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Tesla's Business Model Effects on the Auto Industry

Tesla's Business Model Effects on the Auto Industry

Q Discussion Questions 1. Do you see Tesla's business model and product as offering a sustaining or a disruptive innovation? Why do you see it this way? 2. In what ways will incumbent firms be able to respond effectively to Tesla? In what ways will it be difficult? 3. Whether or not you see Tesla as offering a disruptive innovation, what would be a different way that an entrepreneurial firm could offer a disruptive innovation in this market?

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1. I perceive the business model of Tesla as offering a sustaining innovation and it is not at all disruptive. From the business model and products, it has been understood that Tesla usually has a very interesting and unique approach for launching their vehicles in the industry. Tesla is not focused on making any kind of inexpensive car within a suitable affordable range. Tesla can be considered as a widely innovative firm and the innovation of the company will help to sustain in the industry.