IY022 - Assessment - Group Written Report (Summer 2019)

Google Glass Relaunch

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Executive summary
The following report discusses the market potentials of Google Glass in the UK, as the company
plans on relaunching the device for the law enforcement, security agencies, detective agencies
and military personnel in the country. It has been noted that the product will face less
competition initially, and the macro environment will be favourable for the product launch.
However, it has been strongly suggested that the company invests smartly on market research
and R&D to learn more about market preferences and other market dynamics. Otherwise, the
product may not be able to attract the market as it should be.

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Table of Contents
Executive summary.........................................................................................................................2

Introduction......................................................................................................................................3

1. Strengths and weaknesses of the Company.................................................................................3

Strengths......................................................................................................................................3

Weaknesses..................................................................................................................................4

2. Opportunities and threats in the market.......................................................................................5

Opportunities...............................................................................................................................5

Threats.........................................................................................................................................5

3. Brief Market analysis...................................................................................................................5

4. Market segmentation, targeting and positioning.........................................................................6

5. Macro environmental analysis: STEEPLE Analysis...................................................................7

6. Porter’s five forces.....................................................................................................................11

7. Proposed strategy.......................................................................................................................13

8. Marketing Mix...........................................................................................................................13

Conclusion.....................................................................................................................................14

References..................................................................................................................................14

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Introduction
One of the groundbreaking innovations by Google Inc was Google Glass. It was first introduced
in 2012, but soon after that, the product was cancelled in 2015. This report presents a brief
market plan for the relaunch Google Glass targeting the market segment that includes the
military or ex-military personnel, registered detectives, and various law enforcement agencies.

1. Strengths and weaknesses of the Company

Strengths
1. The core strength of the company is that its search engine processes more than 70% of all
the internet queries, while Android powers more than 80% of the smartphones used
worldwide (Mercer, 2019).
2. Google Inc. has a global market share, which makes business expansion easier for the
company.
3. Google Glass has a first-mover advantage in the market. It has unique innovative features
with potential application in various sectors.
4. The company’s products are known for their great quality and creative features.
5. Google’s market share and growth signify its capabilities to serve the tech industry with
new products and services (Mercer, 2019).

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 Figure: Annual revenue growth of the company (Statista, 2019)

Weaknesses
90% of the company’s total revenue comes from internet advertisements, which makes it
vulnerable to the fluctuating demand of internet ads. Thus, the company’s revenues mostly come
from a single source (Betters, 2019).

2. Opportunities and threats in the market

Opportunities
1. Google Corporation has the first-mover advantage in the market with Google Glass,
which creates the opportunity to dominate the market of similar products (Terner, 2019).
2. There is a clear demand for advanced and productive devices in law enforcement and
defence agencies. Google Glass can revolutionize security, defence and law enforcement
sector by bringing more efficiency and accuracy to their tasks.
3. Google Glass can improve the transparency and accountability aspects in these sectors.

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 4. The use of Google Glass in the security, defence, law enforcement and detective agencies
will contribute to the public safety and security. Thus, there are potentials for greater
public reception of Google Glass in the UK.

Threats
1. Heavy reliance on a single revenue source could jeopardize other projects like Google
Glass, and other services (Mercer, 2019).
2. Google Glass may also face some political obstacles since some political parties in the
UK stand against the use of spying devices of any form (Terner, 2019).

3. Brief Market analysis

With the increase in criminal activities and the concerns over social security issues in the UK,
there have been several proposals to upgrade the law enforcement and military agencies in the
country so that they can perform with more efficiency and productivity (The Balance Careers,
2019). According to Shared Services Connected Limited (SSCL) report, the police department
and other agencies in the UK emphasize on the investments on cybercrime intelligence
technologies, mobile and self-service devices, big data processing technologies and other
efficiency devices. Google Glass is a device that serves relevant functions from all the above
stated. Therefore, the market demand for Google Glass can easily be created in the UK
(Uk.insight.com, 2019).

4. Market segmentation, targeting and positioning

The relaunch of Google Glass has been projected for the UK only. However, once the project has
been received successfully in the market, the company will expand its market scale by entering
into new geographic regions.

The target market customers will include the law enforcement officers/ Police officers, the
military officers, the ex-military or ex-law enforcement officers, the registered private
investigation agencies, and other security personnel. Use of Google Glass for efficient and
effective law enforcement or military activities, or security service tasks is the market goal for
the product (Uk.insight.com, 2019). The company will target the market segment and position

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the products with the guarantee of effective and efficient performance and tactical usage features,
along with its regular features.

Figure: Google Glass (Glass Almanac, 2019)

5. Macro environmental analysis:

S: Socio-cultural

The socio-cultural aspect relevant to the relaunch of Google Glass in the UK involves public
security issues, the perception towards spying devices, emphasis on social security, percentage of
various criminal activities in the society. The UK remains one of the most populated countries in
Europe. This also means that there are greater security and safety risks in the UK. According to
the latest studies, 2 out of 10 individuals in the UK have experienced crime in a single year.
There have been 4% to 8% increase in different criminal activities- starting from theft to
homicides. The threats of terrorist attacks also remain a critical concern among the public
(Market Research Reports® Inc., 2019). Therefore, the demand for upgraded and more efficient
law enforcement and security services have been a common demand in society.

E: Economic

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The UK is one of the largest economies in the world, ranking second largest in Europe in terms
of GDP. The per capita GDP of the country is above 31114GBP. The average annual growth rate
of the economy is 0.6. The inflation rates in the UK usually stays at the standard levels, and the
current rate of inflation is 2.1% (CIPD, 2019).

Figure: Historic data on the British economy (Statista, 2019)

*GDP in 2018: 2.23Trillion GBP

Other economic aspects relevant to the market entry in the UK is that the living standards or the
costs of living in the UK is also within the standard levels (Market Research Reports® Inc.,
2019). The customers have preference for tech products of high quality, which creates significant
market opportunities for the tech giants in this country.

P: Political

The UK is known for its political stability. The government is strongly committed to the
democratic values and the democratic rights of its citizens. Business investments including
foreign business investments are encouraged by the British government (Market Research
Reports® Inc., 2019). The taxes charged on the businesses and the products are very reasonable
in the UK. For example, from the year starting in 2020, the corporate taxes in the UK will be

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18% (current corporate tax is 19%). Tech products are not charged with heavy taxes and tariffs
either (GOV.UK, 2019). These will provide the business with more opportunities and scopes for
growth and development.

However, the political decision regarding Brexit has been a major concern for various business
sectors in the country. Brexit has already slowed down the economic growth in the country so
far, and further short-term impacts on the economy have been projected (Market Research
Reports® Inc., 2019).

Figure: Impact of Brexit on UK economy

But the impact of Brexit on the tech industry is hard to assess correctly. Besides, the USA has
different trade deals with the UK, and so Google Inc. is less likely to be affected by its
investments in the UK (Open Access Government, 2019).

Use of these devices usually falls under the scopes of data protection law, digital technology
laws, privacy and public security legislation and others. The company must ensure that these
legislations are kept into consideration when marketing the product. Another issue is that Google
Glass can also be used for spying purposes. The UK Surveillance Law prohibits the use of any
sort of unauthorized spying devices or practices in public (Onlinespyshop.co.uk, 2019). This is

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why it is important that the company monitors its market and makes sure that the product does
not get available to the unauthorized personnel.

6. Porter’s five forces

Threat of existing rivalry: (Intensity of threats: Zero) Interestingly, Google Glass is first and
only one of its kind so far. There are yet not any company that manufactures anything like
Google Glass. As a result, the company enjoys not only the first movers’ advantage, but also a
market monopoly in determining the price and standards (Glass Almanac, 2019).

Threats of new market entries: (Intensity of threats: Moderate) Google Inc. competes with
other tech giants such as Microsoft, Intel, Apple, Facebook, Tesla etc. Therefore, it is no doubt
that once Google Glass receives a fair market reception, there will be more companies
introducing this product with their version of features. To avoid losing the market position to the
new market entries, Google must invest more in research and development, so that the product
can be introduced without any flaws to be exploited by the competitors (Wareable, 2019).

Threat of market substitutes: (Intensity of threat: Zero) Google Glass is a unique innovation
that not only has no other competitors in the market right now, but also there are no noteworthy
substitutes for this product (Wareable, 2019).
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Buyer power (Intensity of threat: High): A major challenge for the company is to present the
products in a way so that they can have a pull effect on the market. The previous launch of the
product was failed because the buyers did not feel comfortable with it. The company should
acknowledge the needs and demands of the target customers and deliver the right products to
them to have a successful market position (Wareable, 2019).

Supplier power (Intensity of threats: Zero) Google Inc has full control over its supply
channels. Therefore, the company is not affected by the suppliers to any extent. Moreover, the
company owning the largest market share in internet technology, it will give the company a
significant competitive edge with the product, which will also run on digital technologies.
Therefore, it is evident that in terms of market competition, the product will be at a much better
position.

7. Proposed strategy
Differentiation will be at the core of the marketing strategy followed by Google Glass in its
relaunch in the UK. Differentiation strategy involves a company attempting to be unique with its
value propositions in the industry. With this strategy, the company develops distinguished
products and markets them to the target customers with unique value propositions, brand image
or designs.

In order to make Google Glass more suitable and advanced for its target customers,
differentiation strategy is the most appropriate option for Google Inc to proceed with. Unique
product features need to be added to the product to make it more sophisticated.

Furthermore, the following should be done to attain differentiation effectively;

1. Google Inc needs to acknowledge the needs and preferences of the target customers and
provide utilities to Google Glass that perfectly match these needs.
2. Investments in advanced product development should be made, and since the product is
targeted to law enforcement and military personnel, therefore, tactical features need to be
incorporated into the product.
3. Product performance should be increased to make it more dynamic.
4. Prices should be set based on the features of the product and the purchasing power of the
target customers.

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The product launch needs to be accelerated by strengthening the R&D team. Extensive market
research and R&D investments should be made to further justify the market potentials of Google
Glass, and how it can draw more market reception.

8. Marketing Mix
Product:

The stated product is Google Glass by Google Inc. This device is packed with Wi-Fi, Bluetooth,
GPS, a camera, speakers, microphone, touchpad and a gyroscope for detecting movements. It
shows Google search results on the glass, enables voice dictation and gesture control; supports
Google Now, which gives right information on right time; has other features such as voice
translating, setting virtual reminders and providing turn by turn directions (Betters, 2019).

Figure: Google Glass (HowStuffWorks, 2019)

Place:

The product will initially be relaunched in the UK, given the market demand for advanced tech
products in the law enforcement, security, detective services and military sector. The product
will be made available to the stated target customer groups all across the UK. The market
reception of the product will determine the scale and scopes of future market expansion.

Promotion:

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The product will be promoted exclusively to the target market audiences through strategies such
as direct selling, social media marketing (targeted), and email newsletters. The company will
also place demonstrate Google Glass in the tech fair to get it promoted. For instance, London
based Tech expos such as RegTech Expo Canary Wharf, IoT Tech Expo Global 2020, London
Tech Week Events etc would be ideal for the promotion and marketing of Google Glass. The
potential customer groups can be informed about the events and expo presentations through
email newsletters and social media messages. Since the target customers of the product are not
general customers, therefore, TV commercials or Newspaper ads would not be needed.

Price:

Premium pricing strategy will be followed in the marketing of the product. Premium pricing
involves charging high based on the quality of the product. Premium pricing will also emphasis
on the value and exclusivity of the product in the tech market. By definition, “a company usually
uses a premium pricing strategy to establish its product as a high-quality product in the minds of
consumers”. To attain differentiation, the company needs to emphasis on the quality of the
product and keep the target customers in consideration. Google Glass will not be made available
for the general customers, but it will be marketed for the law enforcement officers, ex-law
enforcement officers, military personnel and for the professional detectives. Quality, durability
and functionality are important for these customers than the price of the products. Therefore,
premium pricing strategy will be a justified business decision.

Conclusion
Given the market demand in the particular market segment, almost non-existent market
competition, and the favourable macro-environmental factors, the market potentials for Google
Glass are well evident. The company however, needs to ensure that the market is well
understood and the market demand is successfully created, as they relaunch the product in the
UK. This will further open up the opportunities to expand the scopes and scale of the market in
the near future.

References
Baines, P., Fill, C., Rosengren, S. and Antonetti, P. (2018). Marketing.

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Betters, E. (2019). Google Glass: A brief history. [online] Pocket-lint. Available at:
https://www.pocket-lint.com/ar-vr/news/google/132399-google-glass-a-brief-history
[Accessed 20 May 2019].

CIPD. (2019). PESTLE Analysis | Factsheets | CIPD. [online] Available at:

https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-
factsheet [Accessed 21 May 2019].

Ellis, K. (2019). Crime in England and Wales - Office for National Statistics. [online]
Ons.gov.uk. Available at:
https://www.ons.gov.uk/peoplepopulationandcommunity/crimeandjustice/bulletins/crimeine
nglandandwales/yearendingjune2018 [Accessed 20 May 2019].

Etzel, M., Walker, B. and Stanton, W. (2007). Marketing. New York: McGraw-Hill.

Glass Almanac. (2019). The History of Google Glass - Glass Almanac. [online] Available at:
http://glassalmanac.com/history-google-glass/ [Accessed 20 May 2019].

HowStuffWorks. (2019). How Google Glass Works. [online] Available at:

https://electronics.howstuffworks.com/gadgets/other-gadgets/project-glass1.htm [Accessed
20 May 2019].

Market Research Reports® Inc. (2019). United Kingdom. [online] Available at:

https://www.marketresearchreports.com/countries/united-kingdom [Accessed 20 May
2019].

Mercer, E. (2019). Google's Industry Analysis. [online] Bizfluent. Available at:

https://bizfluent.com/13654226/googles-industry-analysis [Accessed 21 May 2019].

Open Access Government. (2019). UK police want funding for crime-fighting technology.
[online] Available at: https://www.openaccessgovernment.org/crime-fighting-
technology/58720/ [Accessed 20 May 2019].

Statista. (2019). Alphabet: global annual revenue 2018 | Statistic. [online] Available at:
https://www.statista.com/statistics/507742/alphabet-annual-global-revenue/ [Accessed 20
May 2019].

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Terner, J. (2019). Google SWOT Analysis 2019 | SWOT analysis of Google | Business Strategy
Hub. [online] Business Strategy Hub. Available at: https://bstrategyhub.com/swot-analysis-
of-google-2019-google-swot-analysis/ [Accessed 20 May 2019].

The Balance Careers. (2019). Learn How Today's Technology Will Transform Tomorrow's
Police. [online] Available at: https://www.thebalancecareers.com/technologies-that-are-
changing-the-way-police-do-business-974549 [Accessed 20 May 2019].

Uk.insight.com. (2019). How are New Technologies Transforming the Police Force? | Insight
UK. [online] Available at: https://www.uk.insight.com/en-gb/learn/articles/2018-09-28-
how-are-new-technologies-transforming-the-police-force [Accessed 20 May 2019].

Wareable. (2019). The patented history and future of… Google Glass. [online] Available at:
https://www.wareable.com/features/the-patented-history-and-future-of-google-glass-656
[Accessed 20 May 2019].

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