The paper "Tesla Motor Inc. Innovation" is an outstanding example of a business case study. Tesla Motors Inc. is an electric vehicle firm founded in 2003 by Elon Musk, and it is headquartered at Palo Alto, California. The company designs develop, manufactures and sells advanced electric vehicle power train components, stationary energy storage systems and high-performance fully electric vehicles. The company has seen an expansion from the US base to global presence via the Supercharger recharge stations and the sales networks so that it can sensitize people about the introduction of the electric vehicles in the market.
The firm produces electric vehicles with a relatively high price, a feature that distinguishes it from the traditional manufacturers of automobiles. Tesla owns its sales and services networks with a potential business structure enabling the rapid development and launching of highly advanced electric technologies and vehicles. The business is the first one of the kind to have commercial production of an electric vehicle that is federally-compliant, the Tesla Roadster (Klenner et al. , 201). According to this background, the paper seeks to provide an in-depth analysis of how Tesla’ s innovation has opened up new market opportunities within the automotive industry.
The essay aims to examine the response of the automotive industry to the competition brought by the open innovation from the firm. An understanding of the manner in which the new business model may affect the advancement of the automotive industry in the future and the role of government in giving protection to the already established industry and jobs, giving support to the new sustainable innovative business, or letting it rest with the market or consumer demand is brought to light (Mohr et al. , 2009) Companies have come to a realization of the importance of the innovation process for survival in today’ s market comprising of rapidly changing environment, and to able to develop a competitive advantage.
There is a quick shift in the global market from a closed one to a more open one due to the rising of new markets and technologies and internet revolution. There is, therefore, the need for the organizations to look for newer methods for creating value so that they can establish new areas of competitive advantage.
Tesla’ s ability to bringing in a cutting edge innovation in the automobile industry by applying and transferring knowledge from research to developing and relating adoptions of new applications has given the firm the ability to open up new market opportunities within the automotive industry. The need for reliance on the external knowledge in collaboration with the outside actors more than the internal knowledge makes the firm outperform its competitors (Wells & Nieuwenhuis, 2012). Consumers buy vehicles depending on the value of several characteristics. Many of them are concerned about the reliability, aesthetics, performance, among other attributes: cost is a significant factor.
Tesla has put much effort into ensuring that the electric cars they produce can be compared over a wide range of features. Even though there is still significant worry among the consumers of this innovative technology concerning its reliability with respect to the traditional vehicles. The challenge, however, is bound to diminish with increased familiarity with the vehicles among the customers. From the market perspective, the traditional cars have similar needs as the electric cars; nevertheless, the electric cars are considered as new markets instead of as a revolution of the mature product (Canis, 2011).
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