Tesla Motors Inc (NASDAQ:TSLA) investor says company is disruptor so higher margin for error – whatever that means – see the video below
Tesla Has a Larger Margin for Error because It’s a Disruptor
Published on Jul 12, 2016
Fortune 500 companies don’t have as long of a leash
Tesla Video:
0:00
Charles Koch was on this stage yesterday and was talking about that actually he
0:06
said he personally would have if he were a public company he would have been
0:09
fired five times and it’s allowing failure inside the company that’s
0:12
enabled them to succeed but why is that so hard for big companies to get their
0:16
heads around
0:17
well I i think it’s some of that’s an alibi i think it’s if people want to say
0:20
I’ve got it my investors aren’t going to let me create tomorrow I I question that
0:24
a little bit i mean you have to do both
0:26
I mean you know look at the our company a man just since I’ve worked their butt
0:30
and you know Jeff Immelt send some very uncomfortable and unpopular things
0:35
investing into digital future is expensive it’s only you know now i think
0:39
investors are starting to understand what it means and we’re starting to come
0:42
to terms with that globalization these are things that at first
0:46
you’re not sure what they’re going to lead to i think the the maybe the
0:50
traditional things r 1 is the cost of failure is so much more public
0:53
so if uh and you don’t necessarily the same permission as as the starter for
0:58
the disruptor so if you had a Detroit company have the autopilot failure that
1:02
Tesla just had
1:03
yeah that would it basically halt all innovation in in one of those car
1:07
manufacturers for really know something yeah because because you have lots of
1:11
people that would be on the firing line of of that organization because of how
1:15
public that would be in and all of the risk and all the costs of uh of the the
1:20
publicity around etc so so you when you have a company that that is a disruptor
1:25
and doesn’t have to
1:26
they don’t have the same exact kind of position they they’re known for being at
1:29
the bleeding edge where things will break that gives them a permission to be
1:32
able to do far more innovative things that’s the first thing that the other is
1:35
on one thing that we found in the course that we didn’t quite realize at first is
1:39
there’s a lot of on
1:40
there’s a lot of things in a sort of Industrialists or fortune 500 companies
1:45
kind of value network or or set of partnership relationships that prevent
1:50
them from being innovative so for instance if your suppliers are also
1:54
behind then fundamentally you would have to go begin to work with a new set of
1:58
suppliers which would then disrupt long-standing relationship that you’ve
2:01
had for a very long time if on if in the case of like a Ford or GM if what you
2:06
normally do is sell through your dealership network but the future of
2:09
self-driving cars were and on-demand transportation is nothing to do
2:12
the ocean networks then fundamentally you’re going to have to disrupt your
2:15
distribution channel and I for you know a bunch of obvious reasons including you
2:20
know financial incentives and just how organizations are designed to have a lot
2:23
of organizations that don’t want to go bring their business models and enters
