Long gone is the era of steering wheels, stick shifts, pedals, and manual driving. It is officially the era of the self-driving car.

California assigned the first self-driving car permits not long ago (according to the Wall Street Journal). Of the three companies who applied, Google, Audi, and Daimler AG Mercedes-Benz, Google was awarded 25 test permits while the others received only two. This doesn’t come as a surprise, as Google’s driverless cars have been running successfully for ages, especially in the generation of Google Maps.

I believe that Google has a clear competitive advantage with a low degree of rivalry in the autonomous car business.

1. Google is the dominant supplier in the industry. They are a distinctive brand selling a very innovative product.
2. Google is targeting a new group of buyers that traditional automobile corporations ignore: the young, seniors, and handicapped.
3. There are no viable substitutes as there is currently no competition.
4. There are high entry costs barriers, especially the intellectual knowledge, high fixed costs, and specific assets required for production.

The advancement and progress made on self-driving cars is a brilliant move, and with these low-rivalry dynamics, there is no doubt Google will flourish in the industry.