Google Car Essay

1067 Words Sep 7th, 2013 5 Pages
Google Car: In the paper, the point of view will be Google’s. Questions that will be answered in the paper including but not limited to the economical and technical viability for Google to produce Google car in a large scale, reasons that Google will succeed or fail, the best strategy for Google to adopt. For the industry analysis, Porter’s five forces (Appendix 1) will be used 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 enough capitals in the system and manufacturing automobiles. A SWOT analysis and discussion of the competitive advantages of …show more content… 8. Brown, Jerry. “California legalizes driverless cars” Electronics Weekly. October, 2012.
Accessed 1st April. 2013. 9. Knapp, Alex. “Nevada passes regulations for driverless cars”. February, 2012. Accessed 1st
April. 2013 Appendix 1:
Preliminary Industry Analysis
A. Competitive dynamics within the industry The 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 primarily on the basis of price, fuel economy, reliability, styling and utility” (IBIS World 2012).
B. Bargaining power of suppliers
Due to the numerous parts 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 in the automobile industry is extremely low.
C. Bargaining power of customers

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