Innovation Strategic Management And Leadership Tesla motor

Question: Discuss about the Innovation Strategic Management and Leadership. Answer: Introduction: Hybrid strategy is a new strategy that is used to achieve competitive advantage. The organizations have realized the importance of both cost and differentiation strategy for improving the performance of the organization. A Tesla motor is a vehicle company that operates in a highly competitive environment. The focus of Tesla motors is on differentiation strategy where the organization focuses on small group of customers that are rich preferring stylish cars and are environmental conscious (Rothaermel, 2015). The company cannot adopt hybrid strategy or cost strategy because of lack of capital to compete based on cost. The organization is surviving due to its product uniqueness, designs and technologies that are attracting larger customers. Hence, the focus of the organization is on the differentiating strategy by differentiating the cars manufactured based on design and style. Tesla motors use intensive technologies in its electric vehicles and related products. Such evolution is reflection of Tesla increasing popularity and improving profitability. Value innovation strategy is use of both the differentiation and low cost strategy in order to create value for both the buyers and the companies. Value innovation strategy aims at creation of new spaces instead of fighting with the competitors over the same product. It is a key principle of blue ocean startgegy. The introduction of electric vehicle by Tesla motors is considered as one the most innovative move of the company. Tesla motors are considered as worlds most innovative companies. TheLean Startupmethod recommends organizations focus on developing a least viable product (MVP) before creating a full-blown manufactured goods.Tesla uses different approach for innovation of the products. The innovation strategy used by Tesla moors is not perfect but it is radical (Chen Perez, 2015). Value chain analysis helps the company in determining the strengths and weaknesses by analyzing its activities that adds value to the organization. The two activities are primary and support activities. Primary activities directly relates to production and manufacturing while support activities helps in enhancement of primary activities making it more effective (Fearne et al., 2012). Figure: value chain analysis (Source: Rothaermel, 2015). Relation of value chain with Tesla motors Figure: value chain analysis of Tesla motors (Source: Liu et al., 2014). Primary activities Inbound logistics: the important components at Tesla are manufactured in house while the other parts are delivered from the suppliers timely. This helps in reducing the time of production and assembling. Operations: the operations and manufacturing at Tesla motors is highly advanced and automated. The company is able to produce to eight three vehicles per day and all the cars are made in Northern California (Liu et al., 2014). Outbound logistics: Tesla motors distribute the cars from the stores that is located in eighteen countries. Customers have an option of booking the cars online where the car is then delivered on the address provided by the customers (Chen Perez, 2015). Marketing and sales: Tesla has its own network of stores and is not much indulged in advertisements. Many popular celebrities own cars of Tesla that has great impact on customers. The ads are posted in YouTube (Mangram, 2012). Service: the company has its service centers in Europe, Asia and North America. The company provides free services to the customers in order to reduce operational cost for some period. Support activities Infrastructure: the organizational structure at Tesla motors is flat and horizontal. This helps the communication to be better and leads to faster decision-making process. The company chooses the leaders that are able to build a strong corporate culture perfectly execute strategic vision and manage the team. Procurement: the company maintains a good relationship with its suppliers in order to use the opportunities available. The company indulges in short term agreements in order to avoid risk. RD: research and development at Tesla motors is developed and is the main advantage to the company. The money is plowed back to RD to reduce cost and remain innovative so that it is able to sustain competition (Mangram, 2012). HR: the company employs and hires employees that are creative and talented so that they are able to preserve the culture of the organization (Liu et al., 2014). External and internal factors for Tesla motors to sustain in future Tesla motors have big plans for success in future. The CEO of Tesla motors has promised to increase the production of cars and launch one to two new cars by 2020. The company will be producing trucks and new improved cars that will be automotive in ten years time. The production house will use the batteries will help in reducing the cost of profit thus helping the company earn higher profit. It estimates to reduce the cost by 3% by 2020. The company also aims at introducing new and improved cars that are eco friendly (Chung et al., 2016). The main threat of the company is from its competitors that are likely to hamper the plan of Tesla motors in future. It is essential for the company to formulate the strategies so that it is able to survive its competitors in future. The company needs to increase the capital so that it is able to invest in manufacturing in new cars and increasing the production. The main external factors that are likely to affect Tesla motors are the rise in competition, rapid technological advancement and political regulations within the industry. The threat that Tesla motors face is from the new manufacturers entering the market with stronger and larger capabilities and economies of scale. References Chen, Y., Perez, Y. (2015, June). Business model design: lessons learned from Tesla Motors. InGerpisa Conference, ENS Cachan, Paris(pp. 10-12). Chung, D., Elgqvist, E., Santhanagopalan, S. (2016). Automotive Lithium-ion Cell Manufacturing: Regional Cost Structures and Supply Chain Considerations.Contract,303, 275-3000. Fearne, A., Garcia Martinez, M., Dent, B. (2012). Dimensions of sustainable value chains: implications for value chain analysis.Supply Chain Management: An International Journal,17(6), 575-581. Liu, Y. E., Kang, Y., Wu, H., Chen, C., Hon, E. (2014). Tesla Motors Inc. Case Synopsis.Burnaby BC: Simon Fraser University. Retrieved,10(18), 2014. Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan analysis.Journal of Strategic Marketing,20(4), 289-312. Rothaermel, F. T. 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