Muhammad Usman

S2019021017
SMM Final Exam
MBA(E)
Question 1: Briefly apply 5 C’s on this case?

5 C’s of Marketing:
The 5 C’s of marketing includes company, collaborators, customer, competitors, and climate. By
evaluation of these aspects of any business, the high level view of business can be achieved. This
model is mostly used for situation analysis technique that marketers use for making business
decisions. This is most popular model because of its effectiveness and excellent choice for the
small to medium business enterprises. The following is the analysis of blue ocean strategy:

1.1. Company:
The company has been offering automobiles in market. Selling car is well known business and it
has been advancing itself with advancement of science and technology. The product named
autonomous vehicle is different in technology. The product has multiple features that make it
different from others. This vehicle is automatic that does not usually need human help.

1.2. Collaborators:
This section covers the collaborating companies that who are the financers and suppliers. The
collaborators include Google that maintains the technological advancement. The US army has
been supplying the spare parts. Initially the financers will be the companies working with us and
moreover the loan will be taken from bank.

1.3. Customers:
The most important part of any business is customers because they are the one that buy your
products and it gives strong sense of needs. Customer analysis is one of the best ways to learn
about the product and business. The target audience of this product is people with high income
people. The segmentation used for this is psychographic and demographic segmentation. In
terms of psychographic; people with the mindset of comfort and technology are those which are
target by this company. Demographic means targeting people with high income.

1.4. Competitors:
As per the list mentioned in case study, the main competitors for this business will be BMW,
Mercedes, Lexus, and Honda. The AV have competitive advantage that is low cost.

1.5. Climate:
The following product is environment friendly as it consumes less or fuel and emits less carbon
monoxide that helps to make environment good. Moreover, it is different from other cars like it
is operated with battery that does not mostly need fuel.
Muhammad Usman
S2019021017
SMM Final Exam
MBA(E)

Question 2: Apply Porter 5 Forces on Autonomous Vehicle Industry? (5 Lines Only)

Porter five Forces:

Following are the five forces to determine that how this product will perform in market.

Threat to new entrants: this point is low. the following product is basically on risk so it will
keep the potential threat to low.

Threat of Rivalry: this product in market will be new so there will be very low competitors and
the threat will be low.

Threat of substitute: this point states that autonomous car bounds the by speed limits and roads.
This threat is moderate.

Bargaining Power of customer: this is new technology and the dealership may want to promote
their product by offering some better prices so this section is moderate.

Bargaining Power of suppliers: this section is low as the supplier for thee following product is
Google that is fairly robust and well established network.

Question 3: Choose Autonomous Vehicle industry and briefly explain your idea using
Kim & Mauborgne’s Eliminate-Reduce-Raise-Create Grid? (Draw Grid +)

Eliminate Raise

1 - Need to be driven around by a human

being.
2 - Conventional warfares. US started this in
2001 right at the time they started war on
terror. This shows they want to reduce the
casualties incurred while transporting machine,
drones, ammunitions, food supplies, etc.
Reduce
1 - The amount of Data will increase resulting an
increase in the number of Data related jobs
(Analytics, Warehousing, Managing, etc).
2 - Demand of cloud computing platforms.
3 - An increase in maintenance costs as the
sensors cannot spot the minor driving issues.
Create

1 - Use of fuel.
2 - Pollution and it's affect on global warming.
3 - The number of low wage white collar jobs.
No one needs a driver when the car can drive
on it's own.
4 - The overall cost of vehicle(s) maintenance
for one house hold.
1 - A benchmark for new technological
milestones to be made.
2 - Eco friendly and economical vehicles.
3 - A new dimension for marketers to get
customer insights.
Muhammad Usman
S2019021017
SMM Final Exam
MBA(E)

Question 4: Apply Value Innovation Model? (Diagram + Brief Explanation) (Half Page
Only)

Value Innovation Model:

The value can be created on different levels i.e; for users, organizations, societies and ecosystem.
An innovation basically provides value to an organization or product offered by company that
generates profit and improves the core values of organization. This novel was developed for
evaluating innovations proposals at four levels and from all perspectives. The transformational
innovation is expected to create value in order to a success. The first level is connected to how
the innovation can create the value of product to people. Price initiation links new innovations
that mean the number of buyers. To appreciate innovation, companies should ask two questions:
(1) Do we offer consumers the highest price? (2) Is our price level affordable for most consumers
in our target market? High-growth companies understand that offering a new or superior product
or service at a price most consumers will not be able to afford is like laying an egg for other
companies to invest in.

The product of company that is innovation in technology cannot be successful unless the
customer or consumer uses the product continuously and extends the usage time period of
product.

In terms of the case study this innovation model can be implemented differently. This company
will produce fewer numbers of automobiles. This is totally different idea to present a car that is
self driving and low cost. It changes the entire experience of driving. This product on its release
will be the cash cow of market as it will in demand because now a days people want technology
and reliability. This era is the time of technology and robotics.

Question 5: Is autonomous driving technology a blue ocean opportunity? Why or why

not? (Half Page Only)

Blue Ocean Opportunity:

The blue ocean strategy is basically the simultaneous pursuit of low cost and differentiation to
open new product or market space and create demand for it. This is totally based on market study
and how to capture the customer. Basically ocean strategy is regarding making the competition
irrelevant and breaks the value cost off.
Muhammad Usman
S2019021017
SMM Final Exam
MBA(E)
In terms of case study, the blue ocean strategy is an opportunity that it will provide the product
with extensive market study and cost efficiency techniques. The estimated automobile industry
of AV’s has predicted to have the sales of other cars to decrease by 40 %. This new product will
offer the customers with reliable and low cost travelling with automated functions. According to
the stats that if there is self driving taxi then traditional vehicles will be replaced by 8%. once the
research is fully completed and the car is commercially available, its cost of production can be
lowered in accordance with Moore’s Law. In addition, autonomous car maximizes fuel
efficiency, which offers an incentive for customers to pick this product.