Disruptive Innovation Article 2022

RUNNING HEAD: DISRUPTIVE INNOVATION
Title: Disruptive innovation
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Introduction:
The idea of disruptive innovation had been introduced in the marketing theories that had
a strong influence on the innovation driven growth in any industry. the term was introduced by
Clayton Christensen who defined the term as an innovation in the market by a company with
new or innovative technologies and uses the technology effectively to produce the product or
offer any service better suited for the overlooked customers (Martins, Rindova & Greenbaum,
2015). According to critics, the initiation of the technologies occurs not because the existing
market fails to innovate new ideas, but because of the fact that the established markets are more
oriented in making products for the already loyal customer base and the new targets is not taken
into account. On the other hand, the disruptive companies are more focused on exploiting new
technologies in order to produce a new or the existing product in a totally new and effective way.
Tesla, the automobile company start up by Elon Musk is known for its innovation of
electric automobile has been widely acclaimed as an innovative company. The present easy will
discuss in detail to what extent Tesla failed or succeeded in being a disruptive innovation in the
industry.
Tesla in fostering a change or innovation:
Tesla Motors has developed a reputation as an innovation driven company as it has
sought to revolutionise the automobile industry with its fully electrical vehicles. The main USP
of the company is the production of a total battery driven electric vehicles, which are at the same
time eco friendly as well as luxurious. The company has been praised for its initiative of making
vehicles that will reduce the chance of environment pollution by petrol or diesels. The reduction

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on the dependence on petrol or diesel is seen to be an effective step to reduce global warming
and promoting clean energy usage (Rimmer, 2014).
Innovation in present times is seen as an important factor for attaining success in the
present business scenario. the companies are more oriented in finding out a sustainable solutions
and creative problem solving approach in order to survive in the tough competition. The
automotive industry has always been a field of innovation and Tesla in this case has proved itself
successful in providing an enriched value to the customers. Innovation or creativity is also
associated with the production of new products or service that will be liked by the majority of the
target market and that would essentially have the potentiality of solving the problems they are
facing. The Tesla company had taken a shift from others and has made the use of lithium-ion
batteries where as the traditional companies make use of lead acid batteries (Mangram, 2012).
The lithium ion batteries are in general used by the notebooks or any other devices that are
portable. These are more lighter and smaller and thus are a great innovation for sustainable
automobiles. In case of their selling strategy, Tesla has also proved itself innovative as this is the
only American Car manufacturers that directly sells its car on line and direct to end customer
exclusively. The traditional car companies depends on the dealerships that are individually and
independently owned and in the process of selling exclusively, the company had been able to cut
off the problem of the middle man as well. Tesla has also innovated their means of the
personalisation of the car experience and also has taken a stance of educating the customers
about the electric cars (Chen & Perez, 2018). These exposure and customer communication has
enabled the company to derive more innovative and better feedback so that they can focus more
on their innovations or modulations in their cars.