Comparative Analysis of the Impact of Innovation: Tesla vs. Ford Motors

Comparative Analysis Tesla Vs. Ford Motors
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Comparative Analysis Tesla Vs. Ford Motors
Ford Motor and Tesla Motors Company are the most prominent names in the automotive industry. Both have captured a considerable percentage of the market, which is evidence of their innovative prowess. However, the outcomes of their attempts at innovation vary due to fundamental disparities between the two. Elon Musk started Tesla Motors because he thought electric cars were the future wave. By demonstrating the financial potential of selling electric automobiles, he got investors to embrace his project. Since then, Tesla has amassed a sizable fan audience for its electric cars, but the company has struggled to turn a profit from this fan base due to issues with its manufacturing supply chains and the high prices at which it sells its vehicles. Founded by Henry Ford in 1903, Ford is a motor vehicle manufacturing giant. Ford's objective was to provide inexpensive transportation to anybody who desired it. Even though the first-generation Ford Model T lacked modern conveniences like GPS and automatic driving, it became a symbol of American industry and popular culture. This research examines the two businesses regarding their innovation effect, knowledge implications, and technology management.
Impact of Innovation
Companies in the auto industry have always been driven to innovate to keep up with the demands of their customers and secure a larger market share. It is impossible to succeed in business without being open to new ideas (Chiaroni et al., 2010). Innovative approaches to problems are becoming more crucial as companies attempt to keep up with increased consumer expectations. Additionally, competition is high among organizations in all sectors, and unique marketing approaches are essential for standing out (Belderbos et al., 2010). It has been proved that adding new features to already established goods or services increases revenue and output (Herstad et al., 2010). There has been a shift in consumer preference toward innovative, high-quality items. The public also looks for products that solve their issues without becoming complicated. Innovating is essential to enhance and broaden your product offerings and deliver more value to your consumers (Chiaroni et al., 2010). It is an excellent chance for companies to grow into new areas and capture a more significant portion of the market by creating products that customers prefer.
Globalization, information exchange, migration, and the development of new technologies have all contributed to a rise in the business world's level of competitiveness. The only way businesses can thrive in a dynamic market where customer needs and preferences are continually evolving is to constantly develop new products and services (Aggeri et al., 2009). A company's goods and services may become obsolete if it cannot keep up with the rapid evolution of technology (Karamitsios, 2013). With its state-of-the-art features, Tesla Motors hopes to revolutionize the vehicle industry (Liu et al., 2019). The corporation has started to carve out its niche in the industry rather than take on the big manufacturers in the gasoline and diesel categories. Consumers are likely to be intrigued by the novelty of electric autos if Tesla successfully overcomes the current challenges they are encountering.
Comparing Ford and Tesla Motors the Innovation
The innovation approach of Tesla has based on the rationale that the company can innovate at a quicker pace than its rivals (Wang et al., 2021). By developing cutting-edge technology like driverless vehicles at a faster rate than rivals, this approach aims to gain an advantage over the competition. Tesla's plan is based on the assumption that by allocating resources to research and development, the company can develop a whole new product or service within a specific time frame (Wang et al., 2021). Therefore, they would have more money to invest in other endeavors, which might speed up the rate at which they expand their market share and improve their financial prospects relative to their rivals. Ford's innovation approach includes spending more money on R&D to create new technologies that the corporation may not immediately benefit from (Ghasemaghaei & Calic, 2020). Nevertheless, this will make them more creative and aggressive competitors in the long run.
Furthermore, the product and its attributes are the focal points of Ford's approach to innovation. They care about how their automobiles make customers feel and how those feelings translate to sales. An essential part of the firm's innovation strategy is ensuring consumers are happy by supplying them with reasonably priced, high-quality automobiles that suit their demands (Bohnsack et al., 2020). Tesla's approach to innovation centers on how buyers engage with the company's merchandise. Their approach to innovation is predicated on creating a world-class brand that will appeal to potential buyers and satisfy current Tesla consumers in equal measure.
Although both Ford and Tesla Motors have established themselves as successful automakers, Tesla is ahead of the innovation curve. The best-selling electric vehicle has been praised for its pioneering spirit. Its Model S is one of the most cutting-edge automobiles available today. It has a keyless entry system that enables drivers to lock and open their doors using a smartphone app. Since implementing this upgrade, Tesla's sales have skyrocketed, and consumers have reported a far more pleasurable driving experience (Yang, 2022). Many of the company's goods are powered by renewable energy, which helps slow down global warming and reduce greenhouse gas emissions. In contrast, Tesla Motors seems to be a more forward-thinking company than Ford. Ford has made certain upgrades over time (such as Bluetooth connection and the SYNC 3 voice assistance system). Still, they need to leverage these upgrades to develop into new markets or produce new products that appeal to a wider variety of customers within their core demographic (middle-class American consumers).
Knowledge Implications
Knowledge is essential to the survival of companies because it serves as the foundation upon which new ideas and products may be built (Filieri et al., 2014). According to Clausen (2014), innovation may be seen as a search process in which organizations learn to (re)combine old and new information in new methods.  The process may improve a wide range of organizational operations, such as creating new products, developing relationships, developing advantages over competitors, and executing the marketing idea. It is no surprise that many businesses are eager to share their expertise, given the importance of information in progressive establishments.
When companies share their knowledge, they often pass along a mix of explicit and tacit information. The manifestation of clear knowledge may take many forms, such as sales data, conventions, structures, patterns of activities, rules, control systems, organizational policies, and kinds of acts (Wang et al., 2016). It is the foundation on which more advanced learning may be formed. A firm may, for instance, choose to share its explicit information about the dynamics of the marketplace, which may include shifts in customer behavior, market structure, and technological advancements. After that, it can provide instruction (known as tacit knowledge) to others, teaching them how to put the information to use to create efficient marketing plans.
Comparing the Knowledge Implications of Tesla and Ford Motors
Using an open-source approach to knowledge management, Tesla has successfully avoided patent infringement litigation since 2014 (Poukens, 2015). According to Elon Musk, other makers of electric cars may be able to leverage a rapidly evolving technology platform to combine their skills for the benefit of the general public as a whole (Poukens, 2015). As a result, other businesses, including electronics giant Panasonic and sports car manufacturer Lotus Cars, have joined forces with them (Mangram, 2012). However, if Tesla were to enter into strategic agreements with many major automakers, it would have a far better chance of achieving its goal. In the long run, Tesla's influence on these automakers to begin manufacturing electric vehicles might cause a change in the industry norm.
Since Tesla operates globally, it has ties to many different cultures. As a result, they can expand their understanding of the world's many cultures while simultaneously strengthening their own (Gallois et al., 2018). Having an understanding of other cultures has helped Tesla reduce issues with communication that may have otherwise arisen. A lack of intercultural understanding might hinder success in a multinational and global corporate setting (Carita, 2017). Therefore, understanding the relationship between social and corporate cultures is facilitated by intercultural competence.
Whereas other automakers distribute their vehicles via franchised dealers, Tesla deals directly with its customers. It has opened a series of showrooms and galleries worldwide, most of which are located in major cities (ZUCCHI et al., 2022). Tesla believes it may obtain a development edge by controlling the distribution of its products. As a bonus, it enhances the shopping experience for the consumer. Tesla stores do not have possible conflicts of interest as automotive dealerships do. Tesla's customers solely interact with employees of Tesla, both in sales and service. Through their direct dealing with the customer, they acquire customer reviews and preferences and use that knowledge to stay competitive.
On the other hand, Best Practice Replication is a method that Ford Motor Company only uses. Best Practice Replicatio...