Professional Documents
Culture Documents
Critical Thinking: Contemporary Strategy Module: Critical Thinking Critical Thinking: Tesla Motors Case Study
Critical Thinking: Contemporary Strategy Module: Critical Thinking Critical Thinking: Tesla Motors Case Study
Module Number
Contemporary strategy
Student id:
Date:
1
CRITICAL THINKING
Introduction
TESLA is an American based automobile company that designs and develops electric
motors. It was firstly introduced in the year 2008. TESLA produced the electric car for the first
time. The motors of TESLA are ultra-technological that makes less noise and run on electricity
(Vynakov et al., 2016). The mission of the TESLA Company was to drive the world's transition
to electric mobility.
industries
2
CRITICAL THINKING
disposable fuel.
Energy storage Combustion engine run on More energy is needed by
energy.
Maintenance cost Combustion motor owners Electric vehicles are always a
3
CRITICAL THINKING
more.
Driving techniques Combustion powered engine motors and electric motors differ
"Tesla opened its patents in the spirit of open-source movement for promotion,
Patents are the intellectual property of a firm that is the source of competitive advantage
for a company. At the initial stage, Tesla protected its intellectual property. But in the year 2014,
the CEO of Tesla surprised people by saying "patents of Tesla belong to you" he announced the
opening of all its patents to those people who want to use them in good faith (Rimmer, 2014).
Some people claimed it as a good spirit of Elon Musk while few of them considered it as a
publicity stunt. CEO of Tesla said that opening up patents aim to accelerate the development of
sustainable transport (Hil, 2016). Tesla will not initiate any lawsuit against anyone who wants to
companies with a competitive advantage over competitive rivals but Tesla allowed free access to
its patents. Too many predictions were made against the opening of patents to everyone but the
motive of Elon behind this action was unclear. There could be a motive to accelerate the
production of electric motors and the development of EVs infrastructure and consequently saving
the planet from the diverse impacts of fossil-fueled vehicle. Opening up the patents or
technology is not free of cost because it exposes a firm to a few risks like loss of centrality in the
4
CRITICAL THINKING
market and increases the competition for the firm. But opening up patents or technologies to
others brings few benefits also. Technological risk can be shared with others it is often known as
"risk-pooling." The open-patent process is complex and rich there would be a big picture in the
mind of Tesla's CEO for opening its patents for free and he would be known to the reaction of
competitors. It can fuel the development of required technology and it can make a company
paddle-back from the open-technology strategy. Competitors take benefit from the open
technology and convinced to invest a huge amount. Tesla also fueled the investment and
2015).
Relentless innovation is a strategy of Tesla. The success of Tesla is just simply the
company produces electric cars that are needed by people and quite affordable. The company
produced its first car in the year 2008 and kept producing the world's best electric vehicles. The
company is operating on the policy of relentless innovation. In the automobile industry, Tesla
has promoted innovation and creativity and has successfully popularized electric vehicles. Tesla
has disrupted the way the world thinks about energy. Tesla has enabled people to store and use
energy. The company is achieving milestones speedily just because of the contribution of
innovation to its business strategies. For instance, Tesla solved the energy problems of South
Australia only in a hundred days. The success and development of Tesla demonstrate that its
CEO accepts the importance of innovation. CEO of Tesla is a risk taker he is famous for making
and fulfilling big promises. Tesla is securing success and growth in manufacturing electric cars,
and advancement in the manufacturing and utilization of renewable resources, energy storage,
5
CRITICAL THINKING
different ways. The battery supply chain of Tesla is working effectively and efficiently. There is
a continuous fall in the price of battery due to economies of scale, continuous innovation,
decrement in the quantity of waste, and placing manufacturing process under a single roof. The
battery supply chain of Tesla is the factor of competitive advantage for the firm. The
Supercharger network of Tesla is also a source of competitive advantage for the company. The
company has established charging stations for electric vehicles with high power and speed. The
company is taking a competitive advantage from its software updating system. It keeps updating
the software of its vehicles. Another factor of the competitive advantage of the company is a
strong brand image and strong position in the market. The company produces electric motors that
are needed by people and that are also affordable by people. It promotes the production of
sustainable transport and aims to reduce the impacts and waste of traditional transport. Long
Recommendations
Tesla is suggested to expand its service centers in emerging markets. The company is
suggested to manage its production capability according to demand. Tesla should leverage brand
equity to augment brand awareness. Tesla has provided the service of supercharging stations it
should manage the locations of stations too. Power stations should be accessible by maximum
people so their location should be ensured nearby food points, bathrooms, and main roads and
Conclusions
6
CRITICAL THINKING
entrepreneurs in the world. He has maintained his image in the market by developing multiple
businesses and contributing to the betterment of society, the economy, and the planet. By
producing electric cars CEO of Tesla is contributing to the welfare of society, and the planet.
7
CRITICAL THINKING
References
Arquitectura, E. Y., Introducci, T. I., 赫晓霞, Iv, T., Teatinas, L. A. S., Conclusiones, T. V. I. I.,
C. L. E. Y. N. to K. in 20, Mu, A., Inan, T., Sierra Garriga, C., Library, P. Y., Hom, H.,
Kong, H., Castilla, N., Uzaimi, A., … Waldenström, L. (2015). Contemporary Strategy
%0Ahttps://hdl.handle.net/20.500.12380/245180%0Ahttp://dx.doi.org/10.1016/j.jsames.201
1.03.003%0Ahttps://doi.org/10.1016/j.gr.2017.08.001%0Ahttp://dx.doi.org/10.1016/j.preca
mres.2014.12
Hil, B. M. (2016). Powering Intellectual Property Sharing: How To Make Tesla’S Patent Pledge
https://login.pallas2.tcl.sc.edu/login?url=http://search.ebscohost.com/login.aspx?
direct=true&db=a9h&AN=127389380&site=eds-live
Rimmer, M. (2014). Tesla Motors’ Open Source Revolution: Intellectual Property and the
motors-open-source-revolution-intellectual-property-and-the-carbon-crisis-95259ff867e6
Vynakov, O. F., Savolova, E. V., & Skrynnyk, A. I. (2016). Modern Electric Cars of Tesla
https://doi.org/10.15673/atbp.v8i2.162