Strategic impacts on automotive incumbents in the market of autonomous driving

• Autor(a) principal: Porzelt, Jessica
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29722
• topic: Automation; Autonomous driving; Automotive industry; Automotive incumbent; Disruptive innovation; Disruptive technology; Innovator’s dilemma; Strategic decision-making; Strategic failure; Strategic positioning; Uncertainty; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Automation and connectivity within the automotive industry are affecting automotive incumbents (AIs) causing significant shifts towards technology and software. These current trends enable the development of autonomous vehicles (AVs) which will become increasingly prevalent over the next decade. The complex technologies necessary to make autonomous driving (AD) a full reality and which are transforming the automotive industry entail high uncertainties and strategic challenges. The aim of this study is to examine how AD affects AIs’ businesses and strategic choices. Secondary data in the current literature about automation, AD and strategic literature concerning disruptive innovation was reviewed to study the topic. Primary data was gathered through interviews with professionals working in the field of AD. The interview analysis is based on the inductive categorization methodology of Mayring (2015) to provide thorough evaluation of the data. Chiefly, the findings revealed that attempting to seize a first mover advantage is not recommended for AIs in the case of AD. A large challenge is the lack of technological know-how needed to keep up with leading tech-companies in this field. Furthermore, competence in opening up cities and regions for AD should be developed. As disruptive technologies in general and specifically AD lack trust of customers, it is important to develop confidence building strategies. Digital features that are desired by future customers must be determined as well as an attractive business model to compete as an incumbent in the AD market. Overall, the future role of AIs in the AV supply chain is not yet clear.