Case Analysis Sheet

GOOGLE CAR

Group 8:

1. Davinder Pal Singh Arora (B008)

2. Abhishek Chaku (B018)
3. Aagam Jain (B028)
4. Shalini Lodha (B037)
5. Parth Purandare (B046)
6. Arpit Shukla (B055)
Background of the case:
The mobility space and also the way people use and think about cars are revolutionized by self-
driving cars. Google X, Google's secret project group had already invested in autonomous cars and
completed 700,000 miles of trials of self-driving car logging. Experts in the industry thought that
Google was in a good position to move into this risky area, given its technology knowledge, a vast
collection of data in terms Google Maps and Street View and access to talent and capital. The Google
management team faced several questions. Should Google continue to invest in the technology behind
self-driving cars? How could Google's core software-based and search business benefit from self-
driving car technology? As large auto manufacturers began to invest in automotive technology
themselves, could Google compete? Was this investment of time and resources worth it for Google?

The key issues in the case:

 Lack of public acceptance because of safety concerns for self-driving cars.
 High cost for manufacturing driverless cars ($150,000) as compared to the mind set of people
who are willing to pay only $3000 for autonomous cars.
 Google was venturing into a space that was not their core competency.
 Competition from automobile companies and research universities
 Legal barriers to transparency in the event of an accidents.
Analysis of the issues identified: SWOT
Strengths:
 First Mover Advantage – Google Driving has first mover advantage in number of segments. It
has experimented in various areas Marketing, Operations management, Technology.
 Diverse Product Portfolio of Google Driving – The products and brand portfolio of Google
Driving is enabling it to target various segments in the domestic market at the same time.
 Intellectual Property Rights – Google Driving has garnered a wide array of patents and
copyrights through innovation and buying those rights from the creators.
Weaknesses:
 Implementation of Technology in Processes – Even though Google Driving has integrated
technology in the backend processes it has still not able to harness the power of technology in
the front end processes.
 There were liability issues regarding who will be responsible in case of accidents caused by
driverless vehicles. Google had to also deal with privacy issues on collection of private
information.
 Inventory Management – Based on the details provided in the Google Car case study, we can
conclude that Google Driving is not efficiently managing the inventory and cash cycle.
 Reluctance to pay extremely high costs for autonomous driving applications.
Opportunities:
 Lucrative Opportunities in International Markets – Globalization has led to opportunities in
the international market. Google Driving is in prime position to tap on those opportunities and
grow the market share.
 Changing Technology Landscape – Machine learning and Artificial Intelligence boom is
transforming the technology landscape that Google Driving operates in
 Upon expansion into global market, Google has access to best international talent.
Threats:
 Culture of sticky prices in the industry – Google Driving operates in an industry where there
is a culture of sticky prices
 Increasing bargaining power of buyers – Over the years the bargaining power of customers of
Google Driving has increased significantly that is putting downward pressure on prices. 
Conclusion and Recommendations: (Min 3 recommendations)
 Google must concentrate on its core ability to develop state-of - the-art technology rather than
diversify into automotive manufacturing.
 Google could also license and sell its self-driving technology to car manufacturers as a
standard
 Google can partner with any of the leading manufacturers of automobiles rather than its own
production.