Question

In a WSJ article titled "Tesla should pull an Apple: Leave 'Production Hell' to other people," the author suggests that Tesla should focus on the value chain activities associated with the car's "software, design and operating system" and turn to a third party for manufacturing the automobiles (e.g., drivetrain, powertrain, etc.). The author is suggesting that Tesla takes advantage of ________.

Answer 1

Strategic Outsourcing

Step-by-step explanation:

Strategic outsourcing is a business strategy that involves engaging the services of a provider other than your business to manage essential tasks or provide services that would otherwise be managed by in-house personnel.

When the author suggests that Tesla should focus on certain activities associated with the car's "software, design and operating system" and engage the services of another company to manufacture the automobiles, the author is suggesting that Tesla takes advantage of strategic outsourcing.