In the paper, the point of view will be Google’s. Questions that will be answered in the paper including but not limited to the economical and technical viability for Google to produce Google car in a large scale, reasons that Google will succeed or fail, the best strategy for Google to adopt. For the industry analysis, Porter’s five forces (Appendix 1) will be used to explore the environment of the automobile industry and if Google will be able to enter the industry and produce automobiles on its own. The financials of Google will also be analyzed to prove if it is economically capable of investing enough capitals in the system and manufacturing automobiles. A SWOT analysis and discussion of the competitive advantages of Google will also be included to examine the internal capability of Google.
Since the idea of a Google Car was introduced, the reviews have been polarized. here are plenty of positive comments about Google Car. Google’s strong and enormous database, especially data on maps is greatly applauded and trusted to be useful and essential in developing the driverless car. On the other hand, there are skeptics who question Google’s ability to produce the automobiles because car building requires certain expertise that Google does not have. In addition, pressures from automobile manufactures, unions and insurance companies might hinder the certain legislations of manufacturing driverless cars to be approved by Congress. The actions that Google should take to rebut the doubts that public and critics have about the functions, utility, safety, etc. about the car will also suggested in the paper.
The most crucial question that the paper will try to answer is what is the optimal strategy that Google should do with Google Car. There are many possible outcomes including allying with an automobile manufacturer, purchasing a manufacturer, selling the technology of its driverless car system to interested manufacturers. All three strategies will...
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