TESLA COMPANY
Tesla company usually deals with the all-electric vehicle, which is more efficient in performance than gasoline cars. The company aims at future zero-emission by people to stop using fossil fuels. However, the company’s proactive approach to its goal has disruptive features. Tesla has tried to introduce disruptive innovation in order to turn the disruption to an opportunity through improving its products to meet the needs of the mainstream customers at low prices. This can be achieved by starting the products at the high end and move down, assisting the company in creating an affordable mass-market electric vehicle that will replace gasoline cars. Tesla is believed not to be a disrupter through improved performance on meeting customers’ expectations at a low cost; however, the disruptive innovation can be a disruptor since it can be predicted that the competitors will emerge (Gelfand et al., 2019). The competitors of Tesla will rise due to the fact that a minimal number of people will prefer electric vehicles at higher prices. This translates that tesla products have to reduce prices to compete favorably in the market; meanwhile, the company innovation will contribute to the loss of the company’s revenue. The Tesla company has currently emerged as a disrupter in the market since it was discovered that it has almost ten billion dollars on debt, and it is planning to borrow additional money to escape manufacturing hell. Manufacturing hell of tesla involves offering a more expensive product whose superiority shifts consumer buying pattern known to be blue ocean where it takes time for revenue to grow. At the same time, profits shrink, and therefore this may lead to industry collapse.
Tesla has eventually turned the disruption to be an opportunity to invest since disruption takes years to encroach heavily on the market. Tesla has used the technology to encroach the customers who are eager to be served by the disruption. Tesla has used disruption to a disruptive opportunity were customers are able to pay tesla’s premium price due to the subsidies offered by the government on their products. Tesla is now generating revenue more than its competitors by reaching far customers through technology platforms to provide their products.
That is my critical analysis and evaluation of the disruptive opportunity of Tesla company in the market with my group members in the discussion. We have briefly discussed how the company initially operated, how it has been able to achieve its objectives in the market with existing competitors, what products tesla offers to the customers and lastly how tesla company has used the disruptive innovation to a disruptive opportunity, hence it is up for any other member or any other group to comply through raising questions concerning our topic of study about tesla company however it’s my belief all questions are well answered in work, and the presentation has also given enough overview of the disruptive opportunity (Afonso, 2018).