Mobileye The Future of Driverless Cars Case Solution

Mobileye found it very hard to help the company grow in the vast and marketable auto sector. The organization favoured to be classified as a Tier - ii car manufacturing vendor because they would have been classified as a Level 1 automobile supplier. The organization was then required to determine the best approach for minimizing the unique difficulties that everyone in the economy encountered.

1. How did Mobileye enter the driverless car technology? How did the technology sustain Mobileye’s competitive advantage in the technology industry?

Mobileye is one of the most prominent players in the self-driving cars sector. Although it competes with some of the big names, companies such as Uber, Google, etc. Mobileye makes sure that it produces the most advanced, enhanced, and upgraded driver’s assistance systems. These security systems are placed or mounted on vehicles that buy these advanced driver assistance systems. Mobileye projects its remarkable success in the upcoming years. The company also believes that its core product is the principal element for the success of this industry. Today, Mobileye mainly focuses on selling units having camera chips and software. 

Mobileye established its competitive advantage in the market through several strategic moves. The company's product offering was distinct. The technology of the single-camera system was unique as compared to the pre-existing technology in the market. The other layers in the industry were offering dual-camera systems which were much more sophisticated, much expensive, and of course bad performing with lesser accuracy. Mobileye introduced a breakthrough technology of autonomous systems that decreased the threat of accidents or any other mishaps exponentially. 

The best move by the company was when they decided to include all the technological features together. This abolished the act of going to multiple places for all different features saving more time and money. The company worked diligently to remove any threat of new entrants in the market providing an ultimatum to its different customers to end their internal developments or stop doing business with them. High required capital, huge initial investments, and technological expertise were some of the biggest obstacles for a new business to enter the industry. Producing their System on Chip helped the company to gain more authority and significantly reduced supplier power. The company managed to create a very desirable position in the industry for its competitors mainly because of its unique product offering. The company also managed to keep attractive profits due to its unique value propositions and little to no competition. 

2. What are the challenges and future of driverless cars?

Driverless cars are regarded as amazing and shocking product development of conventional cars. Undoubtedly, they have significantly increased human safety and customer satisfaction. However, they have some shortcomings too. 

The conditions and dynamics of roads can be greatly uncertain and can be extremely different from place to place. Roads can deteriorate which can create a huge challenge for driverless cars. The presence of undefined lanes and potholes can also be a hindrance to smooth driving. In the case of mountainous areas, road signals can be unclear creating a lot of obstacles to a smooth drive. Drastic weather changes can also be a challenge. Driverless cars should be programmed well to function in every kind of weather. Furthermore, they should also be programmed well for different traffic conditions.

Driverless cars should be able to drive in both the smooth traffic as well as rough ones. A car may turn up from nowhere hence the driverless car should be well-informed about any such event happening. In case of high traffic hours, distance per few inches or a little speeding can cause major damage hence, it should be carefully monitored. Accident liability is also one of the biggest challenges for driverless cars. The installed software is the main component driving the car and making all the important decisions. The major challenge is who to make accountable in case of any mishaps or an accident. Lack of industry standardization is one of the biggest issues. Different companies are working for the future of these cars but nobody is doing anything to standardize the product for better results.