Essays on Teslas Innovation Analysis Case Study

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The paper "Tesla’ s Innovation Analysis" is a great example of a business case study.   Tesla is trying to bring a change in the automotive industry by the continued invention of the electric vehicles to replace the electric-gas combustion cars together with the invention of vehicles of different sizes and shapes. Since the consumer needs are changing every day, manufacturers should have come up with new designs to cater to the changing needs of their customers (King, 2010). As a result, Tesla Company is trying to be innovative to satisfy its customers’ needs.

However, other manufacturers in the automotive industry like the Toyota Company in Japan are using their disposable resources to compete with Tesla by also inventing new models. The government has a role to play in protecting such innovative companies for their continued existence. Therefore, innovative companies like Tesla are beneficial and should be encouraged by having them enjoy government protection. Toyota Company is one of the biggest businesses that is manufacturing motor vehicles in the globe. The company is known for producing affordable cars which are very efficient. Enterprises that produce products which fit every consumer needs win their loyalty and get a big market share.

However, even with the continued production of effective and affordable products in the market, there is continued evolvement. According to Basu (2013), the world keeps on changing, and so the needs of the customers change too. Therefore, innovative manufacturers join the market after identification of unexploited opportunity to fill the gap. As a result, Tesla Company has identified a gap and has continued to invent different types of motor vehicles. In reaction to this, Toyota Company is investing in fun-to-drive sporty vehicles to counter the competition of Tesla ("How Big Auto is responding to Tesla, " 2017). Another company in the automotive industry which is trying to fight Tesla innovations is the automotive industry is General Motors which owns Cadillac and Buick.

Saxena (2009) attempts to argue that pricing is a tool that can be used by a company to fight a competitor and throw her out of the market. According to Free (2010), most of the customers will go for the products that are selling at low prices thus lowering the demand for the highly-rated products while increasing the request for their products.

About pricing, General Motors is trying to fight Tesla Company by inventing similar products but offering them at lower prices than the company’ s product are selling in the market. Consequently, the demand for Tesla products in the market goes down despite them having come up with new inventions. Therefore, lowering prices is a tactic that General Motor Company is using to fight Tesla Company. Another response that the automotive industry is offering to counter the inventions by releasing their won luxury designs which are differentiated.

Product differentiation is a tactic of trying to combat competition in the market by studying the products of the target company and producing goods serving similar purposes though with a slight difference which makes it unique in its ways (McGuigan, Moyer, & Harris, 2009). About this, other companies in the automotive industry are studying the inventions by Tesla Company and trying to fight them by manufacturing slightly different products which are serving similar purposes but which are slightly different and unique compared to those of Tesla Company.

For instance, high-end foreign brands are inventing their luxury vehicles which are slightly different like the Porsche Panamera S-E Hybrid whose rear seats are larger. Therefore, product differentiation is another way of responding to Tesla innovations.


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