The company Tesla Motors Inc could be said to have been born in 2003, those whom founded and invested into the organisation are known for their innovative minds, in previous companies. Elton Musk is the founder of PayPal, Sergey Brin and Larry Page the founders of Google, they are among a handful of investors. The primary aim of the company was not just to make the traditional motor vehicle which has become a normality in the last century but to go beyond that. Instead the establishing group of Silicon Valley engineers aimed to develop electric vehicles (Musk, 2006). On the surface Tulsa Motors strategy when explained by the co-founder Elton Musk, is quite simple one would think when he said ‘The starting point is a high performance sports …show more content…
Being fluid in creating ideas is deemed important but this is seen as futile if an organisation cannot take advantage of this commercially (Rothaermel, 2010).
There are many various approaches that firms take when innovating. Miller and Olleros (2007) there are 7 key elements surrounding the logic of innovation strategies. Customised mass-production, innovation support and services, system engineering and consulting, platform orchestration, patent driven discovery, systems integration and cost based
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Logan (2011) the first step in Tesla’s corporate strategy is to utilized both the online channels as well as Tesla’s showrooms. Secondary in order for competing firms to stay in competition with Tesla, they can order patented electric powertrain components to enable the firm to hasten the production process. The final stage of Tesla’s strategy is one to inspire fellow manufacturing firms, by showing that there is demand in the market, as well as inspiring them to be create environmentally friendly vehicles.
CLOSED AND OPEN INNOVATION In recent years the high end technological industry have evolved the way in which they seek innovation and Tesla motor inc, is no different to this change. Chesbrough (2003) believes that the change has come in the shift from the closed innovation model to open innovation. The Fundamentals of closed innovation is made clear through figure 1 Closed Innovation flowchart (Chesbrough,2003)
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The Automotive, or electric car industry particularly, comprises all those companies and activities involved in the manufacture of electric motor vehicles (EV), including most components, such as engines, bodies and rechargeable batteries or another energy storage device. The industry’s principal products are passenger automobiles. Despite the fact that the first electric cars were produced in 1880s , the advances in internal combustion engines, especially the electric starter, soon diminished the relative advantages of the electric car and became the dominant design in the market. Due to this the EV was almost a forgotten industry staying in the early stage of development, conforming to less than 1% of the automotive stock
The contraposition for Tesla Motors is the rapid service received. Despite not having a traditional infrastructure, the company beats it opponents in its operational expeditiousness. The Palo Alto automaker’s response time for issues is often overnight, and always beyond convention. One customer with some play in his gears had his entire drivetrain replaced.
Tesla motors is a company that produces and sells automobiles. Tesla is not any old automobile company. Tesla specializes in all electric cars that run 100 percent on battery and focuses on the future. Tesla is looking into the future and realizes that fossil fuels will eventually run out. Tesla is moving toward a zero-emission future for the better. A tesla is a vehicle, an all-electric vehicle that combines safety, performance, and efficiency. In 2016 Tesla’s annual revenue totaled to 7 billion dollars. Tesla is a profitable company. Tesla has seen potential growth in annual gross income, since 2012 from earning 30 million dollars to 2016 earning 1.5 billion in annual gross income. (1) The Tesla factory is located
Strengths Since first reporting profits in 2003, Tesla Motors has been climbing it’s way to brand awareness ( Hirsch, 2015). While the ever-growing and changing company has many accolades, there are three core strengths Tesla Motors has to offer. These core strengths include, competitive advantage, pricing, and supply chain management.
The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015).
Electric cars are attempting to bring on an uprising. A modern company, Tesla Motors, is bringing the all-electric car to life. Tesla has been very successful in the past couple of years, engineering a vehicle that will impress safety standards. Although it has been quite a bumpy ride along the way for CEO and founder Elon Musk of Tesla Motors. Tesla has big plans for the future. However, the plans will not be necessary unless Tesla is allowed to sell their vehicles directly to the consumer and not through dealerships.
Tesla Motors, Inc. is an American company that styles, manufactures and sells electrical cars and electrical vehicle powertrain elements. Tesla Motors may be a public company that trades on the NASDAQ stock market underneath the image TSLA. Within the first quarter of 2013, Tesla announce profits for the primary time in its 10 year history.
Tesla will help improve the environment by reducing air pollution and by reducing fossil fuel usage by using electricity instead of gasoline. This will make the world a safer and more efficient environment. This will further improve how our future
2. What were the critical marketing decisions that helped Tesla stand out among other companies and become the lead innovator in its
This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose but uses another form of energy that is electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of its planning and performance (Hunger, 2010). Factors affecting Tesla’s planning and performance. The success of any organization, just like the Tesla Motor, largely depends on the planning of the activities by the management team in the company.
Here is the list of characteristics that allows Tesla to stand apart from its competitors:
A differentiation strategy and generic business strategy seeks to create higher value for customers than the value that competitors create, by delivering products or services with unique features while keeping the cost at the same or similar levels. Tesla cars have a brand image in the market they are the best in the industry. This differentiation is increasing Tesla market share. Although, BMW series cars had 2-3% US market share, they are not giving as mileage as Tesla cars are giving. A generic cost-leadership strategy, in contrast, seeks to create the same or similar value for customers by delivering products or services at a lower cost than competitors, enabling the firm to offer lower prices to its customers. Tesla cars are very expensive. As an introducer, its products are expensive initially but, when the production and demand increased EV’s value will reduce. Also, the company focused on the scope of competition—whether to pursue a specific, narrow part of the market or go after the broader market. Tesla focused primarily on the narrow market globally that is, since, its cars are expensive for more sales and to get more revenue it started selling in around 30 countries via the internet and local Tesla stores. Now, the company is also concentrating on the mass market, which makes it turn into a profitable company.
Innovation is an object that was successfully implemented in production and making a profit as a result of scientific research or discoveries made qualitatively different from previous counterpart. The term innovation and disruptive innovation are similar. The innovation process is associated with the creation, development and dissemination of innovations.
As society grows and evolves, technological advancements and innovations continue to develop and consistently change different aspects of our society. For an organization, understanding how to manage these innovations is essential for their proper utilization and implementation. With technological advancements and innovations constantly emerging, it is important for an organization to stay aware of which new technological innovations can help them be successful. Organizations are always looking to set themselves apart from competition through innovation.
Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually