Comment on a class member blog (1)

Being that cars are of fairly large interest to me, I was intrigued when I saw Paul Freiwirth’s Blog on Tesla and their Direct Business model. I have to agree with the comments made by both Paul, and the VP of Business development at Tesla. As a company that strives to deliver on their Points of Difference, it would be a major blow to Tesla if they were all of a sudden forced to conform to the accepted practices of the rest of their competitors. They are a very unique car company which is fairly new to the market in comparison to others, therefore why should they relinquish any sort of control of their product or marketing to someone other than themselves? Like Paul has mentioned, it is evident that companies such as Dell have been able to thrive in their respective industries while having no negative effect on the competitive environment by operating on a more direct business model which proves that there should be no reason why Tesla cannot do the exact same thing. If they were receiving some sort of unfair advantage from operating on a model like this then that would be a different story.

”if it isn’t broke, don’t fix it”

 

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