Organizational Behavior Session 6

In the second session, we looked over again the sources of disruption. The German long-distance bus was affected by the regulatory environment and the Deutsche Bahn. The bus has quite high frequency but so does the train. It focuses on the existing routes at lower prices with flexibly adaptable. Then, we did a case study on Tesla and whether the company will be disrupted by its competitor in China. While there are many opinions about whether that would be a good or a bad outcome if Tesla would be disrupted, there are challenges and risks such as none of the major domestic EV start-ups have made any profits if they are not selling gasoline-powered cars, but so did Tesla until 2020, so it will take a while for the adaptation. On the one hand, the U.S. high performance chip maker Nvidia is being contracted by many Chinese EV makers to produce software-driven features following the footstep of Tesla. On the other hand, Nvidia has to navigate through the U.S-China tension, whilst following the Chinese regulations that prohibit generated data by vehicles in China from being exported. Regulations like this could slow down the process of innovation and could cause plenty of setbacks. Also, Tesla is also assisting a lot in the sharing of information which could help the Chinese EV makers incorporate and implement their innovative components and enabling them to become more competitive against not just Tesla but also other car giants in Europe, the US and Japan. Thus, along the course of one's business, whether it is currently sucessful or not, there would always be a potential for disruptions that would undermine your competitive advantage. The professor went over the last pattern quickly and then the class ended with a brief overview and reminder of the remaining classes.


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