Transitioning to Self-Driving Vehicles

Transitioning to Self-Driving Vehicles
Student’s Name
Institution
Macro Analysis
Several macro factors influence autonomous automobiles industry. Roads and infrastructure alongside government regulations are critical in streamlining the sharing of roads among vehicles, drivers, cyclists, bikers, and pedestrians, not just in the U.S. but also in foreign markets. Presently, road customs vary greatly between cities, states, and countries. Secondly, the tax imposed on high-end cars has significantly effect on ownership and operation of non-autonomous and autonomous vehicles. Socially, the demand for autonomous, green vehicles is on the rise, with many millennials showing commendable enthusiasm. Likewise, high demand and supporting programs for vehicle sharingwillstimulate the adoption of autonomous automobiles. Thedevelopment of deep neural networks and LIDAR sensors, and reduced technological adoption rates has augmented the automation of road transport. Likewise, climate patterns, high awareness of environmental impacts of vehicular emissions, and growing interest in convenient and frictionless transportation favor growth of the self-driving automobiles.
Micro Analysis
Some micro factors are worth considering in this discourse. Customers are a number one factor. Presently, 56% of older Americans are skeptic about using driverless cars, partly because they consider cars a source of joy and self-expression (Elnaj, 2015). Additionally, simultaneous production and ownership of a fleet of driverless cars by different companies are projected to result in efficient and cost-effective transportation; however, intense competition will inevitably ensue. The human capital continues to remain vital in driving innovations that make the driverless-cars safer and more efficient. Autonomous car manufacturers depend on various suppliers for many critical components of the final product. Accordingly, an increase in prices of such raw materials, for instance, can have an undesirable ripple effect across the industry. Besides, the public image of autonomous cars matters in influencing purchase decisions. These issues necessitate responsiveness to the needs of different stakeholder segments for the success of this invention.
A Business Problem
The autonomous car industry is riddled with two overlapping challenges. One such problem is how to start and sustain a smooth transition from non-autonomous vehicles and driverless ones considering that the latter already faces a high skeptic consumer base. A second issue is mounting skepticism among consumers. This skepticism is rooted in safety concerns as well as fears that autonomous cars will take away a very important role in car ownership – an indicator of social status and a source of joy, and self-expression.
Lens One: Market
The auto market is booming. Nonetheless, it is riddled with many nuances that will determine the fate of autonomous cars. Improving income levels and generally busy lifestyles have made transport a basic need for many, driving demand for cars. Shared mental maps, cultural artifacts, values, and assumptions regarding vehicles has fueled the phenomenal growth witnessed in the business of non-autonomous vehicles, but it is now seen to be hampering the growth of driverless cars. Presently, perception is identified as a major impediment to autonomous autos. Consumers believe that the emergence of ride-hailing and car sharing, both of which are practices that discourage car ownership, conflicts with their interest in personal vehicles. Also, there is an enduring perception that a driverless vehicle jeopardizes the safety of both the passenger on board and those of other road users. It is also uncomfortable for many people to welcome a new development that will wipe away 14,000 thousand taxi jobs in New York City alone (Elnaj, 2015). On the bright side, pervasiveness of cars and value consumers attach to them shows richness and vastness of the autonomous vehicles market. To stimulate change, Uber and other manufacturers of self-driving automobiles should constantly challenge these basic assumptions as well as contested interpretations.
Lens Two: Strategy
Strategy defines how an organization will achieve a specific business objective. Defining astrategy involves explicitly describing the project, setting it apart from rival projects or companies seeking to achieve the same goal, and conceptualizing how the undertaking will outshine existing systems (Rabelo, 2012). A strategy helps an organization with project mapping, essential for selecting appropriate strategic grouping, principal linking mechanisms, unearthing underlying alignment challenges, and strengths and weaknesses of the project design (Rabelo, 2012). Improving the efficiency and effectiveness of self-driving cars is subject to how excellently the auto companies assemble workforce, their structures, and, importantly, leadership – needed in influencing external environmental forces to promote business success.
Thus far, car manufacturers seem to have been successful in strategically mobilizing and integrating internal resources in developing vehicles that are fit for a driverless ride. The speed with which manufacturers are moving towards launching driverless vehicles hallmarks this milestone. By 2021, nearly all major players in the auto-manufacturing industry will have released self-driving vehicle: Volkswagen and Baidu will take the lead in 2019, GM and Toyota will follow in 2020, and BMW and Toyota will be ready in 2021. Sadly, external environment is not adapting fast enough for this revolutionary development.
Lens Three: Marketing
The automobile market requires a ma...