Solution 1
The automotive industry has been impermeable for a last century. Although automotive industry
has evolved with technological break throughs over the long period of time, but the evolution has
been slow which did not result in a huge paradigm shift. The incumbents have enjoyed special
relations with suppliers, brand image that consumers love, enormous budgets and large number
assets and resources such as factories, work force and R&D. All these have barriers to entry for
any startup.
Over the years where several startups have failed to compete with incumbents with the advent of
internet, personal computers and smartphones the population has grown more tech savvy. The
market is ripe for adapting ideas such has electric cars, autonomous cars, car sharing, data
processing, communication, navigation and parking assist just to name a few.
Not only the tech used in cars are being diversified but the startups are springing up with lot of
venture capital funding. The founding teams mostly consist of master or doctorate in electrical or
computer engineering folks rather than seasoned entrepreneurs with background in automobiles.
This new breed of entrepreneurs possess plethora of ideas which are in from of patents and
published research ready to transformed automotive industry.
As the automobile industry is evolving into electric vehicle platform, the generation of digital
data of cars will (volume) increase rapidly with the advent of new sensor equipment and internet
communications capability. Furthermore, with increasing trend towards Autonomous
automobiles there will be immediate need for processing data created by vehicle, it will be
critical that the data be processed without any delay (real time /speed) with onboard on the
vehicle. A new market niche or structure is created, and the auto industry is expanding into
multiple dimensions rapidly.
Solution 2
Christensen’s definition of disruption relates to new technology that a company invest in which
may not interest its customers and could result in its downfall. He repeatedly gives examples that
a company’s demise is result of its focus on disruptive technologies which may not interest most
of its customers. He also suggests sustaining or incremental technologies help making existing
products better. The new dominant design in the automotive industry: shared, digital, and self-
driving can very well disrupt the automobile industry.
The shared mobility can affect car sales for incumbents, taxi owners and rental car agencies. As
