Transitioning to Self-Driving Vehicles

Transitioning to Self-Driving Vehicles
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Macro Analysis
Several macro factors influence autonomous automobiles industry. Roads and infrastructure alongside government regulations are critical in streamlining the sharing of roads among vehicles, drivers, cyclists, bikers, and pedestrians, not just in the U.S. but also in foreign markets. Presently, road customs vary greatly between cities, states, and countries. Secondly, the tax imposed on high-end cars has significantly effect on ownership and operation of non-autonomous and autonomous vehicles. Socially, the demand for autonomous, green vehicles is on the rise, with many millennials showing commendable enthusiasm. Likewise, high demand and supporting programs for vehicle sharingwillstimulate the adoption of autonomous automobiles. Thedevelopment of deep neural networks and LIDAR sensors, and reduced technological adoption rates has augmented the automation of road transport. Likewise, climate patterns, high awareness of environmental impacts of vehicular emissions, and growing interest in convenient and frictionless transportation favor growth of the self-driving automobiles.
Micro Analysis
Some micro factors are worth considering in this discourse. Customers are a number one factor. Presently, 56% of older Americans are skeptic about using driverless cars, partly because they consider cars a source of joy and self-expression (Elnaj, 2015). Additionally, simultaneous production and ownership of a fleet of driverless cars by different companies are projected to result in efficient and cost-effective transportation; however, intense competition will inevitably ensue. The human capital continues to remain vital in driving innovations that make the driverless-cars safer and more efficient. Autonomous car manufacturers depend on various suppliers for many critical components of the final product. Accordingly, an increase in prices of such raw materials, for instance, can have an undesirable ripple effect across the industry. Besides, the public image of autonomous cars matters in influencing purchase decisions. These issues necessitate responsiveness to the needs of different stakeholder segments for the success of this invention.
A Business Problem
The autonomous car industry is riddled with two overlapping challenges. One such problem is how to start and sustain a smooth transition from non-autonomous vehicles and driverless ones considering that the latter already faces a high skeptic consumer base. A second issue is mounting skepticism among consumers. This skepticism is rooted in safety concerns as well as fears that autonomous cars will take away a very important role in car ownership – an indicator of social status and a source of joy, and self-expression.
Lens One: Market
The auto market is booming. Nonetheless, it is riddled with many nuances that will determine the fate of autonomous cars. Improving income levels and generally busy lifestyles have made transport a basic need for many, driving demand for cars. Shared mental maps, cultural artifacts, values, and assumptions regarding vehicles has fueled the phenomenal growth witnessed in the business of non-autonomous vehicles, but it is now seen to be hampering the...