Discuss Tesla ERRC and their canvas in detail and include why you think they have Blue Ocean Strateg

Discuss Tesla ERRC and their canvas in detail and include why you think they have Blue Ocean Strategy.

Tesla Motors

Tesla's goals are to increase the number and variety of EVs available to mainstream consumers to reduce the dependence upon foreign oil and eliminate emissions. It tried to satisfied customers with higher efficiency and comfort in a relative low price.

In traditional "red ocean" marketplace of vehicle, the market is segmented to many different groups according to different customer demands. In order to satisfied the target group, the vehicle companies  need to adjust the attributions of vehicle from size, appearance etc. The "green" car and sports car seems to always focused on two different customer groups in the past. The major feature of green cars was low energy cost, which seems to conflicted with the characteristic of premium sport vehicle.  Tesla Motor was the first company to combine these two attributes in one single vehicle model- the Tesla Roadster, which was the first vehicle of the company.  It is a fast vehicle with plenty of torque with zero emissions. Tesla created "green performance vehicle" marketplace, it is completely new market.

Tesla create this "blue ocean" to itself, where exist large space for it to develop. Within the current business market, the companies are always involved in fierce competition, due to the development of technology and globalization. Survive and further develop the company seems to be harder than before. As Mauborgne(2005) said, the capacity of an enterprise to move into the blue ocean could be described as the business success. Even if the most popular model of Tesla vehicle is not Tesla Roadster currently, the continuous development of this vehicle model assist Tesla establish high entry barriers in this blue ocean, the first mover advantages that Tesla has are benefit to the development of Tesla as a whole.

Company Snapshot
Tesla Motors is a start-up company based in San Carlos, California. It designs and sells high performance, highly efficient electric sports cars and sedans.

Blue Ocean Strategic Move to Watch
Tesla Roadsters could create a big Blue Ocean wave. Tesla Motors has created a stylish, high performance sports car that is 100% electric and more than twice as efficient as today's best hybrids. The company is leveraging existing battery technology to create Value Innovation by reducing costs and increasing buyer value at the same time.

The Roadster accelerates from 0-60 mph in 4 seconds (faster than a Porsche 911) and has a top speed of over 130 mph. Unlike previous electric vehicles, it also has a much wider range (over 200 miles per charge) and can be charged anywhere since it has a built in Li-ion battery system and mobile charger that can plug into any outlet. Best of all, the sports car looks great and uses no gasoline. It creates zero emissions.

Future
Tesla has already sold over 2,300 of its its first vehicle, the Roadster, and in June 2012, delivered its first affordable sports sedan, the Model S. Its goal is to "accelerate the world's transition to electric mobility with a full range of increasingly affordable electric cars." This bold vision is compelling and has the potential to create a huge blue ocean. The sedan's appeal to a larger mass of buyers may allow the company to significantly reduce production costs through scale economies.
 

Why they have Blue Ocean Strategy

Blue Ocean Strategy of Tesla
Tesla create this "blue ocean" to itself, where exist large space for it to develop. Within the current business market, the companies are always involved in fierce competition, due to the development of technology and globalization. Survive and further develop the company seems to be harder than before.

Tesla Motors is a great example of a blue ocean company. In 2003, they decided to innovate into an areas where there was no competition. Other car makers at the time were making "compliant" cars, meaning the were making hybrid cars to show they were meeting the government's mandates to be working on "green" technology. Sales of these products were low because they weren't terribly good and the benefits did not outweigh the extra costs of the hybrid models. Tesla decided to go a different direction and create a 100% electric car, which had been done before. But, Tesla did what others said was impossible. They overcame most people's arguments against electric cars—they're slow, they don't go far enough, and they're ugly. The Tesla is a sports car. It is fast, goes over 300 miles in between charges, and is sexy too! In fact, recent tests show that Tesla has faster acceleration than Lamborghini and Ferrari!

Reason (Tesla)

The reason why Tesla have Blue Ocean Strategy is that, Blue ocean companies like Tesla create a new game. They don't remain within the confines of industry convention and structure or stay trapped doing things the way it's always been done. They want different.

Tesla doesn't look at its competitors within their market to get ideas of how to differentiate by out-performing, over offering, or under pricing the other companies; instead it looks outside of its own industry for opportunities and insights. Instead of doing a better job at what everyone else is doing, they do something completely different and add value that no one else has thought of. They take advantage of the fact that most organizations within an industry have group think and they are all distracted with trying to beat everyone else in the same game.