In the article, “Technology Takes the Wheel,” Aaron M. Kessler is summarizing Valeo’s (French Company) proposal to revolutionize the car industry. Valeo is proposing a program for a car that does not require human interaction—“the driverless car”. “Driverless valet parking” would be a catalyst feature promoting Valeo’s product. Through the push of a button on a smartphone your car will be able to park itself using sensors communicated with systems that monitor each parking space. The “driverless car,” is also proposing eye recognition software, which will detect the pattern of eye movements as you are driving. If the sensor senses you are fatigued it may use a navigator to locate the nearest coffee store, or take complete control of the car. This technological revolution is intended to provide “greater comfort and relaxation” while reducing the number of motor-vehicle accidents.

Nevertheless, how is this article business related? Taking Porter’s generic strategies into consideration, Valeo is demonstrating a differentiation strategy as they are intending to revolutionize the car industry. The “driverless car” is taking a relatively standard concept of technology within automobiles, and altering it as a unique product targeting an entire industry. However, in order for a differentiation strategy to be successful: the firm must have an access to leading scientific research, highly skilled development team, strong sales, and a reputable corporate background. The aspect of Valeo’s company which will be their achilles heel will be a reputable corporate background. As, Valeo is not a global figure yet it will be difficult for consumers to fully trust the company that has yet to prove themselves.

In conclusion, Valeo proposed a “driverless car” in order to reduce total automobile accidents and allow a driver comfort and relaxation. In the business realm, this market strategy is called a differentiation strategy. Valeo is producing a unique product that will target the entire automotive industry by 2020. It will be interesting to follow Valeo and the automobile industry and see whether the “driverless car” will prosper or fail and if it does succeed will the industry change forever?

This Youtube link demonstrates the Valeo driver-less parking prototype.

https://www.youtube.com/watch?v=u5eK1dCuSk4

Source Used:

Kessler, Aaron M. “Technology Takes the Wheel.” The New York Time 5 Oct. 2014: 
     n. pag. Print. 

http://www.nytimes.com/2014/10/06/business/technology-takes-the-wheel.html?_r=0