Google Self-Driving Car
Dr. Dale Carl
2nd October 2014
Toronto, Ontario, 2014
Table of Contents
Executive Summary 3
Macro Environmental Analysis 5
Micro Environmental Analysis 7
Porter’s Five Forces 7
Bargaining Power of supplier 7
Threat of substitutes 8
Bargaining power of customers 8
Threat of New entrants 8
Competitive rivalry 8
With continuous change in technology there is always continuous ...view middle of the document...
In addition, it can address many other issues like congestion problems, efficient fuel usage, and freedom for old & disabled people. In past also machine have be efficient than human like computers. The only big concern is that this technology car involves human life and one small error can cause life which makes it difficult to make a very reliable automated system. However with Google competency in terms of technology and exiting intellect capital it seems to be very achievable target to enter and excel in this market.
Few years back autonomous systems like self-driving car was always part of fictitious stories and now it’s been realized by advancement of technology. This technological innovation is giving birth to completely new industry, can be called as Autonomous vehicles industry and mostly be subset of auto industry. Google being pioneer in software technology is leading this new industry with its completely autonomous self-driving car with already 700,000 accident-free miles without human intervention (The VERGE, 2014). This industry seems to be very promising as it solves many ongoing issues like freedom for old and disabled people, less traffic congestion, less accidents etc. It will bring complete change in many industries like insurance industry, repair industry, driving industry, medical industry etc. Among these some of them will be completely wiped out like driving industry.
Canadian market is good for such advanced technology because of mix-culture and high earning society. Also Canadian market is always welcoming for new technologies, which further enhances its chances of being successful market. In addition, Canadian government looks to be supportive for this industry. As per The Global and Mail, in 2013 Ontario Ministry of Transportation proposed 5 years program to test autonomous cars. This suggests that politically also Canada is good market for autonomous vehicle industry and considering stability of the government it becomes more favorable market for such technological innovation.
Overall this new industry seems to be promising and Google can be one of the leading players ripping all the benefits by being first one to launch such technology.
Macro Environmental Analysis
Looking into this industry at macro level seems to be favorable for Canadian market. Further exact details can be found using PESTEL analysis.
Canadian market looks favorable for autonomous vehicle industry in terms of political environment. Canadian market is politically stable and has strong tradition of compromise and tolerance. According to an article, there was step taken to test such car in 2013 by bringing 5 years contract. However this decision was put into hold because of provincial elections (The Global and mail, 2014). Canadian government is reluctant to put step forward for actual car since human life is involved and thus suggesting 5 years program to test along with human backup.