Google Glass Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Google Glass Case

Introduction

The paper attempts to focus on the key issues faced by Google X for its Google Glass. The paper also aims at providing recommendations and analysis on key issues for Google Glass. Lastly, the paper presents arguments in support of the recommendations and also highlights the reasons for rejecting other alternatives of marketing the Google Glass.

Key Issues

The key issues have been listed below:

Google shall continue selling Google Glass directly to the market
Google shall adopt a strategy of ‘open platform’ in which any eyeglass frame manufacturer can develop Glass products.
Google can indulge in partnership with eyewear manufacturers.
I recommend that Google X shall pursue with the third option in which the company shall indulge in a partnership with an eyewear manufacturing company and settle the deal terms upon which Google X agree with its partner.
I also recommend that Google X shall partner with the eyewear giant Luxottica for initial 3 years to understand the nature of growth and the sales for Google Glass.
I also recommend thatif sales and growth are in favor of Google X then it shall increase the contract for 10 years.
Google shall pursue with a goal that it has to cater every single individual who wears eyeglasses and contact lenses and for that, the company shall lower its profit margins and sell it at an affordable price partnering with Luxottica.
I recommend that Google shall collect royalties from Luxottica on the basis of 10% of net sales, but can reduce this ratio when the product starts to full growth after 3 years of the contract.
The marketing support from Google shall be given at 10% of net sales at the initial stage of contract but can reduce at a later stage.

Recommendations

Analysis/Logic

Arguments in Support of Recommendations

Partnering with Eyewear Manufacturing Company

Google shall partner with an eyewear manufacturing company because it has to cater to the larger market and Google needs someone that can develop the Glass products and as well as market them. As the market research data reveal that 98% of eyewear products are sold through retail outlets, whereas, Google had the expertise of selling online eyewear product which only constitute 2% of the entire sales of eyewear products.

Limited Years Contract

Google shall make Luxottica as their partners because they are the giants in manufacturing eyewear products. However, Google shall focus on undertaking limited year contract of 3 years and shall decipher the growth nature of Google Glass because there has been many negative reviews regarding the product and other public safety problems.

Mass Customization

As Google X received many negative reviews regarding the frames of the product, it is necessary that the company shall develop frames according to the needs of individuals because as the data suggest people wear prescription glasses 15 hours a day. Therefore, the company shall target every individual who wears glasses.

Royalties from Partners

The royalties from Luxottica shall be collected on the basis of net sales because as the data suggests that Luxottica had net sales of €7.3 billion in 2013. Therefore, Google shall ask for 10% of net sales and shall reduce at a later stage as this strategy would entice Luxottica to put more emphasis on selling Glass if they need the royalties to decrease.

Marketing Support

Google shall provide marketing support on the basis of net sales. At initial stages the company shall provide 10% of net sales in marketing support in order to develop consumer awareness, but at the later stage the company shall reduce marketing support ratio.

Rejecting other Alternatives

Continue Selling Google Glass Directly

The reason for rejecting this particular option is because Google is currently selling its Glass products through online channels which comprises about 2% of the market. Many negative reviews were received by the company because they failed to focus on engineering the product according to each individual’s comfort and ease of use.

Open Platform Strategy

The idea for open platform strategy did appeal Google at first but then the company realized that this option would not be suitable at the initial stage because of the ‘wait and see’ attitude of the eyewear frame manufacturers. Google Glass has yet to prove the mass market demand, therefore it has to work with the giants to get its product successful instead of partnering with the retailers and eyewear frame manufacturers.

Conclusion

Google X is the company to manufacture Glass products and it faces three distribution options to market the particular product. Either the company shall continue to directly market the product, shall develop an open platform strategy....................

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