Tesla employs a multifaceted strategy that involves both headline-making moves and a focus on its core products and ecosystem. The company aims to build innovation capital and garner support for its ideas. To achieve this, it leverages Elon Musk's reputation and past successes while using "impression amplifiers" like physical demonstrations and comparisons to established innovations.
On the other hand, Tesla's core products, including the Model S, 3, X, and Y, are pivotal to the strategy. These products are not only electric vehicles but also incorporate a unique hardware and software architecture, setting them apart from competitors. This architecture involves a substantial amount of software and a different approach to vehicle assembly. It provides advantages like enhanced software update capabilities and optimized vehicle performance. While this approach may seem replicable, it requires incumbents to adapt, develop new capabilities, and abandon old practices, making it a challenging endeavor for them.
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