CONDUCTING A FEASIBILITY ANALYSIS AND DESIGNING A BUSINESS MODEL 155 Hands On … How To Forces Shaping Innovation: The Driverless Car Deliverless cars have been the stuff of science fiction for several decades. As a result of several recent technological breakthroughs, a fully functional driverless car may soon become possible. How- ever, all of the macro forces shaping the automobile industry must come into alignment for the driverless car to become a true mar ket opportunity Sociocultural environment. For onerations, the auto mobile has been enmeshed within the American culture While other countries developed advanced mass transit sys- teens, Americans stayed loyal to their cars and the freedom they offered to allow them to drive when, where, and how they wanted to. However, research from KPMG suggests that there may be a change in consumer attitudes. People are growing weary of ever longer and more mutes. The KPMG study finds that Americans would enthu siastically demand driverless cars if they offered the promise of cheaper and quicker commutes and the still allowed people to turn off the driverless feature for pleasure driving A survey conducted by found that 20 percent of drivers would hand over the keys tomorrow if a safe driverless car were available for consumers to pur chade Ninety percent of those surveyed would considera driverless car if it could bring down insurance costs Technological environment. Due to advances in sensors microcontrollers, GPS, sadat lasers, and cameras, the tech nological feasibility for a driverless car has advanced quickly In recent years. Traditional automoble companies, including Nissan General Motors, and Lexus, all have driverless car technologies under development Google sa leader in the development of technology to enable driverless cars. Google has logged hundreds of thousands of miles of testing for its driverless technology with no reported safety issues. In addi tion, upstart electric car company Tesla is developing an auto- pilot system it plans to offer with its cars by 2020 Demographic environment. As baby boomers age, driver less car technologies offer this generation the promise of continued autonomy even after they reach the age that is no longer sale for them to drive Economic environment with continuing concerns about the cost and supply of enerox driverless cars may offers nificant fuel savings Computers in the driverless cars will be able to determine the most direct route with least traffic congestion and will drive at controlled speeds, all of which wil improve fuel consumption for every car on the road Political legal environment. Although the other macro forces all seem to favor the emergence of a market for driverless cars, the political and legal environment is not all favorable. Toyota has been fighting multiple lawsuits for ser eral years that are tied to alegations that its cars are prone to unintended acceleration. The complaints allege that the cars would unexpectedly begin to accelerate under various conditions, and that these accelerations led to numerous accidents. A main cause of the problems may be in the soft- ware in the computers that control all modern automobiles In a pivotal case in Oklahoma, Toyota has been put in a position where it must prove that its software does not have any bugs that may have caused the unexpected acceleration events. If this case goes against Toyota, auto makers can assume that they must be prepared to demonstrate that any Critical software system that controls the operation of a Car must be free of any bugs under any and all possible circum- Stances. Some legal experts believe this seemingly impos. sible standard leaves auto companies no choice but shelve any products with software that directs the operation of the vehicle. 1 What changes in the macro environmental forces are shaping the feasibility of the driverless Car? 2. If you were an executive at an automobile company, would you pursue your own model of a driverless ca? Why why not? 3. What other opportunities for new businesses can you en sion that may result from the introduction of the driverless Car into the market? en lac Alimith Arth lich will HUTECH KHetteir E-ca – E-ME- up. Mal Valle Survetes carbon November www..comics Christine Mahi Tesla Ninand Others Sell, November 19, 2013 drive-case-TRAMMIW WITH KNXX.XIS PERUBACTM 2SLD EYGE IÅ PLHEM AROUND, WWW The Low Kill Drivew Cars W. Swer Srl Dec 17, 2013. www.1000400570047720 of the Harvard Business School (see Figure 4.6). Five forces interact with one another to deter- mine the setting in which companies compete and hence the attractiveness of the industry: (1) the rivalry among competing firms, (2) the bargaining power of suppliers, (3) the bargaining power of buyers. (4) the threat of new entrants, and (5) the threat of substitute products or services. Rivalry among companies competing in the industry. The strongest of the five forces in most industries is the rivalry that exists among the businesses competing in a particular
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