Download pdf
An Analysis of Tesla's Disruptive Innovation Strategy
- 1 Sun Yat-Sen University
* Author to whom correspondence should be addressed.
Abstract
With the rapid development of new energy vehicles, governments and automobile manufacturers are generally aware that environmental protection is an important direction for the development of the future automotive industry, and Tesla, as a representative of the global new energy electric vehicles, has great research significance. In the fierce environment of the automobile market, Tesla has won the leadership position with many innovations. Therefore, the company is considered a disruptive innovation by the public. This paper focuses on whether Tesla’s innovation is disruptive innovation, and studies Tesla’s disruptive innovation strategy through literature reading and qualitative analysis. This paper discusses the definition of disruptive innovation, Tesla’s current innovation status and explores the difference between it and incremental innovation. This paper draws the conclusion that Tesla is a disruptive innovation by considering whether it creates a value network as a breakthrough point. Finally, the paper puts forward some suggestions, including extending the product line, adjusting its price to maintain its competitive advantage and innovation, adjusting the channel level based on local markets, provide more extreme and detailed experiential marketing and after-sales service, so as to promote Tesla's sustainable innovation.
Keywords
New energy vehicles, Tesla, Disruptive innovation, Marketing management.
[1]. Yong S. (2006) Application of the Multifunctional Vehicle Information System in New Vehicle. [J]. Vehicular Electronics and Safety, 62(1), pp. 185-204.
[2]. Christensen, C. and Raynor, M. (2013) The innovator's solution: Creating and sustaining successful growth. Harvard Business Review Press, 101(2), pp. 66-67
[3]. Markides, C. (2006) Disruptive innovation: In need of better theory. Journal of product innovation management, 23(1), pp. 19-25.
[4]. De Jong M., Van Dijk M. (2015) Disrupting beliefs: a new approach to business-model innovation [J]. MeKinsey Quarterly, 3(2), pp. 66-75.
[5]. Christensen, C., Raynor, M. & Medonald, R. (2015) WHAT IS DISRUPTIVE INNOVATION? Havard Business Review, 93(12), pp. 44-53.
[6]. Cozzolino A., Verona G., Rothaermel F. T. (2018) Unpacking the disruption process: new technology, business models, and incumbent adaptation [J]. Journal of Management Studies, 55(7), pp.1166-1202.
[7]. Fleming, В. (2013) Electric Vehicle Collaboration: Toyota Motor Corporation and Tesla Motors. IEEE vehicular technology magazine, 8(1), pp. 4-9.
[8]. Thomas, B. (2015) Why Tesla Won’t Be Able to Scale. Harvard Business Review Press, 4(1), pp. 21-25.
[9]. Guttentag D. A, Smith S. L. J. (2017) Assessing Airbnb as a disruptive innovation relative to hotels: Substitution and comparative performance expectations [J]. International Journal of Hospitality Management, 64, pp.1-10.
[10]. Hardman, S., Shiu, E. and Steinberger Wilekens, R. (2015) Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors? International journal of hydrogen energy, 40(4), pp. 1625-1638.
[11]. Dedehayir, O., Nokelainen, T. (2014) Disruptive innovations in complex product systems industries: A case study [J]. Journal of Engineering & Technology Management, 33 (C), pp.174-192.
[12]. Myles Edwin, M. (2012) The globalization of Tesla Motors: a strategic marketing plan analysis. Journal of strategic marketing, 20(4), pp. 289-312.
[13]. Matt, R. (2018) Tesla's safety problem [J]. Electrical Apparatus, 71 (11), pp.22-23.
[14]. Anon A. (2015) Tesla's New Battery: The Future Is on the Wall. The Electricity Journal, 28(6), pp. 1,4.
Cite this article
Xiao,N. (2024). An Analysis of Tesla's Disruptive Innovation Strategy. Advances in Economics, Management and Political Sciences,121,63-69.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 8th International Conference on Economic Management and Green Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).