Innovation and Entrepreneurship: Elon Musk Case Study and Analysis

This report provides a comprehensive analysis of Elon Musk's entrepreneurial journey, focusing on his personal qualities, the challenges faced by SpaceX, particularly with the Starship launch, and his investment performance. The report identifies key entrepreneurial traits such as hard work, risk-taking, and vertical integration, which have contributed to Musk's success. It also discusses the challenges SpaceX faces, including commercial market stagnation, access to military markets, and the need for significant capital investment. Furthermore, the report evaluates Musk's entrepreneurial performance, highlighting both his achievements and potential shortcomings in investment strategies, especially concerning his expansion into the Indian market and the automotive industry. Overall, the report offers insights into Musk's business acumen and the complex landscape of innovation and entrepreneurship.

Innovation and
Entrepreneurship

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
Task1 .............................................................................................................................................1
1. Three main personal qualities that made Elon Musk a great entrepreneur in order to grasp
the business opportunities...........................................................................................................1
2. Discuss three entrepreneurial challenges that Elon Mask’s SpaceX venture will face with
the recent ‘Starship’ launch:........................................................................................................3
3.Elon Musk entrepreneurial performance and any shortcoming during his investment: .........5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation in today's global market environment is a prior most approach operates by an
entrepreneur in their business to attain the goals and objectives regarding competitive
scenario(Bai, Wang and Zhang, 2021). Innovation is considered to be the specific tool of
entrepreneurs, a source by which they exploit change as an opportunities for their different
business or different services. Innovation is quite important aspect in entrepreneurship.
Entrepreneur has to take innovative ideas regarding their business operation to effectively
present their products and services into the global market scenario. In order to create an
outstanding product or service, strong brand and to build effective customer network, an
entrepreneur needs to require with certain changes by analysing customer needs and requirement
in respect to compete with their competitors. Changes in products and services relates with
appropriate risks and search for the excellent idea which will be suited for the business in future
aspect too. Below report is based on the case study of Elon Musk on his mission of “SpaceX
unveils silvery vision to to Mars”. This below report consists with the topic three main personal
qualities of Elon Musk that made him great entrepreneur in relation of their decisions regarding
business opportunities. Three entrepreneurial challenges that SpaceX mission will face with
having their recent Starship launch. Entrepreneurial performance related with their business
activities and shortcoming during his investment.
Task1
1. Three main personal qualities that made Elon Musk a great entrepreneur in order to grasp the
business opportunities
Elon musk is a founder, CEO,CTO and a SpaceX chief designer, born in South Africa and an
American entrepreneur, who founded X.com, SpaceX and Tesla which are continuously growing
into global market with more rapid pace. In context of this case study he puts lots of efforts in
making things done relates with their business operations(Belitski, 2019). Entrepreneurs are
having with four roles and functions innovation and creativity, have a function which relates
with management and organisation, Risk taking ability and achievement. Entrepreneur posses
with a quality of strategic planning for their products and services which will going to implement
in the global market. As entrepreneur, they have to resolve all the queries related to their product
development and look into the market in broader sense, so here are some of the personal quality
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that is posses by an entrepreneur Elon musk in relation to adopt business opportunities in large is
that:
Hard-working and having with characteristics ethics:
He is a considered with having excellent ability of their hard-working nature, he is working for
about 100 hours a week and generates productiveness in the organisation in continuous manner.
He is also considered with the reward of hardest working employee relates with the company. He
believes in generates standard for their employees and colleagues to follow and implement by
them(De Bernardi and Azucar,2019. He enjoys every bit of their working in relation to their
learning and execution. As an entrepreneur he posses with work ethics which is required in every
aspects of the business. By having an extra ordinary talent of problem solving ability which is
really comes from inside and tenacity. Due to their risk bearing capabilities, he is considered to
be best entrepreneur in the list of top businessman. For example Elon Musk having with quality
to serve or work into the company by not taking a break, He work for almost 100 hours in a
week this hard working and attentive capabilities makes him so devoted towards their work.
Having strong risk bearing ability:
In businesses the aspects of risks and uncertainty are always there. Through a study it is found
that after being in business for approx 10 years almost 96% of the business relates with start up
are fail. As an excellent risk bearing capacity Musk must face these same odds against him. Their
business Tesla depends upon large number of strategic decision making which deals with
specific software AI and they are functioning through U form structure relates with organisation.
Here the unitary form defines with lots of operations and risk involves in that process. An
entrepreneur must posses the quality to adopt any processes and strategies by taking risk with it,
and know about their responsibility upon any decision that will take by them. For example Musk
left his PHD education from Stanford University they decided to find a company name ZIP2
along with their brother in year 1995. Then they sold this company to Compaq computers, here
Musk generates the profit of approx $20 Million. By engaged in this profit and business Elon
once again starts the business by taking risk through investing millions of dollars into the
company called X.com which is considered with world's first online bank.
Tendency for vertical integration:
Vertical integration relates with the strategy of acquiring business operations by any firm and
organisation with having the having the same product vertical. Both Tesla and SpaceX Embraces
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this approach. Elon Musk has quality of finding the ways of inducing with activities which will
assist them inn future. Their business are not only depend upon producing and inducing in one
type of segment is that here Tesla are not only producing electric cars, they are also relates with
generating the public awareness regarding their cars via showrooms of Tesla across dealing in
different countries. SpaceX doesn't involve only in rocket propulsions, they are developing their
own rocket architecture as well., so basically the format on which this organisation work on
inducing in vertical integration which will be beneficial for them in future aspects also. As Musk
believes in his own capabilities as well as the potential-seeking factor of their team. Musk doesn't
hesitate to take risk on large scale, it is equally important to clear the doubts in the large
organisation. So they are more likely to induce into the activities related to take feedbacks from
their employees as well as customer if any change they needed or value related with
customization. These are the quality on which entrepreneur like Elon Musk works.
2. Discuss three entrepreneurial challenges that Elon Mask’s SpaceX venture will face with the
recent ‘Starship’ launch:
In the context of Elon Musk SpaceX venture, they faces many problem related with their
execution process is that in 16 years since Elon Musk's space exploration technologies founded
SpaceX, this company relates with having transformed commercial space market. It was proven
that it launch service will relates with less cost than previous one. It was demonstrated that
rocket stage can be reused successfully. SpaceX is a pioneer. This value has change the world
but the uncertainty is always whether its belong to sustainable business model. So here are some
of the challenges which are considered under the launch of Starship in mission(Del Bosco,
Chierici and Mazzucchelli, 2019).
Commercial market stagnation: The global market relates with commercial space launches
was not big. SpaceX has come into this segment to dominate this market by offering cut rate
prices for place communication satellites in orbit. SpaceX claimed half of market last previous
year. Lower demand is widely seen as a new normal. Which is suppliers are related to bail. But
the number relates with launch providers, state providers provides with support to them. Launch
support for spaceX are relatively shown dis- interested by their present market scenario.
Military Market Access: The U.S. Air force, they are engaging in managing the the national-
security space programs, awarded in relation of development contracts for particularly new
generation of launch vehicle. SpaceX didn't get an award. This was become quite big
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disappointment for the entrepreneur Musk, who worked for their spaceX certification in relation
for their approval of launching by military, name of that project was workhorse Falcon 9 rocket.
Air force management was not impressed by the success plan of falcon 9 rocket. SpaceX
program can still compete but government wasn't interested in funding development of a new
launch vehicle or rocket engines for SpaceX program. Previously knows as big falcon rocket,
fixed on or as to SpaceX plans for future. Its reflected as new name called”super heavy starship”
program. It would be considered as biggest rocket which are ever built, and suitable for mission
on Mars through manned landed approach, but the air force was not satisfied with these concept
as they are more relatively in search for something prosaic (Eckhardt, Ciuchta and Carpenter,
2018).
Oversized requirement of capital: The mission was quite expensive cause it has to undergo
through various legal compliances and permissions which itself become costly for this
organisation. It relates with all sort of costly equipment that doesn't presently exist, starting with
new big successor to the falcon 9 launch vehicle. The SpaceX was thinking that they will get
some assistance form the Air force department for developing its super starship which is capable
of carrying hundred astronauts at one time, but the outcome was not in favour from the side of
their Air force. So SpaceX has to generates funds from their own they are quite necessary so they
tries in outside financing as well. In the near term it requires with lots of funding in relation to
the investment value of it as this mission is relatively defines with high risk of their failure. The
risk was hard to measure the intensity was that much high is that no company wants to induce
their resources in such type of projects. If the spaceX were generates with the kind of returns
typical involves with successful tech company, so then financial burden was quite bearable. But
it shows that spaceX investment plans was relatively out of sync with having company abilities
to raise high capital.
These are the challenges which occurs during the launch of SpaceX program as this approach by
the organisation needed to be support by their government and military invasion was quite high
due to the high risk level involves in their launching. Company have to rely on legal compliances
more, due to lack of green signals and approval by their government. This project is
comparatively in competing with their relative industry, this project assign with totally different
approach as no one wants to engage in their project activities as there was a high risk of losing
the resources in relation to relative company. Requirement for heavy investment into this project
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was must needed by their entrepreneur as this SpaceX mission was engaging with heavy invested
cost.
3.Elon Musk entrepreneurial performance and any shortcoming during his investment:
In the context of entrepreneurship performances of Elon Musk was having lots of ups and down
from their failure stage to how he become an excellent decision maker in relation to built the
value into the market through their approach of operating a successful business operation is that
Tesla, stock has only climb under the leadership of Musk and increasing his wealth among their
several business operations. Elon Musk was relatively depends upon their decision making
approach as they are highly engage with their investment risks. As they are dealing and operating
a biggest business in today international market which is going to make their impact into the
Asian market as well by introducing base model cars into India. To built their business process
they are working on their base models for the road infrastructure of India. Here Elon Musk are
taking risk to invest into the totally different market (He, 2020). This Auto mobile industry
known for their electric cars and having the functions of AI segment into it. Here this industry
are relatively work on their unique software approach to built a quality product in the name of
company Tesla.
In 2008 Tesla launched their newly electric sedan model into the market name Model-S which
was become the best in their product is that considered to be the best car in its class relate relates
with any category. Combining with proper safety and performance efficiency model -S provides
with best service to their customer through launching this car, they reset the world expectation by
the car of 21st century with having a longest range of car involves with electric handling facilities
.In 2015, Tesla was expanded their product line by launching Model-X, the safest, relates with
most capable sport utility vehicles and considered to be the quickest in his product line as
compared to their competitors. In 2016, Tesla introduced with model 3. By taking care of their
customers through a low priced value, this approach by this Tesla company indicates about how
they are relatively works in their operations of investing huge onto their technological
advancement as their entrepreneur Elon Musk are more focused on putting secret master plan.
Tesla is considers with power house in this modern technological world they are more focused
on different kind of push into related market segment to cater the customers in more advance
manner through their value of vertical integration they are inducing in activities. More recently,
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Tesla are expands their business operation, they planned for making a solar products which will
contribute their market value into future. With the aim to capture the energy from sun and uses
to power the people homes and can be use by them. They are not just engaging in car
manufacturing but to aim in making their contribution into renewable energy. Later on it
operates in two different products which consists with solar panel and solar roof tiles which is
also known as Tesla solar Roof. Their solar products are comparatively different than their other
company working into the same products or services. This company claims and commits that
they are having with more cheaper and quality aspect into it. The next product in which this
company works is Tesla power wall battery which deals in storing energy that will collected
from the solar roof or tiles which are using at the time, this stored energy can used in power a
home when there no sunlight and when the cost relates with electricity is quite high. When Tesla
first launched their Model-S , they using the existing technology and having with battery cells
built by Panasonic. With their solar tiles Tesla has entered into new technology built by silevo, a
company which was acquired by solar city for approx $200 million in 2014. The tiles involves
with different layer-a layer which relates with glass on the top, then solar cells which will
converts light into electricity(Herrera, Guerrero and Urbano, 2018).
Tesla solar panels, announced in April 2017, that are different from the solar tiles. They will look
more traditional panels. According to Tesla, the panel exceed with industry standards which
relates with durability and lifespan.
CONCLUSION
It has been concluded with above report is that every entrepreneur has to make sure about the
decision making process to work effectively into their business. Entrepreneur must posses with
these personal qualities that relates with hard working ability with characteristics work ethics
into their business, having with effective risk bearing capacity into the business which deals with
huge investment, taking decisions for future point of view and analysing the market trend by
determining the needs and demand of the customers. Every organisation depends upon the
responses from their market which are having with lots of challenges while doing something of
new into the business in relation of their implementation and execution.
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REFERENCES
Books and Journals
Bai, L., Wang, C. and Zhang, L., 2021. Microprocessor and Real-Time Task Processing System
Application in University Innovation and Entrepreneurship Education Platform.Microprocessors
and Microsystems, p.104092.
Belitski, M., 2019. Innovation in Schumpeterian-type firms: Knowledge collaboration or
knowledge spillover?.Foundations and Trends® in Entrepreneurship,15(3-4), pp.368-390.
De Bernardi, P. and Azucar, D., 2019.Innovation in Food Ecosystems: Entrepreneurship for a
Sustainable Future. Springer Nature.
Del Bosco, B., Chierici, R. and Mazzucchelli, A., 2019. Fostering entrepreneurship: an
innovative business model to link innovation and new venture creation.Review of Managerial
Science,3(3), pp.561-574.
Eckhardt, J.T., Ciuchta, M.P. and Carpenter, M., 2018. Open innovation, information, and
entrepreneurship within platform ecosystems. Strategic entrepreneurship journal,12(3), pp.369-
391.
He, L., 2020. Innovation and Entrepreneurship Education in Higher Vocational Colleges Under
the Background of “Internet+”. InData Processing Techniques and Applications for Cyber-
Physical Systems (DPTA 2019)(pp. 1321-1326). Springer, Singapore.
Herrera, F., Guerrero, M. and Urbano, D., 2018. Entrepreneurship and innovation ecosystem’s
drivers: the role of higher education organizations. In Entrepreneurial, innovative and
sustainable ecosystems(pp. 109-128). Springer, Cham.
Jia, X., 2020. Priming the pump of impact entrepreneurship and social finance in
China.Agriculture and Human Values,37(4), pp.1293-1311.
Laspita, S. and Sarri, K., 2019, September. The attitude of Greek students towards
entrepreneurship: Latest data and recommendations. In European Conference on Innovation and
Entrepreneurship(pp. 1259-XXV). Academic Conferences International Limited.
Poblete, C., 2018. Growth expectations through innovative entrepreneurship.International
Journal of Entrepreneurial Behavior & Research.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
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(Bai, Wang and Zhang, 2021)(Belitski, 2019)(De Bernardi and Azucar,2019)(Del Bosco,
Chierici and Mazzucchelli, 2019)(Eckhardt, Ciuchta and Carpenter, 2018)(He, 2020)(Herrera,
Guerrero and Urbano, 2018)(Jia, 2020)(Laspita, and Sarri, 2019)(Poblete, 2018)(Singh, and
Gaur, 2018)
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