Managing Innovation in Business (CW2)

Managing Innovation in
Business (CW2)

EXECUTIVE SUMMARY
Innovation plays an important role in an organization as it help in attracting large number
of people towards brand that has positive impact on efficiency as well as profitability of
company. In addition to this, it also help an entity to remain in competition and sustain in market
for longer time. In addition to this, it is significant for an organization to conduct market research
before offering new product and service in market as it help in satisfying requirements of
customer and develop value in an effective manner.

Contents
EXECUTIVE SUMMARY.................................................................................................................................2
Introduction, purpose and structure.............................................................................................................4
The Future of the Industry 2020 and Beyond..........................................................................................4
The Organization Innovation Requirements 2020 and Beyond...............................................................4
Building the Future Innovation Capabilities for the Organization...........................................................5
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

Introduction, purpose and structure
Innovation is defined as the ability for developing new and valuable ideas and convert
them into products as well as service effectively. Along with this, the imperative activities that is
conducted by an entity for gaining higher results is known a managing innovation in business
(Dodgson, 2018). The purpose of the report is to analyze future innovation, performance and
capabilities of industry in year 2020. For this, Tesla is taken into consideration. It is an
automobile industry specialization in offering electric vehicles and its headquarter is located in
California, U.S. The present report covers PESTLE analysis, SWOT analysis, Mckinsey’s 7s
framework along with blue ocean strategy. All this models is used for building future innovation
capabilities of respective company.
The Future of the Industry 2020 and Beyond
From electric vehicles to solar powered batteries, Tesla always bring innovation and new
endeavors with an aim to offer something unique and gain leading position in market. It has
come in market with a new electric car that is cost-efficient, feasible and convenient as well. The
company has delivered more than 70,000 electric cars and now it focuses on expanding it to solar
power batteries for home. It is analyzed that next step of company is to transform a brand luxury
car into an affordable one. In order to support demand of vehicle, it is going to build Gigafactory
in order to produce lithium to supply approx. 50,000 cars in a year that Tesla expect by the
ending of year 2020. It is determine that demand for electric vehicles is going to increase as
choice of people is shifted from fuel cars to electric cars, which shows the future of company is
wide. In addition to this, people are more concerned for protecting environment and more than
30% people in U.S is prefer to consume products as well as services that is environmental
friendly. This will help company to enhance its sales as well as profitability level. In addition to
this, its solar power home batteries is going to success in market as it has demand in market and
people will surely going to accept it. Moreover, the higher authorities of company is decided to
enter into other markets that is in Asia as it will help Tesla to enhance its customer base level and
strengthen its market position as well.