Case Study: should Tesla buy blockchain company

• Identify at least three of Tesla’s capabilities. What is Tesla’s core competency? Present a core competency statement for Tesla.
• How can buying a blockchain company build strategic value for Tesla through either building, sharing, or developing blockchain specific capabilities?
• Buying a company would depend partly on the financial health of Tesla. Evaluate the company valuation for Tesla using1) asset valuation, 2) earning valuation, 3) market capitalization (Note: You may use financial as presented in the case or current financials.)
• Is Tesla following a differentiator, cost leader or blue ocean strategy? Does this influence what type of firm they should buy?
• Using a transaction cost – make or buy argument, explain under what conditions it would make sense to buy the company? What are the other alternatives?
Recommendation: Should Tesla form a strategic alliance, joint venture, acquire or build blockchain capabilities in house. Briefly defend your answer on your analysis.