Harvard Case - Google Glass
"Google Glass" Harvard business case study is written by Thomas R. Eisenmann, Lauren Barley, Liz Kind. It deals with the challenges in the field of Entrepreneurship. The case study is 25 page(s) long and it was first published on : Apr 17, 2014
At Fern Fort University, we recommend that Google Glass pivot its strategy from a consumer-focused product to a niche-focused business-to-business (B2B) model, leveraging its existing technology and capabilities to cater to specific industries with high potential for value creation. This will involve a combination of product development, strategic partnerships, and targeted marketing to establish Google Glass as a valuable tool for professionals in fields like healthcare, manufacturing, and logistics.
2. Background
Google Glass, a wearable computer with augmented reality capabilities, was launched in 2013 with the ambition of revolutionizing the way people interact with technology. However, the product faced significant challenges, including high price, privacy concerns, and a lack of compelling use cases for the general public. This led to Google discontinuing the consumer version in 2015.
The case study focuses on the challenges Google Glass faced in the consumer market and explores potential avenues for its future success. The main protagonists are Google?s leadership team, tasked with navigating the product?s trajectory and finding a path to profitability.
3. Analysis of the Case Study
To understand Google Glass?s challenges and identify potential solutions, we can apply various frameworks:
a) Porter?s Five Forces:
- Threat of New Entrants: High, as the wearable technology market is relatively new and easily accessible for startups and established players.
- Bargaining Power of Buyers: High, as consumers have numerous alternatives for wearable devices and are price-sensitive.
- Bargaining Power of Suppliers: Low, as Google has access to a diverse and competitive supply chain for components.
- Threat of Substitutes: High, as various devices and applications can fulfill similar functions as Google Glass.
- Competitive Rivalry: High, with numerous players vying for market share in the wearable technology space.
b) SWOT Analysis:
Strengths:
- Advanced Technology: Google Glass boasts cutting-edge augmented reality and computing capabilities.
- Brand Recognition: Google?s strong brand reputation can provide initial traction for the product.
- Ecosystem Integration: Google?s vast ecosystem of apps and services can enhance the user experience.
Weaknesses:
- High Price: The initial price point was prohibitive for most consumers.
- Privacy Concerns: Concerns about data collection and potential misuse raised significant public resistance.
- Limited Use Cases: The initial product lacked compelling applications for the average consumer.
Opportunities:
- B2B Market: Focusing on specific industries with high potential for value creation, such as healthcare, manufacturing, and logistics.
- Product Development: Refining the product?s design, functionality, and user experience to address specific industry needs.
- Strategic Partnerships: Collaborating with industry leaders to develop tailored solutions and gain market access.
Threats:
- Competition: Intense competition from established players and emerging startups in the wearable technology space.
- Technological Advancements: Rapid technological advancements could quickly render Google Glass obsolete.
- Regulatory Landscape: Increasing regulations around data privacy and security could hinder product development and adoption.
c) Value Chain Analysis:
Google Glass?s value chain can be divided into the following primary activities:
- Research & Development: Developing and refining the product?s hardware and software.
- Manufacturing: Producing the device and its components.
- Marketing & Sales: Promoting the product and building relationships with potential customers.
- Customer Service: Providing support and troubleshooting assistance to users.
d) Business Model Innovation:
Google Glass?s initial business model focused on selling a consumer-oriented product. However, the B2B model offers a new approach, focusing on:
- Value Proposition: Providing specialized solutions for specific industry needs, enhancing productivity and efficiency.
- Customer Segment: Targeting professionals in high-value industries with a clear need for augmented reality technology.
- Channels: Establishing partnerships with industry leaders and leveraging existing distribution channels.
- Customer Relationships: Building long-term relationships with businesses and providing ongoing support.
- Revenue Streams: Implementing subscription-based models, licensing agreements, and customized solutions.
4. Recommendations
Product Development: Refine Google Glass?s design, functionality, and user experience to cater to specific industry needs. This includes:
- Improved Durability: Enhancing the device?s robustness for demanding work environments.
- Enhanced Battery Life: Extending the operating time to meet the needs of professionals.
- Specialized Applications: Developing industry-specific apps and software to address unique challenges and workflows.
- Ergonomics and Comfort: Optimizing the design for extended wear and user comfort.
Strategic Partnerships: Establish partnerships with industry leaders to develop tailored solutions and gain market access. This includes:
- Healthcare: Collaborating with hospitals and medical device manufacturers to develop solutions for remote patient monitoring, surgical assistance, and medical education.
- Manufacturing: Partnering with automotive, aerospace, and other manufacturing companies to develop solutions for assembly line optimization, quality control, and maintenance.
- Logistics: Collaborating with logistics providers to develop solutions for warehouse management, inventory tracking, and delivery optimization.
Targeted Marketing: Focus on promoting Google Glass to specific industry segments through targeted marketing campaigns, industry events, and partnerships. This includes:
- Content Marketing: Creating valuable content that showcases the benefits of Google Glass for specific industries.
- Industry Events: Participating in industry conferences and trade shows to demonstrate the product?s capabilities.
- Case Studies: Developing case studies that highlight the successful implementation of Google Glass in various industries.
Pricing Strategy: Implement a tiered pricing model based on industry segment and specific features, ensuring a competitive price point for each target market.
Organizational Structure and Design: Establish a dedicated team focused on developing and marketing Google Glass for the B2B market. This team should have expertise in specific industries and possess strong technical and business development skills.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Google?s core competencies in technology, innovation, and data analytics align well with the B2B market, where Google Glass can provide valuable solutions for improving efficiency and productivity.
- External Customers and Internal Clients: The B2B market offers a clear need for Google Glass?s capabilities, with professionals in various industries seeking to leverage augmented reality technology for improved workflows and decision-making.
- Competitors: While competition exists in the wearable technology space, focusing on niche industries with tailored solutions can provide a competitive advantage.
- Attractiveness: The B2B market offers significant growth potential, with high-value industries willing to invest in solutions that enhance productivity and efficiency.
6. Conclusion
By shifting its focus to the B2B market, Google Glass can leverage its existing technology and capabilities to create a sustainable and profitable business. By developing industry-specific solutions, forging strategic partnerships, and implementing targeted marketing strategies, Google can establish Google Glass as a valuable tool for professionals in various industries, driving growth and value creation for the company.
7. Discussion
Other alternatives include:
- Re-launching Google Glass as a consumer product: This option carries significant risks, as the initial challenges with privacy concerns and lack of compelling use cases remain unresolved.
- Selling Google Glass to another company: This option could provide short-term financial gains but would relinquish control over the product?s future development and direction.
Risks and Key Assumptions:
- Technological Advancements: Rapid advancements in augmented reality technology could render Google Glass obsolete.
- Regulatory Landscape: Increasing regulations around data privacy and security could hinder product development and adoption.
- Market Acceptance: The B2B market may not fully embrace Google Glass, requiring significant marketing efforts and partnerships to gain traction.
8. Next Steps
- Develop a detailed business plan: Define target industries, develop product specifications, and outline marketing and sales strategies.
- Establish a dedicated team: Recruit professionals with expertise in specific industries and strong technical and business development skills.
- Forge strategic partnerships: Collaborate with industry leaders to develop tailored solutions and gain market access.
- Pilot test the product: Conduct pilot programs in target industries to gather feedback and refine the product.
- Launch the product: Implement a phased rollout strategy, starting with key industry segments and expanding based on market response.
By taking these steps, Google can successfully reposition Google Glass as a valuable tool for professionals in various industries, driving growth and value creation for the company.
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Case Description
In early 2014, business development executives at Google were formulating a distribution strategy for Glass, a wearable computer that projected information on a display viewable with an upward glance. Options, which were not mutually exclusive, included 1) continuing to sell Glass directly through online channels; 2) creating an open platform to allow any eyewear manufacturer to create frames compatible with Glass; and 3) negotiating a partnership with a leading eyewear manufacturer to jointly develop and market Glass.
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