Question

Read the case study below and answer the questions that follow:

How can Electric Vehicles become the Dominant Design? According to Memisoglu and Pelyhe (2011), due to technological developments and raising environmental concerns, the vehicle industry is in a transformation process. The current dominant design in the industry is the internal combustion engine vehicle but there are already different alternative vehicles like electric vehicles (EVs), hybrids, and vehicles running on ethanol or hydrogen. As these alternatives have started to expand, they are competing to have a strong position in the market. The question is which technology (EV, hybrid, ethanol) will have an important position in the future? Many manufacturers are interested in EV technology and have started to invest in the technology to have a strong position in the future. Although EVs are ready to expand, some obstacles are still in their way. Some of these problems can be solved in a short term, while others, mostly technology-related improvements, still require time.

Using theory and ANY additional source of research, provide one reason to justify why Tesla currently holds the dominant design for EVs.

Answer 1

Tesla dominates the electric vehicle market due to its advanced battery technology, proprietary Supercharger network, appealing brand identity, software-centric vehicle approach, and first-mover advantage in the EV sector.

Step-by-step explanation:

Tesla currently holds the dominant design in the electric vehicle (EV) market for a variety of reasons. One crucial factor is Tesla's innovation in battery technology, which has led to longer-range vehicles that alleviate range anxiety. Furthermore, Tesla has invested heavily in establishing a proprietary Supercharger network, making long-distance travel more feasible for EV owners and improving overall convenience.

Besides its technological advancements, Tesla's strong brand identity and status as a luxury vehicle manufacturer have helped to position its cars as desirable products, despite the current higher cost associated with EVs compared to traditional internal combustion engine vehicles. Tesla's software-centric approach to vehicle updates and features also sets the company apart, offering a futuristic ownership experience through regular over-the-air updates.

Lastly, Tesla has a significant first-mover advantage, having focused solely on electric vehicles from its inception. This dedication to EV technology has accelerated its research and development progress, creating a substantial lead over competitors who are just now beginning to focus seriously on electric transportation.