Project Deliverable 5: Capstone Final Project and Presentation Due Week 10 and worth 180 points This assignment consists of two (2) sections: a final capstone project plan and a closing process Powe

Running head: exploiting innovation 0

Exploiting Innovation

Introduction

Tesla Motors is an American Company manufacturing electric motor cars for its customers. The Company was originated in 2003 by two American businessmen Martin Eberhard and Marc Trepanning. The Company specializes in the electric storage of batteries and electric motors made with modern technology, keeping in view the customer demands (Tesla, 2020). The paper will discuss the organization's competitive strategies, which can help it survive in the industry. The organization's fundamental weaknesses and strengths are also evaluated for understanding the areas in which they are lacking, including the strong points that can provide a durable edge over competitors.

The company's changes are beneficial for the improvement and betterment of the business being run by the company. Tesla has built its reputation in the world full of competition and introduced many innovations in the automotive industry. Innovation is essential as it represents different means in the company to grow and progress and flourish workers' abilities. Introducing new products in the market that have advanced features with new technology is the result of innovation. It would help increase the company's market share (Tufail, Kristiansen, Rana, & Ritala, 2020). Innovation is the demand of the automotive industry because various new trends are occurring, such as driverless cars, electric vehicles, and other vital improvements related to design and performance. If Tesla does not maintain its reputation of being innovative in the market, then there are chances that others can overtake its position.

Strategies to Foster Innovation

Tesla should use modern technology so that it can be useful in producing advanced vehicles or motors in the new world. Introducing products that reduce the use of petrol and diesel are beneficial for reducing global warming. The electric vehicles produced by Tesla should be built with high storage batteries so that it would be profitable and attract more customers to purchase the vehicles (Erik & Fenwick, 2016).

Rationale

Although electric cars are in demand and various brands like Toyota are working on it. However, the research is still in its initial stages due to which they are unable to provide high-performance cars to the customers. On the other hand, if Tesla will excel in the research and development, the company can quickly provide the products to the consumers with high comfort and long-living battery. The customers will prefer Tesla in all the other brands, which can increase sales and improve the company's reputation.

Speculating how the Evolution of Tesla is expected in the Next 5 to 10 Years

According to innovative trends in the Industry written in Project Deliverable 2, Tesla Motors will introduce eco-friendly vehicles in the market that will be helpful in the form of electric motors. The future of Tesla motors is proved to be productive in the next 5 to 10 years; the electric motors will be produced in advanced models (Martina et al., 2016).

The autonomous models with great innovation offer the AI services that would guide the automobiles for regular transportation. The use of new technology would be essential for reducing the cost of petrol and diesel used in vehicles, reducing the vehicles' downtime, and increasing their life span. Also, the cars would not require regular maintenance because they would be made with advanced technology increasing Tesla's economic value. The more advanced and unique features in the motors will be purchased in increased demand; this would automatically increase the economic power of Tesla motors and have new fame in the market in the next 5 to 10 years.

Top Advantage of Tesla over Competitors

Tesla's battery-powered vehicles are more effective and demanded by the customers than the internal combustion engines used by the competitors. The reason is quite apparent the battery could be charged by electricity. The engine would run on the battery rather than any fuel, which would contribute to very less or no pollution in the environment. Whereas the internal combustion engine carrying automobiles would be at high risk of being worn out and they would also be a significant contributing factor to air pollution. These automobiles will not be demanded or purchased by the customer because they will require consuming more fuel and will need to get maintained every month due to low-quality utensils used in the vehicles by the manufacturer (Jianan & Peng, 2020).

Tesla proves to be the provider of motor vehicles with advanced spherical cells of batteries and modern battery management systems and provides vehicles for at least 2 to 3 years. The automobiles would have software controls that would control and protect the devices in a unique way.

Strategies to Exploit Innovation in Tesla

Production of Eco-Friendly Motors

The Tesla motors support the introduction of eco-friendly vehicles in the market. The advantage of this would be the low air pollution in the environment and the less noise pollution caused by automobiles. Its disadvantage includes that it would be costly and can be expensive due to advanced technology. It would also require higher maintenance, and also the hydrogen fuel cells embedded in the vehicle could cause the issues.

Production of Cheap Electric Motors

Tesla should establish a strategy on producing cheap electric motor vehicles that could be manufactured according to advanced technology but make use of the cheap or recycling method for manufacturing to be sold at lower prices. Its advantage would be increased market share, and the purchase of advanced vehicles at a low price would be a great advantage and increase the economic value. Another disadvantage is that cheap products with cheaper material would have a lesser warranty, and they will require more maintenance to keep them running. These would have a lower life span as compared to others (Hong & Lu, 2018).

Advanced Motors with Latest Technology

Tesla should introduce advanced motors based on the latest technology. The advantage of this would be an increased market share. Customers would be attracted more towards the product, and Tesla would be famous among the other competitive organizations, which will increase the company's reputation. The disadvantage is that it will be costly. It will require more advancement in technology, and more funds would be needed to increase the vehicle's market value.

Tesla should work on the strategy to produce environmentally friendly vehicles; this would be beneficial for both the company and the environment. The vehicles would not cause air and noise pollution in the environment, and the use of advanced technology will help increase the market share. The use of new technology will reduce vehicles' weaknesses, and maintenance would not be required more frequently as in the cheaper motors production.

Conclusion

The paper discussed the strategies based on Tesla's innovation and indicated how to implement the strategies efficiently; this will help to increase the economic value of Tesla and increase the market share of the company.

References

Erik, V., & Fenwick, M. (2016). Seven ‘corporate venturing' strategies to foster innovation (and create an environment for long-term growth). TILEC Discussion Paper.

Hong, J., & Lu, F. (2018). To be friends, not competitors: A story different from Tesla driving the Chinese automobile industry. Management and Organization Review 14, no. 3, 491-499.

Jianan, W., & Peng, X. (2020). A Study of Patent Open Source Strategies Based on Open Innovation: The Case of Tesla. Open Journal of Social Sciences 8, no. 07, 386.

Martina, A., Sati, P., Schindler, M., Leibovitch, E., Ohayon, J., Wu, T., & Meani, A. (2016). Persistent 7-tesla phase rim predicts poor outcome in new multiple sclerosis patient lesions. The Journal of clinical investigation 126, no. 7, 2597-2609.

Tesla. (2020). About. Retrieved from tesla.com: https://www.tesla.com/

Tufail, H., Kristiansen, J., Rana, M., & Ritala, P. (2020). Revisiting the role of modular innovation in technological radicalness and architectural change of products: The case of tesla X and Roomba. Technovation.