in Porter's 5/6 Forces model due to Tesla's innovative electric vehicles and its recent entry into the automotive market.

Step-by-step explanation:

When considering Porter's 5/6 Forces model in the context of the Ford Motor Co. and the emergence of Tesla during the early 2010s, Tesla would be considered a part of both New Entrants and Substitutes. Tesla challenged the traditional automotive industry by offering innovative electric vehicles that posed a significant alternative to the internal combustion engine vehicles produced by Ford, signaling it as a substitute. Concurrently, as a company that had only recently entered the market, Tesla represented a new entrant that brought competitive pressures typically associated with new players in the industry. Thus, for Ford using Porter's model, Tesla would effectively represent both forces.