Question

Samsung is spending $8 billion to try to gain an edge on other big tech companies that are piling into autos.

What do you think about Samsung's decision to invest in cars?

Answer 1

During the last decade, the advancement in production and management systems has revolutionized the automobile industry. The industry has witnessed the opening up and growth of several emerging markets. Key long-term trends are underway in the automobile industry. There will be major transformation over the next decade. Technology is significantly advancing for vehicles. We are likely to see an increasing amount of electric vehicles on road. The five main trends that will mainly transform the automobile industry are electrified, autonomous, shared, connected and yearly updated.

Companies like Apple and Google have already stepped into the industry. The car industry is going to be absolutely much more competitive. In such a scenerio, the decision of Samsung to enter into the automobile industry, can be said to be a most needed decision. The important thing is that Samsung has to aspirations to build its own cars. Instead, its efforts are focused on a software and hardware based open platform, designed to make Samsung a 'go-to partner' for manufacturers who want to develop autonomous cars. The company is spending billions on the creation of the framework for an autonomous driving platform and is investing in companies building innovative autonomous systems. The idea of the open platform is that the manufacturers can customise or enhance it as they choose, and that it can grow and build as autonomous technology develops. The idea of Samsung as a technology company is so exciting to car manufacturers that they are ready to explore the given option. What Samsung is doing in the automobile industry is bringing that breadth of capability, both in terms of engineering prowess and sheer manufacturing capabilities. Accordingly it can be said that Samsung's decision to invest in cars is appropriate.