Required Assignment 5.
3: Key Product Management Matrix
<Rohit Singh>
Assignment Instructions
Use the two images below and place the ‘Tesla Roadster’ where you see fit. Discuss your
thought-process for the placement of the product for both matrixes.
Note: This is a required assignment and counts towards your programme completion.
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Risk Map (Opportunity Cost vs. Developmental Risk)
Opportunity Cost:
• High Opportunity Cost: The Tesla Roadster required a substantial investment in R&D
and resources. This was a significant opportunity cost for Tesla, as they were a new
company and could have directed these resources towards more traditional automotive
ventures or other technologies. The decision to focus on developing an all-electric sports
car, a market that was unproven at the time, meant foregoing other potentially lucrative
opportunities.
Developmental Risk:
• High Developmental Risk: The Roadster's development involved numerous technical
challenges, including the development of a reliable and efficient battery system,
integration of electric drivetrain technology, and achieving performance standards
comparable to traditional sports cars. Additionally, there was the risk associated with
consumer acceptance and market readiness for electric vehicles, which was uncertain at
the time.
Placement on the Risk Map: Upper right quadrant (High Opportunity Cost, High
Developmental Risk)
Justification: The placement in the upper right quadrant is justified by the substantial
investment Tesla made in developing the Roadster and the significant technical and market
risks involved. The Roadster was a high stakes bet on new technology and market creation,
reflecting both high opportunity cost and high developmental risk.
Product Management Page 1
Risk Map
Tesla
Roadster
Newness Map (Firm Newness vs. Market Newness)
Firm Newness:
• High Firm Newness: The Tesla Roadster was Tesla's first product, representing a
major innovation for the company. As a new entrant in the automotive industry, Tesla's
development of an all-electric sports car was a significant departure from existing
automotive products and required building new capabilities and technologies from
scratch.
Market Newness:
• High Market Newness: The market for high-performance electric vehicles was virtually
non-existent when the Roadster was introduced. While electric vehicles were known,
none had achieved the performance and market appeal of the Roadster. This product
aimed to create a new market segment, appealing to both environmental enthusiasts
and sports car aficionados.
Placement on the Newness Map: Upper right quadrant (High Firm Newness, High Market
Newness)
Justification: The placement in the upper right quadrant is justified by the Roadster's
pioneering status both for Tesla and the market. For Tesla, it was a completely new venture into
automotive production, and for the market, it introduced a new category of high-performance
electric vehicles. The Roadster represented a significant leap in technology and market
approach, fitting firmly in the high newness categories for both the firm and the market.
Product Management Page 2
Newness Map
Tesla
Roadster
Product Management Page 3
