Visual thinking is useful to understand or to explain complex information. Here I used a simple tool to analyse a possible future for Tesla Motors. I used the S-curve to visualise my understanding of what can happen to Tesla. Of course, there are a lot of other ways to illustrate our understanding of information.
As entrepreneurs or investors, we are looking for innovation. While entrepreneurs are challenging technological stagnation, investors are allocating their capital to boost proven innovative ideas. The key is to anticipate the future. Using the S-curve helps to find out what can happen next.
Let’s illustrate Tesla Motors’s future with an S-curve
Small steps lead to big changes. Visionaries who are buying stocks of Tesla Motors are not putting there money in another brand selling luxury cars. They are looking at the future and consider Tesla Motors as an innovative company in the energy sector. Its breakthrough in clean energy won’t be limited to selling sport cars. This is the tip of the iceberg. Building sport cars that use clean energy demonstrates Tesla Motors’s abilities to do much more.
The first steps for Tesla Motors were to develop a great reputation as a luxury and ecological brand. It targeted celebrities and businesspeople willing to feel unique by buying limited edition cars (the Early Adopters). Then Tesla scaled its strategy to build a strong brand reputation. Using a thorough content marketing strategy, Tesla was able to convince youngsters that its brand is cool. When I ask to friends who are interested in technology what they think about Tesla Motors, I am pretty confident that their opinion will be positive.
Aside of its marketing strategy, Tesla Motors was building innovative electric sport cars. Developing its technology is the essential part of their business. Tesla Motors is not only selling its luxury cars, but it is also selling its technology to other automotive firms. Is explains why Toyota and Mercedes invested in the brand.
Tesla’s technology for cars is just the tip of the iceberg. As you can see, I used an S-curve to illustrate development of electric cars as a first cycle for Tesla. In a few years the company should be able to adapt its technology to other systems (ecological houses, robots, airplanes). This will be a second cycle (second S-curve), which is going to overlap with its luxury car business.
To implement its strategy, Tesla will have two options: (1) Developing a diversified brand (e.g. General Electrics, Virgin) and selling its technology with its brand name, or (2) Focusing on selling luxury cars and selling its technology through other brands (like Tesla did with Mercedes).
Use the S-curve to make it easy to understand
Do not neglect the power of visualisation. Explaining such an analysis using only words is possible. BUT visual thinking makes it easier for your audience to understand and to remember. In a business meeting, if you want to make good impression, drawing an S-curve to support your analysis will help you to persuade those who are listening.
The S-curve is particularly useful to illustrate cycles. And you know that businesses are not timeliness. Business life follows a cycle. Overlapping S-curves make your analysis even more dynamic and closer to the reality.
What next!? Start using S-curve charts to explain your analysis. You will get better at anticipating the future and people will see in you a real