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Invest In Driverless Cars

Satisfactory Essays

Driverless cars have long been in debate since Google made its announcement for an autonomous car. Although driverless cars are feared because they may cause more accidents, the first autonomous car accident was at the fault of a human. The advancements that driverless cars offer to modern technology and its potential market deems itself more beneficial than not. Therefore, automobile manufacturing companies should invest in driverless cars.
Autonomous cars would be labeled as a disruptive innovation since its implementation could lead to a lower demand for normal cars. This never-before-seen technology may very well be the new hit thing thus also making it a radical innovation. A similar effect can be seen through the creation of smartphones. …show more content…

Companies often face cultural lock in, or essentially the fear of change. One reason that Kodak has failed had been that it failed to commercialize its film technology due to its inability to adapt to the growing technology. However, the manufacturer could bring in additional expertise to gain more insight on the profitability of the technology and train employees of its uses. Additionally, the manufacturer could assess the demand for driverless cars by releasing a few self-driving cars as a test run. If the run is deemed profitable the company could incrementally increase funding towards the technology. The automobile manufacturer also would not fall too far behind in terms of competition. Many companies that wait for competitors to test run products often fall off the market because they join the game too late. Consumers also tend to lean towards brands that they know are reliable, rather than fresh companies. With this method, the company would not lose as much if autonomous car did not attract as many consumers as anticipated.
Although driverless cars can easily control the automotive industry, its impact ultimately depends on the demands of the

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