Hi there,
I have some main points but I won’t be able to write the entire paper on time. If you think is helpfull I will leave down each question, if you want to use it or not is up to you. Thank you very much.
The assignment is a report based on the video linked bellow.
“The PACE of innovation – ‘The list’ that shows what others need to do….but can’t !!!”
Watch the following Video and answer the following questions:
Car companies, in general, practice incremental innovation. What type of innovation is in evidence in Tesla? Support your answer with relevant examples?
Unlike incremental innovation, Tesla actions had higher risk. It opened a new market and instead of sustaining, it disrupted competitive advantage.
I believe Tesla is between Disruptive and Architectural Innovation. The following description are from my college slides.
3) Disruptive Innovation
•Market: Existing
•Technology: New
•Description: New technology is applied to an existing market, offering a new value proposition and potentially overtaking established market leaders over time.
“Disruptive innovation refers to a process that creates new customer value by entering an existing market with a new product or service. Ex: the creation of Tesla changed the way people perceive the car industry and disrupted the car industry.”
■4) Architectural Innovation
•Market: New
•Technology: Existing
•Description: Existing technologies applied to new markets involve reconfiguring product or system components for new applications or uses. Happens when existing products are redesigned to service a new market. Tesla cars are sustainable serving a new market.
Competitive Advantage: Businesses that introduce architectural innovations often gain a competitive edge. By reimagining their products, services, or processes, they can offer something new and valuable to customers that competitors find challenging to replicate quickly.
Market Expansion: Architectural innovations can create entirely new markets or open up previously untapped segments.
They have the potential to broaden a company’s reach and customer base.
Enhanced Customer Experiences: Architectural innovations can lead to the development of products or services that provide superior customer experiences. This can foster customer loyalty and lead to higher retention rates
2. How important is a culture of innovation in an organisation and how does Tesla operate innovative management initiatives/practices?
3. How can the ‘traditional’ car industry fight back? Should it fight back or develop new segments?
They need to change the company structure and CULTURAL, how they hire people, the production line, how they work, how do manage budget , use AI and automation to satisfy government requirements and get a quick approval.
4. Analyse the marketing strategy of Tesla. Musk seems to be indicating that his ‘Zero Dollar’ marketing strategy may not be working.
5. Has Tesla, as a brand, ‘crossed the chasm’?
