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Innovation Management of Tesla

   

Added on  2021-01-01

12 Pages3909 Words431 Views
MANAGING INNOVATION

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Innovation theory........................................................................................................................1Development of Tesla using innovative theory..........................................................................3Critical analysis of diffusion theory with regard to historical and future growth.......................5Application of theory in relation to historical and future development......................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9Online........................................................................................................................................10

INTRODUCTIONInnovation is a process of converting an idea or invention into products or services whichcreate value for customers who are willing to pay. It helps company in satisfying the needs anddemands of consumers. Innovation can be evolutionary which are continuous in nature orrevolutionary which can be discontinuous or disruptive in existence. Organisation that wants toinvent innovative products take greater risks. Essay would include innovative theories whichwould explain the historical development of Tesla. Further, it will include one or more ways inwhich product can be developed in the forthcoming time and it will also include how theorieswill be helpful in future growth of Tesla.MAIN BODYInnovation theoryInnovation means bringing new ideas or products in market. To achieve this inventionhas many new concept where most important theory for business development is Diffusion ofinnovation. It is one of the oldest theories which help an organisation to understand and explainhow a purchaser adopts and engages with new goods, technologies and techniques overtime.Enterprises use this theory when launching new goods or services or introducing existing productin new market(Frow and et.al., 2015). This theory explains how goods or services can beaccepted by five different categories of consumers and how to do a business with these types ofpeople. It also determines the success of product. Further, it includes characteristics of peopleadopting this theory. They can be innovator which includes a small group of workers orentrepreneurs exploring new ideas or technologies. These people are the first to try product andare willing to produce innovative and creative products. They are also known as risk bearers andtrend setters. Subsequently, product will become famous and sales will increase which wouldresult in higher profits of organisation. Early adapters are also included in this theory. They are those people who like to explorenew things and have an ability to bear risk( Mac., 2015). There group is larger than innovatorsand also, they have a keen knowledge about the product. This knowledge makes it easy for themto advertise the product by using word of mouth advertising which helps in increasing sale ofgoods or services. 1

Early majority consists of people who love trends but wait for a while for purchasing anyitem. The product will be purchased in plenty by people of this particular group and it will helpcompany to increase sale of goods which will become popular by time and it will assist inincreasing demand of item. Late majority has a follows a buying criteria which includes that theywill only buy good after many people have purchased it and has become an old or unpopularproduct. People of these group lack confidence in taking risk and they want to be absolutelycertain about situation and try not making a bad buy. People also in this group have low self-esteem. Laggards group do not like innovation. They will buy particular product only if they haveno alternatives left(Prokop and Stejskal, 2017) They will only purchase the product after readingreviews, statistics and complete relevant data related to goods or services. Adoption of diffusiontheory is the most important when looking at new good development and also, it can be usefulwhile launching existing product in new market.Another theory which is most important is Schumpter S curve theory which wasintroduced by Schumpeter who was a most influential thinker and this theory is one of thefamous concepts of innovation and includes curve, the technology life cycle and this theory isused in determining performance in regard to time and effort. Also, assists in determining thelevel of maturity of industry/product and while evaluating the product or an industry, itsimportance to see is this coming on s-curve or is not coming on s-curve. Therefore, to check theall possibility of risk and downfall(Wu, Lii, and Wang, 2014). This theory also contain somestages which are needed to be targeted by company. Ferment stage is first stage of s-curvetheory, period where new product s are introduced in market and also known as beginning stageof commodity. Therefore, company check market value of product and according to requirementof the product research and development process take place for good and all the changes in thecommodity are made according to the requirement of the market. This stage is also known asstart up.Take-off stage comes after ferment stage. Also, known as growth stage. In this stageproduct start to develop and earn good amount of profit. Demand for product also increases andcover the full market acceptance. This is stage in which demand of product increases andTherefore, there is rapid growth in the production. For example: at take-off stage Tesla2

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