Analysis of Tesla's Disruptive Innovation and Competitive Edge

This essay examines Tesla's application of disruptive innovation within the automotive and energy sectors. It highlights Tesla's use of lithium batteries, continuous product evolution, and advanced technology integration, such as electric train components and sophisticated sensors. The analysis emphasizes Tesla's strategic advantages, including its proactive approach to market analysis, creation of new value networks, and consistent efforts to maintain a competitive edge. The essay references Tesla's 3D car modeling and alliances with companies like Panasonic to support its innovative production processes, ultimately arguing that Tesla's strategies significantly disrupt existing market values and establish it as a leader in disruptive innovation.

Running head: DISRUPTION OF TELSA
Disruption of Telsa
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DISRUPTION OF TELSA
Learning points on Innovation from this company Is Tesla disruptive?
It can be said that Telsa uses disruptive innovation in their business processes. This
business organization is the biggest automobile and energy corporation in United States. The
clients of this automobile manufacturing organization is satisfied most of the times after using
the products and service offered by this organization. The following points prove that Telsa is a
disruptive innovation.
o They introduced lithium batteries in the electric cars produced in their working
conditions. The quality of the batteries increases every calendar year in their
production units. The energy consumption of the cars can be managed in Tesla.
Continuous evolvement is a very important strategy of this automobile
manufacturing organization. The vision of this business organization is much
more advanced than the other similar corporations.
o It always tries to maintain a level of quality in their products and services. The
opinions of the insiders of this business organization is given much importance
considering the competitive strategies. Battery practices of the automobiles is a
very important business perspective of this company so it involves other
subsidiary companies such as Panasonic (Evans and Evans 2018). They use the
components of the electric trains in the automobile industries along with that
sensors are also used. This automobile manufacturing organization supports a
wide range of software which is not supported by the other leading automobile
manufacturing organizations.

DISRUPTION OF TELSA
o The disruptions of this automobile organizations are highly considered in the
production unit of this automobile manufacturing organization. Privacy is a very
important matter of concern in this business organization.
o The strategies adopted by this business organization provides a competitive
advantage to this organization as compared with the other global automobile
manufacturing organizations. The new entrants of this industry is a threat to this
business organization so they try to maintain a great quality of product and also
their services. The prices of the products are also maintained accordingly in this
automobile manufacturing organizations.
Reasons
The reasons behind stating Telsa having disruptive innovation are as followings:
o The conditions of the markets are analysed by this organization before
introducing new kinds of products and services such as the lithium batteries and
advanced sensors.
o New value network is created each time they want to bring anything new to the
market as they consider the competitive strategies of the other bigger global
organizations such as Apple.
o The existing market value is disrupted whenever they bring out any new products
and services. The vision of this automobile manufacturing corporation is one of
their prime strengths as they always try to maintain their competitive advantage
over the other organizations. The 3D model of the car was introduced by this

DISRUPTION OF TELSA
global business organization, they started manufacturing cars based on that model
which have very high speed and great control even in the highways.
o Products and service offered by this automobile manufacturing organization and
alliances of this organization such as Panasonic prove that Tesla applies
disruptive innovation in their production units.

DISRUPTION OF TELSA
Reference
Evans, B. and Evans, B. (2018). Tesla, software and disruption. [online] Benedict Evans.
Available at: https://www.ben-evans.com/benedictevans/2018/8/29/tesla-software-and-disruption
[Accessed 17 Dec. 2018].