Four product/ market expansion grid stretegies
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1. Name and describe the four product/market expansion grid strategies and explain which strategy Google implemented with the Nexus One.
The four product/market expansion grid strategies are market penetration, market development, product development and diversification. Market penetration is a growth strategy that increase sales to the existing market without changing the existing product. Market development is a growth strategy that selling the existing product into new market segments. Product development is a growth strategy that sell new or modified products to the existing market. Diversification is a growth strategy where a company starting up or gaining business outside the company’s current products and markets, in other word, it is also the development of new products into new markets. The product/market expansion grid strategies which Google implemented with the Nexus One is diversification. Originally, Google’s customer range was smartphone manufacturers and the product is the Google Android operating system. In this case study, Google invented new product – Google Nexus One smartphone and they tried to penetrate into a new market (smart phone end user). However, the strategy was unsuccessful.
and the As Google invented a new smartphone (Nexus One) which trying to hit the existing market-smart phone market in the year 2010 whereby Google originally had contribute their operating system. However, this strategy was unsuccessful.
2. Explain the marketing strategy and tactic mistakes Google made when introducing the Nexus One. One of the marketing strategy and tactic mistakes which Google made when introducing the Nexus One is Google changed the way they distribute their wireless phones from the typical carrier distribution model to Web-based sales model whereby people only can only buy Nexus One through Google’s Website. Another mistake would be the lack of investment in advertising for the Nexus One and lastly it was said that Google was inadequate to handle the customer service queries which they attempt to handle their customers via e-mail instead of offering dedicated customer service support. Analyst have also stated that the phone wasn’t better than other Android phones on the market. 3. Conduct a SWOT analysis for Google Company. Your answer can be in point form. -Strength
The strength of Google Company is they accessed to the largest group of internet users worldwide. Moreover, almost all of the Google products are integrated with one and another to form an ecosystem which enhance customers’ experience. Everything Google offers is of premium quality where the products are aimed to solve the customers’ problems by providing an excellent customer experience. -Weaknesses
The weakness of Google Company is they relies on one source of income which more than 90% of Google’s revenue comes from online advertising. Another weakness is produce unprofitable products. Google introduced a large number of products and services but most of them are the burden for Google which only makes losses instead of adding value for the business. Google also often involved in patent litigations over other intellectual property and these litigations distract the company from innovating rather than litigating. -Opportunities
The opportunity of Google Company is the growing number of mobile internet users. This provides opportunity for them to create platform that could display ads for mobile device users and thus to increase the firm’s income. Another opportunity for Google Company is the driverless electronic cars. The technology of these cars could be installed in any future model. Although they have no intention to manufacture their own car, but Google’s direction is to sell their technology and IP to car manufacturers.
Google Company also face some threats which one of it is the leaking of confidential company information. This can put the future Google’s products and services at risk because the more the competitors get to know and master Google’s planning, the more the disadvantages they gain. A possible biggest threat to Google is the huge amount of money they spend to defend themselves in the court. In the year 2010, google had spent about 2 billion dollars on legal services. Lastly, the competition from Microsoft is also one of the threats to Google Company. Microsoft gains a market share in internet searches and plays an important role to against Google which took away the potential revenues from Google.
google.com. (n.d.). Google SWOT Analysis – BUS100MAwan. Retrieved from: https://sites.google.com/a/email.vccs.edu/bus100mawan/swot-analysis
Strategicmanagementinsight.com (n.d.). Google SWOT analysis 2013 | Strategic Management Insight. Retrieved from : http://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html