Posted by Winnie Melda on December 21st, 2018
Tesla is a company that has focused on creating electric cars and making EV powertrain components and systems. Innovation is something that has contributed to the success of Tesla Motors. Through innovation, the company was able to develop an award-winning car in just a fraction of time and cost. The most meaningful innovation of the company lies in its business practices. Tesla business practices tend to differ from those of other car manufacturers. The company pushes its employees to pursue and realize unprecedented innovation in some unconventional ways (Steen, 2015). The employees have resulted in sacrificing their personal time in pursuit of larger goals. The direct to consumer sales model that is used by the company has also helped Tesla to reduce the cost. The strategy tends to allow the consumers to purchase directly from Tesla as opposed to the third party franchised dealerships.
The reason why Tesla managed to perform very well in the motor industry because the company realized what was missing in the industry and worked towards ensuring that they filled that gap in the market. The innovative aspect of the company has greatly contributed to the success of the organization. For instance, rather than developing a new special-purpose battery for cars from scratch, Tesla decided to assemble its rechargeable battery pack from the modified Lithium-Ion batteries (Steen, 2015). The company was also able to sell its cars by stressing on comfort, speed, and handling even before talking about the low emission. While the car can save cost from gas and reduce repairs and services, this aspect contributed a lot to the success of the organization, and this is why Tesla managed to be an award winning company.
Steen, D (2015). Tesla Motors. Harvard Business School
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About the AuthorWinnie Melda
Joined: December 7th, 2017
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