Read Materials: Harvard Business Review USA 2015 -05 Strategy : Tesla’s not as disruptive as you might think
Reflection: disruptive innovation describes how firms that introduce rudimentary products can eventally overrun established players by systematically improving the products until they meet the needs of mainstream consumers, generally at lower prices. Musk is outspoken about his goal : to create an affordable mass-market electric vehicle that will supplant gasoline-powered cars. Five questions had been posted to evaluate disruptive innovation.
First, does the product either target overserved customers (by offering lower performance at a lower price ) or create a new market ( by targeting customers who could not use or afford the existing product)?
Second, does it create asymmetric motivation meaning that while the disrupter is motivated to either higher performance segments over time, existing players are not motivated to fight it?
Third, can it improve performance fast enough to keep pace with customer’s expectations while retaining its low cost structure?
Fourth, does it create new value networks, including sales and channels?
Fifth, does it disrupt al incumbents or can an existing player exploit this opportunity?
It is clear that Tesla is a classic sustaining innovation, a product that offers incrementally better performance at a higher price.
This paper was issued on May,2015. Let us revisit this case and topic again. Whether tesla is a disruptive innovation. For question1,2 and 4, the output is still negative. The output of question 3 had been changed since the market environment had been changed. The sense of environmental protection is waking up gradually. However the bottleneck is the battery. How to handle the battery is still a question mark.
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