Analysis of Tesla’s Dynamic Capabilities to Gain Market Share: Sensing, Seizing & Transforming

“Tesla has undoubtedly contributed to the transformation of the automotive industry” - Dyer J.

Sensing – Anticipation of new opportunities. Tesla has assessed the evolution of technology in the automobile industry without harming the environment working towards achieving sustainable development. The increasing concern about Global warming, the growing campaigns for environment friendly products and rapid pace of technology development are few of the points enterprises are looking into, this is where Tesla saw some of the technological and market opportunities.

Research and Development activities were intensified and the probing and reprobing of customer needs and technological possibilities. Tesla’s continues exploration especially in the evolution of technology has been very remarkable through the years. Competitors have seen the same opportunity but may have calibrated it differently which changed the nature of the opportunity. As a matter of fact, in 2001 General motors crushed all if its electric models in a junk yard, Musk says. "When we came along and made the Roadster, it got GM to make the Volt and then Nissan felt confident enough to go with the Leaf. We basically got the whole ball rolling with electrification of cars. The ball is rolling slowly, but it is rolling. "

Seizing – once new opportunity is sensed, it must be addressed through new products, processes or services.

Autopilot

Since Autopilot’s first appearance, other auto manufacturers have announced their own plans to roll out semi-autonomous or highly automated systems. GM is equipping the Cadillac CT6 with Super Cruise. The Mercedes-Benz S-Class is getting Drive Pilot. Nissan has ProPilot. Audi says the new A8 will be Level 3 autonomous. And on and on.

Electrification

Autopilot forced the big automakers to begin developing their own semi-autonomous systems, Musk’s commitment to bringing electrification to the masses proved to be equally influential.

Software

“They continue to sell vehicles that are incapable of learning and improving and are highly vulnerable to obsolescence, ” said Morgan Stanley analyst Adam Jonas in a recent note to clients, according to Electrek. “Car companies have had ample opportunity to tear apart Model S’s in the lab. We suspect Tesla’s vertically integrated in-house software capabilities and its willingness to assume the risk of hacking make the difference. ”

Design

TESLA made cars cool and desirable, nothing like the other cars available in the market. Transforming “Tesla’s transformation came from creating popular products, forging profitable partnerships and constantly pursuing self-disruption".

Using David Teece’s Dynamic Capability framework, Tesla has great opportunities to gain market share. Through the years, the company shows that they are taking open innovation seriously despite the threats of new competitors and continuous doubts on their “ambitious projects” as what Zachary Sashan cited in her blog entitled “11 Tesla FUD Claims of Years Past”, still Tesla shows unwavering leadership in innovation. Tesla Motors continuous to generate new ideas (sensing), also one great way to gain market share is to spot new trends ahead of competitors, sense new opportunity and turning it into a reality through its products, processes and services, relentless innovation keeping them relevant to the consumer market (seizing).

Tesla’s innovation centered on customers' needs by also not harming the environment. What does really consumer want? Musk envisioned that “there will be a time when truly fully autonomous cars come, though, Tesla included. Musk said on the call that he thinks his company can have a car ready within three years that lets you sleep all the way from point A to point B — the commuter's dream — “. Transforming the automobile industry.