Intel Company Strategy Justification Paper Use your learning to lay out the rationale for the concept, including the problem or opportunity it addresses, t

Intel Company Strategy Justification Paper Use your learning to lay out the rationale for the concept, including the problem or opportunity it addresses, the market for the product or service, and the key features that set it apart from the competition. You should also discuss how the concept fits with the mission, vision, and priorities of the company implementing it and how or why it is innovative. Running head: GPS NAVIGATION
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GPS Navigation
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Executive Summary
One of the most effective markets for the windshield GPS navigator developed by Intel is
AAA Cooper Transportation (ACT). ACT is among the top 100 delivery companies in the
country and as a result offers a ready market for the new product. ACT is dedicated towards
maximizing customer value and enhancing on-time performance. Thus, the company will be
more willing to adapt the new product in order to maximize its operations. Ensuring the safety of
the driver and the merchandise is the other feature in the company. Through the GPA navigation,
the drivers can travel without contacting strangers which delays the journey and increases the
chances of being attacked by thieves. The journey is also smooth as the driver will be making a
stop at the specified points which means the merchandise will not be disturbed and increases the
chances of getting to the owner in good shape. Values such as honesty and integrity are
maintained as the drivers do not have time to stop on the way and interfere with the merchandise
as they have to keep time as indicated by the company. Further, this product is integral to the
company as it aligns with the company’s core values and competencies. Hence, the
implementation of the windshield GPS navigator will give the company a competitive advantage
over its competitors. Measuring the success of the implementation of the virtual GPS is vital to
the business. The result of the evaluation will indicate whether or not the company should
continue financing the project and deduce an exit plan. As a result, the business needs to utilize
success evaluation measures such as Return on Investment, actions of competitors, drivers’
responses and reactions, as well as Reviewing Sales Numbers to evaluate the product’s success.
These performance measures will provide useful insights on the success of the new navigators in
meeting the customer’s needs. Additionally, in order to examine the success of the new product,
it is important to introduce feedback loops. Effective feedbacks include customer metrics,
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surveys, interviews, customer support, feedback forums, employee feedback, and Churn
Surveys. The feedback from these channels will help in making informed decisions on
areas of the new product that need to be improved.
Context
Defining Features
AAA Cooper Transportation (ACT) is a leading trucking company that offers less
than truckload shipping services across the country and in other parts of the world such as
Canada, Mexico, US Virgin Islands, and Puerto Rico. As a transportation company that
offers Port, Dedicated, and International transportation services, ACT drivers travel to
various destinations that require guidance in order to ensure they get to their destinations
on time and without delays. While the use of GPS on mobile phones effectively guards
the drivers in the transport path, the use of GPS on mobile devices often distracts drivers
from staying focused on the road. As a result, the implementation of Virtual GPS
navigator embedded on the trucks’ windshields to form a virtual image will be effective
in keeping the drivers focused on the road without the need to constantly check their
phones GPS. The virtual GPS navigator will offer the drivers conveniences due to its ease
of use since it’s embedded on the screen and at the same time keep the drivers safe on the
road. Thus, the introduction of this new idea is imperative for the company.
Currently, GPS navigator in the car company is installed on the phone of the
drivers. The drivers are required to use the phone to access Google maps when they are
driving, and that creates a risk when driving. Using the phone when driving causes
distractions and it has been associated with accidents for a long time. However, GPS
navigation has been used in the organization for, and it has increased the rate at which the
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drivers can reach to their destinations. The drivers do not get lost, and they do not have to consult
with strangers on the road concerning the direction they should take to reach a certain area (Park,
Lee, Yoon & Kim, 2016). The mission statement of the company is delivering goods to the
customers within the minimum time and ensuring that the merchandise is in good shape. The
GRP navigation has helped achieve this as the drivers are directed to the destination without
wasting time.
New Idea
The GPS navigation on the phone has proven to be dangerous for the drivers as it
increases the chances of causing accidents. The new idea is about the location of the GPS
navigator which will be moved from the phone to the windshield of the vehicle. The driver will
be getting a virtual image on the windshield which is convenient and safer. The driver will not be
looked to shift their attention from the road, as they will be looking ahead while same time
reading the windshield results. Since the driver will not be distracted, the chances of causing
accidents will have been reduced. The virtual image will also be showing the driver on where
they are located on the road, the journey ahead as well as the length of time required to get to the
destination.
The new GPS on the windshield of the car is an existing brand, but it will be improved.
The car company already had the GPS navigator, but the app was on the phone of the drivers.
However, to make the service easily assessable and safer, it will be embedded on the vehicle
windshield. Marketing the improved product will be easier since the company drivers and the
consumers are already aware of the existence of the GPS navigator (Sánchez, Melendi, Pozueco,
Pañeda, & García, 2017). The clients are aware of how it has helped reduce time wastage during
the delivery process, increased safety as theft cases have been reduced but increased the rates of
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accidents due to driver disruption. The added advantages of the windshield GPS will be
discussed during the marketing process. The customers will be shown the benefit of the
windshield GPS over the existing phone GPS navigator. That will convince them to try
the new product.
The effectiveness of the Branding Efforts
ATC developed the new virtual windshield navigator as a new business
opportunity to offer transportation companies a way of enhancing the efficiency of their
vehicles. ACT is one of the leading transportations that provides truckload shipping
services across the country. ACT has achieved a lot success in its branding efforts in the
past. The first step was for ATC to create brand awareness among the consumers in order
to establish a meaningful brand. ATC employed the ingredient branding that entails
promoting a brand within the company brand to the end users. The branding strategy
attained a lot of success as it differentiated the company products from those of
competitors and as a result ACT was able to maintain its lead position in the market.
There are numerous factors that contributed to the success of the Ingredient Branding. In
order for the company to create awareness of the brand, advertisement of the ‘ATC’
brand was critical.
The ACT has been involved in several efforts to brand their GPS navigator.
Content creation was the initial effort, where the company came up with its app on GPS
location. The app would be installed in smartphones, and it would guide drivers when
delivering the company goods. Promotion was the next effort, where the GPS was
introduced in the market and advertising in the newspaper, television and internet
platforms were done, encouraging car users to try the app. The difference from the
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competitors was indicated as a way of showing how the GPS navigator was unique and should be
the choice of every driver (Agostini, Filippini, &Nosella, 2015). The car company conducted
copywriting regularly, where they communicated clearly and effectively to the potential
customers on the importance of having the GPS navigator on their phones and emotions were
evoked as a way of appealing to the customers.
Improving the product was the last effort, where the GPS navigation was transferred from
the phone to the vehicle windshield. In that way, the issue of taking time to unlock the phone to
access the navigator or lack of a smartphone which has the app is addressed. In addition, the
problem of road accidents is reduced. The improved GPS navigator does not require the driver to
shift their attention. They concentrate on the wheel and the road and same time the windscreen is
showing the direction that should be taken, which promotes road safety.
Need
Target Market
The target market for Intel’s virtual GPS navigator on the windshield is the ACT truck
transport system which uses trucks for long distance shipping of goods. The truck drivers carry
products for long distances such as the airports or from the harbor to the destination. In most
cases, the drivers are not aware of the exact place or location they are expected to take the
products. They have to keep on stopping on the way and consulting strangers on where the area
is. However, if the truck companies were to have GPS installed on the vehicles, the number of
times the drivers interact with strangers will be reduced. The decision-making authority will
affect the purchasing as the leaders in the truck companies have to establish the advantage of the
product and how it will benefit the business by reducing road accidents and theft (Lin, 2015).
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The purchasing power will determine if a truck company is willing to invest the indicated
amount of money on the GPS navigator.
Some psychographic attributes may also affect purchasing power. Lifestyle, for
instance, will make some truck company purchase the windshield navigator as it is
associated with a rich, sophisticated and lifestyle of a learned driver. Attitudes and
interests will also affect, where some individuals may consider the GPS locator on the
screen as being excess or allowing technology to influence the life of a person
excessively. Therefore, the old generation may not have interesting in purchasing the
product, while younger drivers may be fascinated by the windshield GPS locator.
Meeting the Need of the Target Market
A need constitutes of something that someone requires to survive or accomplish a
task. A want on the other hand is a desire that is often to satisfy a want (Baker, 2016). For
example, ACT requires its truck companies to be in good shape in order for the company
to succeed. Considering the relevance of the virtual GPS navigator to the company, the
new product is a need since the company requires enhancing the safety and efficiency of
its drivers on the road in order to remain competitive. Currently, GPS navigators on
phones pose a major threat to the safety of the drivers as they often get distracted that
increases the chances of being involved in an accident. As a result, ACT needs the
windshield GPS navigator in order to keep their drivers focused on the road.
The new GPS locator has several characteristics which will be appealing to the
new market. The maps will be offline which means the drivers will not be required to
purchase cellular data for the connection purposes. Acquiring the mobile data would be
an added cost the users of the GPS would be required to incur. GPS can be operated in
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two ways. There is the voice-by-voice guide, where the driver will ask questions such as where
they should turn or the road to use, and the GPS will also respond using a voice (Jose, Lee,
&Billinghurst, 2016). The driver can prefer a map, directing where they should turn, and it also
displays the road showing the kilometers required to reach the destination. The cities and
landscapes are shown in 3 D dimension, which makes it easier for the user to establish where
they are without getting confused.
The GPS voice guide uses more than forty languages which mean that despite the
background of the driver, they can use the product. In addition, if the driver does not understand
English, they can switch to a language they understand better. The GPS is able to display the
speed limit and even get an audio warning. It is essential as one will get a warning when they
have reached the speed limit, and it will help avoid issues with the traffic police officers. The
locator has an SOS indicating where the driver can get assistance nearest if need be, such as a
hospital or a police station. Route editing is possible when using the GPS locator, for instance, if
the destination has been changed, the driver can change the map to give the new location
indicated.
Best Strategy Choice
The truck transport business is the best choice for the success of the product. In most
cases, the drivers are middle-aged men who have an average level of education. Such individuals
require guidance on everything such as where they should turn, especially when they are entirely
unaware of where they are transporting the merchandise. The voice guide characteristics will be
the best for the drivers, where they will be told the road lane they should use, where they should
turn right or left, or warning when they have exceeded the speed limit. In addition, the drivers
will be able to choose the language they are most conversant with, considering that the
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windshield navigator has about forty languages. The drivers will be able to use the
product to carry out their work effectively according to the company laws.
The truck transport business makes profits depending on the number of trips they
make, without destroying the good they are carrying. However, there are lots of dangers
faced during transport. The drivers may be disrupted in the process, and they end up
committing accidents. The loss will be to the company due to the delay of transporting
the good, paying for any merchandise that was destroyed and paying the insurance
company (Stinchcombe, Gagnon, Kateb, Curtis, Porter, Polgar, & Bedard, 2017). Cases
of theft have also been witnessed, where the drivers interact with strangers asking on the
direction to the destination. The number of times the drivers stops on the way to ask for
guidance is also a loss to the company. All these factors require the truck transport
business to install the new GPS navigator on their vehicles. In that way, the drivers are
guided throughout the trip, will reach on time to the destination and deliver the goods
without being interfered with, which is an advantage to the company.
Pricing
Fixed and Variable Costs
The installation fee is fixed, and it is 250 dollars. The prices of the services
required vary from 250 dollars to over 1000 dollars depending on the system the
customer needs which means they are variable. The cost will fit in the long-term and
short-term objectives of the company because it is cost-friendly which means that it is
affordable. In addition, it will promote safety, and the company is aware that the
merchandise will not get lost on the way or drivers make accidents due to distraction as
they will be concentrating on the screen. The entire implementation cost is as follow:
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Systems
Cost ($)
Labor (fixed)
250
Dash board and system (variable)
850
Total
1100
Cost in Target Market
The cost of implementing the virtual GPS navigators in the trucks will range between 650
dollars to 1000 dollars. The car company will be able to make the installations considering that
the fixed cost is only for the labor. The other requirements such as the dashboard and offline
internet connection vary depending on the needs of the customers. There are cheaper dash
dashboards which are determined by the size and the internet connection also ranges in price
depending on how fast the customer wants it to run. Therefore, despite the budge of the
customer, as long as it is from 650 dollars, then the company will make the installation. Some
competitors are able to offer the implementation with about 640 dollars, and others go as high as
1200 dollars, thus making the market accommodating.
Target Customers Willingness
The target market is willing and able to pay for the cost of implementing the new GPS
navigator with the cost ranging from 650 dollars to 1000 dollars. Based on the company’s total
revenue, which was $665,000 as of 2017, the company will be willing to pay for the installation
of the GPS navigator (AAA Cooper Transportation, 2019). The company’s revenue has
increased over the past five and estimated to increase in the near future. As a result, the company
has the financial strength to purchase the new navigator. Additionally, the company is also
willing to pay for the virtual windshield GPS navigator. The company has already tried the
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phone navigator, and they have established the disadvantages of the system. The new
product will be presenting the company with superior characteristics; those which will
help improve their operations. The company will even be able to hire drivers from
different language backgrounds and without the knowledge of all locations around the
country as they will be guided by the navigators, as long as the drivers are qualified and
competent at their work. The issue of lack of enough drivers due to lack of location
knowledge will this be addressed. The cost of the new GPS will depend on the economy,
which means it will be a bit higher than what the company was previously paying.
Therefore, it will be affordable, and the advantages will make the company want to
purchase the navigator.
Preferences
The introduction of windshield GPS navigator in the ACT truckers will result in
notable increase in the cost of transporting products that will be translated to the higher
costs of hiring the ACT trucks on the side of the customers. In other words, with the
advanced windshield GPS navigator, the company will increase the cost of transporters
and as a result the customers will have to pay more in order for the company to recover
the costs incurred in purchasing and implementing the new technology. One of the
primary reasons why customers opt for ACT truckers over transportation services of
other competitors is the efficiency of the company in delivering products in time and
without damaging the customer goods (AAA Cooper Transportation, 2019). As a result,
since the new GPS navigator is intended to minimize the cases of drivers getting lost and
cases of drivers being involved in accidents that affect the efficiency of the company in
transporting customer products, the customers will be willing to incur the extra costs.
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Lack of accidents and incidents of drivers getting lost will ensure the customers get their
products in a timely manner and in good shape. Hence, since the windshield navigator meets the
customer preferences, the customers will be willing to pay for the new navigator. The customers
will also be able to purchase the ACT transportation since the company customers seek
reliability and efficiency when it comes to delivery of their products. In 2018, ACT was awarded
the Quest for Quality award in the South-Central regional LTL carriers’ category. The company
was rated on: Value, On-time Performance, Information and Technology, Customer Service, and
Equipment and Operations (AAA Cooper Transportation, 2019). Considering the company’s
reputation, the customers will be able to purchase the new product.
Pricing Strategy
Economy pricing will be the best pricing strategy that should be used in the business. The
GPS already exists in the market only that the customers have to upgrade it (Nagle & Müller,
2017). To encourage the potential consumer to shift the old phone GPS locator to the new GPS
windshield navigator, low prices will be assigned to the product, and it will be based on the
production cost. When the production cost is high, the rates will be adjusted to higher and then
the cost lower, the …
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