Your comment has to be more than five(5) sentences for each question based on researched facts and logical analysis to earn the full credit.
Strategy for the Oligopoly
After world war II, young Tucker tried to break in the automobile business with his original “Tucker Torpedo” automobile.(You should see the movie”Tucker”) But the Big three automobile makers(GM, FORD, and CHRYSLER) formed their own exclusive club, not allowing a new comer to join the club. With a plot(bully tactic, squeeze the capital, or tarnish Torpedo’s credibility), they destroyed young Tucker’s dream to be a major car maker.
Suppose you are in the same position as Tucker’s to break in the Oligopoly market(Big three ).
Q1) What’s your own strategy to survive and prosper in the oligopoly jungle? (0.5 point)
Q2) Is it an good idea to patent his torpedo first and work for the big companies until he accumulates enough capital to compete against big guys? (old saying, if you cannot win over your opponent, try to make your opponent as your friend, then regroup , re-energize and beat it up later) or build your business quietly and slowly outside of Big firms’ market territory or radar such as early growth strategy of WalMart in supermarket industry or Google in internet search engine business or what other idea of yours? (0.5 point)
Q3) 30 years later, another young businessman, named Bill Gates first worked for IBM with his licensed operating system called MS -Dos program (although young Bill Gates originally bought Dos program from somebody else and it became a window). Later he built his own empire called Microsoft.
Despite of the difference of the initial sunk cost between a car industry and a software industry, please compare Tucker with Gates in terms of their business strategy. (0.5 point)
Q4) After over a half century later, another visionary car maker, Elon Musk emerges with an electric car of Tesla. What is a future of Tesla? Could it be the fate of another Tucker? if so, why? Is there any concern about Elon’s leadership style such as infamous/bogus tweet about privatizing Telsa without funding, cash shortage and delayed product delivery?
or Could it be another successful exception as a new member who survived and becomes prosperous in an Oligopoly corporate club due to another niche market of electric cars, despite growing global competition in electric car market, beside his SPACE-X project? If so, why? (0.5 point)
Q5) Can you give us another Cinderella company successfully breaking into Oligopoly Jungle in the past and in the near future?(0.5 point)
Note: look at “Doc Sharing” to see Preston Tucker’s open letter.
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