Self-driving cars are highly topical and much research is done in this field by leading international technology companies and car manufacturers. Google and Apple are both likely to launch a self-driving car in a few years and compete in being the first to develop the required technology. This paper reveals two entirely different strategies to establish self-driving cars by comparing the two technology giants’ way of bringing a car into the market.
The technology required for driverless cars includes a computer software specifically developed for self-driving, sensors consisting of lasers, radars and cameras to indentify objects in all directions, electric batteries, back-up systems taking over the driver’s tasks and a car shape that does not interfere with the sensors’ field of view. There is still much research to be done in this field, but it is quite sure that driverless cars will work in a few years.
For this purpose, the firms’ resources are analysed with the help of the resource-based view. Then, this paper derives the different company strategies and applies them to the self-driving car projects of Google and Apple.
Table of Contents
1 Introduction
2 Analytical Framework: The Resource-Based View
3 Analysis of Apple
3.1 The Resource-Based View Applied to Apple
3.2 Apple’s Strategy for Establishing a Self-Driving Car
4 Analysis of Google
4.1 The Resource-Based View Applied to Google
4.1 Google’s Strategy for Establishing a Self-Driving Car
5 Conclusion
Research Objectives and Core Themes
This paper aims to investigate and compare the distinct strategic approaches of Apple and Google regarding their entry into the emerging self-driving car market. By utilizing the Resource-Based View (RBV) as a primary analytical framework, the study evaluates how each company leverages its unique internal assets and organizational capabilities to gain a competitive advantage in this new sector.
- Application of the Resource-Based View (RBV) to technology giants.
- Evaluation of internal resources such as brand reputation, infrastructure, and innovation culture.
- Comparison of Apple’s product-focused strategy versus Google’s data-driven, service-oriented model.
- Strategic considerations regarding partnerships versus vertical integration in the automotive industry.
Excerpt from the Book
3.1 The Resource-Based View Applied to Apple
Before analysing Google and Apple’s resources in detail, it is necessary to take a closer look at resource heterogeneity and immobility in the technology industry. Only when resources are heterogeneous and relatively immobile, the resource-based view can be applied. In the technology industry resources are definitely heterogeneous: technology giants like Samsung, Apple and Google all have different assets and corporate strategies. Samsung and Apple both produce mobile phones, but Samsung sells rather low-priced phones, because it lacks the positive brand image Apple profits from. Apple offers phones in the upper price segment which are considered to be symbols of status (iPhone Hacks, 2013). Nevertheless, Samsung has a higher market share than Apple and an excellent process intelligence (IDC, 2016). Both firms are not able to obtain its competitors’ resources, at least not in the short term. This proves that resources in the technology industry are heterogeneous and immobile.
Apple belongs to one of the most successful international companies and generates extremely high revenues each year. Analysing Apple’s resources requires a closer look at its products and business strategy. Apple is a technology company offering both hardware and software. The hardware product range includes iPhone, iPad, iPod and Mac, the software product range contains iOS for iPhone and iPad and OS X for Mac (Apple Annual Report 2015, here and in the following). Therefore, Apple’s different product categories are compatible with each other and fulfil the company’s goal to offer seamless integration and high usability for the customer. The focus lies, however, on Apple’s hardware products manufactured by outsourcing partners located in Asia (Annual Report 2015, p. 6). The company states that its business strategy is based on Apple’s “unique ability to design” (p. 1) and potential to design innovative products. Apple aims at attracting and retaining customers and invests heavy sums in research and development in order to develop new products and technologies ($ 8,067 million in 2015, cf. p. 28).
Summary of Chapters
1 Introduction: Provides an overview of the topical nature of self-driving cars and introduces the competitive landscape between Apple and Google.
2 Analytical Framework: The Resource-Based View: Defines the RBV theoretical framework and explains criteria such as value, rareness, and imitability for sustained competitive advantage.
3 Analysis of Apple: Examines Apple’s internal resources, focusing on its design capabilities and brand loyalty to deduce its strategy for an autonomous vehicle.
4 Analysis of Google: Analyzes Google’s infrastructure and data-centric assets to evaluate its service-oriented strategic approach toward self-driving technology.
5 Conclusion: Summarizes the key findings and suggests that while Apple focuses on hardware design and brand positioning, Google leverages data and partnerships.
Keywords
Self-Driving Cars, Apple, Google, Resource-Based View, Strategic Management, Competitive Advantage, Innovation, Technology Infrastructure, Brand Reputation, Customer Loyalty, Data-Driven, Automotive Industry, Digital Strategy, Market Positioning, Corporate Resources
Frequently Asked Questions
What is the primary focus of this research paper?
The paper focuses on comparing the strategies of technology giants Apple and Google as they develop and establish their presence in the self-driving car market.
What are the core thematic fields covered?
The study covers strategic management, resource analysis, technology infrastructure, brand positioning, and the competitive dynamics between hardware-centric and software-centric business models.
What is the main research question or goal?
The goal is to determine how each company utilizes its unique set of resources to gain a sustainable competitive advantage when entering the new industry of autonomous vehicles.
Which scientific methodology is employed?
The author uses the Resource-Based View (RBV) of the firm to identify and analyze internal company strengths, such as unique capabilities and assets, to explain potential corporate strategies.
What topics are discussed in the main body?
The main body contains an analysis of Apple’s design and brand-heavy strategy, and Google’s data, infrastructure, and partnership-driven strategy, supported by relevant industry reports and performance data.
Which keywords best characterize this work?
Key terms include Self-Driving Cars, Resource-Based View, Competitive Advantage, Digital Strategy, and Corporate Innovation.
Why does the author argue that Google should cooperate with partners?
Because Google is a software and data specialist rather than a hardware manufacturer, it is more efficient for the company to leverage existing automotive expertise rather than building its own manufacturing infrastructure.
How does Apple’s approach to the car project differ from Google's?
Apple focuses on creating a status-symbol product aimed at private ownership, whereas Google targets the innovation of the transportation system, focusing on services and data collection rather than selling individual cars.
- Citation du texte
- Christina Hennemann (Auteur), 2016, Google vs. Apple. Comparing Different Strategies to Establishing Self-Driving Cars, Munich, GRIN Verlag, https://www.grin.com/document/367564
