Question

Few would argue with the observation that Tesla is an innovative firm. It has taken out a leading position in developing technology for electric vehicles. It is also building autonomous control systems into its cars. It has taken one seeming step backward and strategically developed its own technology for batteries and manufacturing capacity to produce batteries. It has subtly innovated the design for its cars. Rather than putting the batteries for its cars in what would normally be the engine compartment, it places them under the main compartment of the car, allowing the firm to include a "frunk" (or front trunk) in its cars. It has also innovated on the distribution side of the business by circumventing dealers to sell its cars directly to customers through company-owned showrooms. Thus, it is innovating in ways that change the supply system, the technology of automobile drive trains, the technology of driving, the physical design of cars, and how cars are distributed.

Discussion Questions

a.What is sustaining innovation? b. What is a distributive innovation? What is the main difference between the two?
Do you see Tesla’s business model and product as offering a sustaining or disruptive innovation? Why do you see it this way?

In what ways will incumbent firms be able to respond effectively to Tesla? In what ways will it be difficult?

Whether or not you see Tesla as offering a disruptive innovation, what would be a different way than an entrepreneurial firm could offer a disruptive innovation in this market?

PLEASE ANSWER ALL QUESTIONS CORRECTLY, THANKS

Answer 1

Answer:

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