Chapter 2

.docx

School

Palm Beach State College *

*We aren’t endorsed by this school

Course

4935

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

5

Uploaded by AdmiralAtomMouse27

Literature Search Research on Failure in strategies of Innovative Growth Tesla can be deemed stagnant in the electric vehicle market compared to its competitors. Staying in the same place only sometimes allows for a company to grow, and if possible, the growth rate is usually subpar to what company leaders desire. This once top-of-the-line EV company is at grave risk of losing its leadership among other car manufacturers, not all of whom are primarily EV-based. One central improvement area within Tesla lies in the company's failure to implement successful strategies promoting innovative growth. Businesses can be significantly affected by a lack of innovation, loss of productivity, reduced customer engagement, and an inevitable decline in profits in the long run. Tesla must improve the overall schedule of creation and release of new vehicle models to their customer base. One simple yet effective marketing strategy many car companies implement is releasing a new and updated vehicle version for that upcoming year. Incorporating minor improvements and slight changes to the car encourages and draws the customer to buy the new product. However, it is often the case that if a company does not participate, and there is a lack of new types of inventory to choose from, there would be no draw or incentive for a customer to buy a new product when the original product they have is identical and in tolerable condition. One way Tesla needs to catch up innovatively is their need for a regular release schedule of new models. By adapting to these changing markets and creating creative solutions to overcome them, Tesla can remain competitive in its ever-changing and expanding market environment. Innovatively responding to market trends can afford Tesla new opportunities by allowing for the mitigation of risks within the company and optimizing its return on investment.
Other vital areas around the company's need for innovative strategies relate to the battery range and the time it takes to charge the battery completely. Tesla, which makes numerous EV models, each with differing ranges on the car's battery, differs from the company with the most extensive mileage range on its battery. The Tesla Model S has a battery range of 373-407 miles; this has remained standard since the release of the vehicle back in 2012. As a pioneer in its market, Tesla created new ideas, and understandably, new technology can drive new designs and features and present new challenges. As of 2023, California-based Lucid Motors has the highest EV driving range (Wallace et al., 2023). It is the leader in electric sedans, with the highest EPA-estimated range sold and a battery range reaching up to 516 miles (Lucid Group, Inc., 2021). That is a relatively large range, more than many individuals get in similarly-sized luxury vehicles powered by gas-fed internal combustion engines, much less competing EVs. Regarding the charging time required to refill the EV's battery back to 100%, Tesla is currently at the bottom of the barrel compared to its competitors. There are two types of mechanisms to choose from when charging: regular charger and supercharger, the latter of which is faster. Regarding fast chargers, Tesla takes a whopping 27 minutes to reach full, while it takes a newer company, Lucid Motors, merely 15 minutes, and simultaneously, the range is approximately 100 more miles. (Moore, 2023) That decrease between the two times is extremely drastic; it is nearly half the time. Changes can aid in adapting the overall mileage range and total time required to charge a Tesla battery. A company needs to remain decisive regarding innovation; it can play a crucial role in creating strategies to expand successfully within the market segment. Innovation can allow the production of new products with state-of-the-art features that meet consumers' changing needs
and preferences. Tesla should continue to research to comprehend the demands of its customers better; this way, innovative solutions can be created to fill in the gaps in the market. It is common business knowledge that a shortage is inevitable when demand increases, and supply stays the same. This is another fundamental issue the company faces, often needing to catch up on its delivery targets. Tesla currently operates four manufacturing sites worldwide: two in the United States, one in China, and one in Germany. With two of the four plants in Shanghai and Austin, Texas, USA, shutting down operations for refurbishments ultimately led to a significant decline. It is a fact that Tesla needs to target a wider variety of segments, which will ultimately require a broader and more updated range of vehicles. Currently, the auto industry is geared towards electric-based vehicles and is primarily fueled by the actions of a select few; they include China, the United States, Europe, Japan, and South Korea. Although the rest of the world utilizes this industry and accounts for nearly 22% of global light vehicle sales, the auto industry is not concerned with their opinion much. At a minimum, at least 17 million units right now are entirely inaccessible to Tesla. The brand should have the goal to go global for continued growth and success; to achieve that, there must be dedicated products that can be delivered to all parts of the world. Businesses must adapt to the income of other populations in other areas to make them affordable and appealing. There have been extensive delays in the production and official release of a specifically promised EV truck coined the Cybertruck (Hawking, 2023). Tesla's CEO, Elon Musk, made announcements about the truck and made it available for preorder back in 2019. It was officially released four years later, in 2023 (Dow, 2023). In between its announcement and release, other car makers had designed, produced, and delivered the market's first electric truck. The up-and- coming car company Rivian became the first brand to have an electric truck hit the road (Tucker,
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help