What kind of advantage would you evaluate mobileye

Reference no: EM133706770

Question: Consider the following from the case: Aviram firmly believed in what he called "disruptive strategic pricing". On one hand, Mobileye had relatively little direct competition. With its technological lead, Aviram believed that he could easily charge $100.00 on average for the chip and software. Since analysts estimated that the chips cost roughly 10-13 to produce and software added zero variable cost, the margins would be extraordinarily high, especially for the auto industry. On the other hand, a 100.00 price would translate into about 500 added cost to the consumer, which would limit end-user demand and OEM adoption. In terms of common performance pricing. What kind of advantage would you evaluate MobilEye?

Reference no: EM133706770

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