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Analyzing Automotive Software Industry Kpu Info 4390 Assignment

887 words - 4 pages

Matthew Quinney 100321531 Oct 10/2017
Case Study #1
I have selected the remote driving system for a car topic. This idea belongs to the Automotive Software industry. Below I will evaluate this industry.
- This industry is growing however is still in its introductory phase, multiple competitors are arising such as Google, Apple, Nissan, and others. With so many buyers like Ford, Toyota, and other major automobile manufacturers this industry has the potential to become very big. The technological path to change however has been slow and has allowed more and more competitors time to catch up and join in the race to a market that has a massive scale. Entry however in to this industry requires a moderate amount of capital as your only building software however having the proper partnerships and legal documentation could prove costly.
- The 6 forces at work in this industry are:
· The rivalry is small thus far as product has yet to be introduced.
· The bargain power of customers is low.
· The bargain power of the supplier is low.
· The bargain power of the complementors is high.
· The threat of substitute products is high.
· The threat of new entrants is high.
- The driving forces in this industry are technological change, regulatory changes, and product innovation. Since there is yet to be a product out on the market there is plenty of innovation left to be completed within the industry. Along with innovation, regulations and regulative guidelines will need to be created by governing bodies. With technology changing so quickly it is a driving force that will fuel this industry in to the future.
- Currently the strongest company in the industry would be Google, who has already created a self-driving car that went way beyond a system that can take over for a driver when needed. Their goal being not to make cars themselves but to sell their software in the future to Buyers like Ford and other major automobile manufacturers. I would have to say the company with the weakest competitive position would be small start-ups that don’t have contacts within the automobile industry which makes testing very hard.
- The most likely to make competitive moves next would be Current companies that have working prototypes like Google, although Nissan and Ford have multiple technologies that help assist with lane centering, automatic parking, and automatic braking. Google however will be able to license out their software to these massive automobile manufacturers which makes them the forerunner in the industry. Companies like Toyota and Honda however are falling behind due to not making any investment in these new technologies so in the end...

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