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Oakland University *

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4350

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Information Systems

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Oct 30, 2023

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pdf

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Uploaded by MegaGoldfish2728

As autonomous vehicles continue to be developed, it can be concluded that the two strongest forces within this industry will be the bargaining power of suppliers and the threat of new entrants. Bargaining Power of Suppliers: Specialized Components: Suppliers provide crucial components like LiDAR sensors, advanced cameras, and software. Limited Component Availability: Alternative sources/substitutes to these specialized components are scarce. People who have unique technologies can sell at high cost and achieve very strong bargaining power positions. Increasing Demand: As the autonomous vehicle industry continues to grow and gain traction, the demand for these specialized components is expected to increase significantly. Suppliers can capitalize on this rising demand to negotiate favorable terms, including pricing, contract durations, and exclusivity agreements. Practical Tip : Diversify suppliers where possible, develop in-house capabilities, and secure cost-stable long-term agreements to manage supplier power. Threat of New Entrants: Technological Advancements: The technology behind autonomous vehicles has evolved incredibly fast, thus lowering market barriers as new entrants can more easily develop and test autonomous vehicles. Regulatory Changes: Various authorities around the world are creating legal frameworks for autonomous cars. As regulatory hurdles are overcome, it becomes more feasible for new entrants to enter the market and develop autonomous solutions. Consumer Demand for Innovation: Consumers are increasingly interested in autonomous vehicle technology due to its potential for safety, convenience, and cost savings. This demand creates opportunities for new entrants to cater to emerging market segments and niches . Practical Tip : Established firms can partner with startups for innovation and stay agile to maintain competitiveness.

Next, we will identify two resources that can be the core competencies of Mobileye and discuss how they can help the firm achieve strategic competitiveness. The major core competency of Mobileye lies in its ability to design, develop, and manufacture advanced sensor technology. These are vehicular sensors that play a vital role in detecting and interpreting objects in real-time. The other core competency of mobileye would be data collection and machine learning capabilities, which can be defined as the collecting, processing, and analyzing of vast datasets generated by its sensor technology. In terms of helping the firm achieve strategic competitiveness, these two resources allow the company to create products that are differentiated from others on the market in terms of quality and performance. This product differentiation also builds brand reputation, which helps the company to develop a brand identity of reliability and innovation that sets them apart from competitors. Furthermore, Mobileye's technological leadership in sensor technology and machine learning enables the company to continually innovate, allowing them to develop and deploy cutting-edge solutions that address emerging industry trends. By staying at the forefront of the AV industry, the company can remain competitive, relevant, and aligned with evolving customer demands. Finally, Mobileyes sensor technology is designed to be adaptable and scalable to various vehicle models and applications. When combined with their data analytics, this scalability allows the company to optimize manufacturing processes, thus reducing costs. This cost efficiency enables Mobileye to offer competitive pricing while maintaining high-quality standards, making its technology more desirable and accessible to a broader customer base. The graph given by Mobileye provides empirical evidence by comparing their Advanced Sensor technology to other leading technologies in the autonomous vehicle industry.

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