Creativity, Innovation & Design: Tesla vs Booking.com Analysis

This report provides a comparative analysis of Tesla and Booking.com, focusing on their approaches to creativity, innovation, and design. It examines how Tesla, under Elon Musk's leadership, emphasizes product innovation and leverages existing knowledge, while Booking.com fosters a culture of experimentation and collective decision-making. The report highlights their distinct strategies for risk-taking, employee engagement, and market entry, concluding that both companies, despite operating in different sectors, utilize the BEAN model and explicit knowledge to achieve market success. The analysis considers the importance of understanding the specific business context when applying these strategies. The report emphasizes that to gain a competitive advantage, it's crucial for companies to grasp their unique business nature and the information and data required in their specific situations.

Running head: CREATIVITY INNOVATION & DESIGN
Creativity, Innovation & Design
Student’s Name
Institutional Affiliation

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Introduction
The competition in the capitalist economy is increasing day by day. This is exactly the
time when the companies are challenging not only the competitiveness of each other rather
the uniqueness and innovation that is introduced in the market. This is true for all sectors and
companies that might have a different business eventually learn from each other that what
measures can be taken to build a name in the market. Alghalith (2018), has argued that
anything introduced In the market without innovation is not a contribution rather just another
version of the same product.
Innovation has been a core element of any business to target multiple customers in the
market and gain a competitive edge. Tesla and Booking.com are the two living examples of
introducing innovation in the market and winning the hearts of their customers. It is
undoubtedly true that both companies belong to an entirely different sector however some
good lessons can be learned from them. Therefore, the comparison and contrast of these two
companies are essential to be done to conclude.
Analysis
Companies belonging to the automobile industry are usually having more advantage
of introducing innovative products that the service industry companies. In this way, if Tesla is
found to be quite innovative, the reason is due to the command of the market environment
and the ability of the company to use the leadership of Elon Musk effectively. The fact is
real that not every company is blessed with a leader like Musk who thinks critically and
innovatively. However, this is also true that the company has a complete comprehension of
the behavior of the society where although not everyone can afford a luxury car like Tesla
(Nathan & Jeff, 2020). However, the feelings of thousands of people are associated with the
electronic car and its specialties.

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On the other hand, Booking.com has also a similarity with Tesla not in terms of the
product specifications but the innovative approach. As Tesla moves tries to digitally get
connected with the customers (Graves, 2018), Bookings.com has already an online presence
that enables it to fulfil the needs of thousands of customers through the internet. In other
words, the company is making sure that not all failures are due to the risks of the experiments
that senior management takes frequently (Stefan, 2020). As the company has a core
experimentation team, that further possesses a satellite team to train the rest of the staff,
therefore, this depicts that the culture is agile and learning-oriented.
It is important to note that Tesla introduces products using a materialistic approach
meaning it specifies the new technology or the features that have been used in the product,
however, Booking.com first engages the employees to develop hypotheses that can be
challenged by the senior management multiple times before it is introduced in the market.
This means that Musk is the one who takes the entire team that even introducing the product
is up to him (Chen & Perez, 2018) whereas, at Bookings.com, the company uses a collective
approach. It is certainly not true that Musk is a BEAN blocker as he has introduced a lot of
innovative ways to make the company reach an outstanding position in the market
(Mantovani, Piga, & Reggiani, 2017). However, this is also true that Tesla is in trouble if the
company only relies on Musk’s leadership.
In this regard, Mariani & Borghi (2018), makes a perfect justification by mentioning
that when collaboration is taken to seriously, the decision-makers may not find their role
valuable and this is what happens in the case of Booking.com. The senior management
develops a team to make sure that the final decision lies with them so that thinking out of the
box continues. This depicts that Tesla and Bookings.com both have a similarity, risk-taking
ability. According to Bernardi, Mavridis & Estevez (2019), it is the risk that opens the door to
innovations eventually fulfilling the purpose of profit maximization. Therefore, both

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companies are making sure that the need for achievement is not gone. This can be analyzed
when Musk introduced Cybertruck as the vehicle was not something completely different
than a truck. However, it was the outlook and the use of technology that was designed
differently.
The understanding of the tactics that companies use to make their product unique is
another important factor that must be analyzed by the competitors in the market. In most of
the cases, it is indeed true that several companies use similar technologies but with an
updated version to make sure that the product is genuinely innovative (Chen & Perez, 2018).
One point of difference that can be viewed in both cases is that Tesla first uses the existing
knowledge then develops the innovative product while Booking.com first works to make an
innovative approach to effectively contribute to the existing knowledge that is done through
experimentation (Alghalith, 2018). This means that building a culture of experimentation is
the true essence of business at Booking.com while tesla uses the information to experiment
first and then contribute to the market using their product.
Conclusion
A comparison and contrast of tesla and Booking.com help to conclude that both
companies are using the BEAN model and explicit knowledge to make sure they make an
exceptional entry in the market. The most important element is that both companies are
critical to traditional business approaches. They are contributing to the market by taking
risks, developing confidence in the employees. However, at the same time, Tesla making sure
to make the leadership strong while Booking.com making sure that agility is not
compromised.
Thus this can be concluded that for the companies to gain an advantage in the market,
it is quite important to understand their nature of business along with what form of
information and data they need in their situation. Things that are true for Tesla may not be

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applicable in the context of the Booking.com. If the companies do not understand their
particular scenarios, they may not be able to set an example in the market ultimately leading
to the failure of the business.

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References
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Stefan, T. (2020). Building a Culture of Experimentation. Harvard Business Review
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