SECTION C: SCENARIO QUESTIONS 30 MARKSI QUESTION 1 [30 MARKS] When the automobile industry was at cross roads, with the need to transform to electric power, there are some few first movers who had already experimented the electric vehicle technology and succeeded. Blue oceans are defined by untapped market demand, unknown market space, high profit growth at low risk and industries not in existence today. While the existing companies were contesting over the fossil fuel space, Tesla embraced new strategies through its electric vehicle. Tesla, by its model of electric cars, had created a less contested market space where the existing players are yet to enter. The competition in the conventional hydrocarbon system is irrelevant as it focuses on the new wave of electric vehicles. This has created awareness among the customers and increasing demand for electric cars. The activities of the company are in pursuit of this and through its battery technology; it is enabling the entire industry to shift towards the battery cars. Tesla is part of the changing technological space that is agile and could easily accommodate changes in all fronts. The employees have imbibed the effects of disruption and the need for the agility with which they have to work. There had been instances where teams would work on a specific technology meticulously and the project would be rejected. Nevertheless, the employees are prepared for this level of change and they are capable of embracing seamless change. Tesla's top management completely understood that a revolution on a large scale cannot be done by a single company. The relentless pursuit for innovation had enabled the Tesla employees to forge an innovative culture, where they work towards the target, defying time. Tesla had become the common name for electrification. If Tesla manufactures electric vehicles in large scale, they should enable the entire industry to transform. The availability of charging stations and low cost batteries were their major challenges. The technology patents of Tesla were made open source to disseminate the knowledge in the industry. Tesla revolutionised the industry by the supercharger stations so that the industry is not hampered by the dearth of charging stations. Although there was demand for the electric cars, it was high priced as it is a new technology. Furthermore, there are limited suppliers and technology enablers in this stage. The experience curve benefits are less realised during this phase. Tesla is in the lead forcing the auto industry to rapidly change but it struggles to meet deadlines and frequently delivers flawed vehicles, and profitability remains elusive. Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. It turns out Tesla's story is far more complicated and nuanced than often portrayed. There's so much change happening that Tesla is trying to make sure they're as successful in the next era as they were in the past Adapted from: Gayathri, S., & Kumari, D. A. Electric Vehicles-An Introduction of the Tesla for Strategy and Leadership. https://werbackspace.comproject/case-study-how-tesla-changed-the- auto-industry 3. Discuss the participation and involvement of Tesla staff as a method for managing resistance to change. [10 marks] ENDED TAN