PLEASE RESPOND TO THE BELOW, I MUST COMPLETE A PEER REVIEW. Thanks
Please demonstrate critical thinking abilities. No fewer than 250 words for post. Do not summarize the post and/or course concept(s), but perhaps comment on concepts directly applicable to your workplace.
For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings.
**NOTE***Please do not plagiarized.
Tesla is considered the second most innovative company in the world according to Forbes (2017). Its introduction to the market in 2006 was a radical innovation. Redefining what an electric car could be, Tesla developed a high-performance product with proprietary technology which had never been seen (Baer, 2014). As Tesla continues to expand, it is building on its established knowledge of electric vehicles and utilizing incremental innovation (Dyer, Godfrey, Jensen & Bryce, 2016).
Its innovative strategy is a high-end/top-down disruptive innovation.Beginning in the high-end market and appealing to the least-price sensitive buyers, Tesla launched its business. With the Tesla Model 3 to be released in 2018 at a price-point of approximately $35,000 (Boudette, 2017), Tesla’s innovation is becoming available to a larger mainstream market.
Tesla falls between the introduction and growth stages.Although the company is gaining traction and increased market acceptance, Tesla is still introducing vehicles into the marketplace (Model 3 and Model Y).Given that the company will be trying to get early adopters to try out these new models (Dyer et al., 2016), some aspects of the Tesla business still fall within the introduction stage of the life cycle.
Innovation is necessary for Tesla.Given the overwhelming popularity of its products, and the high expectations of shareholders and consumers, Tesla must continue to implement change initiatives as needed.As Mukerjee notes, these innovations “could involve the development of new capabilities, adoption of new business models, and changing the existing routines of the firm” (2016, p. 32).As the popularity and development of electric cars grows, Tesla will need to remain ahead of the competition to maintain its current advantage.
Baer, D. (2014, November 11). The making of Tesla: Invention, betrayal, and the birth of the roadster. Business Insider.Retrieved from http://uk.businessinsider.com/tesla-the-origin-sto… (Links to an external site.)
Boudette, N.E. (2017, July 3). Tesla’s first mass-market car, the Model 3, hits production this week. The New York Times.Retrieved from https://www.nytimes.com/2017/07/03/business/tesla-… (Links to an external site.)
Dyer, J., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons, Inc.
Forbes. (2017, May). The World’s Most Innovative Companies. Forbes. Retrieved from https://www.forbes.com/companies/tesla/ (Links to an external site.)
Mukerjee, K. (2016, March). Factors that contribute towards competitive advantage: A conceptual analysis. IUP Journal of Business Strategy, 13 (1), 26-39