How Tesla integrates Shared Value principles with Ecosystem Innovation to build sustainable competitive advantage.

Abstract

Sustainability and innovation are two increasingly intertwined issues, with the former relentlessly impacting on the latter. Many companies are already treating sustainability as a goal to be pursued, as a basic value guiding long-term growth strategies. The thesis moves from the traditional dichotomy of sustainability versus innovation, shedding a light on how Tesla is able to integrate both shared value initiatives and ecosystem innovation for sustaining its long-term growth. A first overview of Corporate Social Responsibility and Corporate Shared Value is provided, followed by a discussion on the role the automotive industry is playing in the development of sustainable strategies. A deeper understanding about Tesla is then developed under the lens of the SWOT, Value Chain and Resource Based analysis. The last part assesses the way Tesla is building competitive advantage through a sustainable strategy and a business ecosystem innovation.