Table of Contents

Introduction to companies ..................................................................................................................................................... 3

General motors ................................................................................................................................................................... 3

Tesla .................................................................................................................................................................................... 3

Market development strategies of General motors ........................................................................................................... 3

Generic Strategy.............................................................................................................................................................. 3

Intensive growth strategies ............................................................................................................................................ 4

Tesla as Successful automotive company ........................................................................................................................... 5

Open Innovation and IP stratgey ............................................................................................................................................ 5

Intellectual property strategy role ...................................................................................................................................... 6

Patent .............................................................................................................................................................................. 6

Trademark ....................................................................................................................................................................... 6

Design rights.................................................................................................................................................................... 6

Copyrights ....................................................................................................................................................................... 6

Example: .............................................................................................................................................................................. 6

Contextual or Environmental Factor impact on entrepreneurship ........................................................................................ 6

Finance of Entrepreneur ................................................................................................................................................. 7

Policies of government: .................................................................................................................................................. 7

Education ........................................................................................................................................................................ 7

Research and development ............................................................................................................................................ 7

Legal and Commercial infrastructure.............................................................................................................................. 7

Culture and Social Norms................................................................................................................................................ 7

Physical Infrastructure .................................................................................................................................................... 7

Political Factor................................................................................................................................................................. 8

Example: .......................................................................................................................................................................... 8

References .............................................................................................................................................................................. 9
Introduction to companies

General motors
General motors’ was founded in 1908, Detroit. It’s and an American multinational corporation. They
manufacture designs. Sell vehicles and parts if vehicles and self services in the global market. They are known
as America’s largest automobile manufacturers and World largest as per 2018 report. They manufacture
vehicles in 37 different countries. They also hold or own a stake in some foreign brands also. (KISSINGER,
2017)

Tesla
Tesla motors was founded in 2003, California. It’s an automotive and energy company. They are specialized in
manufacturing electric cars through solar city subsidiary; solar panel manufacturing It was named after Nikola
Tesla who was an inventor electric induction motors. They shortened their name in 2017.The Elon Musk and
JB Straubel was the founder of Tesla motors. They invested almost of their capitals to run the business. During
its first year company faces heavy losses and then Elon Musk took the seat of CEO and later become the face
of Tesla. After spending 10 years in the market they were ranked as world’s best seller in plug in car
manufacturer in 2018 including both as brand and also as a automotive group of company. (ROWLAND, 2018)

Market development strategies of General motors

Generic Strategy
The General motor’s generic strategy reflects the benefits of the economy of sale, which is one of their
strengths. The effectiveness of strategies of General motors is directly link with the ability of organization to
deal with issue associated with competitors. Competition is the major external factor which effects the
organization’s development and growth. The success of generic strategy is highly depending on the intensive
growth strategies for the long term success of the company.

Their competitive strategy is the cost leadership. General motors’ offer low price product to attract their
customers. Their objective behind this is to increase the manufacturing process efficiencies through
continuous development and automation, to support the competitive advantage of General motors.

The differentiation is another generic strategy in which company make the attractive and unique product
improves its brand position and quality.

In contrast to the General motors, the Tesla applies the generic strategy (Poster model) to achieve the
competitive advantage over their competitors in the global automotive industry. In this Model, the generic
strategy shows what approach company is selecting for competing in the market. The Tesla’s generic strategy
reflects on focusing the use of advanced technology in their products for competing with their competitors in
the market. They succeeded as a energy solution and innovative automotive business company.
Their competitive generic strategy is differentiation. This build competitive over is competitors in terms of
products because their products are building by using the integrated advanced environment friendly
technologies in their products instead of internal combustion engine. This thing helped them in attracting
more customers because now people are interested in environment friendly products. The company has made
its brand name and now cost of production is decline, this enables them to attract more customers in this
market. There objective with the generic strategy was to invest more in research development to fulfill the
each new upcoming of market and second objective is to increase the reach to its market to increase the sale
and support towards the brand popularity. Taking the competitive advantage over the market share is one of
their generic strategies. (ROWLAND, 2018) (KISSINGER, 2017)

Intensive growth strategies

The intensive strategy also plays a vital role in the market development of any company or organization. The
intensive strategy is divided into three parts.

Market Penetration
General motors’ uses this as their primary strategy. In this increasing the sales can help in the growth of
business. General motors’ are expanding their reach by increasing the number of dealership. In this way the
distribution will be increase and customer’s access to these products will be improve. The objective of this
strategy is to expand the distribution network of business to support the growth of business.

In contrast to the General motors, in Tesla, the use the market penetration as their primary intensive strategy.
The intensive strategy approach enables the growth of business by increasing the revenue of sales in the
market. Tesla, with their aggressing marketing want o sell more in unites state, and this strategy helped in
increasing their overall revenue. The objective behind this intensive growth strategy is to increase the revenue
by selling more, using aggressive marketing approach.

Development of Product
The objective behind this approach is to obtain high innovation rate in the development of new product.

In contrast to the General motors, in Tesla, development of product is their secondary intensive growth
strategy. In this company develop new products that generate new sales. The products like Roadster which is
world’s first fully electric support car. There focus is on making the environment friendly products. The
objective behind this intensive growth strategy is to maintain the investment extensively in the research and
development. (ROWLAND, 2018) (KISSINGER, 2017)

Development of Market
In this company grows by entering into the new market or segment. The growth of General Motors as global
automotive has been based on their entry in new market, like when company added new country in its area of
sales, now by considering its worldwide operations this approach is now providing supporting role in the
growth of business. The objective behind this is to enter with the novel product in the new market or
segment.

In contrast to the General motors, in Tesla,, this approach helps the company to globally expand the reach
worldwide by making new offices and facilities. Tesla now sells in the United States but in future they are
expecting to expand the business in other countries to lead the automotive industry. The objective behind this
is to make alliances with other companies is to enter into the new market. (ROWLAND, 2018) (KISSINGER,
2017)

Diversification
This is the strategy also plays its role in the General motors. Although company has les probability of using this
strategy, for example acquiring the rental car service in the domestic market to increase the business growth.
In contrast to this Tesla is also applying diversification, which helps them in growing the company through new
business creation, like the making of new batteries to for many non automotive applications. This strategy has
significant impact on the financial performance of the company. (ROWLAND, 2018) (KISSINGER, 2017)

Tesla as Successful automotive company

According to me Tesla is more successful in terms of innovation. This company is pioneer in providing the
world’s first electric car without fuel engine. There continuous struggle the world best vehicle is the key to
their success. They have no doubt taken many risks like their first car price was more than $ 100, 000 which
shows their price rate. While General motors are following the traditional mechanism of fuel engine. People
nowadays are more interested in environment friendly product which gives huge advantage to the Tesla. They
also have extensive investment in the sector of research and development to find the different methods to
benefit the customers by bringing new and novel products which are helping them in increasing their sale.
General motors’ need more investment and time in this factors no doubt they have expertise and they have
made their name in the world but Tesla made its name in very short span of time through its innovation and
research and they have potential to become the apple computer of car industry. There uses of technology in
an effective way no only in the production but also help them in dealing with the customers through online
platform to provide them ease and comfort which also make them successful according to me.

Open Innovation and IP strategy

Innovation is the key to the success in this world of competition where with each increasing day demand and
competition is increasing. Open innovation is both in practice and research for the competitive advantage, in
this time of technology oriented era, which enables to use both external resources of innovation
commercialization strategies.

In every open innovation activity, two or more actors included and firm which involves an organization that is
engaged in the open innovation is the part of system which is interconnected through innovation resources,
activities actors connected by market and organizational relation. (Akinbola, 2015)

With the increase awareness of open innovation’s systematic nature, that has been many calls of research
done to increase the understanding about it. Open innovation tells how organization rely on the external
technologies to achieve there internal innovation development.

One of the questions which rose with the innovation is how organizations cooperate or profit from the
innovation. Teece, 1986 identified the need and importance of appropriability regimes and complementary
asset for describing the distribution of profit. In that regard Intellectual property strategy plays a very
important role in achieving the competitiveness.
Intellectual property strategy role
In the complex innovation setting organizations intellectual property strategy required to protect and share of
their technology in one hand and get access to the other technology on the other hand. These strategies have
impact on the appropriability directly from both improved margins and protected sales and indirectly for
example through the agreements of cross-lining, improved position of negotiation, and improved provision of
complementary innovation.

The importance of IP policy for the innovation is divided into four major activities.

Patent
They protect the new innovation’s exploitation. In this they normally grant the patent’s owner the right to
prevent the exploitation of patent form third parties.

Trademark
They provide the exclusive to any sign including word, letter, logos etc. Trademark considered as for the
commercialization which linked with the innovation and interact in a complex with the patents.

Design rights
It prevents the third parties from using, selling and copying of the protected design. These acts are generally
taken for the commercial purposes.

Copyrights
The last is copyright whose role is to protect the artistic work and literacy of original expressions like
protection of software. This becomes the latter aspect for protecting the innovation activity. (By Jakob Edler,
2015)

Example:
Here we will consider the example Coca-Cola who is considered as the pioneer in the field on innovation.
Recently they are adopting model on innovation on the levels between the team and entrepreneur from one
side and organization and its consumers on the other side. The Coca-Cola accelerator program aim is to target
the 8 cities which think in an innovative way, to build the happiness Coca cola brand.

Another open innovation model presented by Coca Cola is Free Style dispenser Machine which allows the
consumers to mix flavor of their choices and suggest the flavors for the products of Coca Cola. This open
innovation added the customer in the core of new flavor. In this suggested flavors are external ideas which
organization will evaluate and process as a new product line. (Elmansy, 2016)

As we know secrets of trade loses its importance once its known and Coca cola is its best example. They do
not provide protection against the reverse engineering and creation. (Al-Sharieh, 2013)

Contextual or Environmental Factor impact on entrepreneurship

As nowadays entrepreneurship is considered to be as driving force in the economic development. According to
the researchers there are many contextual factors which have great impact on the entrepreneur activities.
(SÁNCHEZ, 2018)
Finance of Entrepreneur
This is one of the biggest obstacles in the path of entrepreneur when it comes to venture but in the same it
also supportive or promotes measure of development of entrepreneurship.

Policies of government:
. Government policies are building now to promote the entrepreneurship, to encourage people to come
forward and work for their country. These create opportunities which can be exploiting by the entrepreneur.
As government plays a vital role in the economic growth of any state. While starring any new project an
entrepreneur should have to look up these factors which can be a obstacle in its ways like policies, regulation
and procurement. But there are some fo the policies and laws which not led the entrepreneur to start new
business like taxation.

Education
Education is one of the factors which make the people familiar with the entrepreneurship. Because of
education entrepreneur can be promoted in three ways like help them in building skills and competency which
required to start a business second is having ability to deal with all issues which you can face in your career
and third one is it will shape his/ her behavior and attitude towards its culture. In short exposure promotes the
entrepreneur activities among the people.

Research and development

Research and development promotes the innovation activities of creating new product and improving the
existing one. The new technology and services will also motivate the entrepreneur to start a new business.

Legal and Commercial infrastructure

This is also one of the factors which affect the entrepreneur activities. These are the services which
entrepreneur has to hire in order to manage their procedures. These will allow the one to start business by
officially getting license and authorization to use these. According to the research, the business which does
required to much capital, employees, office, manufacturing, can be started within a week but the business
which required all these, minimum time required to start this will be of three month which sometimes
discourage the activities of entrepreneur.

Culture and Social Norms

Culture of nation definitely had a great impact on individuals. Things also vary according to the culture of the
place. In some countries entrepreneurship is highly appreciated but in some areas still these not as much favor
to its activity constrains like gender, family background, motivation, religion, mentors, sometimes family
become the constraint in the path of entrepreneur because of some family pressure in the same way these
are some of the factors which promote the entrepreneurship activities and motivate the people to become
the entrepreneur. The innovative and supportive culture will promote and other will become obstacles in their
path.

Physical Infrastructure
There are several aspects in this which have to be considered like railway, waterway, territories, highways, and
means of communication, electricity supplies etc. There easy accessibility will promote the intention.
Political Factor
It comes under the factors which are influence by the government policies, corruption level, anti-trust law,
employment law. All of these factors also affect the entrepreneurship.

All of the above factors which we have discussed have dual aspects. All of the factors promoting the
entrepreneurship but with some constrain, with whom entrepreneur have to deal with. (IBIMA, 2015)

Example:
In this we will consider the example of Mark Zuckerberg who consider or assumed the risk for failure or
success of his network. In the start he allocated the time for his entrepreneur activities but after Facebook
become famous he found need of land and labor. He had to invest a capital to hire people for its production
and land for providing the platform to the companies. Mark also has to scale technology and operations which
are needed to be carried out time to time. He raised his venture capital to rent the office and for purchasing
the additional server development space. As an entrepreneur he considered all factors we have mentioned
above like capital, government laws, infrastructure policies etc.

In the United States many small entrepreneur started their business because countries know entrepreneurial
are vital for the growth for country economically. That’s why countries are making the easy and flexible
policies for them to start a new business. (HAYES, 2019)
References
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By Jakob Edler, H. C. (2015). THE INTERSECTION OF INTELLECTUAL PROPERTY RIGHTS AND. Manchester: University of
Manchester,United Kingdom for the Innovation Policy Section, Department for Transition and Developed.

Elmansy, R. (2016, September 26). 5 Successful Open Innovation Examples. Retrieved November 13, 2019, from
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HAYES, A. (2019, October 16). Factors of Production. Retrieved November 13, 2019, from
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IBIMA Publishing Journal of South African Business Research

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