Premium Essay

Google Car

In: Business and Management

Submitted By frankan67
Words 479
Pages 2
Executive Summary:
Google, want to venture into the self-driving cars, they announced that it is building a vehicle without a steering wheel or role for a driver. The thing is that Google technology has not been able to successfully switch control back and forth from automated driving to the driver in an emergency and does not expect to be able to accomplish that soon, also technology is to expensive. Other companies building autonomous cars said that they are working on vehicles that will be able to safely make that switch. Volvo says that it expects to have its cars tested on city streets by 2020. 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?
Environmental Scanning (external and internal analysis):
PEST Analysis
After reading the case study Google car I have used the PEST analysis model in which the following was concluded:
1. Political Factors:
Government’s regulations on automobile transportation are one of the major aspects in Google's car that have legal barriers. Due to that most of the governments do not have specific laws for self-driving vehicle and there are no federal standards for autonomous cars special permission in all US states adjusted for road test. Laws need to be adapted to accidents liability for insurance purposes.
2. Economic Factors:
Cost is a concern, due to the investment in technology required to be adapted to cars an estimated of $150,000 in equipment. The consumers are not willing to spend more than $3,000 for autonomous driving applications. Other company offers similar technology with...

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