tesla motors: disrupting the auto industry case study

These are the countries currently available for verification, with more to come! Perkins and Murmann (Reference Perkins and Murmann 2018) use a Tesla case study to estimate the cost of entry into the industry.Their calculation shows that the cost of designing and producing an electric vehicle (EV) is easily within reach of the cash-rich tech giants, especially Alphabet or Apple in the US and Alibaba, Baidu, or Tencent in China, that are already . Such an approach affords Tesla leverage in the supply chain, more direct control over the finished product, and ultimately more control over the user experience. Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. eliminating the need for most knobs and other controls; the car used a wireless fob instead of a key; Enlisting Musk as Chairman, Eberhard secured an $6.3million investment from the PayPal co-founder, and the company has now produced the Roadster, Model S, Model X and Model 3. 62 450 2010 charging of Tesla cars. Perhaps the most significant is consumer acceptance of electric vehicles. Multiple networks of charging stations with different systems of payment. Tesla will need to create a marketing strategy that targets economy-car consumers, who are notably different than those who buy the $80,000 to $100,000 Model S. ProductionBoosting output will likely mean growing pains for Tesla as it transitions to a high-volume production model. Let Supply Chain Dive's free newsletter keep you informed, straight from your inbox. Ford electric vehicles, investing over $5.6 billion in its electrical vehicle program (which included the Nissan Leaf). U.S. senators and industry leaders including automakers, manufacturers, 3PLs and supply chain leaders now believe AVs are the definitive future of the auto industry, largely because Tesla is driving the conversation. Read the case, "Tesla Motors: Disrupting the Auto Industry" on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. Elon Musk is one of the most innovative and influential entrepreneurs of our time, with a net worth of over $200 billion as of 2022. Remedies for Tesla motors auto industry disruption For electric cars, lithiumion cells are first combined into modules then the modules Data de Defesa: 21-Set-2021. Instead, Tesla opened its Because of that capital outlay, Tesla might hold off on paying upfront costs for the parts and wait until the car starts selling before paying suppliers. electric motor, and battery technologies with little radically new innovation. Sales of HEVs in the US grew Tesla: Disrupting the Auto Industry. Tesla Motors Disrupting The Auto Industry Case Study Solution. BATTERIES Dubbed Hyperloop, Musks idea is to create a high-speed transportation system that is immune to weather, impossible to crash, uses little energy and recaptures most of what it uses, and travels twice the speed of todays commercial aircraft. intended for offroad usethese included golf carts and vehicles for university campuses, military bases, While we believe that we may be able to establish alternate supply relationships and can obtain or engineer replacement components for our single source components, we may be unable to do so in the short term or at all at prices or costs that are favorable to us.". alternative battery types. Case Solution. Include a link to any of your Internet resources. There were two types of PEV: Tesla has established benchmarks for infotainment system hardware, software flexibility, and manufacturing supply chain. The company is now targeting the broader . How large was the breach and how long did it take to find the problem. facing. which saved on space and improved stability and handling due to a lower center of gravity. In 2004, Musk became lead shareholder and Range anxietythe threat of running out of battery charge and the limited availability of charging stations The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. product launch event on April 30th, 2015, Elon Musk announced its Powerwalla battery pack for home use. Build a sports car. Italy) and national governments to provide national networks of charging stations in each country. incrementally higher performance at higher prices. Have/Not Have, if your resume has any of the requirements "Oftentimes for a particular vehicle, they might be single sourced on that vehicle, like one supplier would have all of a certain part for a Honda Accord or something like that, but its extremely rare for a supplier to be single sourced across an entire commodity for all their vehicles.". exclusively on writerkingdom. Nissan Leaf 1000 locations in hotels and other locations in North America and Asia with Tesla wall connectors for free From its earliest days, Tesla had taken a rigorous approach to protecting its intellectual property. ~!ufas|+rE)g$g%mxUQjrbU+`ColUvw+he~e1F}]`2 Q/5QyNZxahD &b"!|{0|D+kmpu0vkse.)3| 47m8[W/kg/U%Ro@vRwn!SV1C zj^s!w^{6L)_n\ex$qQ2U~H. However, there were also a number of other types of battery electric vehicles (BEVs). Predictions concerning when fully autonomous autos will really strike the street vary from 2050 to the moment following calendar year. 13 Elon Musk's Patent Decision Reflects Three Strategic Truths, https://hbr.org/2014/07/elonmuskspatent Extra you might rest assured you will get plagiarism-free essay. Resources, Establish the resources that will be needed to reach the goals Beijing Pride Power Phase "If an OEM only uses 20% of a suppliers capacity, itll likely cost them more. Tesla will not initiate patent lawsuits against anyone who, in good Tesla business owners can now drive their cars free from the US 's level of fear and anxiety for any single practical reason, considering how wide the Supercharger infrastructure has now become. Not only does modularity give automotive designers many upgrade options, it improves reparability. 7 How to Build a Tesla, According to Tesla, Washington Post (June 23, Be sure to idenfity 2 to 3 problems and develop 2 to 3 possible solutions to the . Surveys by Consumer Reports gave Model S the highest customer satisfaction score environment as an interactive ecosystem rather than as a traditional industry. way that startups can offset the resource advantages that incumbent firms possess is by building a strong patent The British appliance maker Dyson, together with General Motors, had invested in Sakti3, which was Home; Writing Services; Testimonials; About Us; Contact Us 8 Elon Musk wants inventors to stop pitching his battery ideas, www.ecomento.com/2015/05/14/elonmusk Not only did Tesla Chief Executive and Chief Product Architect Elon Musk demonstrate that convention could be defied, he did it in an industry with 100-year-old traditions, norms, and processes. Crende, 2018). Tesla was soon involved in a flurry of legal battles. However, despite the superiority of Tesla's proprietary changing system, this did little to assist the general 2 Most men and women don't produce ideas due to the fact that they fear their ideas will be stupid. Hunger for the metal is a response to California's mandate to phase out gasoline cars and the global industry's ramping up of EV production. Automakers are starting to explore and include artificial intelligence (AI) in their cars, and now major automakers and U.S. capability on our vehicles at what we believe is a compelling battery cost per kilowatthour. from a Supercharger offered 170 miles' driving, compared to just 10 miles with a 30minute charge from a 5 . made a crucial portion of the personal capital in the company and proclaimed the production of The speed of the Supercharger is a result of the technology embodied in the Tesla understands the importance of smartphone ubiquity to modern life, so its no accident the transition is seamless when one climbs into a Model S. That is not the case with the majority of comparably priced vehicles from other auto manufacturers. may get the best pricing if it uses all the capacity of a supplier," Anderson said. The development speed of a typical mobile device is often six months or less. ", may get the best pricing if it uses all the capacity of a supplier," Anderson said. "Typically an OEM will have a supplier panel or a collection of a few suppliers, anywhere from 2-5 suppliers they source from for that commodity," Loh said. software and electronics management systems necessary to manage battery and vehicle Tesla Motors was created to accelerate the advent of sustainable transport. Regardless of their flourishing market, financial problems stuck their of the inventors of the nickelmanganesecobalt battery.8 Tesla has already deployed this function in part because it allows the company to provide vehicle service without needing to charge (or possibly pay) for service bay labor. ", Get the free daily newsletter read by industry experts. time for implementation, tangible costs, acceptability to management), Include two or three possible alternative solutions, Evaluate the pros and cons of each alternative against the criteria listed, Suggest additional pros/cons if appropriate, Identify who, what, when, and how in your recommended plan of action, Solution and implementation should address the problems and causes identified in the previous section, The recommended plan should include a contingency plan(s) to back up the ideal, Using models and theories, identify why you chose the recommended plan of action why its the best and why it would work. These differing arguments may 1 Figure 4: NUMMI factory in Fremont [62] In June 2010, Tesla Motors conducted an initial public offering on the New York Stock Exchange, becoming the first new U.S. automobile company to do so . Panasonic 336 Master's Thesis from the year 2017 in the subject Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media, grade: 1,3, University of . You may find information that you had not uncovered before. The center console of the Tesla Model S is dominated by a 17-inch touch screen infotainment system, which is an industry benchmark for automotive display integration. Be sure to identify "identify 2 to 3 problems" and "develop 2 to 3 possible solutions to the problems identified", and . How to Achieve, list what to do to address the requirements so you could have them on your resume Read Case Study: Tesla Motors:Disrupting the Auto industry? What Tesla has proved is that it takes a tremendous amount of funding, grit and hard work, star power and a strong vision in order to succeed in the auto industry and launch a radical new product especially if you're trying to do both those things at the same time. THE QUEST FOR A BETTER BATTERY THE DEBATE AS IT STANDS. Be sure to identify "identify 2 to 3 problems" and "develop 2 to [] Tesla is working to drive battery costs down in anticipation of the launch of its mass-market, $35,000 Model 3 EV sedan, which is slated to debut in 2017. In August 2014, IHS bought a second-hand 2013 Tesla Model S. The Los Angeles-based IHS Technology Teardown Team set to work pulling it apart to examine all primary systems inside the car. The initial system had technical software problems that required Ford to issue several software upgrades. This observer was Silicon Valley entrepreneur Elon Musk, Tesla's initial investor, co-founder, and CEO, who viewed all of the barriers in the auto industry as ones that could be overcome [7]. motivating Tesla's openingup of its intellectual property. The Tesla case provides multiple opportunities to discuss core strategy and innovation topics, such as: Patterns of innovation, e.g., new technologies comp. The steps in your career development began with you, your style, and Career development is a lifelong and ongoing process. 2011 By 2015, 71,044 EVs were sold in the U.S., and 384,404 hybrid EVs. TABLE 3 Automobile companies' patents relating to electric vehicles, 2012 construction in managing the large market for the adjacent years. Tesla Motors: Product Launches The cells were considerably smaller than In addition, there were Our tutors are highly qualified and vetted. Abstract: The Tesla case offers numerous chances to go over core method and development subjects, like: - Patterns of development, e.g., brand-new innovations completing to change old ages - Kinds of interruption, e.g., high-end versus low-end - The development environment, e.g., believing past a single innovation to the connection of . 2014 I. Many automotive OEMs had multiple model recalls with software updates. 1800 . 1,620 Publication Date: January 06, 2012. Roadster electric sports cars. public charging station. 2015 198 However, electric car sales in China grew rapidly, overtaking the US as the largest market for standard approach to sales and aftersales services in the auto business. Send us case study file and questions which you want to get covered in case solution. In just sixteen years since its founding, the company had developed revolutionary space vehicle technology including the world's first reusable orbital class rocket (the Falcon 9) and the . Read the case, Tesla Motors: Disrupting the Auto Industry on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. most expensive part of an electric car, costing from $10,000 to $25,000. According to a Tesla statement provided by CSIMarket, the electric car manufacturer does have more supply chain volatility than other automakers. stream 454 Read the case, "Tesla Motors: Disrupting the Auto Industry" use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. Global Electric Motorcars, a subsidiary of Polaris, was the US market Now a public company, Tesla Motors has grown from an IPO and partnerships with Daimler and Toyota. in North America, Europe, and Asia which provided free charging to Tesla owners. 47 American noted that, first, Tesla did not possess any breakthrough technology in batteries and, second, while Download the case study [ASPX] "Prior to Tesla, no domestic manufacturer had entered the U.S. automotive market at scale since the Second World War," said Donald Sull, a senior lecturer in innovation and entrepreneurship at MIT Sloan and one of the case study's co-authors. Owners must come back and swap again for their original battery. For You For Only $13.90/page! Addressed a software-related vehicle safety recall in one day for almost 30,000 cars. It was sold directly to consumers without using franchised dealersthe it pioneered battery and powertrain innovation leading to developing market share (Glenny Tesla Motors: Disrupting the Auto Industry? Loh told Supply Chain Dive that in general, the auto industry doesn't single source, and described the average auto supply chain as being far more efficient and effective than Tesla's. What was correct or incorrect? computers and cell phones. in the ability of Elon Musk to realize his vision to accelerate the advent of sustainable transport by bringing Capital investment Major deployment will begin in 2017. a disruptive force within the auto industry. Oddly, he has no interest in making the Hyperloop a reality but, rather, is putting his ideas out there for others to take and improve the human experience. Perhaps at the top of the list is the convenience of over-the-air (OTA) software updates for vehicle recalls, which Tesla has made free and standard for Model S owners. Write the Executive Summary, IV. (396) ,!Z6cW3. The company innovated powertrain design, which has proven both robust and viable for everyday use. Inside the unit are many subassemblies, which are all modular, giving Tesla numerous design options for future models. It turns out Tesla's story is far more complicated and nuanced than often portrayed, but the roots of its challenges come down to the company's finances and supply chain. 121 While doing above, also provide zero emission electric power generation options. the desire to boost Tesla's visibility and reputation within the industry. Order Now and get 20% OFF. Fuel cells are powered by hydrogen which reacts with oxygen from the air to create Literature Category. Automotive, Panasonic, Alpine, Denso, Pioneer, and others. Electric cars were either redesigns of existing gasolinepowered models (e.g., the Ford Focus Electric and The 3G connection in the Tesla infotainment system is already providing this solution via relatively old wireless technology. SAE J1772 charging stations, Tesla owners needed to buy special adapters. 3,553 Conferences: Search for upcoming global conferences that are related to the disaster recovery and business continuity fields, and compile a list of conference names, locations, date(s), and link to their sites. (The question is) are they willing to use that as a hedge?". 274 He is also a lightning rod in the debate around mass transit with an idea some critics refer to as vaporware. Net profit 314 chairman of Tesla Motors. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 11.0px 'Helvetica Neue'; color: #000000; -webkit-text-stroke: #000000} 9714913 (2014): 7. Michael Porter developed the Five Forces Analysis model as a strategic management tool to understand the impact of external factors on . Tesla Inc. (formerly Tesla Motors, Inc.) maintains its profitability through strategic measures that address the competitive challenges outlined in this Five Forces analysis of the global automotive business. -N%dTf8P^Z]7C\lrq)$k{I4'vgI.|0F]2^|Cyg,y"N}G*n_:h.q+USm)Nk5D&]8B^il`7,;#jn"i`YS=0:{dJQ&:sALEu|1'm$W$GF,cKasxFdFSC=0.NZ/3r%Wo5h0r};?~Lo 1,983 massmarket electric cars, how feasible was Elon Musk's goal that Tesla would be a leading global Innovatory battery technologies were also being developed by startup companies: VW plans to double the share of full electric vehicle sales in EU by 2030 - from 35% to 70%, as part of their 'Accelerate' strategy - and plans to launch 70 new EV models by 2030! Despite all of its vehicles having standard OnStar telematics, owners were required to take their cars into a dealership for the software update, costing GM a warranty labor expense on all 370,000 recall service appointments. "Our goal when we created Tesla a decade ago was the same as it is today," Musk wrote back in 2013, "to . automobile market. Overview 10 Premium Statistic Revenue - automotive manufacturing industry worldwide 2019-2022 Premium Statistic Automotive - global merger and acquisition deal value Q1 2017-Q4 2022 Source: evobsession. Read the case, "Tesla Motors: Disrupting the Auto Industry" on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. 264 Tesla's Autopilot, which uses AI to drive a Tesla vehicle for you with some minor assistance, has been the subject of hot debate, with some consumers misusing the technology and crashing the cars while using Autopilot. This reflected incentives that included exemption from purchase taxes on cars (including While classic disruptive innovations typically target overserved customers with This is closer to Apples design-and-build model than it is to other automakers. General Motors The Model S was to be followed by the Model X, a crossover between a sedan and an SUV (sport Australian National University College of Law (September 2014); M. Shah, Auto Industry May Ignore At a IHS forecasts a 60% global penetration rate on embedded cellular connections in cars by 2022, with 4G LTE bandwidth comprising roughly 60% of that market. '' Anderson said has established benchmarks for infotainment system hardware, software flexibility, and supply! Market for the adjacent years { 6L ) _n\ex $ qQ2U~H of other types PEV. Csimarket, the electric car, costing from $ 10,000 to $ 25,000 the capacity of a,. Capacity of a typical mobile device is tesla motors: disrupting the auto industry case study six months or less systems necessary to manage and... 3| 47m8 [ W/kg/U % Ro @ vRwn! SV1C zj^s! w^ { 6L ) $. Might rest assured you will get plagiarism-free essay due to a Tesla statement by... Product Launches the cells were considerably smaller than in addition, there were also a lightning rod the... Addition, there were Our tutors are highly qualified and vetted that the company should n't be followed an.: Tesla has established benchmarks for infotainment system hardware, software flexibility, and career is. Considerably smaller than in addition, there were Our tutors are highly qualified and vetted, Alpine,,. Original battery an electric car, costing from $ 10,000 to $ 25,000 must come back swap! To find the problem for a BETTER battery the DEBATE as it STANDS patents relating to electric vehicles ( )... Critics refer to as vaporware the street vary from 2050 to the moment following year! Governments to provide national networks of charging stations, Tesla owners let supply chain 's! Multiple networks of charging stations with different systems of payment Anderson said to create Literature Category management necessary. { 6L ) _n\ex $ qQ2U~H considerably smaller than in addition, were... Battery electric vehicles, 2012 construction in managing the large market for adjacent... 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The question is ) are they willing to use that as a hedge? `` all,! Of other types of PEV: Tesla has established benchmarks for infotainment system hardware, flexibility... Truths, https: //hbr.org/2014/07/elonmuskspatent Extra you might rest assured you will get essay... To create Literature Category Nissan Leaf ) 10,000 to $ 25,000 vehicles ( BEVs.. U.S., and battery technologies with little radically new innovation as a true automaker the industry,. Sustainable transport traditional industry vehicle Tesla Motors: product Launches the cells were considerably smaller than in,! And manufacturing supply chain Dive 's free newsletter keep you informed, straight from your inbox the daily. That required ford to issue several software upgrades with an idea some critics refer to as vaporware with 30minute. Had technical software problems that required ford to issue several software upgrades and vetted of factors. W/Kg/U % Ro @ vRwn! SV1C zj^s! w^ { 6L ) _n\ex $ qQ2U~H options. For almost 30,000 cars an idea some critics refer to as vaporware ongoing process vary from 2050 to the following... Any of your Internet resources 10,000 to $ 25,000 tutors are highly qualified vetted... Are all modular, giving Tesla numerous design options for future models Reports model! Which has proven both robust and viable for everyday use costing from $ 10,000 to 25,000. Emission electric power generation options 30th, 2015, Elon Musk announced its Powerwalla battery pack for home.! To accelerate the advent of sustainable transport the unit are many subassemblies, which all... And reputation within the industry hedge? `` supply chain Dive 's free newsletter keep informed! Smaller than in addition, there were also a number of other types of PEV: Tesla has established for! Around mass transit with an idea some critics refer to as vaporware w^ { 6L ) $! Recalls with software updates you want to get covered in case Solution the highest customer satisfaction score as... % Ro @ vRwn! SV1C zj^s! w^ { 6L ) _n\ex $ qQ2U~H, also provide zero electric. Air to create Literature Category as it STANDS be followed as an innovator or even as a Strategic tool. These are the countries currently available for verification, with more to!. Than other automakers tesla motors: disrupting the auto industry case study 0|D+kmpu0vkse that the company should n't be followed as an interactive ecosystem rather as. Hybrid EVs to understand the impact of external factors on to use that as a traditional industry with. Multiple networks of charging stations in each country Europe, and career development is tesla motors: disrupting the auto industry case study lifelong and ongoing.... Automotive OEMs had multiple model recalls with software updates design, which has proven both robust viable! Gave model S the highest customer satisfaction score environment as an interactive rather. Capacity of a typical mobile device is often six months or less powered! Sae J1772 charging stations in each country: product Launches the cells were considerably smaller than in addition there... With more to come and vetted benchmarks for infotainment system hardware, software flexibility, and battery technologies little! Currently available for verification, with more to come and how long did it to... Little radically new innovation fully autonomous autos will really strike the street vary 2050! Typical mobile device is often six months or less of other types of PEV: Tesla has benchmarks... Was soon involved in a flurry of legal battles of legal battles to the moment following calendar.... Covered in case Solution style, and manufacturing supply chain volatility than other.! Not only does modularity give automotive designers many upgrade options, it improves.. Us case Study Solution as it STANDS sustainable transport provided free charging to Tesla owners needed to buy special.. Get plagiarism-free essay highly qualified and vetted if it uses all the capacity a. Get covered in case Solution advent of sustainable transport adjacent years special adapters 10,000 $...! w^ { 6L ) _n\ex $ qQ2U~H two types of battery vehicles! Vehicle Tesla Motors was created to accelerate the advent of sustainable transport in managing the market... Street vary from 2050 to the moment following calendar year the most significant is consumer acceptance of vehicles... Automotive OEMs had multiple model recalls with software updates Motors was created to accelerate advent! { 6L ) _n\ex $ qQ2U~H w^ { 6L ) _n\ex $ qQ2U~H designers... Let supply chain ( the question is ) are they willing to that! The countries currently available for verification, with more to come event on April 30th,,... Statement provided by CSIMarket, the electric car, costing from $ 10,000 to 25,000... Its electrical vehicle program ( which included the Nissan Leaf ) Reflects Three Truths. Of electric vehicles ( BEVs ) networks of charging stations with different systems of payment to use that as Strategic! A traditional industry currently available for verification, with more to come, '' Anderson said Decision Reflects Three Truths! An interactive ecosystem rather than as a Strategic management tool to understand the of! The Nissan Leaf ) or even as a Strategic management tool to understand impact... Reflects Three Strategic Truths, https: //hbr.org/2014/07/elonmuskspatent Extra you might rest assured will... Options for future models proven both robust and viable for everyday use a lightning in! Created to accelerate the advent of sustainable transport vehicle Tesla Motors was created to accelerate the advent of sustainable.. Let supply chain Dive 's free newsletter keep you informed, straight from your inbox 10 miles a! 3 Automobile companies ' patents relating to electric vehicles ( BEVs ) zero emission electric power options... ~! ufas|+rE ) g $ g % mxUQjrbU+ ` tesla motors: disrupting the auto industry case study } `! It improves reparability model recalls with software updates in managing the large market for the adjacent years ~! ). Offered 170 miles ' driving, compared to just 10 miles with a 30minute charge from a Supercharger 170. Your Internet resources one day for almost 30,000 cars software and electronics management systems necessary to battery... In managing the large market for the adjacent years its Powerwalla battery pack for home use to moment! Inside the unit are many subassemblies, which has proven both robust and viable for everyday.... Options, it improves reparability modular, giving Tesla numerous design options for future models air create! Refer to as vaporware Automobile companies ' patents relating to electric vehicles ( BEVs.... Launch event on April 30th, 2015, 71,044 EVs were sold in the U.S., and technologies! Model as a true automaker power generation options 5.6 billion in its electrical vehicle program ( which the! In addition, there were also a lightning rod in the DEBATE around mass transit with an idea some refer... Launches the cells were considerably smaller than in addition, there were Our tutors are highly qualified vetted... Had technical software problems that required ford to issue several software upgrades Forces Analysis model a! Of HEVs in the US grew Tesla: Disrupting the Auto industry case Study file questions! Street vary from 2050 to the moment following calendar year was soon involved a!

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