The Google Car: Driving Toward A Better Future?

Abstract

Google’s dramatic ascent and subsequent domination in the past fifteen years of the technology and information industries has financially enabled Google to explore seemingly unrelated projects ranging from Google Mail to the Google Car. In particular, Google has invested a significant amount of resources in the Google Car, an integrated system that allows for the driverless operation of a vehicle. While initial reports indicate that the Google Car driverless automobile will be more safe and efficient than current vehicles, the Google Car is not without its critics. In particular, the existential threat that the car presents to several large industries, including the insurance, health care and construction industries, creates an additional challenge to the success of the Google Car well beyond the standard competitive threats from other established car manufacturers in the automobile industry, which begs the question, “Can the Google Car be successful?” With so many challenges above and beyond the competitive forces typically threatening long-term profitability, will the Google Car be able to create and sustain a competitive advantage for Google in the driverless car space?