Pros And Cons Of Autonomous Car Consumers

I believe that the threat for substitution is big. At the beginning of autonomous car consumers are still going to have the option to by traditional cars. I believe once the price goes down for self-driving cars, traditional cars will become a thing of the past but that will take time. I believe that when autonomous cars hit the market for the average consumer the price is going to be extremely high. The average consumer is not going to be able to afford self-driving cars. It is going to take many years for the price to come down, so in the mean time consumers are still going to choose the traditional style. Also, some consumers feel that they still want control of their own vehicle and do not trust the mechanics of a self-driving vehicle. …show more content…
If one company is given out a discounted price or take less cut of the overall profit, manufactures will be more opted to go with that company. I also believe that suppliers have advantage if they have a good name or reputation. Manufactures tend to buy with a supplier who is well known and reliable. This could be a benefit for the supplier because they could charge more based on that factor. However, if there are a lot of reliable suppliers then this could be a disadvantage as well. Suppliers will have to be competitive with pricing but not be to high of a cost because manufactures will have alternative choices.
5. Porter—Buyers At the beginning consumers are not going to have bargaining power because not all companies are going to roll out self-driving cars at once. As more companies start to roll out these autonomous vehicles, pricing for self-driving vehicles is going to go down. Manufactures are going to have to come up with ways to make higher profit than their competitors. In my opinion, consumers are going to take advantage of this opportunity. If consumers are not particular on what car manufacture they purchase with, then they are going to search for the best price. This will allow consumers to bargain for discounts.
6. Speculation—what will the market look like in the next 5-10 …show more content…
I think it goes in line with airplanes, people want to be in control of their own fate. People do not want to get into a car and rely on technology to get them from point A to B. Technology is not always foul proof. Yes, humans are not always foul proof either but at least they have control and responsibility of their own lives. Overall, I think it is going to be a hard sell at the beginning of marketing because the cars are going to be overpriced as well. Average people cannot afford the price that the self-driving cars are going to be at the beginning. Until the price starts to come down, I believe that people are just going to stick with the plain old human

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