Tesla Motors 

 

 

 Tesla is one of the most successful first movers in the electric company. This technology on electric vehicle from Tesla Motors is very advanced compared to the other automobile companies, especially the traditional companies. The performance of their electric motor and battery is incredible. Their latest car Model S can run faster than most of the luxury super sports car, and the motor range is much longer than its competitors which can run as far as the petrol car. The company recently launched a new function, which is an auto-driving system. It allows the car run on the road without the driver touching the steering wheel. And for the business model, Tesla is more like an Internet company. It is from Silicon Valley, and lots of the company leaders have Internet business background, they used to work for other internet companies such as Apple. This company is based on Internet thinking, they pursue ultimate user experience. For example, they provide eight years free battery insurance, they build free charging stations all over the world. They even don’t need traditional retailers, people can order the car from The Internet or their exhibition shop that is similar to Apple Store. Overall, Tesla deserves the title '' The first-mover.''

 

First mover advantage

 

  Looking for the advantage of the first mover，tesla earn a lot of competitive edge by being one of the first to enter a specific market. The strategy has its advantage including being the first allows a company to acquire superior brand awareness and customer loyalty. Tesla set up a very good and luxury brand image at this stage, which will be helpful for their development. As we know, In the automotive industry most of the customer are highly obsessed with a positive brand image. Tesla might become an Apple in the electric industry as a first mover, and strong brand power is sustained sales and profitability maximum protection

 

  Moreover, As “first-movers” Tesla state support from the government, For example, they got tax reduce from the government support. Tesla landed  $1.4 billion money in tax breaks, free land, and other beneficence from Nevada to build the factory outside Reno.(Fortune,2013)Because Tesla has been market leaders in their product category, many massive largesse "gift" were also giants like Boeing, Nike, and Intel.

 

First mover disadvantage

 

  The disadvantage of this also exist, First, The lack of electronic charging is currently one of biggest issues for tesla. They need spend money to build the charging system. Electric vehicles are new to everyone, so the adoption of such elements is slowly working its way around. The component and resource that must be prepared for everyone who owns an electric vehicle are few and far between. Moreover, making mistakes and building the wrong resources due to uncertainties in new markets, this kind of component will also face the problem such as，Be eliminated by the market. Secondly, when a new technology exists in the market will face many uncertainties. The electric car is not a novelty. The first electric car did manufactured centuries ago. In the late 1890s, electric car outsold gasoline cars ten to one. It returns to the market in the 1970s because people’s concerns about air pollution and the OPEC oil embargo.

 

  Finally, innovation is equal to cost in high-tech firms. To develop their product, Tesla need continuing to spend a significant pioneering costs ( Developing the technology, the distribution channels, and educate consumers about the product benefits)and for their later move competitor, can introduce the same technology with lower costs. And late entrant uses might copies technology to produce a better product that Tesla.