Enterprise, Innovation, and Entrepreneurship: Tesla Case Study

This report provides an analysis of Tesla's enterprise and innovation strategies, highlighting the company's journey from near bankruptcy to a leader in the electric vehicle market. It examines the characteristics of successful entrepreneurship demonstrated by Elon Musk, including risk-taking, vertical integration, and a stubborn pursuit of passion. The report also explores Tesla's competitive advantages, such as innovation in electric vehicle technology and energy storage solutions, using the Ansoff Matrix to illustrate growth strategies. Furthermore, it discusses Tesla's entrepreneurial spirit, leadership, and the importance of celebrating failure as a key to innovation. The analysis covers Tesla's approach to filling market gaps, fostering serendipity, and the significance of self-reflection, ultimately emphasizing how these factors have contributed to Tesla's success in the competitive automobile industry. The document is contributed by a student and available on Desklib, a platform providing study tools for students.

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Enterprise and innovation
Report
6/13/2018
Student Name

1 | P a g e Enterprise and innovation
Table of Contents
Introduction................................................................................................................................2
Task 1.........................................................................................................................................3
Characteristics of successful entrepreneurship.......................................................................4
Task 2.........................................................................................................................................8
Competitive or strategic advantage........................................................................................8
Ansoff Matrix.....................................................................................................................8
Innovation...............................................................................................................................9
Innovation by Tesla..........................................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
Tesla Company is an American based corporation that is specialized in producing the small
electric vehicles with innovation and creativity. The company has got specialization in
developing the energy storage, electric vehicles and solar panel etc. the company was
founded in the year 2003 by the two engineers. The additional product company is serving is
tesla Powerball batteries, solar panels, and solar roof tiles. It is the dream of the owner that is
the Elon Musk to develop a car which is run on electricity. Elon accomplishes its dream in
the year 2003 by introducing the electric car at a very affordable price in the market (Forbes,
2018a). The company has made the success in the initial two years after that get a failure in
the business with a bankruptcy of 60 million. But the company survive in that difficult
situation too and at present become the leader in the automobile sector of the electric car.
The company has few competitors which are trying to copy the technique and material used
by the Tesla, but is failing to do so. The technology used by the Tesla us the innovation of
Elon which have the attitude to produce something which will be an advantage to the society.
Elon always thinks as like the entrepreneur in which he always takes the risk to produce and
develop which is unique a differentiated from others. Because of the innovation of Elon and
his belief in employees, the company is able to achieve this position in the market (Forbes,
2018b)
The company is using the various strategies to remain competitive in the market. These
strategies include the satisfying the employees at its best by giving the exceptional services.
The use of distribution and promotion strategy in the business makes Tesla different from its
customers (Forbes, 2018c).
Statement of Objectives

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The primary objective of the Tesla is to create demand and drivers sales for the small Motor’s
electric car. Company is trying to build the long-term brand awareness and managing the
corporate reputation by maintaining the huge customer base and loyalty and referrals (Tesla
Motors, 2018a).
The secondary objectives of Tesla are to increase the market share of the company and
educate the customer about the Tesla aims and goals to improvise the future (Tesla Motors,
2018b).
The last objective of Tesla is to overarching. This includes inspiring, motivating and
empowering the customer as well as the company. The aim of increasing the target market
and educate the customer about the innovation is the aim of the Tesla (Tesla Motors, 2018c).
Task 1
Tesla is ranked in the 4th position in the world in the field of innovativeness and creativity.
The company has achieved a sale growth of 67.98% annually due to its new inventions and
innovativeness sin its day to day business operations. The journey of the tesla starts from the
bankruptcy. In the year 2003, the company has been incorporated by two engineers named
Martin Eberhard and Marc Tarpening. In the year 2006, Elon Musk published a blog titled ‘
The Secret Tesla Motors Master Plan(just between you and me)’ in which he made clear the
things related to tesla that company had the mission to increase the use of solar electric
economy, so that the natural resources can be utilised in other purpose also. Company has
managed to bring the Roadster into the manufacture. This will be done on time and the first
vehicle was delivered in March 2008. The costing of this roadster is around $109000 until
January 2012 and in total company able top sold around the 2450 roadsters (Forbes, 2018d).

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Company also has faced the bankruptcy in the year 2008 which was set of by taking the
financing of $40 million. After these huge losses in the business, company cannot stop its
innovation. In the year 2009, tesla came up with the Model S prototype in the market. This
model has a range of more than 300 miles per charge. This could go from 0 to 60 mph in 5.5
seconds. After this the success and the innovation of the company have been started,
introducing the Model S beta, Model X (Okuta and Dawha, 2014).
In the year 2015, Tesla has reveals the power wall, a giant rechargeable battery for the home
purpose and the power pack also for the commercial use. Another innovation tesla began is
rolling out its 7.0 software update. It is used to activate the Autopilot features in cars prepared
with the hardware (Forbes, 2018e). This update includes the ability of the car to self- Park
and many more features. In the year 2015, the company reveals its new plans in establishing
company another master plan that is focusing on the four key goals. These goals include:
• Developing the solar roofs that can able to perform with the Tesla’s battery storage.
• Develop the vehicles which are affordable to major segment of the society.
• Advancing the car to the self-driving technology. It will be a safer than physical driving.
• Move out a car sharing program so that company can earn money by renting pout their
autonomous cars.
Characteristics of successful entrepreneurship
An entrepreneur is a person who is taken the action and highly innovated and motivated to
take the risk in the business to achieve the certain goals and accomplishment. The
entrepreneur is working as the economic agent in which he analyse and summarise the need
of an individual and then make the idea to produce something innovative which will be
working as the problem solver for the individual (Alexy and Reitzig, 2012).

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Entrepreneurs have some characteristics which are as follows:
Entrepreneur is the one who take the risk by sacrificing their comfortable live to start the
risky ventures. In the case of Tesla also, musk has left his PhD program and take the risk to
make the electric cars by investing his all the earnings of his life (Bae, Qian, Mia and Fiet,
2014).
Preference for horizontal and vertical integration
Company like Tesla preferred to have the vertically integrated product so that in the naear
future company can able to expand its business operation without any issues. The company
can able to expand the retail and distribution stores and can able to earn huge amount of
profits from them (Kuratko, Hornsby and Hayton, 2015).
Control
Control of production chain from the start to finish gives the control to the company only. For
example Tesla is not producing only the electric cars but also that educate the people about
their cars via tesla showrooms (Amit and Zott, 2012).
Stubbornness top pursue a passion
The entrepreneur has the stubbornness to do the new task and achieve new goals.
Entrepreneur must be self-driven and motivated. In the tesla also, elon has failed to achieve
the production deadline for its first roadster and was near to the bankruptcy but then also they
performed and get the company flourish in the market and at present company is performing
at a level which no one can beat (Tesla, 2018d).
Impeccable Pattern Recognition

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In this the entrepreneur finds the pattern of the needs and requirement of the environment.
For example in the company like Tesla, its co-founder martin sent and mail to the musk, who
had already participated in the foundation of the car Space X, ask for the interview to invest
in the production of the electric car company. Involvement of musk generated the $7.5million
of funding easily from the market (Mangram, 2012).
Faith
The presence of faith in owners of tesla and the faith in the workers working in the company
shows a significant role in the success of the entrepreneurs. It is one thing to have the
visionary idea. Like Musk in the tesla has believed that he can make the small electric cars
company and he can able to do it with the faith in him and with the faith in his team (Bodde
and Taiber, 2014).
Entrepreneurial spirit and leadership
Celebrate Failure
The entrepreneur should have the guts to celebrate their failure also. As after the failure
success will come. In Tesla also, the Elon first faced the failure in the business by the
bankruptcy and nearly the die of his dream of making the small electric car company.
Entrepreneurial leaders rejoice the failure openly. This is because that they want to cheer the
culture of experimental and fault, this will be also considered as the key for innovation in the
business (Stringham, Miller and Clark, 2015).
Filling the gap
Entrepreneur is existed in the environment to analyse the needs of the people and finds the
right solution for them. They are always works in the good faith of the society by innovating
new things and services which will make the work and life of the people simple and easier.

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Company in automobile sector that is Tesla CEO has made travelling exponentially more
efficient and comfortable by doing various innovations. Elon also identifies the need of small
electric car in the country so that the use of our natural resources should be reduced and
natural resources will be saved for the future use (Entrepreneur India, 2018).
Serendipity
Instead of managing the ideas that people get on to work on, entrepreneurs try to create an
environment which supports the serendipity. These leaders are those who listen to the advices
and ideas of their employees and use them in the organisation the entrepreneur has the spirit
to do the work according to the objectives set by the entrepreneur when he is starting the
business. Elon use the leadership strategy of lassiez faire in the organization to have the
innovative ideas in the organisation. Employees ideas are maintained and being tested for
feasibility with customers and markets (Bohnsack, Pinkse, and Kolk, 2014).
Self-Reflection is must
For an entrepreneur, it is must to know what they can do. One of the most remarkable things
about Musk is that he is the self-learner. He learns all the things from the books only and a
rocket scientist also. Musk has faced the bullying because of that he isolates himself and
become a bookworm and educate himself on all the scientific technological and business
fundamentals related to the visionary objects. All this made the Elon self-sufficient and can
grab the idea of small electric car that he can make it. At present also him belief in the self-
analysis and think about what extra can be done to have a great piece (Naicker, Chikoko and
Mthiyane, 2014).
Do not get the success convert into your arrogance

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Elon put his eyes on mars and still remains on the earth that means he never get his success
converts into the arrogance. Developing a car which is pollution free is a great work for the
society and inspires the other to create the future like this only. In terms of leadership, he is
the leader who doesn’t tell the staff to do the work only but he insists on doing the work with
excellence. He himself work 100 hours per week and expects the same to be given by the
staff members. So success comes after the hard work only. Entrepreneurs are the ones who
bestow this hard work to achieve the success in their lives (Forbes, 2018d).
Task 2
Competitive or strategic advantage
Competitive advantage can be defined as the condition or circumstances that put the company
in the positive or larger business position. Tesla enjoys the competitive advantage and tries to
do the activities and innovations which are vital to maintain the competitive advantage. The
strategic advantage company is having in the market is methods used by the Tesla to control
the cost. Tesla is trying to position itself in the markets the cost leader and then also
providing the innovative products that is the small electric cars in the environment. These
cars are sufficiently the advantage in the market. The control over the cost on production is
done by the Tesla using the gigafactory, distribution and use of motors in the production (EV
Obsession, 2018).
Another way of tesla to position itself in the market is giving the exceptional services to its
customers. The Tesla also provides the super charge network to the customer. The
exceptional customer service is provided by the Tesla by introducing fast free charging
stations for the user of Tesla’s car.
Ansoff Matrix
Market development Strategy

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In this strategy, tesla is developing its business sin the new market while offering the existing
product. Company can expand its business in the countries like India to expand its market as
there is huge customer to buy the product.
Product Development Strategy
In this type of strategy, the company will offer the new product in the current market and it is
operating its business. This is done by the business to experiment the new product in their
home country so that if it is not acceptable there, the production will be stopped at the initial
stage only (Quora, 2018).
Diversification
Diversification is the stage where the business is starting from the base root. In this type of
strategy the introduction of new product is done in the new market by the tesla. This strategy
is considered to be the risky in nature (Robinson, 2012).
Market penetration strategy
In this type of strategy, the current product is offered in the current market. This strategy is
considered to be the safest in nature. Tesla is using this strategy in its business.
Innovation
Innovation is nothing but developing something new in the market which other has not
offered till yet. It involves the utilization of the new idea and brings that ideas into the
practical use which will help to solve the problems. Innovation can be defined as the ones
ideas which are generated due to assessing a particular situation or it can be a problem of
some one. There are several ideas generated in the mind but there is need to select the one
with the particular need arises of that thing in the market. In other words, innovation is the
translation of the new ideas into processes products or services. There are various innovation

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done in our existence one of which the innovation of the small electric car by the tesla
company. The innovation can be done for the commercial purpose, military purpose or social
reasons (Ivanov, 2015). Innovating the idea of developing the electric car is the dream of
tesla owner.
Innovation by Tesla
There many innovations which are dine by the Tesla. Innovation in the automotive industry is
done by the tesla by introducing the desirable electric vehicle. Tesla has made a car which
looks like a toy car. These vehicles are small, basic and quite frankly. Car developed by the
Tesla is considered to be the quickest cars which accelerate from 0-60 in just 1.9 seconds. It
has the capacity of a 250+mph top speed. The designing of the vehicle is done in such a way
that the cost involves in making is also too low, it can be affordable to a large mass.
The innovation of tesla in making this car is that company is trying to look at the initial
problem of energy that how it will be useful in making the car. Tesla innovate the superior
battery that allows the greater speed more than any other car is having. The mileage offered
by the company is also too high that was not compatible in the whole automobile industry
(Ivanov, 2015).
Charging station Infrastructure
Identifying the problem of infrastructure in surrounding, tesla has introduced a network of its
own charging points across North America, China and Europe. Tesla has able to speed up the
free nation-wide charging network, 20 minute quick repower (Denning, 2014).
Distribution Network

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Marketing done by the company is also an innovation in Tesla. Elon convince their customer
in such a manner that their cars are the most tech logically advanced and innovative vehicle
on the planet.
Battery range
Company is providing the variety of the batteries to its customer according to the cost and
design of the car available. The range of battery offered by the tesla roadster has a maximum
range of 265 miles which is two times more than its competitors (Mayer, Aquino, Greenbaum
and Kuenzi, 2012).
Battery safety
Tesla provides the safety of battery to its customers. Electric vehicles are found to be at the
risk of the fire, the kind of the energy it stores. Other cars go for the smaller range to reduce
the risk, but tesla has made a highest power back up by using the innovation in making the
cylindrical batteries too. Tesla made its battery by distributing it in the all over the car to
reduce the energy intensity in the vehicle. It also reduces the risk of fires (Tesla, 2018).
Recharge Time
The time involve in Chevy Volt takes an entire night to get 40 miles of driving whereas tesla
promises to do 7 times that range in 30times shorter time range. Recharging in tesla vehicle
car is not much longer than refilling the gasoline in regular car.
Strategies used by competitors
There are very few competitors of Tesla available in the market. And majority of the
competitor’s lies below the Tesla, as the technology and innovation used by the Tesla is
unique and different from everyone. Very less technology used by the Tesla can be copies by
the other competitors. The competitors are as follows: