Mobil-eye Case Solution
The climate change, the death rates and supply services. These issues will trigger innovation in the industry. Along with that, the competition in the industry has dramatically increased, and it is expected that the companies will introduce these technology advancement soon. Hopefully in next five years, the companies will come up with an optimal use of artificial intelligence with maximum accuracy. Along with that, the companies will also come up with robotic. The trend of robotic systems is increasing (IFR, 2020), further refer to appendix 1. It is also expected that robotic industry will grow faster in the upcoming years (Tilley, 2020). The robotic innovation would be adoptable but it would take time due to safety and cost issues. Initially, it would be for niche market because of the reason that not all the consumers would prefer to use robotics. The initial barriers to adoption would be changed, alongside cost safety issues and trust. But these issues would be solved with time. Once the companies reach their economies of scale, they would offer reasonable prices to their consumers. And after its successful implementation; the consumers would also adopt it.
Mobileye’s strategy for robotaxis
Mobileye was moving into the right direction, to achieve the business,and it had planned to work on three factors, which were: mapping, driving policy and sensing. These strategies are discussed below:
REM and RSS strategy
(REM) Road Experience Management is an AV Mapping, which is a major factors to achieve high resolution maps in system.The navigation maps are for human use, but for robotic taxi purpose it is important to have high resolution maps. Sushua decided to go for crowd sourcing and automation of HD mapping, and it used OEM’s which is also a potential revenue opportunity. Although, this strategy is effective because robot taxis would require very slight knowledge of the areas to drive safely and reach people to their destinations.
RSS is Responsibility-Sensitive Safety. This is helpful for the companies as it develops a safety model that humans use to make safety decisions. Whereas, this strategy is effective because it is important for a robotaxi to work like human, especially during sensitive occasions. The safety is main concern for consumers, and this would be an effective strategy. Further, more factors will be clearer at the testing stage.
Mobility as a service is a totally new and a major business option, as it is an independent blend of multiple services, i.e. from booking to service delivery every step would be independent of human interaction. This business model is based on five different layers of SDS, which are: Self-driving, Fleet Operations, Mobility Intelligence Platform and Service and Inside Experience. Basically it would be a B2C business model. This strategy would require Mobileye to develop each and every stage and deliver services to the end consumers. But it is a bit difficult for the company to manage and develop these all factors, because the whole process will need heavy investment and time.
As Mobileye and Intel, both the companies are progressive, so the CEO should suggest to opt for robotaxi as a learning opportunity and then move towards horizontal supplier of V chips and software, because Robotaxi business has the potential for short term but in long term, it wouldn’t be much profitable. So to meet the advancement and industry requirement; the company needs to maintain its long term business position. So, to stay for long period in the market; Mobileye should operate in both the sectors in the industry……………………….
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.