How Does Tesla Motors Achieve Competitive Advantage in the Global Automobile Industry?

한주희,

doi:10.29056/jncist.2021.10.09

Cited by 2 publications

(3 citation statements)

References 13 publications

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“…Tesla positions itself in the competitive market using broad differentiation strategy. It uses this strategy to target premium as well as low-price consumers in the automobile industry [16].…”

Section: Tesla's Positionmentioning

confidence: 99%

Analysis of Tesla’s Innovation Strategy and Influence of Leadership

Qin¹

2022

Advances in Economics, Business and Management Research

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Tesla has attained a benchmark in the electric vehicle industry but it faced issues such as ownership protection rights, chip shortage and delivery delays. Tesla's real competitors are not new energy operators, therefore despite leading the capital market, Tesla is not in a stable position. The future of Tesla is restricted due to factors like capacity, market, finance and chip, hence Tesla needs to focus on its innovation ability and leverage its business model to promote development. Hence this research aims to answer the question -how effective is Tesla's innovation strategy and how do leadership and internal and external factors affect its innovation and performance? To achieve this aim, Tesla analyses its business canvas model, innovation framework and internal and external actors, as well as how it affects its innovation strategy and performance. The results show that Tesla integrated innovation in its business canvas model and created value for its customers, however it lacked focus on commercial costs and channels. Moreover, Tesla uses an incremental product innovation strategy, external and internal factors like market demand, creative culture, and leadership and team working supports the innovation strategy of the company.

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Section: Tesla's Positionmentioning

confidence: 99%

Analysis of Tesla’s Innovation Strategy and Influence of Leadership

Qin¹

2022

Advances in Economics, Business and Management Research

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“…Mapping innovation space connotes the analysis of the extent to which the innovation venture is able to use a set of complementary strategies to explore and extend its innovation frontiers across the 4Ps of product, process, position and paradigm innovations. For product innovation, Tesla has been able to engage in radical product innovations that has totally changed and transformed the product that it offers to its clients (Joohee, 2021). Tesla as Figure 1 indicates engages in radical product innovation which is instigating a shift from the internal combustion engine vehicles to electric vehicles-EVs that are completely powered and driven by electric batteries (Cendrowski, 2017).…”

Section: Mapping Tesla's Innovation Spacementioning

confidence: 99%

“…However, in its implementation strategy, Tesla also used a combination of open innovation reflecting different forms of strategic alliances, partnerships and collaborations. One of such open innovations was reflected in Tesla's open design competition that was won by Lotus, thereby leading to a strong present day partnership between Tesla and Lotus Car Manufacturers (Joohee, 2021). In that partnership, Lotus has taken a leading role in the design of Tesla's cars.…”

Section: Implementmentioning

confidence: 99%

Radical and Incremental Innovations as Critical Leveragers of a Firm's Financial Performance: Best Practices from Tesla and Toyota

Boniface

2022

Univers. J. Financ. Econ.

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Even if the rippling effects of radical and incremental innovations often bolster a firm's overall effective financial performance, managing all kinds of innovation activities is often not a linear process that induces the desired outcome and profitability levels. Thus, given the high rivalrism in the global car market, this paper offers a critical analysis of Tesla and Toyota's radical and incremental innovation management strategies so as to extract the best practices that can be emulated by other innovation ventures to bolster their competitiveness and financial performance. Methodology used in such analysis entailed a systematic review and synthesis of the existing online data, academic journals and textbooks on Tesla and Toyota's radical and incremental innovation management strategies. Combined with the interview of twenty personnel from car dealers in Aberdeen, Edinburgh and Glasgow in Scotland about their perceptions of Tesla and Toyota's innovative products, outcomes of such systematic review were triangulated with the core radical and incremental innovation management theories to discern how they offer coherent explanation of Tesla and Toyota's innovation space and management strategies. Though Tesla and Toyota seem to use similar radical and incremental innovation management strategies of search, select, implement and capture, Toyota was still found to have a radical product innovation disadvantage that undermines the development of better EVs to counter Tesla's premium EVs. Similarly, Tesla also has a radical process innovation deficiency that affects the development of cheaper and affordable EVs to further erode Toyota's market dominance. Given such findings, the paper highlights some of the best radical and incremental innovation management practices that can be emulated by different innovation ventures to create, deliver and capture the desired innovation values that can bolster their overall competitiveness and financial performance.

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How Does Tesla Motors Achieve Competitive Advantage in the Global Automobile Industry?

Cited by 2 publications

References 13 publications

Analysis of Tesla’s Innovation Strategy and Influence of Leadership

Analysis of Tesla’s Innovation Strategy and Influence of Leadership

Radical and Incremental Innovations as Critical Leveragers of a Firm's Financial Performance: Best Practices from Tesla and Toyota

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