The automobile industry’s high costs of entry, economies of scale, and network effects from service, fueling, and distribution lead many to reason that new entrants have no chance. Tesla Motors has overcome many obstacles to start electric cars. Beginning with ventures and a minimal workable product, Tesla is working to innovate and increase its size of business.
Overcoming Barriers to Entry in an Established Industry Tesla Motors Case Solution
Tesla now makes a top-selling luxury car and has a market capitalization twice that of Fiat Chrysler and one half that of Ford or General Motors. Tesla has revealed that a startup can challenge the status quo in one of the most established industries.
PUBLICATION DATE: September 01, 2015 PRODUCT #: CMR602-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP