Innovation 5 Running Head: An Introduction
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Added on 2020-04-15
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INNOVATION 5 Running Head: INNOVATION 1 Innovation Part 1: Introduction In today’s competitive business world, there are various issues and challenges, which are confronted by different organizations. The management of the company has implemented various innovative ideas by introducing electric cars in the automotive industry. This essay includes one of the major issues, which are faced by the Tesla Motors in today’s business world.
Innovation 5 Running Head: An Introduction
Added on 2020-04-15
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Running Head: INNOVATION 1Innovation
INNOVATION 2Part 1: Introduction In today’s competitive business world, there are various issues and challenges, which areconfronted by different organizations. For an organization, it is very important to overcome thesechallenges for getting success. It can enable the company to increase its profits and market thenext level, if it can manage challenges in effective manner. This essay includes the discussionabout the innovative business, which was started by San Carlos in the year 2003 and how theCEO of the company, i.e. Elon Musk has implemented various creative solutions to the issues,confronted by the company. According to Schumpeter, entrepreneur is the person, who is alwaysready to innovate and yield something new by the different processes of organization. SanCarlos, developer of the Tesla Motors was a real entrepreneur, who has incorporated variousinnovative practices in its products and services. He recognized the needs and preferences ofpeople towards vehicles and cars (Anderson, Narus, & Narayandas, 2009). Tesla Motors is an automobile organization in United States of America and it is also engaged inproducing the solar panels. The management of the company has implemented variousinnovative ideas by introducing electric cars in the automotive industry. CEO Elon Muskforesees his company as innovative, technology firm and independent automotive player. Inaddition to this, Tesla Motors is aiming on providing electric cars at affordable prices to each andevery customer. In the year 2015 and 2016, Model S of Tesla Motors was the best-selling electriccar (Cobb, 2016). The mission and vision statement of Tesla Motors shows the nature of itsprominent electric automotive manufacturing business. Founded in the year 2003, Tesla becameprofitable in the year 2013. This continuous growth and development indicate that the industry isresponding to the automobiles of organization and related products and services. Its visionsstatement builds direction of Tesla for the growth of company (Chen, and Perez, 2015). Withenhanced popularity and strong image, organization is placed to get success in internationalautomobile industry. Entrepreneurship is the major source for the survival of business and CEOof the company believed that this entrepreneurship developed the decision making processcreatively. This essay includes one of the major issues, which are faced by the Tesla Motors intoday’s business world. The company has implemented different solutions to deal with this issueand explore new ways for enhancing its business operations. It includes the innovative business
INNOVATION 3ideas of the management at Tesla Motors. Implementing new strategies and solutions assisted theorganization in regaining its brand image and enhanced its profits and revenues. Now, thecompany is serving with its business operations in different areas of the world, like; Asia, UnitedStates, Australia, Europe and Canada and it is headquartered is California (Fleisher, &Bensoussan, 2015). Problems Faced by the Business and how it found the Solutions As discussed above, Tesla is making innovation its business operations by introducing electriccars and solar cars. In its existence, the company has faced various issues, which affected itsgrowth in competitive business environment. One of the major issues, which are considered here,is related to environmental sustainability and social impacts. Increased level of pollution hasenhanced the emphasis on automobiles. However, vehicles and automotive products are themajor reason behind environmental pollution. In today’s world, people are becoming veryconcerned about the environment and other environmental practices. So, it affected the growthand survival of the company (Hahn & Powers. 2010). At the same time, the company has facedsocial and legal pressures to enhance the sustainability of its products and services and improveits production method. According the survey conducted by Green Tribunal, the pollution fromvehicles is one of the major reasons behind high pollution levels. However, Tesla was very muchfocused on the environmental and corporate social responsibility practices, but still it hasconfronted issues related to environmental practices. When the company has entered in the automotive industry, it was the major issue for all theautomakers. Adverse impact on environment was affecting the life and health of people andother environmental factors. At that time, it was a great challenge to develop highly performingeconomy without any environmental damage. This was the major reason, why Tesla has chosenmaking investment in electric and solar cars (Moon, 2010). Leading the arrival of more sustainable transportation system and innovation in this, TeslaMotors has created a strong brand image in the automobile industry. Established in 2003, theorganization has grown to become the largest manufacturer of electric cars in the industry. As oftoday, it has contributed over 50000 cars in road across the globe (Hill, 2013). By creating thistransportation system, Tesla Motors wanted to develop a transportation system, which is more
INNOVATION 4sustainable and eco-friendly. It decided to work with the objective to prove that electric cars canbe far better than gasoline cars. The management of company state that organization should notonly focus on the profits alone, but also support the environmental and social welfare. This is one of the reasons behind the innovation at Tesla (Hill, 2013). Under its innovativepractices, Tesla Motors has introduced its electric cars and grown to become largestmanufacturer of electric cars in the industry. Elon Musk has reported that the major objectivebehind this new product is to provide a transportation system, which is very sustainable andenvironmental friendly. These innovative cars can be charged at home and they do not needrefueling of gasoline unlike the vehicles, which are manufacturing by other automakers. TeslaMotors was able to impress the customers. By introducing trailblazer electric cars for the market,i.e. Tesla Roadster, the company was able to gain the attention of car lovers and transform thesituation of green car sector (Morschett, Schramm-Klein, & Zentes, 2015). In this context, Musk stated that the major purpose of this electric car is to enhance the energypromotion and attain this goal by reducing its adverse impact on environment. Tesla Motors hadimplemented a campaign to promote its green transport system via electric cars. The companywas focused on removing the carbon emission by utilizing supercharger stations, which only usesgrid electric power via solar panels (Landrum, Gardner & Boje, 2014). Primarily, the companyhas resolved the dependence of world on gas through revolutionary innovations in electric cars.It has partnered with the SolarCity to offer the owners of electric cars an alternative to rechargetheir cars utilizing the solar panels in their homes. In this way, it can be stated that development of electrical vehicle segment gives an appropriateinstance of how the shift to economy based on the renewable resources will take place. It hasbeen seen that people were very satisfied with the cars, introduced by Tesla. In addition to this,the designing of its cars models is very beautiful that most of the people want to purchase itscars. Electric cars are cheaper and better than gasoline cars (Hill, Jones & Schilling, 2014). Thisshift towards environmental sustainability assisted the electric cars to beat out the gasolinevehicles in the automotive industry. There are so many practices, like; inexpensivecommunication, appropriate information and data and development of environmental promotionall over the world, enabled the customers in the market to learn about different commercialpolluters and redirect their environmental values in the purchasing decisions of customers.
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