Google Car Essay Example for Free

Google Car EssayGoogle CarIn the paper, the point of view will be Googles. Questions that will be answered in the paper including but non limited to the economical and technical viability for Google to engender Google car in a ample scale, reasons that Google will pursue or fail, the best strategy for Google to adopt. For the industry analysis, Porters five forces (Appendix 1) will be utilise 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 replete capitals in the remains 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 be plenty of positive comments about Google Car. Googles strong a nd 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 atomic number 18 skeptics who question Googles 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 renounce the doubts that public and critics have about the functions, utility, safety, etc. about the car will also suggested in the paper.The close crucial question that the paper will try to answer is what is the optimal strategy that Google should do with Google Car. there ar many possible outcomes including allying with an automobile manufacturer, purchasing a manufacturer, selling the technology of its driverless car system to interested m anufacturers. All three strategies will be discussed and one final solution will be suggested for Google.Sources1. Muller, Joann. Will Google Kill The Auto Industry? No, And HeresWhy. Forbes.com, January 25th, 2013. Accessed April 2nd,2013. http//web.ebscohost.com/ehost/ point in time?sid=00fae55e-c3c5-4b78-bd6e-326f38265257%40sessionmgr10vid=2hid=23bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3ddb=bthAN=85142822 2. schoolman Minds (2012). Automotive Industry Analysis-GM,DaimlerChrysler, Toyota, Ford, Honda. Accessed November 27th, 2012 from http//academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive-industry-analysis.html 3. IBIS World (2012). IBIS World-Car and Automotive Manaufacturing. Accessed November 26th, 2012. http//clients1.ibisworld.com/reports/us/industry/default.aspx?entid=826 4. Investopedia (2012). The Industry enchiridion Automobiles. Accessed November 26th, 2012. http//www.investopedia.com/features/industryhandbook/automobile.aspaxzz2D0aOFEIL 5. Helft , Miguel, Larry Page looks ahead. Fortune, 00158259, 1/14/2013, Vol. 167, Issue 1. Accessed on March 29th, 2013.http//web.ebscohost.com/ehost/detail?sid=dac8d930-8af3-40fa-91e3-71f73362d61a%40sessionmgr111vid=2hid=121bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3ddb=bthAN=85623367 6. Brown, Alan S. Googles Autonomous car applies lessons learned from driverless races. Mechanical Engineering. Feb. 2011. Accessed 29th March,2013 http//web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=405dc68c-19c8-4554-addd-6e6b7371c8fa%40sessionmgr11vid=6hid=10 7. Higgins, Tim. Will driverless cars frame the new road rage? Bloomberg Businessweek. December 1st, 2011. Accessed on 1st April.http//www.businessweek.com/magazine/will-driverless-cars-become-the-new-road-rage-12012011.html 8. Brown, Jerry. California legalizes driverless cars Electronics Weekly. October, 2012. Accessed 1st April. 2013.http//web.ebscohost.com/ehost/detail?sid=405dc68c-19c8-4554-addd-6e6b7371c8fa%40sessionmgr11vid=5hid=10bdata=JnNpdGU9ZWhvc3 QtbGl2ZQ%3d%3ddb=bthAN=82337032 9. Knapp, Alex. Nevada passes regulations for driverless cars. February, 2012. Accessed 1st April. 2013http//web.ebscohost.com/ehost/detail?sid=405dc68c-19c8-4554-addd-6e6b7371c8fa%40sessionmgr11vid=5hid=10bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3ddb=bthAN=71870057Appendix 1Preliminary Industry AnalysisA. Competitive dynamics within the industryThe automobile manufacturing industry t is often considered as an oligopoly, where there is a medium to high industry concentration and only a handful of key players exist Toyota, General Motors, Ford Motor, Hyundai-Kia Automotive Group and Honda (IBIS World 2012). Automakers compete in the beginning on the basis of price, fuel economy, reliability, styling and utility (IBIS World 2012). B. Bargaining force out of suppliersimputable to the numerous part that are required to produce an automobile, there are many suppliers in the supplying business and they are quite segmented, thus the bargaining power of suppliers i n the automobile industry is extremely low. C. Bargaining power of customersIn the automobile industry, customers hold medium amount of power. Consumers account for a significant or near all of the industrys outputs and revenues, and there is low terms involved in switching, the companies have to acknowledge their tastes and needs. There are numerous factors that can alter their buying decision brands, appearances, quality, functions, environmental effects and prices. Due to different demographics of the consumers, the manufacturers have to produce various models with peoples different needs. D. Threat of New EntrantsThe bane of new entrants is low because there are high barriers to enter the industry. First of all, in order to be able to compete in the automobile industry, a company has to produce massively to achieve large economies of scales to make products accessible and competitive, and since it requires enormous amount of specialized and sophisticated capitals and manufac turing facilities and experienced workforce to mass-produce, there is a huge amount of upfront cost (Academic Minds 2012). In addition, not only the manufacturing startup cost is high, the cost of research and developmentView as multi-pages