Introducing radar sensors on independent aftermarket : identification of possible business model

Abstract

The basic function of radar sensor in vehicles is to detect obstacles and measure their distances and relative speed. In automotive industry, driver assistance systems contain radar sensors with attached electronic control unit equipped with the software. In the case of even small car crash, radar sensors are most exposed vehicle parts. Currently, in case of replacement two possibilities are available: calibration of existing radar sensor, if sensors were not damaged, and replacing the existing sensor and accompanying calibration in the case when sensors were damaged. Both options are only available in official dealer network of original equipment manufacturers (OEM) and customers do not have a choice even they are not obligated to visit OEM-s dealer network due to expired vehicle guarantee. In this monopoly case, the price, which OEM-s dealer charges for calibration or replacement, is not competitive. The focus of this manuscript is on necessary resources, actions, and conditions for introducing radar on independent aftermarket (IAM) by Bosch. In addition, this thesis encompasses evaluation of accompanying equipment and investments for Bosch car dealers, with all costs and obstacles, also as market potential analysis. Business Model Canvas was selected, among others, as a main tool for introducing radar sensor on independent aftermarket. Business Model Canvas consists of nine roadblocks and these roadblocks are put in order and explain how a company intends to make revenue stream. Each of nine roadblocks are carefully elaborated and final points were written on canvas. With Business Model Canvas, the idea of introducing radar sensor is presented on structured way, which is easily understandable for management and decision-making. The final goal of gathering experiences in one place and creating a big picture was achieved. The aftermarket potential for radar sensor is still not huge, but the growth rate is high. The major advantage of having radar sensors on independent aftermarket is price. Potential customers like insurances and leasing companies will search independent aftermarket alternatives. On other hand, the major obstacle to have radar sensors on independent aftermarket is resolving question of intellectual property right and afterwards developing diagnostic equipment.