Mobileye 2021: Robotaxi and/or Consumer AV?
a. Assess the attractiveness of the autonomous vehicle industry as of 2023. Specifically speaking, identify all five forces and describe the industry structure by using the underpinnings of five forces. For the power of buyers, be sure to include the projection of market growth over the next three years. As this is kind of a new industry, I recommend you use the following databases (click). As this industry is still in the early stages, you may need to extract information from a variety of news articles.
b. If Mobileye launches a robotaxis business, the Company has to focus on overcoming the entrance barriers to the transportation service industry developed by substitutes. Identify two dominant substitutes that will compete against the robotaxis business and discuss how Mobileye will enter the industry by weakening the two substitutes.
c. . Should Mobileye CEO Shashua recommend to Intel’s new CEO to: 1)Invest billions of dollars to build out a global, vertically integrated Robotaxi business? 2)Use robotaxis as an opportunity to learn and then revert back to a horizontal supplier of AV chips and software? Will OEMs, Tesla, Apple, and others incorporate Intel/Mobileye technology? 3) Do both? Choose one and discuss your strategic recommendation. In addition, robotaxi business is B2C service. Assess the possibility that the B2C robotaxi business could be replaced by the C2C model based on Tesla's FSD. Be sure to explain why B2C robotaxi business is still more feasible than C2C model as of the year, 2023.
d. . After reading the article, identify the two forces that will be the most powerful in the autonomous vehicle industry over the next three years. Choose the two forces and discuss why. Identify two resources that can be the core competencies of Mobileye and explain how they help the firm achieve strategic competitiveness. Be sure to use both Michael Porter’s five forces model and resource-based view.