Exploiting Innovation
Innovation is one of the most critical activities that Tesla Inc. can incorporate within its operations for long term survival. According to Edquist (2013), one of the importance of innovation that will ensure the continued survival of Tesla Inc. is that innovation helps to develop new ideas that will be used to created new products to satisfy the changing needs of the market. This issue will ensures that the company develops new products often hence a continuous improvement. The other importance of innovation to Tesla Inc. is to respond to competition (Edquist 2013). Other automobile industries might have products that are of more quality than those of Tesla company. Therefore, innovation will be important for this company because it will help it to come up with new ideas to develop products that will help to gain a competitive advantage. Innovation is important because it will help to develop unique products for the company regularly. The presence of a unique product in the market will attract many customers, and the company will earn a high revenue and continue to stay in business for long (Urbancova 2013). Also, innovation is important in the automobile industry which the Tulsa Inc. fall. One of the importance of innovation in the automobile industry that helps in developing trends. These trends are important in the automobile industry because it helps the companies to develop a new product that will meet the needs of the customers. This issue will ensure long term survival because new trends will continue to be developed (Urbancova 2013). The best strategy that the Tesla company can use to foster innovation is to reward failure. There are certain situations when employees may come up with ideas on who to do something and these ideas may fail. As the company rewards those whose ideas have succeeded, the ones who have failed should be honored too. This recognition will help the employees to always look for ideas that may end up being successful.
With the presence in innovation and technological trends, the automobile industry continues to evolve. In the next five years, one of the speculated trends in the automobile industry is that there will be a rise in the development of self-driven cars (Chen & Perez 2018). Currently, many companies are testing the use of self-driven cars and this means that it is the next major thing in the automobile industry which can be ready for market Also, the main way that the industry is expected to evolve in the next 10 years is that there will be few cars that use fuel power to run (Chen & Perez 2018). Electric cars are slowly taking over than fuelled cars, and many customers have preferred them because they are cheaper. Therefore, in the next ten years, there is a high chance the automobile industry will be filled with electric cars.
The main advantage that Tesla Inc. has over its competitors is that it has invested heavily on the manufacture of battery facilities (Mangram 2012). The company produces batteries that can be used for different products and this has been unique compared to its competitors. As a result, Tesla Inc. has managed to make a lot of revenues from the sale of these batteries.
One of the strategies that the company will have to implement to exploit its innovation breakthrough is to maintain dominance by developing products that last for a long time (Rimmer 2014). The advantage associated with this strategy is that it will help the company to earn more revenue because there will be increased sales. However, the limitation of this strategy is that it will require more resources to develop more batteries which may increase the expenditure of the company and lower the profits. The second strategy that can be used to exploit the innovation breakthrough is to develop a variety of products. The benefit of this measure is that it will help the company to manufacture various products that can attract a larger market (Rimmer 2014). The disadvantage of this strategy is that the company will be required to put in more effort to market these products so that the customers can be aware of them.
The strategy that can be recommended for this company to exploit the competitive advantage over its competitors is to maintain dominance by developing products that last for a long time (Liu et al., 2014). Since the company produces batteries for different products, they have to last for a long time. Most automobile companies produce batteries to run their vehicle; some of them may not be used for a long time. As a result, the vehicles might be effective. Therefore, Tesla Company has to focus on producing the batteries that will last for a long time. This issue will ensure that most customers get these batteries that can they can use for a long time. The competitive advantage of the company will then be increased, and the weakness of the company will be reduced significantly.
References
Edquist, C. (2013). Systems of innovation: technologies, institutions, and organizations. Routledge.
Urbancova, H. (2013). Competitive advantage achievement through innovation and knowledge. Journal of Competitiveness, 5(1). Retrieved from: http://www.academia.edu/download/41782187/127.pdf
Chen, Y., & Perez, Y. (2018). Business model design: lessons from Tesla Motors. In Towards a Sustainable Economy (pp. 53-69). Springer, Cham. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-319-79060-2_4
Akakpo, A., Gyasi, E. A., Oduro, B., & Akpabot, S. (2019). Foresight, organization policies and strategies in electric vehicle technology advance at Tesla. In Futures Thinking and Organizational Policy (pp. 57-69). Palgrave Macmillan, Cham. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-319-94923-9_3
Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), 289-312. Retrieved from: https://www.tandfonline.com/doi/abs/10.1080/0965254X.2012.657224
Rimmer, M. (2014). Tesla Motors: Intellectual property, open innovation, and the carbon crisis. Retrieved from: https://eprints.qut.edu.au/109953/
Liu, Y. E., Kang, Y., Wu, H., Chen, C., & Hon, E. (2014). Tesla Motors Inc. Case Synopsis. Burnaby BC: Simon Fraser University. Retrieved, 10(18), 2014. Retrieved from: http://www.sfu.ca/~sheppard/478/syn/1141/Group_D.pdf