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Avellin’s position in the PCMO industry

1 – How do consumers purchase motor oil?

2 – Assess Avellin’s position in the PCMO industry, including consumer perception and Avellin’s distribution strategy.

3 – What is the strategic role of Eco7? How should Avellin weigh consumer interest in, and willingness to pay for, a green motor oil? Is it the right product at the right time?

4 – What is the right launch strategy for Eco7?
a. How should Eco7 be priced? What are the profit implications for wholesalers and DIFM stores?
b. How should Eco7 be distributed? What is your recommendation regarding exclusivity for Aventage stores?

Sample Solution

relies on Artificial Intelligence and the sensors that it uses. This is not the only problem. The larger, overhanging problem is that the governments are not doing anything to prevent this problem or have failed in trying. In order to provide a safe future for self-driving cars, there needs to be a couple of priorities. Federal regulation that increases the safety of self-driving cars and commands a gradual approach to the implementation of them will effectively diminish the potentially damaging setbacks of the cars. Much of the public backlash surrounding these cars is that fact that they are being forced onto the public. To give time for the public to adjust and the safety to improve, companies and government should slow down. Jack Barkenbus, a writer for the National Academy of Sciences, an organization of leading science researchers, states, “I believe a more compelling case can be made for taking a more measured and incremental approach to automation. The strongest argument for a go-slow–or at least go-slower–approach is that the public has yet to join the automation bandwagon,” (Barkenbus). If the public is more accepting of the regulation and product, the transition into a world of self-driving cars will be smoother. The public first need to have trust in the government to regulate competently, but then trust in the self-driving cars to be safe as well. Going slow will give the public time to familiarize itself with the technology while on the roads. There is also the counterargument that self-driving cars need to be implemented as soon as possible. Daniel Araya, Ph.D., a tech consultant and advisor to the government, states, “Studies suggest that AVs could save over half a million lives each decade. In addition to saving lives, self-driving cars will mean significant cost savings: Traffic accidents cost $500 billion worldwide each year,” (Araya). Although this argument may be sound in terms of the statistics, the time it would take to put these cars on the road would be immense. Also, there would be no regulation on the cars, so companies could sell first models of their cars to the public with inadequate safety standards. Yes, autonomous vehicles can save money, but to do that it would take maybe a decade to get everything in the industry correct. That is why gradual implementation is necessary. Also, the transition to a country of self-driving technology is not a small change. Jack Stilgoe expresses this effectively when he states, “It is not merely a matter of replacing a human driver with a computer. The futures on offer would involve changing the world as well as the car. The transformations will be unpredictable and intrinsically political,” (Stilgoe). Implementing the technology gradually on the roads will allow for other drivers to get a feel for being on the road with them. The world would indeed be changed, with many cities currently preparing plans for their arrival. New York City is planning to complement their transit systems with the self-driving cars (Badger). With cities already preparing for the change, the government and the car companies must make sure they go about implementation the right way. Although the world will be changed, the government still needs to work together to m
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