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Tesla Company’s Decisions and Its Competitors Case Study


Innovation is the art of making things amazingly different to advance modernity. Tesla Company became one of the leaders in innovation in the car industry. Its announcements of new models, new battery technology, and patent release enabled it to make a lot of progress in the market.

Elon Musk, the chairman, and CEO of Tesla had a plan to revolutionize the automobile industry. The introduction of the electric vehicles helped to provide cars that were eco-friendly and efficient for the market. However, there were a few problems. The infrastructure in the industry was not viable for the new developments. Its technology was not compatible with the national adaptation to the new system. Most customers still preferred oil-fueled vehicles because oil prices had dropped over the period. The electric cars were very expensive (Grant 237). Therefore, Tesla allowed the use of its patent to increase the level of uptake of the electric vehicles in the market.

Tesla had made advancements in the electric cars. Its battery innovation was and still is the basis for its uniqueness. It also developed a wholly new electric car from scratch. The system of charging with the newly developed supercharger made Tesla a company to beat. Within 30 minutes its system can charge a car to travel for over 100 miles (Grant 237). The other national chargers are slow and a charge of 30 minutes can only take the vehicle for not more than 10 miles. The architecture of Tesla’s car battery packs, high voltage cables that connect to the battery, and the advanced computer system that manages the charging system are its unique points. It is not easy to patent such technology. Such unique features led the company to protect its patents through registration. They were its competitive advantage.

Tesla’s unique range of cars gives the company an edge in the market. The company partnered with Panasonic Company to provide the cars with the much-needed support of quality batteries (Johnson 502). It has the S-Model and the X-Model which took the market by storm due to their structure and speed. The battery only adds to this beauty with the supercharger system and ability to store energy for long distance performances.

The lithium-ion batteries were already in use even before Tesla Company came into being. Other companies like Nissan partnered with NEC to produce lithium-ion batteries from scratch. Tesla bought off-the-shelf lithium-ion cells which were smaller but capable (Grant 237). They also did not overheat like other batteries. Later, Tesla and Panasonic partnered in 2014 to build the world largest manufacturing plant for lithium-ion batteries. It has projections to ensure that the electric cars become affordable to acquire and to maintain.

The anticipation was that the move would free up its patent to other companies. It would then speed up the market for the electric vehicles. When there are many supplies in the market, the price tends to drop. The decrease in prices leads to the increase in demand. It leads to more purchase. However, the company states that the use of its patent should be in good faith. It will maintain its supercharging technology but share its battery technology. Customers who charge in its stations should pay a fee to enable the company to raise additional revenue. If Tesla did not share its technology and got a competitor who did, its recharging stations would lose value.

Tesla and other companies can revolutionize the industry. Their sharing of technology will help to save the environment from pollution. It will also speed up technological advancement.

Works Cited

Grant, Robert M. Contemporary Strategy Analysis. 9th ed. Hoboken, New Jersey: John Wiley & Sons, 2011. Print.

Johnson, Drew D. International Directory of Company Histories. 1st ed. Detroit, Mich.: St. James Press, 2011. Print.

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IvyPanda. (2020, September 4). Tesla Company's Decisions and Its Competitors. Retrieved from https://ivypanda.com/essays/tesla-companys-decisions-and-its-competitors/

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"Tesla Company's Decisions and Its Competitors." IvyPanda, 4 Sept. 2020, ivypanda.com/essays/tesla-companys-decisions-and-its-competitors/.

1. IvyPanda. "Tesla Company's Decisions and Its Competitors." September 4, 2020. https://ivypanda.com/essays/tesla-companys-decisions-and-its-competitors/.


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IvyPanda. "Tesla Company's Decisions and Its Competitors." September 4, 2020. https://ivypanda.com/essays/tesla-companys-decisions-and-its-competitors/.

References

IvyPanda. 2020. "Tesla Company's Decisions and Its Competitors." September 4, 2020. https://ivypanda.com/essays/tesla-companys-decisions-and-its-competitors/.

References

IvyPanda. (2020) 'Tesla Company's Decisions and Its Competitors'. 4 September.

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