• Is the title properly worded? Is the abstract clearly written? Is the Introduction chapter well organised? Are the Aims and objectives clearly expressed?
Case brief: Description of the situation
• Is the situation described adequately and relevantly? 5
Problem statement and plan of analysis
• Is the problem stated clearly? Is there a clear outline of the plan of analysis? Are relevant models, concepts to be applied clearly explained (and referenced)? Are sources of data, and ethical issues stated?
Analysis and findings
• Is the analysis conducted clearly, including application of analytical techniques stated in (3)? Does it address alternative scenarios? Are resource availability and constraints appraised? Are the results interpreted well? 15
Proposed solution to problem
• Is a clear assessment of the analysis made, taking into account the findings in 4? Has the business plan been proposed clearly?
• Are resource availability and constraints appraised?
• Are critical assumptions In the analysis discussed?
• Are implications for various stakeholders covered?
• Application of the learning to another organisation in any industry Presentation
The research topic focus on the advancement of the next generation automated cars for gaining supremacy in the competitive market. The advancement of automated cars takes an edge over the normal vehicles, as it is less prone to accidents and collisions. Mobileye gained subsequent advantage in the competitive market owing to its DAS technologies and safe mechanism. He researcher seeks a deep insight towards the aims and objectives of the research topic and gives an overview of the case brief. The problem statement identifies the research issues, which would later assist the researcher to propose suitable recommendations against the rising loopholes of Mobileye.
The plan of analysis proposes the research strategies and techniques that would assist the researcher in further penetration of the research work. The researcher gathered valuable data and information from the secondary sources and the case study. The analytical procedure outlines the analysis and interprets the results in a proactive manner. The recommendations given would help the organization to gain further momentum in the production of automated cars.
The integrated case study focuses on the Google capturing the imagination of the world with the idea of developing a next generation autonomous car. The basic ideology was to avoid relying on expensive lasers, unreliable radar, unnecessary collisions and accidents, thus saving lives of the individuals residing in the society. The researcher would give a brief detailing of the case scenario and identify specific issues in the problem statement. Along with the analysis plan, the researcher would implement relevant models and concepts for further penetration into the research topic (Edward, Nathanson and Wisch 2014). The researcher would also gather valuable information from primary and secondary data sources and implement suitable analytical techniques to achieve the objective oriented outcomes. Upon identification of the research issues, the researcher would propose suitable recommendations in contrast to the rising loopholes
Background of the case study
This research is based on the technology of next-generation automated car of Mobileye. Mobileye is a technology based organization lead by “Ziv Aviram” and “Amnon Shashua”. The company deals with the manufacturing safety devices for car since 1999. The products manufactured by the company helps in reducing mitigation and collision, which increase safety features of cars. Aviram is a computer scientist, who makes the entire concept possible for the company (Gurney 2013). On the other hand, Shashua was having experience of product manufacturing as he was working for Toyota previously. Apart from that, Aviram had wide experience in managing an organization, as he was CEO of largest bookstore chain, CEO of a water park and CEO of a shoe retailer company previously.
The success of Mobileye was completely relies on the collaboration of these two key people, which helps them in developing the “Advanced Driver Assistance System” (ADAS). Mobileye has manufactures some safety products such as “Lane Departure Warning” (LDW), “Forward Collision Warning” (FCW) and “Traffic Sign Recognition” (TSR) (Burns 2013). These technologies are developed to increase safety factors and reduce probability of accident. While on the other hand, seatbelts and airbags are to reduce the negative impact of accident. The company’s vision is to develop an integrated chipset for improving driving experience of customers by developing autonomous driving system (Anderson et al. 2014). “Advanced Driver Assistance System” helps in recognizing the traffic signals, road obstacles and other necessary obligations by its integrated camera system and it also interpret for these images for sending the information to the driver or car system for taking necessary action.
The industry of automobile divides itself in to three levels such as Original Equipment Manufacturers (OEM), tire 1 suppliers and tier 2 suppliers. Now the OEMs are the manufacturers of car line Toyota, general motors and Daimler Benz. These companies are use to take products like equipments for manufacturing cars. Tire 2 suppliers use to supply equipments to the tire 2 suppliers. The products include in tire two suppliers are software and chips for instating safety technologies (Gurney 2013). Now, from the above value chain it can be evident that Mobilieye is belongs from tire three suppliers. In this aspect, Mobilieye has faced challenges with identification of their competitors. The tire ne suppliers have started developing the safety devices for OEM organizations. In this situation, Mobilieye was confused regarding whether the tire 1 suppliers are the customers of them or the competitors. In this particular situation, Mobileye has threatened the tire one customers to stop manufacturing the similar products for continuing business relationship with Mobileye (Kusano and Gabler 2012). After this stage, Manado and TRS has stopped manufacturing safety products for conducting business with Mobileye. However, the other companies of tire one customers refused the proposal of Mobileye and stopped conducting business with Mobileye. Apart from targeting the OEMs, the company has also targeted the cars, which are already sold. The company has marketed their products to the open market for installing the safety products. This strategy of the company is the aftermarket strategy, which is actually apart from the actual targeted market. The company has generated their 22% of business profitability from this targeted market s of 2013 (Laurier and Dant 2012).
Rationale of the study
The major reason behind conducting this research is to identify the market feasibility of next generation automated car technology. The concept of automated car technology refers to an integrated chip, which enable camera to take pictures of rode traffics and other obstacles for alerting the driver or car system to take action. This process increase safety-factor of newly manufactured car, which effectively helpful for reducing mortality rate of the society. Apart from that, these technologies also improve features of cars in respect of the contemporary cars in global market. In this current situation, the issue faced by the company is that Google has implemented a prototype for safety features (Licaj et al. 2012). The prototype of Google was focusing on the 3600 recording device for increasing safety features of cars. As the financial position of Google was very strong, Mobileye was confused about Google is a competitor of the company or the customer. This research will identify whether Google is going to be the customer or the competitor of Mobileye.
In order to conduct sustainable business in competitive market, it is highly important for Mobileye to build good terms with the leading organization such Google. Therefore, this research will shade light on the activities, which needs to be taken for avoiding market risk. The reason of choosing this particular case study is to identify the product specifications of Google. The product manufactured by Google is not vision based and it is not completely similar with the product of Mobileye. The products of Mobileye are vision based and aimed to manufacture driverless car, which are fully automated. Apart from that, the company has had trouble while conducting business directly with the OEMs (Luettel Himmelsbach and Wuensche 2012). In this particular phase some companies of tire one suppliers has stopped business transaction with Mobileye. This research will emphasize the future need of safety features provided by Mobileye. It will help to identify the feasibility of the newly generated technologies for cars. Apart from that, this research will also help in identifying the organizational issues for reducing negative impact on business sustainability.
In contemporary car manufacturing era, companies are focusing on adopting innovative technologies for increasing safety factors. Therefore, Mobileye is having opportunity to acquire the current market by influencing the OEMs to improve their products. Targeting the customers directly for improving safety factors of their cars is also an opportunity for the company, which can increase business profitability and market share of the company (Merat Jamson and Carsten 2014). These opportunities can be capitalized by Mobileye to conduct sustainable business in competitive market. Conducting this research is helpful for identifying the current issues faced by the company and therefore, the researcher has chosen this topic.
The main aim of the researcher is to develop a range of next generation automated cars, which could serve as a better alternative in contrast to the ones used in the contemporary world. A single chip camera with the combination of sophisticated software could turn out to be one of the latest inventions of the 21st century.
The objectives of the research study are as follows:
Micro – Economics
To identify the effectiveness ofcompetition for Mobileye for formulating the future of the driverless cars
To implement an exploratory strategyfor solving the interdependence of Mobileye
To implement a cooperative strategy for reducing the competition in the automated Industry
• To advice a competitive strategy for ensuring sustainability and competitive advantage ofMobileye
• To identify the relative factors that may influencethe nature of the competition for Mobileye
• To examine the high pricing strategy of Mobileye in the value chain market
• To evaluate the strategy that could assist Mobileye build a strong association with Google to control the automated industry.
Innovation and Technology
• To illustrate the technology based innovation as a source ofcontinuous development of Mobileye for impacting the future of the driverless cars
• To get an assessment of the innovative strategy for meeting the perceived needs and demands of the consumers
• To implement an innovative strategy that could raise the bar of success for Mobileye in the competitive market
• To critically evaluate the branding strategy of Mobileye that wouldenhance the organizational supremacy in the competitive market
The following are the research questions of the chosen topic are as follows:
• Should Mobileye be involved in proactive competition in the automated driverless industry?
• How Mobileye should interpret their interconnectivity with competitors in the automated industry?
• Is timeliness an essential aesthetics of competitive market to measure the future of the driverless cars?
• Can store and align strategy of Mobile eye be viewed as a solution of the rising issues
• What kinds of resources and capabilities should Mobileye implement for surviving in the competitive market?
• What shapes and drives the success factor of Mobileye in the competitive market?
• Should Mobileye consider Google as a major competitor in order to gain supremacy in the competitive market?
• What kind of strategy should Mobileye implement for collaborating a strong interaction with Google
Innovation and Technology
Could the innovative platform solve issues without the application of creative ideas and technological implosion?
What type of innovative strategy implemented by Mobileye would meet the perceived needs and demands of the consumers?
What kind of innovative strategy could enhance the success factors of Mobileye in the competitive market?
What kind of branding strategy could illustrate the brand image of Mobileye?
How would structuring of Mobileye could overcome the challenges faced by Mobileye?
The research problems underlying the case study are as follows:
Poor marketing strategy is one of the major issues of the organization as Mobileye was unable to make optimum utilization of the resources to penetrate the target market
The Tier one suppliers are competitors as well as consumers of Mobileye and gaining traction with OEM was a major point of concern for the organization in the competitive market.
HR Disconnect is one of the major concerns for the organization , it was difficult to align the employees across and impart valuable information which could otherwise be interpreted in a negative way
There is lack of communication between the higher management and the employees which creates conflict in the organizational culture
Similar production of goods amongst the competitor brands resembles resource similarity, which could hamper Mobileye’s reputation in the competitive market.
The case study focuses on Mobileye, which assumes itself as the future of driverless cars. Instead of relying on the unreliable radar and expensive lasers, they thought of utilizing integrated single camera and ADAS technology that allows a vehicle to get a glimpse of the world around them. With Google in the front line, there were obvious question marks regarding the efficiency of Google approach (Fleming 2010). The question remains unanswered whether Google would serve as a competitor or partner for Mobileye. Mobileye had a focused product line which revolved around a custom semiconductor chip, series of soft ware applications and a single camera and warning display to be sold in the aftermarket.
Figure: Mobileye High Growth diluted EPS scenario
(Source: Luettel Himmelsbach and Wuensche 2012)
By the year 2007, Aviram hoped to capitalize on institutional money. Mobileye started its road show in 2014 and stated that the revenue had doubled in the past few years from under $ 20 million in the year 2011 to $80 million in 2013. The primary strategic decision taken by the company was to develop all applications in one unit. The second strategy was more of decision based on the development of own System-on-(Chip Pettersson and Karlsson 2015). One of the most eye-catching factors for Mobileye was its ability to assist a wide variety of driver assistance functions utilizing a single camera. The other alternative techniques to this technique were radar and Lidar. Lidar focused on Light detection and ranging, thus operating like radar except for the fact that it focused on the pulses of light rather than the radio signals (Hodson 2015). In order to move ahead in the competitive market, Mobileye planned to push their technology forward in a dramatic manner by initiating visual processing.
Figure: Mobileye Segment Revenues Trend
(Source: Hodson 2015)
While relating to the original equipment manufacturers, Aviram planned to focus exclusively on lobbying OEMs to specify mobile technology, rather than working with its direct tier 1 consumers. The technological progress was slow amongst the Japanese automakers than in the United States. One of the major challenges faced by Mobileye was that many Tier 1 suppliers like TRW, Delphi, Continental and Autoliv were competitors as well as consumers. All of these competitors developed ADAS packages and some of them were co-produced with Mobileye (Sotzing and Lane 2010). While it gained competency upon collaboration with OEMs, Mobileye told its Tier 1 consumers that they would no longer work with them if they continue to produce competing vision systems (Rocha-Mendoza, Borri and Langbein 2012). TRW and Mando accepted the organization’s offer, while companies like Autoliv and Continental turned down the table on Mobileye (Johnsson and Nyknen 2013). Despite immense competition, Mobileye still maintains a favorable position in the value chain. The standalone market was also one of the primary areas of penetration for Mobileye other than the aftermarket (Park 2014).
Figure: Mobileye Automotive Technology Files
(Source: Kirkpatrick 2015)
Over the past couple of years, consumers have shown deep faith for driver assistance systems, marketed mainly as safety features for the vehicles at a relatively lower cost. Several government and regulatory bodies across the globe made the application of safety features mandate for the upcoming new vehicles (Kirkpatrick 2015). The future of the organization looks very bright by providing a never-ending experience for the newly developed driver applications. By following a disruptive strategic pricing, Mobileye was able to gain popularity in the competitive market. The quest for success still lies as Shashua and Aviram whether they want Google as their competitors or consumers. Further query lies whether Mobileye should explore Co-operation like other OEMs or keep them at their respective bay.
Adequacy and Relevancy of the situation
The case study scenario gives a gear overview of the next generation automated cars that may impress the buyers of the 21st century. Despite the confidence of the partners in the Mobileye products, there were questions in their mind whether to give up certain market share to hold prices and give some spaces to the competitor brands.
Figure: Enterprise Value
(Source: Fleming 2010)
Upon ideas of discounting, Aviram and Shashua had a doubt about the erosion of the price. Challenges posed by Google were also a big reason to worry for Mobile (Eye Liniger, Domahidi and Morari 2014). There are questions answered regarding the approach of the respective organizations and their space for co-operation to penetrate the competitive market. Tesla showed more interest in Mobileye in contrast to Google, which keeps the partners of Mobile thinking about their co-operation with Google.
The strategies varied between the two organizations and the puzzle was to identify the real intentions of Google upon collaboration with Mobileye. The scenario is relevant for the future generation as the proposed applications is cost effective by nature and it acts as a safety feature vehicles for many updated vehicles in the competitive market. Some of the government and regulatory bodies have made the applications mandatory for the upcoming vehicles in various areas of the globe (Lumpkins 2014). The overall revenue of the organization have gained an alarming rise in the upcoming years, thus stating it satisfies the consumers to a greater extent and serves as a useful measure against collisions and accidents taking effect at regular intervals.
The primary issue for Mobileye was to decide on some of the other brands as a competitor or a consumer. The biggest threat in the forthcoming scenario was Google. The partners were confused regarding collaboration with the competitive brand as they felt Google produces prototype for future cars. While bigger companies like Tesla preferred Mobileye to Google for further penetration of the competitive market (Sotzing and Lane 2010). As the organization gained momentum with the OEMs, they turned the dice, which emerged several controversies for the organization. Aviram stated that they could no longer work on collaboration with the consumers if their competitors continue to develop competing vision systems (Sotzing and Lane 2010). While TRW and Mando was happy with the decisions several other brands like Autoliv, Mercedes and continental stopped their partnership with Mobileye (McBride 2016). This was a challenging scenario and the overall context of collaboration was getting critical than ever.
High competition in the Value Chain: There was an element of high completion for Mobile Eye in the competitive market due to its unconventional sales strategy. Mobileye took active participation in lobbying OEM to signify Mobile Eye Technology rather than working with the Tier 1 customers. Mobileye formed partnership with number of Tier 1 consumers instead such as TRW, Delphi, continental and Autoliv, they were the organization’s competitor as well. All of them developed the ADAS packages, some of which were co-developed by Mobileye Technology and others comprised of radar, Lidar and vision processing systems. As Mobile started gaining competitive advantage while collaborating with the OEM, the organization reversed the gears on the Tier 1 consumers (Merat Jamson and Carsten 2014). Mobile stated that if their customers start behaving as competitors by producing similar products and services, they would discontinue their partnership with those companies (Bendel 2014). While TRW and Mando agreed on the terms companies like Autoliv, Continental and Denso refused to continue with Mobile eye. This was a psychological blow from Mobileye perspective, despite the fact they were the undisputed rulers of camera Based ADAS systems. Aptina and Ominivision were also in the radar as they were into the industry of digital imaging. In the high concentrated era of competition, Mobileye gave their level best to get closer to the OEMS; however, the destination was yet far away. OEM tested the products several times before accepting the products prepared by Mobileye (Kirkpatrick 2015).. The overall competitive scenario was a mix bag for Mobileye as they lost some of their tier 1 consumers for getting closer to OEM, while the latter were still considering Mobileye as the inexperienced campaigners in the competitive market.
Blue Ocean Strategy
Blue Ocean strategy takes active participation in challenging the tenets of the competitive strategy, by shifting the focus from completion towards creation of a new market space, thus making the company irrelevant by nature. This strategy is identical for Mobileye as they are staffed with high range competition in the competitive market. The strategy identifies new market space by reducing the risk that could harm the organization in the competitive market (Butakov and Ioannou 2016). It engages low cost acquisition and allows an organization to penetrate a market place with variant demands. The strategy creates an uncontested market, which would allow Mobileye to avert their clash with the tier 1 consumers. It also breaks the value/cost trade off and aligns the activities of the organization in quest of differentiation and low cost. On the contrary, adoption of the blue ocean strategy could come to the rescue for Mobileye by developing a unique market need for the organization, which would allow them to build a unique entity while collaborating with the OEM and Tier 1 consumers (Waite and Oruklu 2013).
The value Chain Model
A value chain model refers to set of activities that an organization carries forward for the prosperity of the organization. The value chain model exercised by Porter’s takes active participation in examining the activities of the organization and its connection with one another. The value chain model usually comprises of primary and secondary activities as referred in the picture below.
Figure: Value Chain Model
(Source: Fleming 2010)
One of the primary challenges FOR Mobile Eye in the value chain process was that the Tier 1suppliers was competitors as well as consumers for Mobileye. As they started gaining momentum with the OEM, their interests clashed with the tier 1 consumer. Many tier 1 consumers stopped their collaboration with Mobileye, because of which there was a disruption in the value chain process of the organization. The primary activities of the Porter’s Value Chain would refer to the physical creativity, sale, maintenance and support for the products of Mobileye in the competitive market (Sotzing and Lane 2010). The secondary activities provide assistance to the various tasks carried out in the primary process. The model would help the organization to identify the issues underlying the value chain process of Mobileye in the competitive market.
Porters Five Forces
The Porter’s five forces give an identification regarding the power lying in a business scenario for an organization. This model gives an overview of the organizational strength and competitive position of the nominated organization. The five forces analysis states that there are five decisive forces, which identify the competitive power of an organization in the competitive market. It usually comprise of supplier power, buyer power, competitive rivalry, threat of substitution and competitive rivalry. The model assists an organization for taking advantage of their strengthened position, and improves their situation of weakness in an effective manner. It also allows the organization to avoid any wrong step that might harm the integrity of the organization in the competitive market.
Figure: Porters Five Forces
(Source: Sotzing and Lane 2010)
Despite facing huge competition , the organization had a sppecial pla ce in the value chain process. However, it was a difficullt for the orgganization to decide in their strategic steps in he comepttiive market. The oorganization prefered being included in the Tier 2 segment as they would have been restricted if they would have designated themselves as Tier 1 automotive suppliers. However, their inclination towards the OEM stated a different story. The organizatioon needed to identify the correctstrategy for miimising the challenges faced by the organization. The porters five forces would allow Mobileye to take suitable strategic decisions for utilising the organizational strength in an effectuve manner.
Resource Similarity: One of the big problems for Mobileye is other company who are supporting them to enhance their product quality. The company has collaborated with Google to enhance their product quality at the same time Google has developed a separate technology that has similar objective of assisting self-drive (Itoh 2011). The technology and the working method of two devices are separate but since the objective is same, therefore the partner of Mobileye was in dilemma about the Google whether they are competitor or customer. Google, at the same time developed the product that will help in self driving therefore disclosing the idea will be a risk because it can be copied by Google and they will implement it more faster in the market because of their huge capital support (Ortlepp and Bakaba 2012).Both the partners were in dilemma regarding their acquisition as partners. .
Quick Response Manufacturing
Quick Response Manufacturing refers to a companywide strategy to restrict lead times at all phrases of manufacturing and office operations. The strategy allows organization to initiate products into the market at a faster rate, allowing the organization to compete in a rapidly enhancing manufacturing idea. The QRM strategies take active participation in enhancing organizational profitability by cost reduction and enhance the delivery of performance with an improved quality of services.
Figure: Quick Response Manufacturing
(Source: Narla 2013).
Mobile Eye could take substantial advantage of the competitive market upon implementation of QRM, as the strategy would assist the organization to prepare highly customized and variable products for meeting the perceived demands and needs of the consumers in a timely way (Itoh 2011). The strategy revolves around four core concepts such as dynamics of system, enterprise wide –application, power of time and organizational structure would assist the organization to revive itself out of the territorial fear due to existence of Google. Introduction of products at a faster rate in relation with technological innovation would insist the organization to avert the clash with Google.
The BCG Growth-share Matrix refers to a portfolio-planning model, which focuses on the business units of organizations in regards to market growth and market share. The model seeks a deep insight on the determinants of profitability that an organization may probe for gaining supremacy in the competitive market. The model is categorized into four segments such as dogs, Cash Cows, stars and question marks. The model states that an enhancement in market share will result in fluent generation of cash. The organization is facing huge competition from the Tier 1 consumers who are their competitors as well.
Figure: BCG Matrix
(Source: Ortlepp and Bakaba 2012)
One of the biggest issues with Mobileye is its competitor Google and therefore, the organization needs to rethink about their strategies for enhancing their market share in an effective manner. The inclusion of BCG matrix would allow the organization to capitalize on the market share and churn maximum profit for the organization. The root of the issues lies in the strategic management decisions, which needs to be taken care of with immediate effect.
Belbin Team Roles
Belbin Team Roles refers to the nine-team roles to identify the team role preferences by generating Personalized Belbin Report. The nine-team roles consist of resource investigator, team worker, coordinator, plant, monitor evaluator, specialist, implementer, shaper, Completer Finisher and specialist. The major role of the team examines the tendency to behave, contribute and interrelate with others in a specific manner (Itoh, 2011). The model identifies how an individual reacts within an organizational environment. The assessment includes 360- degree- feedback from the observers and keeps a track regarding the self- evaluation of the individuals.
Figure: Belbin Team Roles
(Source: Itoh 2011)
A comparison of behavior with the colleagues also gives an overview of individual performance in an organization. In regards of Mobileye, the team procures a diverse work force and therefore, it is difficult to assess the performance of employees in an organization. Assessment of individual and team performance is essential for enhancing the performance of the individuals in an effective manner. The employees have a weak link with the higher management and therefore, it they are unaware of the strategic decisions taken by the organization. This indeed creates an element of confusion amongst the employees and harms their performance in a negative way. The Belbin Team roles report would help the organization to identify the issues lying within the employee level through effective practice of 360-degree- feedback.
Poor Marketing Strategy: Mobileye was a second tire company in the automobile sector because they were supplying their goods to those companies who were supplying parts directly to the automobile companies. Therefore, the level of the business was also a problem for Mobileye. Another reason behind that is the only cheap set manufacturing that was installed in a camera by some other organization (Ortlepp and Bakaba 2012). Therefore, the product of Mobileye has no utility to the auto manufacturer and the relation with the auto industry was not reaching up to the expectation (Peng et al. 2012). Due to this reason, the company was not getting the desired business in spite of having huge scope in the market. Few large auto manufacturers were interested with the product but the confidence of this product was still to build in the market. Most of the companies were in the evaluation stage for this product and they were making lot of road test before implementing this. Mobileye was established in the market many years back but the business of the company was yet to start because of their poor planning and financial problem.
The product idea was there but Mr. Shashua was unable to transform the idea into a product. The main reason behind that was the establishment of the business (Hojjati-Emami, Dhillon and Jenab 2012). Until Mr. Shashua was implementing the idea into a product there was no way investment would happen in this company. In this situation, it was a big problem for the company to establish their business without a proper investment guide. Mobileye was unable to approach their customer in the starting of their business that hinders their growth. In the later stage other companies was also there who was improving their technology towards the success of self-driving car (Eckoldt et al. 2012).
The Company started their business in the international market in the past but the growth of their business is less as compared to other companies. The reason behind that the awareness of this product is very low and many manufacturers even do not want to implement this device due to the cost factor. In few countries, government has made it mandatory to install devices that will prohibit the incidence of accident.
Kotler 7 p of marketing
In order to minimize the risks of marketing, the seven P’s of marketing by Philip Kotler that engages an organization to generate maximum return in the competitive market. Mobileye experienced poor marketing strategy which altere their sales in a negative manner. They were unable to capitalize on their targeted consumers according to their capability.
Figure: 7p of Marketing
The seven P’s of marketing comprise of product, price, place, promotion, packaging, positioning and people. The product would list the needful specifications that meet the requirements and demands of the consumer in a successful way. Mobileye would be able to check the sustainability of the product in accordance to their competitive brands for attaining organizational success.
Market Driven Organization
Market driven organization is the paradigm of consumer linkage and sensing of the market by the organization. The market sensing efficiency enables an organization to gather relevant information about the present trends and interest of the consumers in the competitive market. The adoption of market-driven policy would help Mobileye to alter the poor marketing strategy for ensuring long-term sustenance in the competitive market. Mobileye was unable to approach their customer in the starting of their business that hinders their growth. In the later stage other companies was also there who was improving their technology towards the success of self-driving car (Kusano and Gabler 2012). A market driven organization would ensure competitive success to Mobileye through effective practice of market sensing.
Figure: Market Driven Organization
(Source: Source: Schonhof et al. 2015)
The consumer linking strategy is aimed by maintaining a strong relationship and interaction with the consumers of the organization. Anyone who masters the art of linking with the consumers gets an upper hand in the competitive market. Mobileye was unable to approach their consumers at the starting of their business venture, which hindered their growth in a negative manner. Poor linkage with the consumers lacked in distribution of sales, which allowed the competitor brands to flourish further in the field of driverless technology. The adoption of market driven strategy would help the organization to develop a strong interaction with the consumers and gain a good reputation in the field of driverless technology.
Benchmarking refers to a systematic differentiation of organizational process and performance to create new standards and improvement of process. Benchmarking models are used to identify the efficiency of an organization in contrast to the competitor brands. The competition also enhances at a faster rate along with the improvement of the organization in the competitive market (Kusano and Gabler 2012). The four types of benchmarking methods are internal, competitive, functional and generic patterns. The model usually emphasizes on benchmarking process or performance with the competitors. Te model is identical for an organization to identify their position in the organization and the requirements that needs to be improvised for gaining supremacy in the competitive market.
Figure: Benchmarking Cycle
(Source: Hojjati-Emami, Dhillon and Jenab 2012)
Due to ineffective marketing strategy, Mobileye was unable to penetrate the available market options. The competitors took advantage of this situation through application of effective marketing strategy. The overall pricing of Mobileye products are relatively high and therefore, it has an intense competition. Mobileye is still a tier 2 company and involvement of high pricing products could raise further issues for the organization. Application of Benchmarking Models would allow the organization to do market skimming and implement the appropriate marketing strategy so that they can take substantial advantages of various scopes coming in their way.
HR Confliction: HR disconnect is one of the primary areas of concern for Mobileye, while uniting the employees across international business units before it could entitle a global entity in the competitive market. In accordance to the global presentation of market, the HRM finds it a difficult phase to manage the cultural diverse workforce of the organization. The issues results in employee attrition rate again creating further issues for the HRM of the organization (Houben and Houben 2015). The HRM of Mobileye fails to interconnect their decisions across the globe owing to the diversified market. The complex and compliance issues faced by the HRM in relation to the law in various countries are a leading issue faced by the HRM of Mobileye. The laws vary country wise and therefore, it is difficult for the HRM to keep an update about the changing laws and regulations in the respective nations.
Strategic Human Resource Model
The 5P model of strategic HRM gives an overview of the important necessities that contributes to organizational success in the competitive market. The first P relates o the philosophy of Human resources stating the various ways of treating and valuing people.
Figure: 5P of strategic Firm
(Source: Source: Schonhof et al. 2015)
Mobileye lacks in this segment, as employees are not considered a part of decision-making and thinking process. The HRM comprise the second element of this model stating the guidelines on the effective rules and regulations of the organization (Hojjati-Emami, Dhillon and Jenab 2012). The HRM of Mobileye finds it a difficult task to align with the organizational policies across the globe owing to the diverse market of Mobileye. Mobileye have issues with the third segment of the model as well which gives an overview about the individual related business issues. The fourth P gives an over view about HRM practices that relates to employee motivation. Fringe benefits and salary of the employees give an overview about motivation, extended working hours and work pressure leads to dissatisfaction amongst the employees. The HRM processes falls in the last segment of the model, which gives an overview that, the necessary rules and regulations for carrying out the functions of the organization (Houben and Houben 2015). Lack of open communication between the various levels of management makes the choice tuff for the HRM to manage the scenario across the Globe.
Dave Ulrich Model of HR roles
The Dave Ulrich model of HR roles usually seeks a deep insight towards strategic and operational focus on organization in order to gain supremacy in the competitive market. The basic ideology of this model is to align the employees of the organization with the process. The model is subdivided under four categories such as strategic partner, change agent, administrative expert and employee champion (Houben and Houben 2015). The four segments have distinctive roles for influencing the employees of the organization in an effective manner. Mobileye has serious issues with their international human resource management. The organization struggles in addressing the issues of the employees across the globe. Lack of grip in their management and execution has affected the retention of employees in a negative way.
Figure: Dave Ulrich Model of HR roles
(Source: Laurier and Dant 2012)
As a strategic partner, the international HR business partner aligns business objectives with employees and management in designated business units. The HRBP refers itself as a consultant to management on Human Resource related issues. Efficient HRBP would always act as a champion for the employees and behave as a change agent. The model would identify the perceived needs and demands of the employees and address their issues in a successful manner. Mobileye needs integrated solutions for their employment issues, which could be solved with the assistance of the Dave Ulrich Model. The model takes active participation in taking up international human resource responsibilities. Upon maintenance of proactive responsibility, the model would maintain an effective level of business literacy, which could provide an instantaneous solution to the rising concerns of Mobileye in the competitive market.
Bridge of Gap between higher management and the employees: One of the major issues with the organization is that the employees are unaware of many facts and policies that are implemented by Aviram and Shashua. The inclusion of too many structural layers reduces the effectiveness of communication between the owners and employees of the organization. The employees being unaware of the continuous changes may fail to address the needful information to the consumers of Mobileye (Eckoldt et al. 2012). The display of authority from Aviram and Shashua takes active participation in reducing the effectiveness of organizational culture. Most of the employees are not included in the decision making and thinking process, thus reducing the potential to change and adapting quickly according to the necessary scenarios. The bridge of gap between the higher management and the employees often relates a complex environment in relation to the organizational culture.
Mintzberg Management Roles
According to Mint berg, managers have variant roles to fulfill every day for successful intervention of an organization in the competitive market. According to the author managers are involved in multitasking efforts such as minimizing a conflict, validating contracts, representing department in a board meeting, seasoning a newcomer, and approving a request from the computer system. This results in continuous switching of abilities within an organizational context.
Figure: Mintzberg Management Roles
(Source: Eckoldt et al. 2012)
In case of any issues, the manager should lead from front without letting the issues built on the shoulders. Mintzberg identified ten key roles for a manager such as figurehead, leader, liaison, monitor, disseminator, spokesperson, resource allocator, negotiator, and entrepreneur and resource handler. In accordance to the organizational culture of Mobileye, there are many issues in the organizational culture that needs immediate attention for enhancing the overall performance of the organization (Bendel 2014). The employees should be given priority and importance in the decision Making process for enhancing the overall productivity of the organization in the competitive market.
The McKinsey 7-S Model
The McKinsey 7-S model comprises of seven independent factors, which are distinguished as hard or soft elements. The hard elements mainly consist of three factors such as strategy, structure and systems. The soft elements comprise of shared values, skills, style and staff. The hard elements are relatively easier to define and the management could directly address the issues and influence the employees of the organization accordingly. Mobileye has issues with their strategic decisions as the organization is stuffed with decision -making issues, which hampers the performance of the employees. Too many strategic layers affect the overall productivity of the organization.
Figure: The McKinsey 7s Model
(Source: Bendel 2014)
In contrast to the hard elements, soft elements are complex by nature. The soft elements have less control over tangibility and are usually culture-centric by nature. The soft elements are as essential as the hard elements if an organization needs to be successful in the competitive market. The hard elements and soft elements are interdependent on each other and therefore, fluctuation in any of these could affect the overall performance of the organization in the competitive market. Lack of communication makes the overall working environment complex by nature (Licaj et al. 2012). The organizational culture is affected, as employees are not aware of the strategic progress of Mobileye. Mobileye lacks connectivity in their culture that is identical for organizational success. As a market driven organization, Mobile could resolve issues lying with their culture so that the employees are motivated to enhance their performance in an effective manner.
Deal and Kennedy’s Cultural Framework
Corporate culture is one of the key elements for success or failure of the organization. An aligned organizational culture could often influence the employees in accordance to the changing trends of the fast moving world. Practice of unethical culture in an organization would deteriorate the productivity of the organization in the competitive market. The cultural model of Deal and Kennedy initiates a corporate atmosphere, which can assist Mobileye in an effective manner. The cultural framework of Deal and Kennedy comprise of six elements such as history, values and beliefs, rituals and ceremonies, stories, heroic figures and cultural network.
Figuure: Cultural Matrix of Deal and Kennedy
(Source: Yoffie 2014)
Mobileye is identified with with cultral issues that needs immediate attention . Aviram and Shasua have very little interaction with the employees and therefore, they are unable to address the issues lying with the employee level. The varios elements of the deal and kenedy cultral framework wold identify the root of the issue troubling the working environment and culture of Mobileye in an efficient way (Licaj et al. 2012). The cultral model wold help the organization to identify the risks involved with the key activities. It wold also recognize the speed at which organization would learn whether their actions and strategies are successfuk in strategic decision-making process. The model states that the risk initiated in making a poor decision and and the time taken for understanding the accuracy of the decisison-making process have a bearing regarding how cultral elements procre and inflence the employees of the organization in a successfl manner.
Plan of Analysis
The researcher would apply suitable strategies and techniques outlined in an appropriate methodology in order to achieve the objective oriented outcomes in a proactive manner. Plan of analysis plays an integral role in collecting valuable data about the research topic. The researcher would conduct case study analysis through collection of secondary data sources (Johnson, (Onwuegbuzie and Turner 2010). The researcher would choose the philosophy of positivism and objectivism for further penetration of the research work. The researcher would choose case study as the research design for formulating the research topic in an efficient manner. The application of secondary data sources would present thematic analysis of data supported by suitable analytical procedure (Knox 2010).
Upon conduction of the research study, the research philosophy would assist the knowledge enhancement activities, focused on the methodological steps and concepts. The researcher would acquire several adoption policies, which require application of several methods through implementation of the secondary sources (Bryman and Bell 2015). The researcher would conduct several research philosophies for successful intervention of the study.
Objectivism and Subjectivism
While considering the ontology aspects, there is existence of two types of research philosophies such as objectivism and subjectivism. The objectivism philosophy interprets a statement it if is authentic and is supported by facts and ideas according to the nature of the research study (Creswell 2012). On the other hand, philosophy of subjectivism ignores the presence of facts and ideas focusing more on beliefs. The researcher would select the philosophy of objectivism for successful intervention of the research study.
Positivism and Interpretivism
In accordance to ontology, the aspects of epistemology impart information about two other existences of philosophies such as Positivism and Interpretivism. In accordance to the philosophy of Positivism, it states scientific approaches, which focus more scientific as well as organized research design (Flick 2015). It primarily consists of setting of hypothesis, collection of data, analysis of data and findings. In contrast, the philosophy of Interpretivism focuses mainly on the application of qualitative data by implementing thematic frame. The major reason for selecting the philosophy of positivism is to provide effortless aims and objectives in context to the research study.
Justification regarding selection of the study
In accordance to the research study, the researcher would implement and discuss various characteristics and features of Mobile Eye regarding their future in the possession of the driverless cars. The primary view regarding the inclusion of positive knowledge and environmental analysis is to manage the positivism for stimulating the findings during conduction of the secondary analysis. The philosophy of objectivism is appropriate for successful conduction of the study as it relies on facts and authentic ideas (Kratochwill and Levin 2015). The philosophy of positivism always assists the researcher for collection of research database regarding the technological implosion of driverless cars by Mobile Eye in the competitive market. The researcher did not choose philosophy of subjectivism as it believes on belief, which is very inaccurate for technical industries. The researcher also avoided the philosophy of Interpretivism it majorly focuses on the qualitative data and lacks authenticity n its application.
Research approach usually comprise of the deductive and the inductive approach. The deductive approach usually provides the outline required for analyzing the research topic in an easy way. Upon implementation of applicable theories and models, the researcher accumulated specific data for further penetrating the research study (Ary et al. 2013). Both deductive and inductive approach helps the researcher while conducting a study. However, the researchers have chosen the deductive approach for this particular study, as it converts general information into specific data for betterment of the study. Deductive approach would also assist the researcher to set the research hypothesis on alignment with the research topic.
Justification of the approach
Since it was difficult for the researcher to develop new models and theories from the emerging data due to lesser time and low financial acquisitions, therefore, the researcher did not choose the inductive approach for the chosen research topic. The deductive approach would allow the researcher to complete the study within the allotted time. Moreover, the researcher would opt for relevant and authentic application of data through the implementation of the deductive research approach (Mackey and Gass 2013). The specific interpretation of data allowed the researcher to draw valuable information in alignment with the research topic. The inductive approach usually imparts generalized discussion of the selected models and theories. While the inductive approach mainly insists in narrowing down the focus by asking several questions, the deductive approach tests the relevancy of the applicable theories and models. Therefore, the researcher would select the deductive approach for conducting the study in an efficient way.
The researcher often implements research study as a quantitative and qualitative strategy for successful intervention of the research topic. Upon implementation of the quantitative research, researcher collects numerical data and express information in statistical format through implementation of tables, charts, mean, median and mode (Mitchell and Jolley 2012). The quantitative research directly imparts information from the respondents and expresses it in a calculative manner.
The qualitative presentation of data allows the researcher to increase the quality of the research study by gathering valuable information from the managerial discussion of Mobile Eye regarding the future of driverless cars. In accordance to the qualitative research work, the researcher predicted an interaction between research and theory and therefore, focused on data gathered from several managerial discussions, regarding the interviews (Pickard 2012). The literature review section gathered valuable information from the secondary sources that were published in magazines, journal, websites etc. Upon identification of the information gathered from the qualitative sources, the researcher would implement suitable recommendations regarding the rising issues of the organization. The researcher did not select the quantitative strategy for the particular chosen topic. The researcher selected qualitative research analysis as the strategy for successful intervention of the research study.
Justification of the chosen strategy
The research topic demands for the future of the driverless cars in terms of Mobileye. The researcher would also gather information from the secondary resources regarding organizations such as Toyota, Google etc. The qualitative analysis would enhance the quality of the research topic by gathering valuable information from the available secondary sources. Since Quantitative analysis depends mainly on statistical analysis and interpretation of data from the respondents and the nature of the study suggest managerial and top management decisions, the researcher avoided the quantitative analysis for the particular chosen topic (Tarone Gass and Cohen 2013). The qualitative analysis of data would critically illustrate information from various angles and perspectives in a thematic format, thus allowing the researcher to opt for the qualitative research strategy.
The research design would mention the guidelines required by the researcher for establishing the future of the driverless cars in terms of Mobileye. The research topic seeks a deep insight on design, objective pattern and aim setting for further progress of the research study. The chosen research topic would focus on the primary objectives set by the organization with the assistance of the research design (Mitchell and Jolley 2012). A case study based research study would give glimpses of specific examples, which would give an overview of the standpoint taken by the research topic. The case study analysis would comprise of all necessary information required by the researcher in relation to the organization Mobileye regarding the future of driverless cars in the competitive market.
Justification of the chosen Design
The researcher had selected the case study design for providing suitable guidance, and gets better understanding of the research study. Upon implementation of the case study approach as a research design, the researcher would discuss all the vital information gathered about Mobileye in the past few years including their technological advancement in the competitive market. Case studies impart valuable information about a particular scenario or a topic, which refers to Mobileye in the particular case. The selection of case study as the chosen research design would provide factual data in accordance to the research study.
Sources of Data
The researcher usually collects the data from two sources namely primary sources and secondary sources. These sources of research help the researcher to provide details information regarding the research topic and increase the quality of the research. Primary data are mainly unknown to others and the researcher collected it in order to gain new information regarding the research topic (Freshwater 2012). Primary data can be collected from the sources like observation, questionnaire, interview etc. On the other hand, secondary data and enhances the quality of the research. Secondary data can be collected from the sources like official statistics, books, journals, websites etc. The survey questionnaires shall be given to the respondents to get an overview regarding the future trends of driverless cars (Harrison and Reilly 2011). The researcher selected information from the secondary data sources for the particular research topic.
The application of analytical procedure helps the researcher to gather appropriate outcome of the research study. “While implementing analytical procedure the researcher will get a better understanding regarding the innovation of driverless cars in a successful manner. Statistical analysis of data will allow the researcher to interpret the results of the research in an efficient manner (Bernard 2011). The researcher in the form of tables will present the statistical data”. In order to generalize the secondary data, the researcher, implemented the content analysis approach, which will assist the researcher to identify the factors influencing the overall performance of Mobileye in the competitive market (Brannen 2010). The content analysis approach helps the researcher to enhance the quality of the research study, though collection of authentic and relevant data”.
Sample size refers to the respondents required for conducting the research study in successful way. Sample size refers to an integral part of the research study from the respondents of the sample. Since the chosen research topic is manly dependent on the secondary sources, the researcher did not refer to respondents as the sample size. Instead, the researcher had focused on the information gathered about Mobileye in the last 10 years as the sample size. The researcher had taken various organizations as bench marking process such as Toyota, Google etc. The researcher should be very much careful about gathering authentic data, as some of the information imparted may be manipulative in nature. The information gathered from the various secondary sources would assist the researcher in further propagation of the research study.
Probability and non-probability sampling technique are the most applied sampling techniques for successful intervention of the research topic. The researcher usually implements probability sampling techniques for quantitative analysis and non-probability sampling technique for the qualitative analysis of the study gathered from the secondary sources. Since the researcher ignored the quantitative analysis for the particular research topic, therefore, the researcher opted for non-probability sampling technique in terms of Mobileye. The methodology and concept behind the selection of the non-probability sampling technique would make the study relatively easier for the researcher. In accordance to the nature of the study, the researcher gathered valuable information regarding the technological advancement of the organization in the last 10 years, economical database, annual reports and websites of Mobileye.
The action plan would indicate the exact time required for the researcher for completion of the research study in a timely manner. It gives an overview of the necessary work carried out for completion of the work in a chronological manner. Action plan is very much essential as it allows the researcher to focus on the various processes to be implemented in a step by step manner. The Gantt chart in the form of an action plan is listed below:
Figure: Action Plan
(Source: As created by Author)
It is the urgency of the researcher to consider the ethical issues during the course of the research work. The data and information gathered by the researcher will take effect for personal use only. No information collected can be utilized for commercial purpose (Cameron 2010). The respondents selected would enjoy voluntary participation and under no circumstances, they can be pressurized for execution of certain acts. The secondary sources collected shall maintain its originality without any manipulation (Bryman 2011). The researcher shall comply with the Data Protection Act and shall grant full privacy of personal information and identity to the consumers. The respondents shall not face any external pressure while conducting the research study in a successful manner.
Analysis and Interpretation of data
The data collected from the methodological section would allow the researcher to analyse and interpret the data for identifying the research issues concerning the research topic. The researcher would critically illustrate the information gathered from the case study and the secondary sources for further progression of the research study. The analysis and interpretation of data would include various calculations and implications that would allow the researcher to present the analysis section into questionable format.
Secondary analysis will allow the researcher to gain competency in terms of the research work. The researcher will critically analyse the data gathered from the case study in order to identify the research issues and analyze the results to generate fruitful outcomes. This section seeks a deep insight in analyzing the models stated in chapter three for interpreting valuable information about the future of driverless technology for Mobileye.
Problem 1: International Business: High Competition in the value chain
Findings and Analysis
Blue Ocean Strategy
Create Uncontested Market Space: Mobileye has a huge competition with the Tier1 consumers, which are their competitors as well. Upon gaining traction with the OEM, the organization stated that they would not prefer the Tier 1 consumers to produce similar products as that of Mobileye. The major challenges faced by Mobileye while working with Tire 1 suppliers are that TRW, Delphi, Autoliv and Continental were both competitors and customers. All these suppliers produce ADAS packages and some of the technologies are co-developed by Mobil eye’s Technology (Gurney 2013). The vision-only systems of Mobileye competed with radar-based systems that were implemented by both Delphi and TRW, which more or less performed the same functions. Later, Mobileye stopped continuing business with Tire 1 suppliers as this organization gained better traction with OEMs. After this, the broadest challenge that was raised for Mobileye was the arrival of Aptina Imaging Corporation. The other competitor was Ominivision that is based on US market
Figure : Mobileye Revenue Trend with AM
(Source: Pettersson and Karlsson 2015)
Make the Competition irrelevant: Instead of competing with the Tier 1 consumers, the organization should avert the clash by making the competition irrelevant in nature. The revolution of self-driving is aimed to create a never-ending demand in the mind of the consumers. Yet in order to maintain their lead in a successful manner, they need to take suitable advantage of the market capitalisation. They should take active participation in branding the technology of Mobileye so that it reflects on the profitability of the organization. The innovative communications could turn out to be an effective intervention for the organization over the years. They aim to negotiate with Google and further promote their elasticity n the competitive market. With an estimation of technological advancement in the lead, Aviram believed that he could easily charge $100 on an average, for the automated chip and software. Averting the clash with Google would assist the organization to gain supremacy in the competitive market.
Create and Capture new demand: The strategy relatively focused to capitalize on higher priced cars. However, the debate remains whether Mobileye will give his competitor brands an edge over the lower products or hold its market share in the lower end. The future perspective of the organization is readily bright owing to the technological advancement of next generation automated cars it has developed over the years.
Break the Value cost trade off: They aim to negotiate with Google and further promote their elasticity n the competitive market. With an estimation of technological advancement in the lead, Aviram believed that he could easily charge $100 on an average, for the automated chip and software. The average cost involved in producing the chip is $10-13 with a null variable cost; the profitable margins aim to be reasonably high in accordance to the automobile industry. Similarly, $100 price would relate to a rough estimate of $400-500 as a additional cost for the consumers which could automatically restrict adoption of OEM and end-user demands in a successful manner.
The Value Chain Model
Inbound Logistics: The main concept of the Mobileye was to include one particular sensor camera at the back of rear camera. This technology primarily uses “EyeQ System-on-chip” (SoC) design that uses software algorithms (Narla 2013). The organization did not actually produce the camera but it tries to integrate apps with SoC. For each of the streets “collision warning system” and “departure warning system” was coordinated in particular chip. Thus, the organization was able to reduce the cost on sensing. On the other hand, later it was found that the SoC would require $3 to $5 million in added investment. It was also found that such kind of investment would be risky enough, as the outcome will have its effect after 3 to 4 years (Schnook et al. 2015).
Operations: The organization thought of installing the radar based long-range technological systems that would be integrated with app, which could interpret street signs and improved performance (Laurier and Dant 2012). The Rader OEM was sold for an average price of $100 to $200. The organization thought of using the monocular camera that priced $90 to $150.
Outbound Logistics: The institutional round took effect at $500 valuation turned out to be profitable for the organization. Implosion of technology in addition to funding rose to $740 by the year 2010. While Mobileye conducted its road show in regards to IPO in the year 2014, the revenues experienced an enhancement from $20 million in 2011 to $80 billion in 2013. In accordance to the strong needs and demands of the consumers, the offering price went up from $18 to $15. Off late, the valuation of the organization raised from $890 with a star cast valuations of $5.3 billion.
Figure: Mobileye Revenue Trend with OEM
(Source: Pettersson and Karlsson 2015)
Marketing and Sales: The main competitive issue within single camera technology, this organization found that it needed to construct 360-degree image for car surrounding. This would require 64 lasers in the turret that could rotate for 600 rpm. For such advanced technology, this organization needed to invest for more than $75,000 for each turret unit (Narla 2013). Such amount of capital is possible for Google to invest but for Mobileye to was not possible. Considering this same technology, Velodyne was working with approximately $8,000 project but according to Shashua, there were very less technical advantage. Therefore, considerably the marketing strategy of Mobileye was weak by nature as they were unable to make effective utilization of their resources.
Figure: Future prospects of Automated Cars in 2021 as compared with 2015
(Source: Mitchell and Jolley 2012)
Services: The advent of driverless technology is still at its prototype stage and therefore, it is difficult to predict the satisfaction level of the consumers before the delivery of service. The testing period is still on and many changes are yet to be made for assuring total security to the consumers. Later in the year 2014, the apps were integrated with Phone and Android platform. This helped in getting the best sensing capabilities for the automated cars. In order to reduce the cost, this organization was constantly engaged in one particular camera integration with competing technologies such as radar and Lidar.
Porters Five Forces
Buyer Power: The buyers had less power in terms of the products distributed by Mobileye. The suppliers were huge in numbers and maintained premium pricing for their products, which gave no option to the buyers to pull down the price of products. Moreover, since Mobileye is Tier 2 supplier it has huge distribution range, thus restricting the buyers to alter the price of products.
Supplier Power: This segment assesses how the suppliers raise up the prices of their products in the competitive market. Aviram and Shashua always maintained a high price range for the acquisition of products. The uniqueness and strength of the products makes the organization one of the eminent leaders in the competitive market. Mobileye have several supplier choices but it reduced to an extent when they started gain traction with the OEM.
Threat of Substitution: The organization always considered Google as their potential threat in th competitive market. The strategic alignment of Mobileye and Google were separate from one another, yet the organization risked its progress as Google had huge financial extension and had more interaction with the consumers in terms of brand identity.
Threat of new entry: There was tremendous competition in the automotive value chain process of Mobileye. This is because Mobileye told its Tier 1 suppliers that they would discontinue their collaboration if their suppliers continued producing similar products in the form of vision competency systems. Many Tier 1 suppliers discontinued their association with Mobileye, which indeed opened up several opportunities for new entries to grasp the field of driverless technology.
Figure: Expansion of cars with Mobileye Technology
(Source: Rocha-Mendoza, Borri and Langbein 2012)
Competitive Rivalry: Mobileye had most of the tensions coming in from Google in the field of driverless technology. They were unsure of the fact whether Google were their competitors or consumers. Furthermore, the Tier1 suppliers with likes of Autoliv, Tesla, Mando and Toyota also had competitive rivalry with Mobileye in the competitive market.
Problem 2: Strategic Management: Resource Similarity
Quick Response Manufacturing
Both Volvo and BMW raised the requirement of automated technology by the help of Mobileye. The opportunity expanded when other car manufacturers such as Toyota and Daymer started to take applications from Mobileye. The Japanese automakers did not rely on Mobileye and much depended on US and Europe. Only after year 2012, Japanese automakers started to take supplies from Mobileye. This organization started to work in collaboration with Magna Electronics that supplied ADAS solutions to Honda.
It was found that out of the total automobiles only 2% had the ADAS technology adoption. On the other hand, Mobileye thought of business plans to raise the adoption to 50% within the year 2020 (Yoffie 2014). This indicates that more than 90% of the cars will have ADAS technology by the year 2020. The organization firmly believes that 80% market share will be grasped by it within year 2020. In year 2014, 82 million cars having ADAS technology were sold and it is expected that by 2020, 110 million cars will be sold (Laurier and Dant 2012).The basic ideology was to cut down on unnecessary costs and make effective utilization of time to provide the best products and services to the consumers.
Dogs: Dogs usually produce a low market share at lower growth rate. Hence, they donot generate large amount of cash. In terms of Mobileye, the production rate of Mobileye is relatively on the higher side in the contemporary scenario. However, in the remote past, the productivity of the organization felt under this segment.
Question marks: Question marks are the ones that are developing at an alarming rate. They usually consume huge amounts of cash, but due to their low market shares , they do not produce much cash. In the contemporary scenario, the organization falls under this segments in terms of cash generation.
Stars: Stars usually generate subsequent amount of cash in the competitive market, but due to their huge consumption of cash due to high growth rates, cash usually drains out in one way or the other. The organizational strategy does not align with this segment.
Cash Cows: Sources of Income are the undisputed rules of the mature market. “Cash cows” exhibit a return on assets, which is greater than the market growth. In contrast to Mobileye, Goggle is considered as “cash cows” in the competitive market. Mobileye aims to fall under this segment in the mere future.
Belbin Team Roles
Planter: The resulting chip from STMicroelectrics was more powerful from the predecessor with more visual processing autonomous assistance. Mobileye later introduced the “stereo cameras” that increased the additional cost of 40% over difficulty calibration and “dynamic camera concentration” (Yoffie 2014). Later this organization was found to collaborate with large Tier 1 supplier Delphi that exploited rader’s advantages as in the current scenario, clients are found not to be price sensitive (Yoffie 2014).
Figure: Future Technology implementation of Driverless cars
(Source: Schonhof et al. 2015)
Resource Investigator: The statistical enhancement states that the organization has been developing over the years due to good word of mouth and their ability to meet the perceived needs and demands of the consumers in a successful manner. The automated driving assisting technique with ADAS technologies have worked wonders for the organization and is very much expected to gain further momentum in the mere future.
Team worker: A team of experts continuously worked hard for the propagation of the organization in the competitive market. They continuously probed for changes and modifications in the field of driverless technology. The basic ideology was to protect the life of individuals from any potential threats. The team of technical experts are the key to success for Mobileye in the competitive market.
Coordinator: This is one area where the organization needs immediate attention. There is lack of coordination amongst the employees and higher management. The information lacks circulation through all forms of management, which makes it a difficult job for Mobileye to solve particular issues on several occasions.
Monitor Evaluator: Mobileye had a relatively impactful product line and it took near about 14 years for the organization to make the venture profitable by nature. Aviram understood the necessity of investment and asked the broker to identify 100 investors who would incest $5000 each. His ideology was to invest in small rounds and finally by the year 2002, he raised the investment up to $30 million. By 2007, he realised that it was now time for the organization to capitalise on institutional money (Ellis and Levy 2010).
Shaper: The organization has always challenged their progress and always looked for improvisation in development of advanced driverless gadgets. The organization is very much dynamic in their approach and always looks forward to provide the best solution to the consumers.
Implementer: In the year 2016, Mobileye will introduce debris detection technology that will support high safety standards but with the changing environment, it will need to have high amount of capital and more suppliers with less cost for advanced integrated technology, which may not be easily possible.
Completer Finisher: Mobileye is too much concentrated in single camera vision technology whereas both of the competitors were engaged in digital imaging solutions such as entertainment, PC cameras, medical imaging, security surveillance and mobile phones and these are the rest of technologies that are in too much demand all over the market (Luettel Himmelsbach and Wuensche 2012).
Specialist: The organization started to advance the single camera power technology using EyeQ chips and algorithms. With such chips, collision only system was made more enhanced without relying on radar system (Merat Jamson and Carsten 2014).
Problem 3: Marketing Management: Poor Marketing Strategy
Kotler’s 7p of Marketing
Product: The products of Mobileye are produced for addressing safety to the consumers. The competency vision systems with ADAS technologies aim to reduce the rate of accidents for the consumers. The organization has targeted the future generation consumers who are cautious about safety features. The implementation of driverless cars is still in the prototype stage , which aims to flourish within 2020.
Price: The price of the products is an identical factor so that it is affordable by the consumers in relation to the competitive market. The overall pricing of Mobileye products are relatively high and therefore, it has an intense competition. Mobileye is still a tier 2 company and involvement of high pricing products could raise further issues for the organization (Grimm 2013).
Place: The place suggests the various areas where distribution of products takes place for making it available to the consumers. Mobileye would be able to sell their products in the global market upon suitable identification of the target consumers in the competitive market. The promotion stages allow the organization to create product awareness in the vision of the consumers. Mobileye should involve further utilization of social media for gaining further assistance in the contemporary market.
Promotion: The organization makes effective utilization of new media for gaining supremacy in the competitive market. Online advertisements, billboards and hoardings are major ways of promoting products. The organization also makes extensive utilization of print and audiovisual media for promoting their products and services.
Physical Evidence: The packaging stage idealize the variant ways the product appears from outside. In case of Mobileye, packaging of products concentrates more on damage free packaging rather than attracting the manufacturers. The products are delicate by nature and therefore, require safety-packaging features for assuring sustainable functionality of the device.
Process: The process stage states the identification of the appropriate method for placing the products in the mind and hurt of the consumers. Most of the companies were in the evaluation stage for this product and they were making lot of road test before implementing this. Since Mobileye was in the two tire of the business level in the automotive industry, therefore they were not getting the desired exposure (Peng et al. 2012). The manufacturing of the cheap set only is the reason behind that. If Mobileye is able to manufacture the whole camera then they will be able to sell it directly to the auto manufacturer that will help to increase the exposure and the profitability of the organization.
People: The final P of the marketing comprise of the individuals that carry out the tentative function carried out by the marketing management. This stage sets the right people on track and eliminates the individuals running in a off track manner.. The advantage of Mobileye was that they have emphasized for such a technology that is totally new and cost saving (Hojjati-Emami, Dhillon and Jenab 2012). The vision assisted self-driving car was new in the market and from the generation of idea to the development of the product was a long time that could be reduced with proper panning and guidance.
Internal: Despite the fact that Mobileye faced immense competition from its customers, it helps a special position in the competitive market. Since they were listed as Tier 2 suppliers, Mobileye got the opportunity to work with the entire industry. If Mobileye were a Tier 1 suppliers, their week would have been reduced to an extent. In addition to that, the OEM used to receive supply from the OEM from various sources.
Competitive: One of the main challenges for Mobileye was the tier 1 suppliers, including TRW and Delphi who had recognition as one of the leading automotive suppliers in the world. Upon gaining good collaboration with the OEM, the organization dictated its Tier 1 consumers that they would no longer work with them if they continued producing competing vision systems. Due to this sudden declaration, many tier 1 suppliers withdrew its collaboration with Mobileye. However, TRW and Mando stopped their internal development programs for continuing their progress with the organization. The decision was not in favour of Mobileye as it failed to impress on big occasions.
Functional: The automobile industry is divided into three levels and the highest level is Original Equipment Manufacturers (OEM). The Tire 2 suppliers are the one that supplied configured machines and engines to top car manufactures such as General Motors, Daimer Benz and Toyota. Mobileye is the Tire 1 supplier that sells chips and software to the Tire 1 companies. The company has found that OEM companies now very much require the added autonomous chips and integrated software management to coordinate partial car controlling (Kusano and Gabler 2012). Mobileye started to introduce the mono-camera technology for BMW in the year 2007. The series of BMW models were 5-series models. The models included “intelligent traffic light control, traffic sign recognition, adaptive cruise control and forward collision warning”. In the year 2010, Volvo undertook the automated system from Mobileye to introduce pedestrian detection system (Laurier and Dant 2012).
Generic Patterns: From the year 2000, automakers needed the automated safety features that would be integrated in the cars. Mobileye started its business by selling customized hardware-software integration and sensor based movements such as “Lane Departure Warning System”. As time passed by, Mobileye found its growth opportunity to include its automated chips through ADAS technologies. Most of the car manufactures are found to include standard features in model lines. Mobileye was the first supplier to give ADAS technology to General Motors. Tesla was another automobile manufacturer that depends on Mobileye (Anderson et al. 2014). Mobileye has come to understand that within the year 2020, the totally integrated autonomous car will be implemented. The organization has come to understand that “they will be a factor of 10 safer than a person [at the wheel] in a six year time frame”.
Market Sensing: Mobileye was one such organization that had started its business from the ground level. The installed base of the running vehicles were understood initially by the organization. After that, Mobileye came to understand that 1 billion vehicles on the road could have the camera surveillance technology. Thus, from the year 2007, Mobileye started to sell cameras that included “Mobil eye’s processing technology”. Audio and visual technology was also available for the cars all over the market (Burns 2013). The costs of the cameras were within $350 to $400 in retail. The organization got high positive response that increased the margin well over 50%. The products of Mobileye included warning system for collision, warning system for “pedestrian’s vehicle path, departures from lane, intelligent high beam controls and speed limit indicators” (Kusano and Gabler 2012). After creating such amount of demand in the market, Mobileye came over the facts that if it was able to reduce accidents in the market, then surely it will be able to reduce costs, improve utilization including insurances and repairs. However, later, it was found that Mobileye started to indulge more with OEMs and supply of single-camera technology.
Consumer Linkage: In the beginning, Mobileye was unable to approach its consumers, which hindered their growth in a negative way. In accordance to their capability, the organization was under performing due to ineffective marketing strategy. Furthermore, it was a relatively new concept and few consumers were cynical about the acquisition of driverless technology in the competitive market. Every organization needs to meet fulfil the perceived needs and desire of the consumers for gaining supremacy in the competitive market. Poor linkage with the consumers affected the sales distribution for the organization in the competitive market. Thus, this organization though had a good start but it was not able to hold on its business (Licaj et al. 2012). Thus, from here it can be understood that Mobileye had its decision related problems. It had well grew market and it had the opportunities of market expansion with other products for all the automated vehicles but just because of decision related problems it was found that after market accounted for 35% of the overall Mobileye revenue in 2011, but it dropped down from 35% to 22% in year 2013 (Merat Jamson and Carsten 2014). The company expects that with the help of OEM, it will surely increase its overall percentage of revenue in future but as per the aftermarket revenue from 2013, there is a doubt that whether it will be able to sustain the market.
Subject 4: Human Resource: HR confliction
Human Resource Philosophy: Mobileye had a weak link with the employees as the higher management has less interaction with them. The employees are unaware of certain strategic decisions and hence the employee does not feel valued at times. However, the experts are given enough opportunity to express their creative thoughts and innovative applications in the field of driverless technology.
Human Resource Policies: It is difficult for the human resource management to address all the policies to the employees across the globe. Therefore, Hr disconnect is one of the major issues for Mobileye in terms of employee satisfaction
Human Resource Programs: The organization had several issues related to their business activities as, they had a weak link with the consumers. The diverse cultural conflict also needs immediate attention in order to gain supremacy in the competitive market.
Human Resource Practices: The employees of the organization lack motivation from the human resource, which alters their performance in a negative manner. Aviram and Shashua have less interaction with the employees of the organization. Furthermore, the employees also lack knowledge in the field of driverless technology. They require integrated training programs who acquiring further knowledge about the automated vision competency systems.
Human Resource Processes: The experts are vastly experienced in carrying out their relative activities. However, there is an element of confusion amongst the team members due to lack of information sharing at all forms of management.
Dave Ulrich Model of HR roles
Strategic Partner: There is an essentiality for the organization to look for strategic alternatives for addressing the issues of employees in the organization. Collaboration amongst the employees and attention from higher management could boost the performance of employees in a positive manner.
Change Agent: At times changes are necessary for influencing the overall performance of the organization in the competitive market. The international human resource managers are looking for suitable changes to minimize the issues faced by the employees of Mobileye.
Administrative expert: The Internal Human Resource management should be strong in their administration. Excellence in administration would ensure smooth functioning of the organization in the competitive market. Lack of administration often results in tussle that could negatively affect employee performance.
Employee Champion: Employees are the revenue generators for any organization. While the organization gives enough opportunity to the employees to express their creative thoughts and ideas, it takes less interest in solving the organizational conflicts. The employees gets several fringe benefits but working environment has been one of the major concerns for Mobileye over the years.
Subject 5: Organizational Behavior: Bridge of gap between higher management and employees
Mintzberg 10 managerial roles
Figurehead: The figureheads of the organizational are stuffed with several tasks that helps the organization to perform their duties in a systematic manner. The figurehead takes active participation in signing legal documents and welcoming the visitors coming inside the organization.
Leader: The leaders of the organization lack the ability to motivate the employees Instead they exert immense pressure on the employees for enhancing employee performance. Lack of communication with the subordinates results in organizational conflict.
Liaison: The management maintains proper link about the inside and outside of the organization through several process such as market skimming and benchmarking.
Recipient: The recipients seek a deep insight in receiving information from outside and inside the organization through various platforms such as phone calls, mailing and meetings. However, the information is not transparent to the employees as it is to the higher management of Mobileye.
Disseminator: The disseminator takes active participation in forwarding valuable information to other members in the organization. However, information is not passed through all forms of management in Mobileye. The disseminator usually makes phone calls, send reports and memos across the various levels of management.
Spokes person: The spokesperson sends valuable information to the outsiders through reports, speeches and memos
Entrepreneur: The entrepreneur takes active participation in developing improvement projects, discover new ideas and give certain responsibilities to others to carry out the desired action.
Disturbance Handler: The disturbance handler fails to address the conflictions and disputes arising in the organization on numerous occasions. There is a essentiality for the management to solve organizational conflicts and adapt the employees to the working environment of Mobileye.
Resource Allocator: The resource allocator plays a very vital role for the organization by identifying the ones getting the resources. They also take up various other responsibilities such as scheduling, budgeting and setting priorities.
Negotiator: The negotiator represents various departments of Mobileye during negotiation of union contracts, sales, purchases and budgets.
Mckinsey 7S model
Strategy: These competitors are too much engaged in Lidar sensors and obstacle detection as well as navigation for self-driving vehicles. 3-D mapping surveying are the other areas where these companies are too much engaged. In comparison with Mobileye, it is such that the organization is only concentrated to single camera visualization but the other co-related factors such hybrid entertainment, 3D mapping is not under concentration by Mobileye (Schonhof et al. 2015).
Structure: The organizational structure is stuffed with issues in the management. It lacks connectivity amongst the upper management and the employees. The employees gets less importance in the decision making process, which could lead to dissatisfaction and loss of market share for Mobileye.
Systems: The competitors of Mobileye are able to expand its market rapidly. Thus, it has become the challenging part for the organization to expand its business through only one particular product. In future, if Mobileye is not able to improve its product base, then surely it will lay back behind its other competitors who provide better package.
Skills: The employees have huge skill sets, which are not totally exploited by the management of Mobileye. The management exerts too much pressure on the employees to enhance productivity. In contrast, they fail to motivate the employees, thus leading to poor performance on many occasions.
Shared Value: The employees are given less importance in terms of information sharing and decision making process. Mobileye should not only focus on technological advancement but should also consider the level of employee satisfaction for gaining supremacy in the competitive market.
Style: Mobileye gives more importance to productivity and often ignores the stress exerted on the employees. Therefore, the employees are often unaware of strategic decisions, thus lacking in consumer linkage. Furthermore, the extended working hours and immense work pressure is also one of the much needed area of improvement for the organization.
Stuff: The employees of the organization are stuffed with talents. Over the years, the organization emerged as one of the giant corporation in the field of driverless technologies. However, the staffs receive less attention from the higher management, which could deteriorate their performance in the mere future.
Deal and Kennedy’s Cultural Framework
History: Mobileye developed over the years as one of the most eminent names in the history of driverless technology. While the organization excels in its productivity, it lacks in its communication with the employees. Weak managerial policies and less grip in the execution have created several confusion in the working environment over the past few years
Values and Beliefs: The organization has believed in its creative thoughts and innovative applications. The employees always get an opportunity to exercise their strength in the advancement of their products and services. Mobileye aims to emerge as one of the leading brands in the immediate future.
Rituals and ceremonies: The organization has always survived the cutthroat competition in the automotive value chain. The organization takes huge interest in competing with the Tier 1 suppliers and gain traction with the OEM in the contemporary scenario.
Heroic Figures: Aviram and Shashua are the undisputed figures for the success of Mobileye. The Duo is responsible for what the organization is now in the contemporary era. However, Aviram and Shashua have less communication with their employees, which leads to dissatisfactions amongst the employees.
Cultural Network: Innovation and creativity is the pioneer of success for Mobileye. However, there is lot of confliction amongst the diverse working culture of the organization. The employees lack assistance and attention from the higher management, which leads to employee dissatisfaction.
The researcher had to abide by several limitations while conducting the research study in an efficient manner (Bryman and Bell 2011). Limited budget and restricted time duration acted as some of the major constraints for the researcher to conduct the study in an impactful way. Some of the data collected through secondary sources were manipulative in nature and hence the researcher had certain queries regarding full authentication of data. Furthermore, the researcher failed to penetrate the research topic from various and perspective, thus conducting the overall research on a smaller scale.
Future Scope of the study
The information imparted in the research topic serves as a valuable source of information for other researcher continuing to explore further in the mere future. The future researchers would consider the information gathered as a secondary source of information, which would allow the researcher to conduct the analysis on a larger scale. The researcher had conducted the analysis on a smaller scale due to lesser budget and restricted time. The data and information shared by the researcher would allow other researchers to investigate further on similar research topics. Due to lesser time and low budget, the researcher was unable to cover all the relative areas of penetration.
Conclusions and Recommendations
On the contrary, it concludes that, the advanced technique of next generation automated cars has created havoc in the automobile industry and promises to impress with years to come. The ADAS technologies serve as an advantageous option for the driverless technology for gaining supremacy n the competitive market. The proponents of autonomous driving serve variety needs of the consumers, with safety being the integral asset. Autonomous cars have the ability to restrict congestion and enhance the highway capacity by travelling closer to one another and coordinating in a successful manner. Mobileye has already grabbed the attention of trade analysts and promises to impress further in the forthcoming years to come.
One fact is very much evident from the above analysis, that the organization has very little direct competition. With ideology of a technological lead, the estimation of zero variable cost could churn out profitable ventures for the organization. Aviram stated that attempts of aggressive pricing with no discounting had subsequent advantages in the competitive market for Mobileye. The organization would continue to enhance their profit margins and if the competitor brands tried to match, they would lose further money. The average selling prices should be enhanced with addition of more lucrative and technological applications from the organizational perspective. The vehicle-to-vehicle communication will enhance the chances of dramatic improvement in the automobile industry. They also need to take the best out of strong market capitalization by selling the total bundle at full price.
Healthy market capitalization
From the perspective of Shashua and Aviram, the future of the automated driverless cars really looked bright. The self-driving revolution exhibited a never-ending demand for the new applicants, which would increase the profitability of the organization in an efficient way through market capitalization. Pricing had always been an ace factor for Mobile eye in the competitive market. Since Mobileye has lesser direct competition, there instead to going into price wars with the OEM and Google (Yoffie 2014). The organization must capitalize on the booming market to enhance the profit margin of the organization. Instead of taking Google as a competitor, the organization should start working in collaboration with the giant company in terms of the huge market share; the brand has in the competitive market. As many of the competitor brands termed the autonomous application of Mobileye as an expensive option, therefore, the organization should consider certain market share at the lower end of the market prices (Narla 2013). The organization is still at its early stages and too much of competition in terms of high pricing could harm the integrity of the organization in a negative way.
Therefore, giving discounts on the items would allow the organization to expand their business acquisitions further and get a foothold of their competitor brands. Giving discounts to the items would allow the organization to lower their average selling price, thus allowing Mobileye take subsequent advantage of their market capitalization (Luettel Himmelsbach and Wuensche 2012). Furthermore, many tier 1 and tier 2 customers rejected their collaboration with the brand when it stated that the competitor brands should stop producing similar products as that of Mobileye. The organization should take active participation in branding Mobileye so that it reaches to the consumers, having reflection of the profitability. The organization should learn to negotiate and compensate until it enhances the market share in the competitive market. The future of the driverless cars looks very much promising by nature and therefore, the organization should steadily move ahead without getting into too much competition with the competitor brands (Burns 2013). The accuracy of the system would also allow the organization to get in touch with the OEM in an efficient way. Ultimately, lives of several individuals are at stake, and therefore, the organization should minimally maintain a 99.9% accuracy measurement (Anderson et al. 2014).
Avoiding competition with Google
The future of driverless automated car has been in the pipeline for Mobile eye for a substantial amount of time. However, the changes became evidential and visible in the minds of the consumers when Google lodged certain test vehicles in the year 2007. In contrast to Mobileye, the attempt of Google gathered the most attention in terms of self-driving automated cars. In this context, it would be very much foolish from Mobileye‘s perspective to compete with Google as a competitor (Laurier and Dant 2012). Rather, tying knots with Google would allow the organization build a strong consumer base and enhance the brand recognition of the organization in a successful manner. While Aviram and Shashua argued over the expertise n terms of the autonomous driving, Mobileye also differentiated in terms of strategy.
This was an over confident ploy as they were unclear about the intentions of Google. Furthermore, Tesla tied knots with Mobile Eye instead of Google. The emergence of Google was a challenging option for Mobile eye in the long running process and one needs to consider that the automated technology was dealt by this organization in different spheres. While Mobileye had a commercial strategic approach, the prototype launched by Google was not in favour of commercialization (Kusano and Gabler 2012). The strategic ideologies were also different from one another. While Mobileye focused on sensing and understanding, Google relied more upon storing and aligning. Despite penetrating in the automated technologies, the organization aimed to rotate at variant spheres. While Google took active participation in constructing high definition maps, sensors and 3D recordings, it sensed that the experimentation could be manageable in mountainous areas, but lacked global penetration.
The fundamental approach of Mobileye was totally the opposite to that of Google. Mobile eye utilised the sensors to gather information, interpret data upon implementation of software and apply machine-learning techniques for allowing the car to get an overview of the scene. Another eminent difference is visible since Google is planning for a huge leap in the mere future, which is contrasting in the case of Mobileye (Merat Jamson and Carsten 2014). Since there are so much differentiation between the approach of Google and Mobile eye, it would be wise for both the organization to avert the clash between each other and eating up each other’s business. The organization should make Google a customer and get a better understanding regarding the future of the driverless cars in the competitive market. Collaboration between the two could work wonders, as the financial status of Google is relatively stronger than that of Mobileye. Similarly, Mobileye had excelled in terms of technological advancement (Yoffie 2014).
If the two-organization look at ach and other as competitors, then in the end Mobileye may lose the tussle owing to the brand recognition gained by Google over the past decade. In addition to that, the collaboration would also post a threat for bigger brands like Tesla and Toyota. The ultimate goal of both the organizations was to gain supremacy in the automated driving industry. The organization should look ahead in advancing their technology instead of investing time on competitions (Luettel Himmelsbach and Wuensche 2012). The future of the automated industry is still briefly that should be exploited by Google and Mobileye upon collaboration with each other.
Application of the findings from another company in any industry
Autonomous or self-driving vehicles have been of significant interest in the contemporary scenario. Many giant corporations have expressed their desire to promote driverless cars in the mere future. The government have also passed its legislation by allowing these driverless cars operate safely. Safety and cost effective mentality behind adoption of the driverless cars will take active participation in reducing congestion and unwanted accidents on road. Google has taken active participation in promoting driverless cars in the mere future. The organizations have already launched their prototypes in various parts of the globe and it has already created huge buzz in the media (Narla 2013). The driverless model launched by Google is a odd little pod, a prototype containing all the features of a autonomous vehicle. The autonomous prototype model of Google did not have any steering model or wheel in its paddle. The prototype launched by Goggle had several advantages. Primarily, the organization launched prototypes, and planned enter the autonomous industry with a huge leap within the year 2017 (Schonhof et al. 2015). Storing and aligning were the key constituents of the strategy implemented by Google in the competitive market. Google supervised them in producing high definition maps and implemented sensors in alignment with the chosen maps. Upon implementation of 3D recordings, Google checked the accuracy of the driverless cars on several occasions. Notably, the implementation of driverless automated car was not a commercial approach by Google. The organization utilised the sensor of the cars to keep in track with the pre-stored description (Laurier and Dant 2012). However, it was very much difficult to manage the ploy on a global manner.
However, the movement of the driverless cars was slow in nature; yet, it was very safe and cautious and promised to provide maximum security to the consumers. The prototype was very cautious than a human driver could ever be. The prototype wishes not to cut down on corners, and the model takes a pause and then pulls away when there is a green signal. However, the prototype had a major drawback as well (Gurney 2013). For example, if some is in hurry and needs to visit the office in time, then the prototype may not be the best option available. The prototype is more of a Sunday driver, as it may not be the best option for a busy schedule. The automated driverless car aligns with the safety features but it restricts its pace in a hurrying scenario. The mechanism of automated driverless cars looks for safety, rather than luxury and variant looks. It would be identical for the baby boomers rather than the youth generation.
As Google continues to manipulate its focus on the driverless cars, the immediate focus is its implementation to hit the streets. In the testing circumstances, the automated driverless cars gave test drive in public roads with general complexities, road works, roadblocks, closures and noisy traffic (Narla 2013). While giving the test drive, the time was a busy schedule where everyone was moving in a haphazard manner. At one point of time, a stake boarded approached towards the prototype car. The detection sensor of the car immediately gave the stake boarder a wider berth. The equations applied for breaking down the hazard were as follows: Human+ object + fast movement = stop. Likewise, it had some negative aspects as well (Yoffie 2014). The brake was triggered unnecessarily on numerous occasions due to panic, when some passers came close by. Luckily, there were no cars behind; otherwise, it would have been a sure shot accident. These ethical dilemmas have kept the scientists arguing over the centuries regarding the security of driverless cars in busy traffic.
However, the management of the organization stated that, in case of two possible danger, the device chooses the least harmful danger and therefore, the mechanism of Goggle will save millions of life than a normal driver. The riding experience of the Goggle car is relatively slower and may be a boring experience, but definitely not the safety features associated with it. Sergiy Brin stated that there is a room for both types of driving on roads. Speed and safety gives a complete experience for any driver (Merat Jamson and Carsten 2014). So according to him, normal cars and driverless cars would impress in the mere future. It is impossible to perceive that the world would drive through the roads without the advent of a driver. Moreover, the fast paced and the racing cars would never find its existence without the acquisition of the drivers on roads.
The main spot of bother is holding the organization for further penetration in the competitive market. Google is all set to hit the streets but the government are yet not convinced about its inclusion in a legalised manner. The Californian department of government have raised queries regarding the safety of the automated driver less cars. In the contemporary scenario, there are no federal rules and regulations that allow driverless cars carry the passengers in a busy traffic (Laurier and Dant 2012). The states of various countries implement their own regulations for testing the durability and safety features of the prototype in the competitive
While the establishment is on its way, they have not established any safety standards for the mechanism of self-driving assistance for public utility. After several efforts also, the final verdict is yet to come. These scenarios have troubled Google to quite an extent, as they are becoming impatient to hit the driverless cars in the streets. However, the rules and regulations are planned but are out and it would still require subsequent amount of time to confirm them as the laws abided by the traffic and the users of driverless cars (Merat Jamson and Carsten 2014). In accordance to the contemporary scenario, Google has near about 70 self-driving cars on the roads of California for testing purpose. However, the giant corporation tends to enter the competitive market with a huge leap, thus meeting the perceived needs and demands of the consumers in a successful manner. The long waits had further enhanced the anticipation of consuming the products from the consumer’s perspectives. The human being will not have to bother about driving; rather enjoy the memorable experience of the driverless cars (Gurney 2013). The organization had not officially announced the exact date of launching the products but hinted the fact that it is nearby.
Upon passing of the DMV regulations, the self-driving cars will start making their impression in the competitive market. The transformation of technology into the competitive market is a hectic process and the organization is toiling very hard to address the perceived needs and demands of the consumers. However, Google have given a tentative date of launching the driverless cars by the year 2020 (Narla 2013). There is clear evidence about the fact that Google had taken all the precautionary measures before launching it in the competitive market. In the testing period, Google stated that the driverless cars were driving more than 1.3 million miles on road in a automated mode. The only obstacle in the way of Google is the lack of regulatory assistance that could have probed for earlier intervention of the driverless cars (Kusano and Gabler 2012).
A California lawmaker has introduced a bill that would legalise autonomous vehicles without human drivers for the first time in the US. Assemblywoman Susan Bonilla wants to change California’s rules so that Momentum Station, a testing ground for autonomous vehicles located in her district near San Francisco, can test completely driverless vehicles on public roads. Technology is advancing at an alarming rate and therefore, at times it becomes tuff for the regulators to changes regulations from time to time (Anderson et al. 2014). Some of the carmakers such as Tesla are building vehicles with enhanced driver assistance system. The other approach, favoured by Google, jumps over this so-called “mushy middle” of automation to truly driverless vehicles
Google had quoted to take the wheel of its driverless cares 341times in the next 14 months to avoid further issues in the competitive market. During its testing time, the self-driving cars of Google have travelled up to 1.3 million miles in California and they never faced any issues related to accidents. The automated driving technology of Google provides safe assistance to the consumers for gaining supremacy in the competitive market. However, human beings need to be specified about their consciousness in order to avert any clash on a busy traffic. Despite the fact, Google invested lot of time for acquiring success in the competitive market, yet the technology is far from procuring total safety to the consumers take a ride in the driverless cars (Burns 2013). In order to interpret the rising concerns of the consumer, Google suggested that they could take control of the manual functioning if they have any doubts regarding the safety measures of the automated driving cars. The user friendly- approach of Google will be able to suppress the confusions raised in the mind of the consumers and the government, so that eventually, they can pass the law for acquisition of driverless cars by the consumers (Laurier and Dant 2012).
Upon continuation and development of self-driving software, the organization would experience lesser disengagements despite enhancing millions of miles each month. The evaluation of the automated miles that an individual is driving between manual and disengagements experiences hike within the course of time. Google has leaped into the target market by answering and solving each of their queries for gaining sustainable advantage in the competitive market.
In accordance to the testing of self-driving automated cars of Google, human brings experienced few things, which are shared in details below:
- In the contemporary scenario, it is predictable that more than 40,000 people die every year due to drunken accidents.Individuals aged between 15, 24 years of age often die in traffic clashes, and on many occasions, they do not hit the brakes in proper time. There are other issues associated with the accidents such as distraction, unsound mind and mental stress. The initiative taken by Google would minimize the human errors upon enactment of the self-driving automated cars.
- The outfit of the self-driving cars are reasonably cute and therefore, it could churn out as an enjoyable ride for the consumers. By improvising the technology of self-driving cars into adorable Sky net Marshmallow Bumper Boots, Google takes active participation in disarming other drivers in a spiritual manner. Despite the fact, the technologies of the self-driving cars do not give the riders the most trilling experience, yet it presents an element of safety for the residents of the car. The overall implementation of driverless cars would allow the consumers to have the most anticipated experience of their life.
On the contrary, it states that, Google has gained significant popularity upon invention of automated cars in the competitive market. Therefore, they should focus on their technological advancement to make the services more concrete in nature. The brand has huge brand recognition and the mechanism implemented in the form of 3D recording allows them to stay as one of the most promising automated service brand, thus meet the requirements of the consumers (Gurney 2013). Furthermore, the organization would try their level best to release the driverless cars prior to 2020.
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