Adam and Manny take a look at how one of the world’s most innovative companies, Tesla, arose and achieved such high valuation when others in the automotive industry have considered it too unconventional and no match for other auto companies. Despite Tesla’s different operative practices and primary emphasis on producing electric cars, Adam points out that Tesla has found success by finding the unmet need of consumers for stylish, high performance, and ecologically secure cars and, now, other clean energy technology. Meanwhile, the rest of the auto industry have become unmatched and non-innovative competitors with resistance to moving beyond the car, and continuing business from the dealership--not the customer--perspective. With the world becoming more mobile and asynchronous, traditional car manufacturers like GM won’t stand a chance against Tesla without changing the way they bring value to consumers.

Thinking Points:

• For whose perspective does your business truly operate?
• In its history, has your business ever changed its value delivery system?
• What organizations are you dismissing as competitors? Do they actually have the potential to outperform your business?

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