Google Glass Innovation - Concept and Vision - Case Study Example

Google Glass Innovation (2013) Name Course Tutor Date Google Glass Innovation (2013) Table of Contents Google Glass Innovation (2013) 2 Table of Contents 2 1.0 Introduction 3 2.0 Concept and Vision 3 3.0 Market Analysis 4 4.0 Customers and Customer Development 6 5.0 Competition and Positioning 7 6.0 Business Model and Go-to-Market Philosophy 8 7.0 Conclusion 9 8.0 References 9 1.0 Introduction Basadur & Gelade (2006, p.47) claim in awake of that competition, innovation is recognized as a driver of change and success in every sector of the economy. Moultrie & Young (2009, p.300) claim the societal needs and doing things the same way cannot be used to attract customers. Owing to this, organizations have to reinforce or inculcate innovation culture within its system and differentiate products and make them more appealing (Thomas, John & Joseph, 2010). Google Inc has made its latest innovation Google Glass. Therefore, this report will assess market opportunity available for Google Glass Innovation. The aim will be achieved through evaluating the concept and vision of the innovation, carrying out market analysis, customers and customer development, discussing competition and positioning, business model and Go-to-Market Philosophy and identifying present opportunities in the market. Figure 1: Google Glass 2.0 Concept and Vision With the emergence of sophisticated smartphones, computers have moved from the desktops into people’s pockets (Albanesius, 2012). Today, technology company Google is considering that technology consumers will welcome the new idea of putting on technology devices on their faces which can be regarded as Internet-connected eyewears. This latest device created by Google Company referred to as Glass and takes the shape sunglasses without the lenses. The latest models have the shape of swimming goggles having cellphones mounted on them. A computer which provides power to the Glass is connected to the glasses frame arm, which has a microphone, front camera and a touch pad. Wi-Fi or Bluetooth link on smartphone is used to connect the Glass to the Internet (Mann, 2012, p.10). What makes the current model better is that it is slim and weighs similarly to sunglasses. Various factors inspired the Google Company to develop the glass including providing a platform for teaching online classes, to be worn during firefighting exercise, can be used in driverless cars and in medical field in carrying of lab research (Coldewey, 2013). Some organizations have since integrated Google Glass within their systems and continue to successfully operate with it. On the other hand, numerous companies are currently testing the device to see its effectiveness. For instance, Virgin Atlantic Airlines Company tested the Glass for a period of six weeks and received positive review from customers (Glauser, 2013, p.1). The Google Company assured its consumers that they are developing a locking system which will secure the device. 3.0 Market Analysis For technology savvy consumers, Google glass can just become the next big thing in technology industry. In fact, a new market research on Google Glass sales claims that workforce who applies wearable device indicate 8.5 improvements and efficiency at work, including a 3.56 improvement in the job satisfaction (Mann, 2012, p.11). For operations managers, the recent technology advancements become a natural evolution to apply wearable within the organization. The Glass project was first introduced in 2011 and released to the public for testing in 2013 at an expensive price worth $1500 (Naughton, 2013). Google has already launched Glass Development kit which the company believes can establish itself in particular specialized niches and progressively become a major product. With this product, early adopters have been able to use it for scientific exploration, photography and medical training. Google Company considers Google Glass will be able to capture a bigger market share of the technology industry and is projected to be worth $16 billion by 2018 in the US (Naughton, 2013). The first sales as of this wearable hit 200,000 in early 2013 and rose to 1.65 million in the late 2013; this represent an increase of 700 percent. Research conducted by Canalys projects that its products will hit 8 million yearly exports in 2014, rising to over 21 million unit sales by 2018 (see figure 2) (Rhodan, 2014). Rhodan (2014) went ahead to state that other companies that have predicted the growth is Deloitte which anticipate robust customer demand for these smart glasses and worldwide embracement reaching “exceeding 80 million by 2020. Figure 2: Google Glass sales projections 4.0 Customers and Customer Development Google Company will target a wide range of consumers but mainly in the age of 25‐50yrs who hold higher interest in business, research, adventure, security and car rally sports. Currently, Google Glass is also futuristic to attract wide and youthful audience. This generation is widely obsessed with technology in their daily operation, be it in school, class or at work. Most of them are in the age of 25 years and could be working and also pursuing further education. The company intends to form partnership with Ray-Ban Company in which they can target average level consumers. Ray-Ban Company is a strong and established brand making trendy designs which are appealing to young adult’s market (Rhodan, 2014). This is where Google Inc would want to target with its Google Glass. Medical field has become one of the most important target market for the Google Glass due increase in research. For example, this device has been used healthcare sector in the UK. In late 2013, a London based mobile healthcare provider, Medopad showcased at CeBIT conference in 2014 how it incorporated the Google Glass into its health record system (Farr, 2014). The institution is using this gadget to store patient records, check details of patients, sharing between doctors on the surgery results and taking picture and recording videos (see figure 3). Figure 3: Google Glass as applied in a healthcare institution 5.0 Competition and Positioning As the century unfolds, wearable device is being populated with companies venturing into such products. Coldewey (2013) posits that Google is posed to do well with Google Glass, but will face stiff competition from electronics produces such as Samsung and Apple showing their intention to get enter this product category. According to Naughton (2013) in 2013, Credit Suisse report recognized wearable technology as on ripe opportunities for massive growth after hitting “a nuance point in embracement”. Google Glass is now established and available to consumers after launch in 2013 but faces Samsung’s “Gear Glass” which will be launched during the yearly IFA electronics show which will take place in 2015 in Berlin (Albanesius, 2012). Google Glass has a more competitive advantage because this device can be used with other Google applications for free. Some of the applications that one can be accessed by Google Glass include Google Maps, Google Now, Gmail and Google+ (Naughton, 2013). Today, Google Company is positioning its product Google Glass as the biggest technology device ahead of smartphones, partially by offering faster and easier information access. Glass could yet become to be a huge customer success. For the moment, Google company’s choices of marketing its new device are to get to win the heart of consumers to use its exciting products which is applicable in a wide range of areas. Also, its functionalities and high quality make Google Company to position glass as a premium pricing product. Thomas, John & Joseph (2011) even though some have complained majority of the target market are appreciating the device are willing to buy it because of quality and value proposition. The company sells Google glass at $1500. Kotabe & Helsen (2010) argue that this pricing brings perception to customers that the company makes outstanding products with new experience. 6.0 Business Model and Go-to-Market Philosophy Normally, Google Inc has three well defined business models including consumer offering consumer device, business software and consumer services. Obviously, Google Glass was founded on the basis of improving consumer device provision and to maximize the business potential. Google makes its business unique by differentiating its products from other market players (Madden, Fehle & Fournier, 2006). For many years, sunglasses have been here with us but nobody had ever thought it can be connected to an internet or be used for, driving cars with the driver, taking picture and recording videos. Goldman (2012) asserts that Google has moved in to make this dream a reality through aligning its business model, innovation and differentiation. The new invention, Google Glass also complements the company objectives because consumers are able to access the internet and Google applications such Google+, Google Drive and Gmail among others (Albanesius, 2012). Through this innovation, target and value, the company has developed go-to-market strategy which will steer it to greater heights. Premium pricing is also a go-to-market strategy which communicates a message that the product is of high quality and provides value for money. The product is unique and can be used effectively in various fields, hence has wide range of target market. This functionality provides several opportunities for Google Glass. Miller (2013) contends that the device can be use in institutions of higher learning, healthcare institutions, information management, business travels and in driverless cars. 7.0 Conclusion The research has found out that Google Glass has several opportunities which Google Company can capitalize including security, healthcare institutions, and institutions of higher learning, business travels and driverless cars among others. Currently, Google Company is enjoying market dominance with its new innovation, Google Glass. However, the news within the technological industry reveals that competition will be getting stiff with the arrival of Samsung’s wearable device, Gear Glass. Also, Nokia and Apple have shown interest in this market segment. Therefore, Google Inc must always continue improving this device by adding outstanding features to differentiate its products from upcoming ones. 8.0 References Albanesius, C. (2012). Google 'Project Glass' Replaces the Smartphone With Glasses. PC Magazine. Basadur, M & Gelade, G.A. (2006). The Role of Knowledge Management in the Innovation Process, Creativity & Innovation Management Vol.15, No.1, pp. 45-62. Coldewey, D. (2013). Google Glass to launch this year for under $1,500. NBC News.com. Farr, C. (2014). Startup launches 'first wearable health record' for Google Glass. Reuters. Glauser, W. (2013). Doctors among early adopters of Google Glass. Canadian Medical Association Journal, pp.1-2. Goldman, D. (2012). Google unveils 'Project Glass' virtual-reality glasses. Money (CNN). Kotabe, M., & Helsen, K. (2010). Global marketing management (5 ed.).Hoboken, N.J:John Wiley & Sons, Inc. Mann, S. (2012). GlassEyes: The Theory of EyeTap Digital Eye Glass. IEEE Technology and Society, (Institute of Electrical and Electronics Engineers), 31(3), 10–14. Madden, T.J., Fehle, F & Fournier, S.M. (2006). Brands Matter: An Empirical Demonstration of the Creation of Shareholder Value through Brands. Journal of the Academy of Marketing Science, Vol. 34, No. 2, pp. 224 Miller, C.C. (2013). Google Searches for Style. The New York Times. Moultrie, J. & Young, A. (2009). Exploratory study of organizational creativity in creative organizations, Organizational Creativity in Creative Organizations, Vol.18, No.4, pp.299- 313. Naughton, J. (2013). Google Glass? You have to applaud their vision. The Guardian. Thomas, N., John H., & Joseph Z. (2010). The Strategy and Tactics of Pricing: A Guide to Growing More Profitably. Prentice Hall Journal. Rhodan, M. (2014). Google Glass Getting Ray Ban, Oakley Versions. Time. Read More