Collaboration between Honda and Alphabet

https://www.wsj.com/articles/honda-chases-silicon-valley-with-new-artificial-intelligence-center-1488275341

Honda collaborate with Alphabet to chase Silicon Valley with new artificial-intelligence center. According to the article, we can infer that this is a strategic alliance with shared research. Subsequent analysis would be based on Honda’s perspective.

Strength:

1. Honda can obtain the software-focused skill from Alphabet that they lack quickly.

2. By combining its superb hardware technology and the software-focused skill, Honda would gain rapid development.

3. It can keep up with the latest technology trend in car----self-driving cars.

4. It can learn a lot from a first-class silicon valley company.

5. Honda can transform into a comprehensive company that leads in both hardware and software, which brings competitive advantage when compared to other Japanese firms that only focus on hardware.

6. It can be more flexible and save more money due to the researches done together can lower the cost and risk at the same time.

Weakness:

1. Google is also under research and development of self-driving cars. They may steal the hardware skill from Honda.

2. Alphabet’s research purpose on self-driving cars focuses on chasing the frontier of technologies. However, the purpose of Honda’s research focuses on practical commercializable usage. There’s a gap between their vision. High-tech car may not be a good car that sells well in today’s vehicle market.