Tesla Motors

1. DDBA-8511 Weeks 2-3, Group A
Classical versus Modern
Robert Brown, Taft Bradley, Richard Basch
March 13, 2016

2. Literature Synthesis: Weeks 2-3
2 Team 2-3 Bradley, Basch & Brown
• Literature Synthesis Overview
– Disruptive Innovators
• Blue Oceans and Customer Innovation
– Blue Oceans and Red Oceans
• Cirque du Soleil
– Corporate Strategy and Military History
– Customer Innovation

3. Literature Synthesis: Weeks 2-3
3 Team 2-3 Bradley, Basch & Brown
• Value Networks and Core Logic
– Five Elements That Impact Change
– The Framework of Core Logic
• Three Primary Concepts
• Evolutionary Challenges and Global
Sustainability
– Technology, The Earth, And Sociocultural Intelligence
– Creative Destruction, Urbanization, And Industrialization

4. Literature Gaps: Weeks 2-3
4 Team 2-3 Bradley, Basch & Brown
• Blue Ocean Strategy “BOS”- Implications of Findings; Areas
For Further Research
• BOS provides a systematic approach for identifying blue oceans – But requires significant business experience to
Implement Strategy, limiting validity of the model
• BOS Approach to identifying product opportunities are unique – However Procedures are weak from a point of view
of scientific reproducibility
• Scientific reliability difficult to assess-Lacks system to capture and manage ideas
• Further research – Future research, especially surveys from companies having developed products applying BOS
principles would be beneficial
• Global Sustainability and Creative Destruction of Industries;
Implications of Findings and Areas For Future Research
• Author Assumptions lack scientific support – Quantitative/Qualitative research missing to support the perceived
problem
• Future Research – Article would benefit from current research conducted on entire Industries as a whole to
determine environmental impacts do exist today
• Results from research analysis would help to focus on the real problem. Current research would provide statistical
data to be used to measure and determine if proposed solutions were impactful

5. Literature Gaps: Weeks 2-3
5 Team 2-3 Bradley, Basch & Brown
• Customers as innovators: A way to Create Value Implications
of Findings
• Customer’s as innovators can generate value to company
• Redefinition of relationship between customer and company can be risky
• Reduces R&D development cost for product development and innovations
• Companies must recognize signs of industry migration to customers as innovators
• Customer needs are met but can result in costly do overs for manufacturers.
• Development tools are essential for customers to expand accessible markets and product innovations
• Concept are very profitable in some industries but may not be a fit for all industries
• Similarities and Contradictions in Core Logic of Three
Strategy Research Streams
• Three logics for three Approaches to Strategy- Core, Guerilla and Complexity
• Strategic Logics Compared – Common principles and shared characteristics
• Contradictions – Contextual
• Contradictory Assumption about Strategy
• Overall Implications

6. Original Research Topic – An Analysis of Tesla
Motors
6 Team 2-3 Bradley, Basch & Brown
• Tesla Motors
– Background and History
• Barriers To Entry

7. Original Research Topic – An Analysis of Tesla
Motors
7 Team 2-3 Bradley, Basch & Brown
• Elon Musk, Blue Oceans, and Technological
Innovation
– An Innovator’s Mind: Elon Musk
• Four Key Life-Changing Innovations
– Technology, Innovation, Partnerships, And
Disruption
• The Single Largest Challenge Facing Humanity

8. Original Research Topic: An Analysis of Tesla
Motors - Background
8 Team 2-3 Bradley, Basch & Brown
• Strategic Positioning & Competitive
Advantages
– Battery Pack
• Cost
• Range
– Environmental Political & Legal Impact
– Proprietary Technology
– Supercharger Network
– Software Superior To The Competition

9. Original Research Topic: An Analysis of Tesla
Motors - Background
9 Team 2-3 Bradley, Basch & Brown
Disruptor Threats to Tesla Motors
1. Disruptor Companies, Small Electric multi-purpose (Golf
Cart Type) vehicles.
2. 3 Dimensional Printer Technology.
3. Online Universities and the Innovation Explosion.
4. Electric vehicle and the Hydrogen Revolution.
5. Rare Earth Minerals from China in politically unstable times.
6. Fracking technologies.
7. Low cost of oil. Saudi Arabia instability and Iranian
resurgence. Conventional energy system at risk.

10. 10 Team 2-3 Bradley, Basch & Brown
Challenges to Tesla Motors
1. General Motors Chevy Volt.
2. German and Japanese Hydrogen automobiles.
3. Dealership loyalty to traditional automobile
companies.
4. Alternative Energies.
5. Smart Grid delivery systems for Electric
Cars.
6. Millennial Work Force. Attracting young
people to build a better future.
Original Research Topic: An Analysis of Tesla
Motors - Background

11. 11 Team 2-3 Bradley, Basch & Brown
Tesla Sustainability Plan and Challenges
1.Nevada Gigfactory to build new generation
batteries.
2.Lessons from NASA and SpaceX
3.Alternative Energies.
4.Smart Grid delivery systems for Electric Cars.
5.Millennial Work Force creating involvement
and dreams.
Original Research Topic: An Analysis of Tesla
Motors - Background

12. 12 Team 2-3 Bradley, Basch & Brown
Environmental Impact Zero Cost for Zero
Emissions?
1. Lithium Mining very damaging to the environment.
2. Building Electric Cars can consume more energy than
conventional gasoline combustion engines.
3. Battery manufacturing produces toxic wastes.
4. Battery exchange system not setup in America.
5. Source power to charge Electric vehicles is still coal, oil and
natural gas.
6. Tesla is working to create their own closed loop power
creation and battery recycling program.
Original Research Topic: An Analysis of Tesla
Motors - Background

13. Tesla Motors as part of Elon Musk’ Innovation
Plan
Figure 1.1. Learning Supply Chain and Protection of Innovation. Preventing
Exploitation of Logistics Members. (Parker, Zsidisin, Ragatz, 2008).
13 Team 2-3 Bradley, Basch & Brown
Capital
Preservation
Tesla Battery
Nevada
Factory
Tesla
Provides
Revenue
Stability
Tesla
Provides
Funding for
Advanced
Projects
Learning
Organization.
Musk is
creating his
own
educational
system.
Self Funding,
wholly owned
city by Elon
Musk
Organization
Sustainable Threats
Environmental Challenges
Creation of
New Ideas
Sustainable
Alternative
Fuel
Producer
Space
Exploration
In House
Education
Global
Supply Chain
Warning
Market
Instabilities

14. Tesla Motors: Elon Musk Innovation Research
14 Team 2-3 Bradley, Basch & Brown
• Space X
• Asteroid belt Mining.
• Orbiting Plasma Energy
Collectors.
• Stem Cell Research.
• Advance Genetics.
• Medical Advances..
• Electric Cities
• Hydrogen Fuel Cells.
• Lithium Ion Batteries
• Solar Farms
• Gigafactory.
• Recharge Stations.
• Virtual Employees.
Artificial Intelligence
Systems inter
communicating.
• Virtual Employees.
• Fear of AI dominance.
Artificial
Intelligence
Sustainable
Power &
Consumption
Multi-Planet
Civilization.
Space
Exploration
Human
Genetics

15. Bibliography
(NOTE: Annotated Bibliography in Speaker Notes)
15 Team 2-3 Bradley, Basch & Brown
1. Brooks, A., & Thesen, S. H. (2007, December). PG&E and Tesla Motors: Vehicle to grid
demonstration and evaluation program.
2. Chen, K., & Shih, H. (2015). Research and Simulation of the Electrical Vehicle Based
Dynamical System.
3. Christensen, C. M., Raynor, M., & McDonald, R. (2015). Disruptive innovation? Twenty
years after the introduction of the theory, we revisit what it does - and doesn't – explain.
4. Govindarajan, V., Kopalle, P. K., & Danneels, E. (2011). The effects of mainstream and
emerging customer orientations on radical and disruptive innovations.
5. Habtay, S. R. (2012). A firm-level analysis on the relative difference between technology-
driven and market-driven disruptive business model innovations.
6. Mangram, M. E. (2012). The globalization of Tesla Motors: a strategic marketing plan
analysis.
7. Musk, E. (2014). I Hope Artificial Intelligence Is Nice to Us.
8. Pinkse, J., Bohnsack, R., & Kolk, A. (2014). The role of public and private protection in
disruptive innovation: The automotive industry and the emergence of low-emission vehicles.
9. Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). Overcoming barriers to entry in an
established industry: Tesla Motors.
10. van der Rhee, B., Schmidt, G., & Van Orden, J. (2012). High-end encroachment patterns of
new products.

16. Appendix
16 Team 2-3 Bradley, Basch & Brown
• Please note that the content for this
presentation is also available in Word format
in the accompanying document entitled
“Classical versus Modern.”
• The following link was created by Bob Brown
as a supplement to his portion of the original
research topic regarding Tesla Motors:
https://youtu.be/6phiVEo6Nfs