Mobileye- The future of Driverless cars

Group 8
1. Narayan Singh
2. Logeshwar
3. Harshita Agrawal
4. Pranjal Sharma
5. Rajarshi dey
 Introduction

L2+/L2++

• Front
computer
L1-L2 ADAS L2+/L2++ L3/L4/L5
vision L4/L5
• Traffic-jam Assistant • Driver • Full-Service
• Front computer • SDS to OEMs
• Adaptive cruise
vision • monitoring
High Volumes
provider
control • Owning the entire
• Intelligent headlight
• Driver monitoring • • Redundanc
Scalable SDS
• Redundancy mobile as a
control
• Surround CV ydesign for RB to
enter better
service(MaaS)
• Pedestrian collision stack
warning • Surround
position • Offering SDS to
CV MaaS operators
 Competitive advantage
• Good understanding between the two entrepreneurs running
the company, Sashua, and Aviram
• Creation of a unique product that would help in reducing
accidents by utilizing a cheap camera with sophisticated
software
• Manufactures their own System on Chips along with their apps
in one particular bundle making their product really unique and
difficult to imitate
• First mover advantage as they entered the market with one of
the kind tech of a single camera for their applications like
pedestrian collision warning
• Mobileye founders had a better understanding of the market
and product compared to competitors. This helped them to be
more realistic in their vision
• Sashua was a financial and managerial genius while Aviram was
great at tech so their skillset helped them to collaborate in best
possible way
 Vulnerabilities

• As Google had more accessibility to resources and was a larger

company compared to Mobileye which was competitive
vulnerability.
• Competition with stronger depth penetration, better adaptive
cruise control radar technology, and automakers that disagreed
with Mobileye's business plans
• Organization Culture – It seems that organization culture of
Mobileye Driverless is still dominated by turf wars within
various divisions, leading to managers keeping information
close to their chests
• Project Management is too focused on internal delivery rather
than considering all the interests of external stakeholders
Porter’s five forces - analysis
• Mobileye is an Intel company and a top supplier of software that
enables Advanced Driver Assist Systems (ADAS). They are developing
and innovating their technology to develop and support the Sensing,
Mapping, and Driving of Autonomous Driving systems. Even though
the company is working efficiently but there are threats that can impact
the business.
Porter's Five Forces model can help Mobileye in dealing with such
threats-Competition with stronger depth penetration, better adaptive
cruise control radar technology, and automakers that disagreed with
Mobileye's business plans

1- Competitor rivalry – LOW . The high competitive rivalry among the

firm reduces the price and decreases the overall profitability of the
industry. This is a loss for the firms and also restricts the growth potential.

2- New entrants- HIGH This industry is new and profitable so it attracts a

lot of new firms to enter the industry. New entry of firms in the industry
will build performance pressure on Mobileye’s and also reduce its market
share.
Porter’s five forces - analysis
• 3- Substitute threat – LOW Substitute products of your products are a
big hurdle in increasing the price of products. It forces to keep the price
low. In this industry switching to substitute costs is very high, so the
threat of switching to substitute is very low.

• 4- Suppliers bargaining power- LOW The bargaining power of

suppliers also impacts the profit margin of firms. If suppliers are
charging higher for raw materials then it will raise the cost of the firm.

• 5- Buyers bargaining power – MEDIUM Buyers always desire to best

product at a minimum price. That impacts the long-run profitability of
firms. In this industry switch cost is high thus buyers moving toward
another substitute is low, but, if buyers get a low switching cost option
then Mobileye business can suffer
How should Shashua and Aviram approach Google? Should
they cooperate with Google or keep them at arm’s length?

• Decision making: - The company should make the best decisions. The
wrong decisions can adversely affect the performance as well as the
productivity of the company.

• Best-in-class products with a cheaper rate

• Works directly with the automobile industry

• Market mover advantage with Single Camera sensor with Pedestrian

Collision Warning, Forward Collision Warning, and so on

• Google pushes the limits and takes the role of the principal
innovator/experimenter.
How should Shashua and Aviram approach Google? Should
they cooperate with Google or keep them at arm’s length?

• Strategic partnership: - The company should go for tesla rather than

choosing Google as tesla is working better than Google in partnership
and it is more helpful in retaining the customers.

• A further distinction is between Mobileye's "sense and understand" and

Google's "store and align" research paradigms. It is uncertain whether
Google and Mobileye would make a good team for any consumer-
related endeavors as a result of these strategies

• In reality, a better plan of action could be to collaborate with a direct-

to-consumer company like Tesla for additional innovation.
Thank You..!!