1a) To enter foreign market, the MNE must process some sort of ownership-specific advantages. What….
Resources & Capabilities (RBV) ownership advantages can give Tesla Motors a….
** Need to categorise of SCA (Sustained Competitive Advantages) into :
Oa (Asset-based advantages), Oi (Institutional advantages) & Ot (Transactional advantages). VRIO competitive advantage over local electric carmakers in China. How can these contribute to Tesla’s success in China? (20 marks)
1b) Appendix : Motivation / Location-Specific Advantages:
* Market-Seeking
* Resource-Seeking
* Efficiency-Seeking
* Strategy-Asset Seeking
* Resource and Efficiency Seeking
* Market and Efficiency Seeking
4 Factors reasons to choose Shanghai, China to set up their factory:
– Resource -based view
– Network theory
– Industry agglomeration
– Institutional-based view
OLI Model:
– Ownership advantages
– Location advantages
– Internalisation Advantages
1c) Need to use VKE (Vertical Knowledge Embeddedness) as a Global Value Chain for MNE structure in this report (relate to 1a).
