Analyzing Tesla's Corporate Entrepreneurship and Innovation

This report provides a comprehensive analysis of Tesla's approach to corporate entrepreneurship and innovation. It examines the company's strategies for fostering innovation, including its focus on people, processes, and the work environment. The report critically evaluates Tesla's innovation management practices, such as continuous improvement, consumer focus, resource allocation, and the use of KPIs. Furthermore, it assesses Tesla's ability to spot market opportunities by analyzing its approaches to problem-solving, trend identification, understanding consumer demands, monitoring competitor movements, and considering global events. The report concludes by evaluating Tesla's overall entrepreneurial ability and strategy for opportunity identification, innovation management, and learning from its experiences, highlighting Tesla's significant impact on the automotive industry.

Opportunity innovation and
entrepreneurship
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically analysing and evaluating corporate entrepreneurship that provide competitive
advantage:....................................................................................................................................3
2. Critically analysing and evaluating innovation management practice that allow company to
face challenges of innovation in the market:...............................................................................4
3. Evaluating firm's propensity to spot opportunities in the market:...........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Entrepreneurship is one of the most common but important term in today’s business
oriented world, entrepreneurs are those who start with innovative idea with mindset of changing
whole world with their innovation. In business world, entrepreneurship with innovation is
deadliest combination where innovation even can change habit of human. This study is based on
Tesla, this company is well known for its innovation in auto mobile industry (Acs and
Audretsch, 2016). This report will discuss corporate entrepreneurship adopted by the company
and its impact. Later this report will discuss current innovation management practice adopted by
company to get competitive advantage in highly competitive market. At last this report will
discuss firm’s ability to sport and capture innovative opportunity.
MAIN BODY
1. Critically analysing and evaluating corporate entrepreneurship that provide competitive
advantage:
Entrepreneurship is key to get success in business world, without entrepreneurship a
existing firm or new venture does not get direction. Many researches have concluded that
entrepreneurs are heart of business process; they carry idea and convert them into successful
business plan (Anokhin and Schulze, 2019). However, even these business winner need fuel of
innovation to survive this highly competitive market. Corporate entrepreneurship or
Intrapreneurship is same as entrepreneurship but this only existing in already running company.
Intrapreneurship is process of developing new idea in existing business to provide them
competitive advantage. Corporate entrepreneurship play vital role, it is very clear that every
company need continuous improvement to survive the marker, firms must have ability to capture
innovative opportunity and convert them into success for the company. Tesla is one of those
companies who focus on corporate entrepreneurship, this company want their people to engage
in innovation process that help company to gain competitive advantage. There is no perfect way
to implement corporate entrepreneurship, Tesla adopt certain activities that help them to focus in
implementing corporate entrepreneurship, these are:
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People: People play vital role in implementing or using corporate entrepreneurship, leaders of
business have creative mind that allow them to engage people of business. In Tesla, leader Elon
Musk have those leaderships quality that help him to focus on their people, Elon believes that
interacting with people or employee of Tesla will provide idea or opportunity that can be used in
managing corporate entrepreneurship (Drobyazko and et.al., 2019). Listening to people and
creating competencies in the workplace is one of the best way to generate idea that can provide
competitive advantage. Entrepreneurial firm always listen to their people for continuous
improvement and innovation in the process.
Process: Process is important in entrepreneurial firm allowing leaders to create systematic
process of managing business, when company focus on innovation, they demand systematic
process that allow them to achieve their goals on provided time. Leaders or entrepreneur know
value of creating right process for right people in the business, these processes and system must
support entrepreneurial thinking and push entrepreneur to provide right resource at right time to
create the best process in systematic management. Tesla has systematic process, using corporate
entrepreneurship, company support entrepreneur thinking and consider viewpoint of employees
as well. There are many cases in Tesla where leader Elon Musk developed innovative process
with the help of entrepreneur thinking of their employee.
Place: Place is another important element in corporate entrepreneurship, this simply means
entrepreneur have to focus on place which means providing every essential requirement to
complete a task. Leaders of company provide environment that focus on learning and growth,
place to work effectively. It is very clear workplace need to healthy to meet requirement of
innovation, corporate entrepreneurship demand cultural diversity that allow employee to work
together and share their value and thoughts with each other. Place means environment in the
business that promote innovation, Tesla have place that promote entrepreneurship, this company
focus on continuous innovation where involvement of employee are consider (Ferreira,
Fernandes and Ratten, 2017). Tesla is innovative company that have environment that promote
innovation, this company focus on learning and growth allowing employee to explore personal
development as well.
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2. Critically analysing and evaluating innovation management practice that allow company to
face challenges of innovation in the market:
Innovation management is one of the most challenging thing, there is not such practice
that is best to manage innovation in the company. Innovation management means identifying,
creating and implementing new idea, business focus on innovation where opportunities are
captured and turned into idea that allow business to become competitive in the market
(Frederick, O'Connor and Kuratko, 2018). Tesla is one of those companies who capture new
opportunities on time and faster their business success, this company have the best innovation
management because they have adopted some of the best practice, these are:
Continuous improvement: Innovation management demand continuous improvement that
allow company to focus on adding new things, innovation demand activeness, company should
be active in catching opportunities and converting them into idea. Continuous improvement is
that practice that help business to never settle at one thing, Tesla is one of those companies who
focus in continuous development, for example; Tesla developed electric cars that allow them to
capture auto mobile industry but still, they manage innovation by adding new idea for example
after introduction of electric car they are planning to add cost free battery system allowing
consumer to completely depend on Tesla vehicle in the market.
Focus on consumer: Sometimes it becomes important to focus on consumer and their demand,
this practice keep business active in maintaining innovation, there are many cases where
understanding consumer allowed company to generate innovative product. Tesla focus on their
consumer and their demand allowing the to bring innovation in their product and service, it is
very clear that this company is already ahead from it competitor by introducing innovative car in
the market, now it is time to maintain that innovation (Kuratko, 2016). Tesla listen to their
consumer allowing them to gain max. knowledge about their demand for example; consumer of
Tesla demanded for luxurious and futuristic car for Tesla introduced auto pilot feature allowing
them to maintain innovation in their company and fulfil demand of consumer as well.
Allocation of resource: Allocation of resource is basic management practice but it is very
important in innovation management because this allows company to find the best resource to
gain competitive advantage. Sometimes resource provide advantage to company, there are many
resources utilized by company to gain competitive advantage. Tesla focus on allocation of right
resource at right time, this allows them to become stable in the process. Resource allocation
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means finding the best human resource, finding affordable resource for manufacturing and
production process and other resource. Tesla demand skilled worker to maintain their innovation,
this practice allow them to gain internal stability.
KPI and measurement: KPI and measurement is one of the most important practice in
innovation management that allow company to measure their success by adopting KPI, is
sometimes become important for company to set KPI for each innovation because sometimes
innovation lead to serious problem. Company can not completely depend upon innovation, that is
why it becomes important to set KPI (Parker, 2018). This innovation practice help company to
ensure they are aware about risk, Tesla is one of those companies who set KPI for every
innovation that help them to reduce risk. This practice help Tesla to not only manage innovation
but this help them to cover important part of innovation as well in the process.
3. Evaluating firm's propensity to spot opportunities in the market:
Every business organization know importance of innovation in their business process,
company try to spot opportunities which can be converted into idea and this idea can be turned
into business plan or new product development (Piperopoulos, 2016). Innovation push company
to look new opportunities, Tesla is one of those companies who stay active in the market, this
company scan market for greater innovative opportunities, there are certain practice of Tesla
which they use in spotting innovative opportunities in the market, these are;
Problem and solution: sometimes problem provide opportunities to generate idea, history of
innovation state that every great idea came out of problem. For example; some innovation took
place because problem was greater, after innovative product, these problems was solved.
Problem solving process is best in spotting opportunities which is mainly adopted by Tesla, this
company scan market and identify problem in market for example; air pollution of major
problem in auto mobile industry which is now solved by innovating electric cars by Tesla, this is
how company build propensity to spot innovative opportunities.
Identifying trend: Identifying trend is one of the best way to spot innovative opportunities, it is
very clear that trend keep changing with change in industry, so company have to be careful while
catching these trend. Tesla capture trend that are fresh in the market, this company is best in
capturing opportunities and turning them into great idea for example; Tesla capture trend of
maintaining sustainability in the market, this company installed solar panel at top of battery
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power station which allow them to generate free electric for their battery station. Again Tesla
become ahead of their competitor because of continuous improvement.
Demand of consumer: demand of consumer is another best practice of business to spot
innovative opportunities and convert them into idea, there are many cases where company
successfully understand their customer and their demand allowing them to become stable. Tesla
knows that understanding consumer is important, they know consumer and their demand can turn
into business idea (Scott, 2016). For example; consumer of Tesla demand new model with extra
features, this company understand their demand and created certain new model. There was high
demand of sport EV car so Tesla introduced model S, this is how they spot opportunities and
convert them into idea. This ability of entrepreneurship is important in business process.
Movement of competitors: movement of competitors are the best example where company can
spot innovative opportunities, the urge to become industry leader push company to capture those
opportunities who actually help them. Keeping eye on Szirmai, A., Naudé, W. and Goedhuys, M.
eds., 2019competitors is one of the most common practice adopted by Tesla, this company do
not copy their competitors but Tesla generate idea to break their rule in the market for example;
Tesla introduced themselves in auto mobile industry by keeping eye on movement of
competitors who were ignoring electric car concept. Tesla took advantage and captured whole
market. Movement of competitor not only provide opportunities to develop something but this
also help in managing risk that will arrive from action of competitors in the market.
Global event: Sometimes global event allow company to spot innovative opportunities, multiple
sport event or any other event allow company to generate business idea. Tesla have not created
any business idea from global event for example; COVID-19 is one of the biggest global event
which can allow company to capture innovative opportunities (Szirmai, Naudé and Goedhuys,
2019). However, Tesla have shown not interest in generating opportunities from COVID-19, this
company become carefully with the help of COVID-19. There are no such cases where Tesla
have active role in generating innovative opportunities in the process.
CONCLUSION
This report has discussed entrepreneurship and its importance in the innovative business
process. Entrepreneurship without innovation is useless that is why it becomes essential to add
innovation in the process. Later this report has discussed corporate entrepreneurship and its
element in keeping business active and providing competitive advantage to company in highly
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competitive market. Later this report has discussed current innovation management practice
adopted by the company to improve their innovation practice. At last this report has discussed
firm's propensity to spot innovative opportunities that allow them to gain competitive advantage
and ability of company in entrepreneurship process.
REFERENCES
Books and journals
Acs, Z.J. and Audretsch, D.B., 2016. Entrepreneurship, innovation, and technological
change (Vol. 2105). Now Publishers Inc.
Anokhin, S. and Schulze, W.S., 2019. Entrepreneurship, innovation, and corruption. Journal of
business venturing, 24(5), pp.465-476.
Drobyazko and et.al., 2019. Entrepreneurship innovation model for telecommunications
enterprises. Journal of Entrepreneurship Education, 22(2), pp.1-6.
Ferreira, J.J., Fernandes, C.I. and Ratten, V., 2017. Entrepreneurship, innovation and
competitiveness: what is the connection?. International Journal of Business and
Globalisation, 18(1), pp.73-95.
Frederick, H., O'Connor, A. and Kuratko, D.F., 2018. Entrepreneurship. Cengage AU.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage learning.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Piperopoulos, P.G., 2016. Entrepreneurship, innovation and business clusters. Routledge.
Scott, A.J., 2016. Entrepreneurship, innovation and industrial development: geography and the
creative field revisited. Small business economics, 26(1), pp.1-24.
Szirmai, A., Naudé, W. and Goedhuys, M. eds., 2019. Entrepreneurship, innovation, and
economic development. Oxford University Press.
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