Nokia's Here Maps Case Study

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1) Analyze the acquisition of Nokia’s Here maps. What is the carmakers’
(Audi, BMW, and Mercedes) strategic rationale? (40%)

The rationale Audi, BMW and Mercedes (A,B&M) strategy by acquiring Here Maps is that they will be able to gain the technology in Dynamic real-time geo-information they need to run self-driving cars and gain an edge in the race against other car makers.

In the race for Autonomous driving cars (ACD), car makers need accurate GPS maps with Dynamic real-time geoinformation [1][2] to develop an ADC. It is important to consider three aspects: first A, B&M do not have the know-how to create their own GPS maps platform, second big player such Google TomTom and HERE have most of the GPS maps market [3], third HERE provides services
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Which players capture most value and why? (30%)

The rapid evolving of technology in recent years and new trends have reshape the automotive industry and consequently the value chain, redefining the industry. Even though suppliers take more of the value chain (around 65% in 2002 and more than 82% in 2015) [7][10], the low revenues have forced several suppliers to close their business reducing the number of suppliers (form around 1500 a 2500 in 2002 to 500-700 in 2015) (see exhibits 2 and 3), but his reduction has led to specialization and now suppliers have several features that are changing the value chain as discussed below.

Suppliers are now drivers of innovation [7][8], Suppliers are not only taking segments of the value chain that formerly were from car makers(see exhibit 4) but also they have at least three times more patents that car makers[9] which truly makes them of paramount importance for innovation in the car industry especially in fast grown industry of software and hardware which are considered the most important factor in revenues in the next years
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3) Discuss whether or not Here is better off as part of an automotive consortium.
(30%)

Here is better as part of an automotive consortium, because a number of reasons.

First, in the current scenario, Google is a giant and a direct competitor for HERE, Google maps are almost an standard in tablets which are include in recent version of cars such as Hyundai Sonata [2], Since is

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