CapGemini Consulting have produced a detailed review of Tesla Motors, the Amercian electric luxury motor manufacturer. It is subtitled “A Silicon Valley Version of the Automotive Business Model“. Tesla is described as having developed a “disruptive” business model in order to break into the US automotive industry, based around three things:
- dealing directly with customers without a car dealership network, albeit it has stores that enable customers to engage and interact with the vehicles (but not be sold to them)
- extensive used of digital technologies – to design the vehicle, manufacture it, and in the vehicle itself
- “high-velocity innovation” – creating an organisation which is continually and consistently changing the rules of the game, based on its leadership, vision, and pool of talent.