Mobile Eye Harvard Case Solution & Analysis

Introduction

Mobile Eye is involved in the business of developing the hardware and softwares for Advanced Driver Assistance System (ADAS). The main objective of the company is to develop softwares which would improve safety and avoid accidents while driving the car. The company started in 1999 and it took it to become profitable in 14 years of its operation. It mainly considers the requirements of Original Equipment Manufacturers to decide the softwares it wants to develop.

Mobile Eye is way ahead of its competitors in the technological advancement of ADAS systems and wants to increase the profitability of its products. It advocates the use of a single camera to integrate with softwares and chips for the incorporation of advanced technological systems in cars and trucks. In 2014, the company became public by obtaining the listing on the New York Stock Exchange with the market capitalization of $11 billions

Problem Statement

Al though the future of the company is expected to be bright, some issues exist that need to be addressed.The management of the company has to decide the ways to take advantage of their current strong market position. There are four main issues they are facing. Firstly, whether they should consider branding for their technological products. Secondly, the extent of aggressiveness with which they should pursue cutting edge technologies such as vehicle to vehicle communication. Thirdly, they have to decide the prices for their products. Finally, they have to find ways to deal with Google efforts to push forward self-driving cars.

Analysis

SWOTAnalysis

The Swot analysis considers the strengths, weaknesses, threats and opportunities for a business, allowing it to make effective decisions.

Strengths

            Mobile eye has been an innovator in the development of softwares and hardwares for the driver assistance systems. For instance, it was the first to consider camera as the primary sensor and also launched a Pedestrian Collision Warning feature in 2010. It has funds available to finance its Research and development projects. It has loyal employees who have not left for competitors for competitors since its inception. Such a dedicated workforce adds to the strength of companies. It is a leader in camera-based ADAS systems and this technology differentiate it from competitors because of its ability to support a wide variety of driver assistance functions using a single camera.

Weaknesses

            It does not work on radar systems, therefore it has to depend on Tier1 suppliers for car manufacturers which rely on multiple sensing technologies which are called fusion systems. It has a small sales force which focuses only on the aftermarket. The company may lose on potential sales, which would have been obtained if the sales force has focused on other markets of the company. The strategy for pricing seems to be unsuccessful for lower priced cars and the manufacturers are going for lower-priced cameras. The technology requires a lot of investment and time to launch. This time should be reduced to beat competitors. It has not focused on Tier 1 suppliers who are the company’s direct customers. If they do not prefer buying their products, Mobileye can lose its market share.

Threats

          This industry is high regulated as human lives are under threat if the technology produced contain flaws. Therefore, if the government rejects any software and hardware, it would cause the entire research and development expense to go wasted. Manufacturers may not purchase cameras for lower end markets of cars because the cameras priced too high for them. The company is threatened by competition. For instance, Aptina and Ominivision were conglomerates involved in the automotive industry as well as imaging solutions for a variety of markets. Besides that, Tier 1 suppliers are its competitors developing similar vision based system.Mobile Eye Case Solution

Opportunities

            There is an opportunity for mobile to work with Google to make softwares and hardwares to facilitate self-driving. Furthermore, they can target the lower end cars market segment to raise their market, but they may have to lower prices.  They may also focus on the requirements of Tier 1 customers, instead of following their traditional approach. They may move forward in the value chain by acquiring any Tier 1 company, having control over the prices of products sold to OEMs and OEMs have themselves requested them for the purpose.................

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