Tesla Roadster Case Study

In the 2003 Martin Eberhard, Marc Tarpenning, JB Straubel, Ian Wright, and most notably Elon Musk founded Tesla Motors. The “group of engineers in Silicon Valley wanted to prove that electric cars could be better than gasoline-powered cars” , and their efforts managed to disrupt the entire fabric of the automotive industry. The release of the Tesla Roadster, in 2008, was an innovative quake that introduced an alternative automotive technology for consumers to the widely accepted and well-established gasoline technology in the automotive industry. The Tesla Roadster was not only the first entirely electric sports car, but also “set a new standard for electric mobility” and luxury brand cars. Today, Tesla Motors continues the sale of the

However, it is equally a disruptive newcomer, capable of insurmountable success because it provides a lower cost and high quality alternative to gasoline luxury sedans. Tesla has identified that car buying has failed to progress and innovate, holding onto the idea that customers come to buy cars. The new Tesla dealership model intentionally places “store and gallery locations in high foot traffic, high visibility retail venues, like malls and shopping streets that people regularly visit in a relatively open-minded buying mood.” It also places its entire store on the Internet, capitalizing on the use of a previously existing, widely popular, and free service. This placement of stores in blue ocean un-traditional competitive automotive markets enables Tesla Motors to make the customer feel as if the Model S has come to them. This bodes positively for Tesla as consumers are growing ever more fond of combined innovation, accessibility, and efficiency. Additionally, customers want to feel they are getting the most advanced technology, and that they connect with the product they are buying. Tesla’s new model is built on, around, and with technology to create an intimate connection between the

Big Bang disruption can be described as the use of simplicity to swiftly change the market. Tesla is only a small California electric car company, but is special because it set out to change the effect technology can have on cars and car buying. Tesla Motors went after a different type of customer with their dealerships and sold them a very different kind of car. While it can be argued that Tesla is still only a small California electric car company, it can’t be argued that Tesla disrupted the car retail experience. Their model lead to more than “1 million store visitors in a single year, 15,000+ Model S reservations made in-store and online, +85% increase in revenue in the first year, and the Model S being named “Motor Trend Car of the Year”” These results are why the big bang theory applies to the Tesla dealership model. Tesla took to the market controlling all three strategic disciplines of business “low cost, product innovation, and customer intimacy”, it marketed “to all segments of users immediately”, and it found “innovation through rapid-fire, low cost experimentation on popular platforms” like the Internet and non-dealership settings. Buying a Model S is different from buying any other car, and Tesla has disrupted car buying by showcasing and educating everyone why their electric car is