Tesla's Blue Ocean Strategy and Innovation

This assignment delves into Tesla's strategic approach, particularly their utilization of a Blue Ocean Strategy. It examines key factors driving innovation within Tesla, such as technological advancements and market dominance in the electric vehicle sector. The analysis highlights how these drivers contribute to Tesla's success by creating uncontested market space and rendering competition irrelevant.

Strategy, Enterprise & Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. The key Drivers of Innovation Contributing to the Success of Tesla :................................1
P2 the strategy and innovation frameworks and the different approaches taken by Tesla in
shaping its entrepreneurial vision:..............................................................................................4
TASK 3............................................................................................................................................6
P.3. Critically analyse the view that Tesla's success can be attribute to the successful
application of blue ocean strategy:..............................................................................................6
REFERENCES................................................................................................................................9

INTRODUCTION
The environment where business works are incessantly changed. This changes impact on
different industries. Then in order of other company to safeguard its strategic position within the
industry, it should aware of the environment on witch it is operate. The environment of content
have two parts first is internal environment and the second is external environment, the internal
environment related to internal resources or leading to competitive advantages. Or other hand
thee external environment including the industry related external forces has also a major effects
on companies activities. The company selecte for the strategic analysis is one of the major
player in the automotive industry. Tesla motors started their business in 2003 as a US based
company. The Tesla was specialize in manufacturing in car and their components. the company
also producing battery charging equipmentS. The Tesla to accelerated the worlds transition
sustainable transport.
Task 1
P1. The key Drivers of Innovation Contributing to the Success of Tesla :
The innovation is important of every department in the business, in order for it evolve
and grow. And while there is no simple switch to turn innovation on and off. The ability to
business value through innovation is critical success drivers for most organization. The market
that we are operate in provide opportunity and risk form innovation perspective as they are
rapidly changing. The Tesla motors having extra ordinary run in present year but the ELON
MUSK believe that the secretes of Tesla lies its know how charismatic co-founder and a little bit
of luck (Ozorhon, and Oral, 2016). The Tesla has been able to do things has no company done
or could do, virtue of being in the right place and the right time. That ability had not benefited
the company but there share holder also.
Following are the several key drivers of innovation contributing to the success of Tesla:
 Technology- Technology of Tesla's is more good then other company. Other car
companies can adopts Tesla technologies for example- Daimler uses Tesla's battery
packs, Mercedes-Benz uses a Tesla power train, Toyota uses Tesla's motors and the those
general motors uses Tesla's moves. The Tesla models can achieve more awards for there
technology. The Tesla uses latest technologies in there company and this is a most main
drivers of Tesla's success. Tesla technologies are always based on latest trends, those are
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the most expensive car where the latest technologies uses(Talukder., 2016). Those cars
are unique and the best quality designed.
 Managing creativity- when our team member comes with idea and express it to manger,
this process of acknowledgement and rewards is crucial to further information. If person
give there idea's individually then they keep recognize them for knowledge they
definitely got success. The Tesla also remains innovation in there field. The Tesla motors
are always worked in a team and all the team members are share there idea's and make
success of the company. Tesla is become popular about their creativity and managing all
the working of staff.
 Monopoly- The Tesla started a tiny supermarket for sports car and they sale car in cheap
prices in the supermarket (Perry-Smith, and Mannucci, 2017). The Tesla has contribute
there support to open super market, those market have lot models of sports car 's. the
people who purchase the car from their The Tesla provide different kinds of deals to
those people. Tesla monopoly is that they can achieve there goals in smaller to bigger
platform.
 Team- In the organization the team work is the advanced benefit of any organization, all
the employees works in a team. This is the most important key drivers of success. In the
innovation all the team members are share there innovation ideas and implement them
into the work (Love, and Roper, 2015). Tesla's employees also worked in the team,
although the Tesla CEO also share there thoughts to other employees and also motivate to
the employees.
 Distribution- Distribution is the techniques where the person distribute there business in
to the other companies or other countries. This involve that company become larger and
there business increase in big platform. Distribution is also a key drivers of success in any
organization (Bossle., 2016). In the Tesla motors they fight to keep open in their stores in
some other country like New Jersey, New york, Ohio etc. Tesla's up-front costs are
higher then other auto-makers, because of change is business model with no leadership
networks, but it affords control over the customers experience, strengtheners. Tesla's
brand and save the company money in the long run.
 Durability- Tesla has taking the automotive world by storm, gaining consumer,media
and investor praise for how it operates, and competition has taken notice (Mazzucato.,
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2015). The Tesla recorded many car accidents, car going on a fair but the car company
giving the clear bill of “health and national highway traffic safety” administration.
 Secretes- Tesla new about the fashion and new technology. Tesla never share there
secretes to others companies. Tesla motors always design there models into the new
innovation types. They design there models according to the fashion trends and those
trends are evolutionally most popular in present time.
 Nurturing talent- Everyone is an organization who think creativity and bring idea to the
table, but some who bring there ideas individually who have natural talent within there
field , based on the way, they think, feel and perform the task and observe information.
they will be the one who can lead innovation in their chosen area, if there talent is
nurtural ( Hou, and Pramudawardhani, 2015). The Tesla motors have employees they
think individually and bring there idea on the tables, in the Tesla some employees have
natural talent they have provide there ideas witch is beneficial for company.
 Building relationship- A strong working relationship can help to boost can creativity an
encourage an individual or team to be more forth coming with their ideas. The same way
acknowledgement and encouragement, a strong relationship is also needed in order for
employees to feel comfortable coming forward and sharing ideas. Tesla motors have
great experience with employees they having good relationship to each employees who
worked there, Tesla employees help each other and they all are support in the works. All
the employees encourage to each other for their work skills (Taran.,et.al., 2015).
 Encouraging A Culture of Innovation- Organization can drive innovation on a constant
basis by creating by culture. This means what highlighting important culture changes
need to be made in company to help innovation become more day-to-day and earthy
occurrence. Innovation is the main key of any business and encouraging it with a
business, its very complicated process what kinds of drives are innovation it self is the
key to maintaining a healthy level of it within in an organization. The Tesla company
encourage their employees for work (Cui.,et.al., 2014). They work according to the
people,culture,culture demands or people's test. This the most important drivers of
success. From the beginning Tesla company present most simple cars, those cars are not
attractive but sufficient in use, after that Tesla examine all the markets trends and culture
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of people then they start innovation for those car's, Tesla include new techniques, new
technologies for innovation.
P2 the strategy and innovation frameworks and the different approaches taken by Tesla in
shaping its entrepreneurial vision:
Tesla motors is a most popular company in UK. Tesla has entered into the market in
2002. It was not at all easy for the company to enter into such a big auto-mobile industry where
there were giants organisation has already captured the wide market share. But still business
entity has successful enter into the market with the support of effective strategies. In addition to
the suitable plans, innovation skills has assisted the firm in maintaining the good position in the
market. It has also helped business entity to attract more numbers of customer , increase sales
and profitability. The mission of the organisation is to develop innovative products and delivery
superior quality of services to its customer. Vision of business entity is to manufacture or
produce a car in a way in order to provide memorable driving experience to client. Tesla motors
have strategic capabilities as well as resources which has allowed a company to facilitates
innovation. Company innovation abilities has allowed an enterprise to increase its competitive
strength and gain competitive advantage in the market. These capabilities have supported firm in
accomplishment of several business objectives. There are many other strategies adopted by the
Tesla motors in order to achieve short as well as long term targets. Some of the plans are:
Tesla motors company has first entered into the market by developing high-end cars with
the intention to target upper class people in the society. This strategy has been successful which
has supported business entity in achieving its objective of increasing sales as well as
profitability. At the same company has also adopted the low pricing strategy which has helped
the firm in attracting the target and achieving the mission. The objective of an organisation
behind adopting this specific strategy is to generate brand awareness and gain recognition in the
market.
The another strategy which is adopted by Tesla company is direct selling approach. This
plan or idea have allowed firm to develop and maintain strong relationship with customers. It has
also provided business entity an opportunity to interact directly with consumer and influence
people to buy particular product or services. This idea has also been successful which has long
lasting and positive impression on customers. Direct selling approach has been adopted by the
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firm on the basis of perception that s method of selling can speed up their product development.
Business entity has also utilised the online platform for interacting directly with customers which
has supported firm in identifying the needs of people and providing high level of satisfaction to
client by fulfilling their requirement.
Integrated approach has also been used by Tesla motors, according to which management
team in an enterprise has method of selling can speed up their product development. This
strategy has supported business entity in maintaining the balance between demand and supply.
Networking strategy is the another idea which has been adopted by Tesla company.
Management team in an enterprise.
Tesla's Business Strategies -
Tesla entered in a market through to expensive high-end cars, targeted to more
financially privilege of people class . Once it is more established and widely known as
successful idea. The Tesla comes in the market in lower prices car. But according to company's
fame Tesla increase there price. The first model of company mission out the marketplace. The
Tesla want to get fame in the market and they involve more strategies in the company following
are:
 Manufacturing- In manufacturing the strategies are they design the cars more effectually,
the Tesla is specialist in manufacturing of cars. From beginning Tesla do effort in
manufacturing, they start their business to manufacturing cars and innovate them. Tesla
recognize all the faults in the company and they develop newly ways they are design
new technologies cars and there manufacturing techniques are the difference form they
have strategies to apart from others.
 Sales and services- In the sales and services Tesla have huge of empire they have
numbers of stores. Tesla strategies are they have numbers of stores in the worlds. The
company having most of stores in UK. Tesla provide home service for example Tesla
have Mobile technicians who come to home and for servicing, they called Tesla rangers,
with model they directly uploaded data so technicians can view and fix certain problem
online ,without any physical touching in the car.
 Direct sale- The Tesla don't adopts any franchise services they directly sales their cars to
the customers, they believe that method of selling can speed up their product
development. But more important is the customer buying service experience, Tesla has
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showrooms, service centres, and service facilities. Those strategies are Tesla always use
internet sales- customers can by cars online. Tesla believing open service centres that
has positive effect on customers demands . Tesla provide servicing facilities and car
charging facilities.
 Changer's network- Tesla have huge of service centre where customers can charge or
service their cars. Tesla provide super charge station: where people can charge there
vehicle in fast in 30 minute free of cost. In that behalf customers can attract to Tesla
centre, Tesla also provide financial services like loans and leases. If any customers wants
to resell a vehicle they provide a protection on vehicle value. Tesla other products are
lines of home batteries called power-wall, that serve that energy storage system in homes
or business.
TASK 3
P.3. Critically analyse the view that Tesla's success can be attribute to the successful application
of blue ocean strategy:
Blue ocean strategy is a marketing theory, which defines that strategic moves creates a
leap in value for the company effectively. Its buyers, and its employees while unlocking new
demand and making the competition irrelevant (Jiang, Sun and Liu, 2010). There are four actions
of framework aids in eliminating the trade-off between differentiation and low cost within a
company. These four frameworks are consisted of raise, eliminate, reduce, create effectively.
There are varied of successful factors of Tesla's company is being able to supporting application
of blue ocean strategy of the company in the several emerging markets effectively.
There are some key factors of Tesla's success in the market which is making important
attributes for successful application of blue ocean strategy of the company as following:
Technology: Tesla's is one of the popular in the world which is well-known for its better
using technology in its new car product and services in effective form. The company has been
awarding by several countries in the world because of each time, it comes up in the industry by
introducing the latest technology in the market in more relevant form. Technological factor of
the company is most appropriate element which refer to the process by which sufficient
development could be gained by the company. Tesla's organisation is getting success year by
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year in the company, because of several kinds of innovative car products and services are being
furnished by the company around the world effectively. The company is utilising the strategy of
producing various auto-mobile parts in the company with making collaboration several top brand
around the world effectively (Edgeman, 2013). This is most appropriate strategy which could
assist the company;s blue ocean application in more sufficient form. The business professional
are using some of its technological innovative factors in terms of proper development of blue
ocean strategy in the company in order to compete its customers at global level.
Sales: Tesla's organisation is following effective sales strategy in various marketplace in
the world in effective ways in order to raising its sales effectively. Now, the company has its
own stores and with salespeople on salary rather than on commission effectively. The company
is following its better sales strategy in order to getting proper success at global level in effective
ways (Kunstová, 2010). There are numbers of issues are being arisen Tesla's business in effective
manner. The company's professionals is making use of effective sales strategy in several
emerging marketplaces in order to raising its profitability in more effective mode. It is also
focused the potential cost saving from gas and reduced service and repairs. The company is
generating more revenue by its various effective sales approaches implementation in the market
in more relevant manner (Mi,2015). There are various innovative technologies are being used by
the company in the market in order to getting proper response of customers. Moreover, the
company is making major focusing on formation of customer relationship management approach
at the workplace in order to making better engagement with their customers in the market
efficiently. CRM is a tool, that allow keeping up relationship with their loyal customers in
respect to increment in the sales of the company in several new markets sufficiently. They also
offering incentives to their sales executives in case of getting increment in the sale of
organisational product and services in more sufficient form. They have highly efficient staff who
provides effective services related to the company's products properly. The organisation has
some potential customer which could increase the profitability of the company, this is also one of
the essential factor for Tesla's organisation in order to making contribution to getting success of
its blue ocean strategy in relevant manner.
Distribution: This is also one of the major success factor of Tesla's organisation in the
auto-mobile industry effectively. Tesla's has its numbers of distribution channel in the market in
effective form. Its distribution channel make it easily to each to their potential customers in the
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market in sufficient form. The company has its own various sales stores in several countries
effectively. Tesla's has hight rate of prices of its product and services and it is getting carnages
in the mode of dealership networks effectively. Tesla's company is also working for increasing
in its sales of the market by implementing of the latest approaches of distribution channel
making in the company in relevant form (Hanson, Hanson and Pavitt, 2013). In case of proper
distribution of its car products, they are utilising effective strategy of marketing and distribution
of its various product and services in the market in relevant ways. This is also one of the
effective areas which assist succession of its blue ocean strategy in the industry efficiently.
Monopoly: In today's world, Tesla's has monopoly market of electric car production
company in the industry. This is the largest electric auto-mobile manufacturing company in the
world. Tesla's company introducing the latest technologies of electric car production in the
market in sufficient form (Kim and Mauborgne, 2014). The company is further expanding its
concept with the model S, hence, it could be said that, Tesla's organisation is making efforts to
providing the latest technological efficient electric cars to their customers as per their demands in
the marketplace effectively. This is also major factor which assist its blue ocean strategy in order
to getting proper success in the complex auto-mobile companies efficiently.
CONCLUSION
From the above investigation, it is concluded that, Tesla's organisation have some
effective key drivers of innovation which make influence on the changes in technologies of the
company's products and services in relevant manner, moreover, this assignment also concludes
about various factors of strategy and innovation frameworks of the company assist them to
utilisation of different approaches of Tesla's company in the market efficiently. Its innovation
assist them to forming of effective vision in the company which assist them to identification of
their proper strategy in the market in relevant form. Varied of key success factors of Tesla's
company could help them to the successful application of Blue Ocean strategy of the company
effectively.
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REFERENCES
Books and Journals
Hanson, P., Hanson, P. and Pavitt, K., 2013. The Comparative Economics of Research
Development and Innovation in East and West. Routledge.
Kunstová, R., 2010. Enterprise Content Management and Innovation. IDIMT-2010 Information
Technology–Human Values, Innovation and Economy, Linz, Trauner. pp. 49-56.
Edgeman, R., 2013. Sustainable enterprise excellence: towards a framework for holistic data-
analytics. Corporate Governance. 13. 5. pp. 527-540.
Jiang, B., Sun, Z. and Liu, M., 2010. China's energy development strategy under the low-carbon
economy. Energy. 35. 11. pp. 4257-4264.
Kim, W. C. and Mauborgne, R. A., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Mi, J., 2015. Blue ocean strategy. Wiley Encyclopedia of Management.
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