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Question a: What are the problems that you can find from the case study?

The shortage of truck drivers. High demand of cargo result in insufficient drivers to complete
all the deliveries. Especially in the US, requirement/law to become truck driver is high due to
the special license involved. Due to the low wages, qualified drivers do not stay long in a
single company but will try to look for better opportunities. Less capacity especially during
peak season when there is a lot of demand. Under-utilised capacity - truck are not able to be
utilised fully.
Low production. The gaming industry might be becoming much more competitive.
Autonomous technology for private car is difficult due to the unpredictability of travel
pattern. Lack of on confidence in the technology provider.
Lack of experience. In the U.S. has been driving up freight costs, and this is one of the direct
causes of the growing potential demand for AI self-driving trucks in the U.S. The U.S. freight
trucking market is severely impacted by the driver shortage, and with the ELD (electronic
logging device) regulations coming into effect on Dec. 12 of this year, the situation does not
appear to be improving going forward. Today, the industry is already seeing a shortage of
50,000 drivers, and if this trend continues, that number could balloon to 174,000 by 2026.
While industry leaders are pushing truckers and freight companies to embrace these
regulations and move on, many do not. Fred Falkema, vice president of compliance at Zonar
Systems, believes that as many as 16 percent of current truckers will leave the trucking
industry with the new regulations.
Nvidia’s strategy to diversify its business into the automotive industry has been stopped and
delayed by Tesla. Tesla was once a major customer for Nvidia’s automotive chip, and this
gave feedback, information, and opportunity for Nvidia’s to improve its automotive chip.
Compared to gaming graphic chips, automotive chips require a lot of data to carry out
machine learning and further development of the chips to make them more intelligent. In this
case, Tesla is relatively more established in the automotive car industry, and it is also
constantly collecting data from its customers which is very essential to develop the
automotive chips. Although Nvidia has collaborated with other companies like Volkswagen,
Mercedes-Benz, and Toyota, losing the business with Tesla will delay Nvidia's development
of automotive chips and diversification.

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