Managing Innovation in Business

Managing Innovation in Business
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Table of Contents
Introduction...........................................................................................................................................2
The organisation and industry overview................................................................................................3
Organisation and innovation history..................................................................................................4
Organisation existing innovation performance and capabilities:........................................................5
Industry in 2016.....................................................................................................................................7
Porter Five Forces.................................................................................................................................9
Conclusion...........................................................................................................................................12
References:..........................................................................................................................................13
Introduction
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Figure 1: (Tesla cars in India: Tesla likely to be in India by 2019-2020 | International Business News -
Times of India, 2019)
Innovation is defined as an idea or a concept to introduce something new to the
society. This report is based on the case study of Tesla Company in respect to its innovation
practices. Tesla is a U.S. based company conducts business operations in automotive, energy
storage and energy production sectors. Henceforth, report will emphasis organisation and its
innovation history. The aim of the report is also to project the performance of the company in
respect to innovation and also to project the capabilities of company in respect to innovation.
Furthermore, report will provide an overview about the industry in regards to the innovation.
The organisation and industry overview
Organisation and innovation history
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Tesla Company initiated its business operations in the year 2003. Company was
founded by Martin Eberthard, Marc Tarpenning, Elon Musk, J.B. Straubel and Ian Wright.
Headquarter of the company is located in California, United States of America. Company
deals in electrical vehicle, Tesla batteries and Solar Panels and roofs. Founders of the Tesla
Company was deeply influenced with the GM decision making in respect to destroying all
EV1 electric cars in the year 2003 and looked up for higher efficiency electric cars on the
basis of the future needs and demands (Turek and Wojtczuk-Turek, 2017). Company was
earlier founded by only two people Martin Eberhard and Marc Tarpening other founders
joined the organisation in later stages. Ian Wright was the third founder joined few months
later. Ian Wright connected to Elon Musk and invested in the company. Musk then appointed
Eberhard as the CEO of the company. J.B Straubel joined the organisation in May, 2004 as
the fifth partner of the company. In the year 2009 a lawsuit settlement happened between
Eberhard and Tesla that further allows all five Eberhard, Tarpenning, Wright, Musk and
Straubel to call them as the founder of the company (Backström and Söderberg,
2016). Initially Musk took a crucial role in the designing process of Roadster and was not
much involved in day to day business operations of the Tesla Company. Company also
followed the strategy to follow innovation from the beginning. Founders of the Company
always aimed to make the best automobile company in respect to technology and innovation.
Elon Musk also received the Golden Green award in the year 2006 for his innovative designs
in Roadster and he also received the Index Design award in the year 2007 for his designs in
Tesla Roadster. Founder of the company always follow the strategic object to create
affordable mass market electric vehicle from the initial stages of the business. (Davis, 2010)
Tesla Company always gave priority to innovation practices. Company also aimed to
start the premium sports car with the support of innovation and technology. It can be stated
that innovation has been the key drivers behind the policy making of the company from the
initial years onwards. Founders of the Tesla Company have stated the fact that company has
always aimed as a strategic goal is to create mass market for electric vehicles across the
globe. The concept of electric vehicle is not old as it highlighted from past few decades due
to conservation of petroleum resources for future generation and also its limitations. Tesla
Company aimed to take competitive advantages by fulfilling the future needs of the
automobile sector by producing electric cars (Honyenuga, Tuninga and Ghijsen, 2019). The
concept of electric car is immensely based on the innovation and technology. Tesla Company
also faced the issue related to funding from the beginning of the business. Founders of the
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