Tesla model s

Running head: Business: TESLA MODEL S 1
Tesla is a United States based motor vehicle company that manufacture electric vehicles.
The Company designs, develops and sells electric vehicles of high performance (Voigt et al.
Radical innovation or an incremental innovation
According to Norman & Verganti (2014), Radical innovation is defined as the extent or
the degree to which the innovation is totally new and totally different from already existing
products. Similarly, the radicalness of an innovation can be defined with regards to associated
risk. Some examples of radical innovations include the development of new products like phones
with much more different display resolutions, high memory capabilities as well as better and
much better and long-lasting battery. In the year 2015, Tesla innovated two vehicles which most
people were in agreement with regards to its remarkability. In fact, most consumers rated the
Tesla Model S vehicle as the best. However, though the model never posted profits at first,
people were sure that profits would soon follow. Tesla was the only existing auto manufacturing
star up in the US since the 1920s. It is conclusive therefore to refer to Tesla model S a radical
innovation because the two vehicles the company introduced were different from already
existing models. Tesla model S appeared totally new to the world and different from already
existing products. Incremental innovation involves only a slight change from the normal or
already existing practices (Norman & Verganti, 2014). Tesla Model S was a major innovative
idea and can be termed as incremental because the change was not slight but was rather robust
that took the whole world by surprise.
Competence enhancing or destroying
A competent enhancing innovation is that kind of innovation that is built from already an
existing knowledge base in the firm (Norman & Verganti, 2014). For example, Pentium 4 from
Intel was built on the technology of Pentium III, from the same company. On the other hand,
competence destroying innovation is that kind of innovation that renders a company’s existing
competencies and ideas totally obsolete and irrelevant.
Tesla company innovation is built on its already existing innovation in the modeling of its
vehicles, therefore making it competence enhancing rather than competence destroying. In fact,
the modeling of Tesla Model S was done utilizing existing knowledge base of the company.
Is it a component or an architectural innovation?
A component innovation, also referred to as modular innovation, is that kind of
innovation that entails changes to components in a system without necessarily affecting the
overall design of the product (Norman & Verganti, 2014). On the other hand, architectural
innovation is that kind of innovation that entails completely changing the overall design of a
particular system. It also entails changing the way the components in a system relate to each
other, thus influencing the way a system operates. The Tesla model S car was designed with an
aluminum body and a total range of up to 300 miles per every charge (Nykvist & Nilsson, 2015).
The extreme changes that were made in the two models of cars completely changed the design of
the overall system. The way components in the newly introduced models interact with each
other. Therefore, conclusively, the innovation adopted by Tesla Company is architectural and not
component innovation.
What factors do you think influence the rate at which consumers have adopted (or will
adopt) the Tesla Model S?
There are a number of factors which influence the rate at which consumers have adopted
Tesla model S. Some of these factors include that fact that the model has a strong aluminum
body. Additionally, Tesla Model S has a strong battery charge that can last up to 300 miles per
every charge. Similarly, Tesla model S has small cylindrical batteries well distributed in the car
system which enhances battery safety. These are some of the factors which customers find them
unique and attract them towards the use of the car model.
Where do you think electric vehicle battery technology is on the technology s curve?
The S-curve is a form of predicting production in an organization and entirely requires a
company to invest huge sums of money at the beginning of the production process in order for
the product to be efficient in the long run. According to Adner & Kapoor (2016), technology S-
Curve diffuse innovation because it leads to new ideas being tested which result in increased
efficiency and increased production in the long run. For Tesla Model S, the company has spent
huge amounts of resources with an aim that it unleashes something new that will try to
differentiate it from other competitors in the market. Because Tesla model S is an electric vehicle
and come as a new product to customers, it has not achieved much as far as sales volume is
concerned and therefore it is still lowly placed in the technology s curve.
Do you think Tesla Motors will be profitable? Why or why not?
In my view, Tesla Motors will be profitable because most of its products are not only
effective but are attractive to customers. Because of the fact that the company differentiates itself
from other firms in the industry by manufacturing high quality and environmentally friendly
vehicles, it is likely to break even and make more profits in the long run.
Adner, R., & Kapoor, R. (2016). Innovation ecosystems and the pace of substitution: Re‐
examining technology S‐curves. Strategic Management Journal, 37(4), 625-648.
Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research vs.
technology and meaning change. Design issues, 30(1), 78-96.
Nykvist, B., & Nilsson, M. (2015). Rapidly falling costs of battery packs for electric
vehicles. Nature climate change, 5(4), 329.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Driving Against the Tide: The Case of Tesla
Motors. In Business Model Pioneers (pp. 187-198). Springer, Cham.

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