Mobil-eye Harvard Case Solution & Analysis

Mobil-eye Case Solution


This case discusses the future planning of Mobileye and Intel. The company is planning to partner with Intel for future planning. Mobileye was an emerging leader in advanced driver Assistance System (ADAS). The company has the market share of 70% and the revenue of $1 billion. Shashua was planning to develop an autonomous driving car and ADAS was just a first step towards his dream. The company was planning to improve its AV Technology, as it was an important form of the business. The company wanted to work in robotaxi business. Mobileye was started by Amnon Sushua in 1999.The company started with the idea of ADAS and in 2004 company worked on developing its own EyeQ chip and that was named as system on a chip.

Problem statement

Now, the company is facing a dilemma in deciding which project it should invest in,to meet the requirement of its future project.The company has several options to explore, among which the first option is to invest a huge amount in developing vertical integration in robotaxi. Second option for the company is to learn through using its robotaxi and become a horizontal supplier of AV chips and its software. The last and third option is to go for both the options simultaneously(David B. Yoffie, n.d.).

Question 1

The company had been planning for autonomous vehicles for a very long time. The projections suggested that the advanced autonomous vehicles would be out by the end of 2021, but it was a wrong projection because there were issues of safety, rules and consumers several concerns. The new projection for the AV vehicles is for year 2030, which will be level 5 autonomy. AV’s was so hard to build because there was an intense demand of autonomous vehicles, which accelerated the complexity of the task. There was a belief that AV will bring technological change in the industry.Safety was critical issue in building AVs. The whole process from implementing to testing the system would be time taking and very critical. Along with these all getting permission of regulatory was also another challenge which was actively contributing to the reason behind building the AVs and rolling out.The overall cost of building AVs and roll out was more than the amount which the consumers were willing to pay. So this was also a challenge to manage the cost and bring it into the bracket of consumers. The consumers were also concerned about the safety of cars and their decision was dependent on the level of security.

Question 2

Technology is improving continuously and it is bringing a change in this domain. The companies are continuously working on research and development of technology, to achieve advancement and meet the set targets. Robotaxi was expected to roll out by the end of 2021. But due to challenges discussed above, this plan had failed to be achieved. But still, the companies are working on these projects to solve the safety issues. It is expected that the companies will achieve the consumer’s safety by 2024, after which they will start working on these issues. According to my point of view the global issues have proved to be catalysts for the development of technology............................

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