Electric car maker Tesla recently seized headlines when it announced plans to enter the market for battery-based, power-backup systems for homes, businesses, and utilities. To the extent that enthusiasm about Tesla’s entry into the market is warranted — and I argue that it is — it is not because of Tesla’s elegantly designed and cleverly branded Powerwall system per se. Rather it is justified because of Tesla’s potential to deploy a true ecosystem strategy to jump-start what has so far been a product-based game.

The battery-based, power-backup business has been a decade-long disappointment for both incumbents (GE, Samsung) and start-ups (bankrupt A123 Systems being the most prominent). But even though Tesla is a late mover, it could succeed — and transform the market in the process.

Tesla has the ability to leverage what I call ecosystem carryover: using existing positions in existing market spaces to jump-start a winning position in a new market space. A concept that I explored in my book The Wide Lens, ecosystem carryover was Apple’s secret sauce in entering the then-established market for smartphones and changing the game. Apple leveraged its iPod user base to reinvent the market. It was not the uniqueness of the iPhone that persuaded mobile operators to break from previous industry norms; rather it was the assured support of eager iPod buyers who would be happy to upgrade to this next-generation device.

Ecosystem carryover is the key to successful market convergence. It is the mechanism that links initially separate markets into what looks like — only after the fact — a single coherent opportunity. It is easy to forget that MP3 players and mobile phones were once regarded as separate market opportunities. So, too, for electric cars and home-energy management.

For Tesla, the ability to pursue an ecosystem carryover strategy is twofold:

The company’s position with existing Tesla car owners — a customer base that offers the attractive properties of high loyalty and high disposable income.

The power of Elon Musk, Tesla’s founder and chairman of SolarCity, the leader in home-based solar-power installation, to pull a Steve Jobs by exciting distribution channels and getting those players to believe that Powerwall will be a big win.

If Tesla can skillfully leverage this set of distinctive relationships, it should be able to build a compelling competitive advantage. It is an advantage that does not derive directly from size, general brand strength, or even beautiful design. And it is an advantage that will not be eroded through product imitation. Witness the performance of Apple’s well-endowed, highly respected rivals in the smartphone market: Even though they have managed to deliver products that were nearly identical to Apple’s, they have been only able to capture slivers of the profit pie.

Tesla’s move into the battery storage offers a great lesson in ecosystem strategy. The next test is its execution.