Industries such as airlines, auto manufacturing, railroads, and delivery services would face a severe crisis.
Imagine that a new product becomes available to the public tomorrow—a personal transportation device that can move individuals or cargo from place to place instantly (just like Star Trek). Industries such as airlines, auto manufacturing, railroads, and delivery services would face a severe crisis. What advice would you give the firms in those industries? What strategies should they pursue, and why?
This is an example of the existing transportation companies going obsolete. This is a chaotic situation for these companies. These companies would need to make an analysis of the financial implications of the new device. If the new device is less expensive, then these companies should look at ways they can integrate it in their existing systems. If it is not getting integrated, these companies have to make the tough decision of selling their existing assets and look for new setups. This would not come free of financial and economic costs.
If the new device is much more expensive then these companies need to focus on researches that could offer them innovative solutions. These companies would need to come together and focus on Research and Design in finding ways for them to go ahead.