DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL CHANGE INDUSTRIES AND STRATEGY

1. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Strategic Management
Submitted by
Nauman Hussaini

2. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Executive Summary
These days, many pioneers in the transportation industry are about to roll out their self-
driving autonomous cars. For instance, Tesla is logging over a million miles of autonomous
driving each day in Pittsburg, PA, and Ford will start manufacturing autonomous ride sharing
vehicles next year. Thus, many industries will face change, including the healthcare sector. The
success of this innovation is deemed as a part of the blue ocean and disruptive strategies (Team,
2020).

3. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Introduction
Autonomous vehicles are also known as Automated Driving systems or ADS. They are
the new age vehicles that do not require any manual conductor or teleoperation control. They are
deemed as an upcoming disruptive change for the current transportation sector. This is a known
fact that the idea of Automation vehicles or AV is not new, and with time, humankind has made
some substantial advances in this sector (Frazzoli et al., 2002).
However, currently, the transportation industry is going through some fundamental
changes, and automation vehicles are struggling to find a good market position. Moreover, this
new age will bring a significant setback for the traditional transportation industry and perhaps
revamp the economic, social, and other aspects of this business (Attias, & Bonnardel, 2016).
Nowadays, companies like Uber and Tesla are already on the verge of rolling out new
Autonomous vehicles. This fast-paced innovation will have a massive impact on a plethora of
other industries, including healthcare. For instance, if an Uber type of autonomous driving is
introduced in the healthcare system, it may potentially disrupt the entire healthcare market in
ways that were not considered before (Walker, 2016).

4. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Autonomous Vehicles in Healthcare
Automation in vehicles is part of the artificial intelligence (AI) arena. It is a known fact
that AI has always been a crucial factor for the healthcare sector advancement, and the
combination of artificial intelligence and autonomous vehicles can be essential for the healthcare
industry in several ways, including:
Increasing occupant and vehicle safety
According to the data provided by US Nation Highway Traffic Safety Administration
(NHTSA), approximately 94% of vehicle crashes happen due to human error. Thus, with
automated vehicles, such accidents will be avoided, and there will be an increased occupant
safety. According to Kim and Mauborgne's Eliminate- Reduce-Raise- Create Grid, this will
reduce the increasing threat of accidents due to human error and ensure public safety (NHTSA,
2015).
Health monitoring
Automated vehicles will provide health monitoring facilities, and in times of a crisis like
the COVID 19 pandemic, it will reduce the risk of virus transfer. Thus, with the cars' biosensors,
the vehicles will monitor vital signs and symptoms of the passenger and store that data in the
cloud. It will create a new opportunity for the healthcare system to generate real-time patient
feedback and monitor vulnerable patients' health. (Fard, 2019) & (Fleetwood, 2017)

5. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Efficient Emergency Response
With the automated vehicles and quick response time, it will be easier for the doctors to
monitor their patients and send help if needed. Secondly, if ambulances are driven automatically,
it will be an 'all hand on deck situation,' where the patient will benefit from a faster response time
and get vital care early on. However, jobs like ambulance drivers will diminish and will get
eliminated over time (Kim, & Mauborgne, 2020).
Mobility for individuals with disabilities and seniors
According to the Journal of the American Medical Association, on average, over 3.6
million Americans are unable to make it to their healthcare appointments due to transportation-
related issues. Patients who are seniors or are unable to drive due to a disability suffer the most.
These individuals will not have to suffer, which will lead to a rise in preventive care, which will
reduce the burden on emergency care services (Syed et al., 2013).
Blue Ocean Strategy
The vehicle automation industry is meant to create new demand and taps on elements like
reducing human intervention, decrease accidents due to human error, and streamline various
essential services. This includes the need for ambulance drivers or increased capacity in the
emergency rooms. Moreover, it is also meant to revamp the shared driving experience for all.
The elements like acquiring a driving license, driver's liability, or driver's insurance and control
will eventually diminish and then disappear. This creation of a new market and value innovation
are essential parts of the blue ocean strategy, and therefore, autonomous driving technology is a
blue ocean strategy (Gandia et al., 2017) & (Kim, & Mauborgne, 2004).

6. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Thus, the blue ocean strategy leads to long term investments to ensure sustainable growth
and profit and makes its competitors completely irrelevant. This is simply because innovations
like autonomous vehicles are new and belong to an untapped business segment, leading to value
innovation. For instance, due to the new demand, the AV is instrumental in revamping other
industries like the Health care sector. Hence, now, the 'rules of the game' are redefined (Kim, &
Mauborgne, 2004).
Disruptive Strategy
This is a known fact that innovation leads to a competitive advantage by creating a new
market or increasing participation in the existing party, and in the case of disruptive innovation,
the products or services introduced are meant to create an appeal for new customers. Meaning,
technologies such as Autonomous vehicles are meant to achieve growth by disrupting the general
notion and creating a brand-new value proposition and taps into an unmet need. For instance, the
need for automated vehicles to ensure the senior population or vulnerable population gets
preventive care is a solution that was previously not considered (Christensen et al., 2003).
Conclusion
In the past, autonomous vehicles were considered imaginary, something that we used to see
in the movies. However, today, the notion of such cars is becoming a reality, and it is becoming
both a disruptive and blue ocean strategy. In terms of the growth model, these vehicles have
managed to develop a new market, and by tapping into various sectors of this innovative
technology, this product has a diverse portfolio to provide multiple solutions and meet an
untapped need.

7. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
Recommendation
The railroad industry did not stop growing because customer need was fulfilled by cars
and buses but because the rail industry failed to fulfill that need. Industries have to think in
broader terms and must not fall for myopia (Levitt, 2004). Businesses must consider a holistic
picture and broaden their horizon by continually innovating to stay put in the industry.

8. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
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9. Running head: DRIVING THE FUTURE: HOW AUTONOMOUS VEHICLES WILL
CHANGE INDUSTRIES AND STRATEGY
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