Download - MFSA Final Project
MFSA End Term Examination
1. Please provide your assessment whether Glass will eventually achieve commercial success or not
Ans: For this we can use the pestel analysis to understand hoe the different factor will contribute in the success or the failure of the Google glass:
Political: This will not have any immediate effect on the success of Google glass
Economical: The Google glass is a very expensive product and if Google does not find a way to reduce the prices then it will not be a commercial success. That said the Google glass is a niche product and hence a price skimming strategy is very well suited for this product until it comes to the mainstream
Social: The Google glass has many social implications because of the mixed reviews it received. The glasses are socially awkward and make people uncomfortable. Google should find out a way to make it glasses more discreet to not attract more attention
Technological: The Google glasses are an innovation and score high on the technology front. Unless someone else comes up with a way to replicate the same technology, Google will be able to benefit tremendously from this product
Environmental: Not an immediate concern Legal: The front facing camera that could take photos or videos of
people without their knowledge or permissions could have legal implications.
Overall the glass scores good in all the factors with some small challenges coming from economical and legal factors. Hence, the Google glass will be a commercial success
2. Which Distribution channel should Google use
Ans: To answer this question lets look at the pros and cons of each distribution network first
Go Direct Open platform PartnershipPros Cons Pros Cons Pros ConsGreater control over the design and technology
No competence to source the frames
The product will reach the masses, in line with Google’s philosophy
Provides the least margin from the three alternatives
Google will have considerable control over technology and quality
Reach of Google glass is limited to the reach of the partner
Highest margins of the three options. Complete control over pricing
Google has never done brick and mortar stores. Online-only model is unreliable
Lots of choices stimulate customer demand.Could earn royalties through Google glass certification
Product quality cannot be ensured in this alternative
Google can leverage on the partners competencies like robust distribution network or design capabilities
Given the above categorical advantages and disadvantages, let us now score the three distribution strategies based on the parameters that are important for the commercial success of a product
Competitive Profile Matrix (CPM)
Go Direct Open Platform Partnership
Critical Success Factors Weight Rating Score Rating Score Rating Score
Distribution networks 0.15 2 0.30 4 0.60 4 0.60
Customer Service 0.09 2 0.18 4 0.36 4 0.36
Store Locations 0.10 1 0.10 3 0.30 5 0.50
R&D 0.06 5 0.30 2 0.12 4 0.24
Financial Profit 0.20 5 1.00 1 0.20 4 0.80
Customer Loyalty 0.10 4 0.40 2 0.20 4 0.40
Product Quality 0.20 5 1.00 1 0.20 4 0.80
Price Competitiveness 0.10 2 0.20 5 0.50 2 0.20
Totals 1.00 3.48 2.48 3.90
From the above matrix it is apparent that a partnership with a major eyewear brand would lead to greater commercial success for the Google glass.
3. If Google follows the partnership path, which eyewear manufacturer should it partner with?
Competitive Profile Matrix (CPM)Luxottica Safilo Marchon Warby Parker
Critical Success Factors Weight Rating Score Rating Score Rating Score Rating ScoreCustomer Service 0.16 5 0.80 4 0.64 3 0.48 3 0.48
Store Locations 0.08 4 0.32 4 0.32 3 0.24 4 0.32
Sales 0.15 5 0.75 4 0.60 3 0.45 3 0.45
Brands 0.06 5 0.30 4 0.24 4 0.24 3 0.18
Large retail presence: More margin 0.15 5 0.75 2 0.30 2 0.30 1 0.15
Similarity to early adopters 0.10 2 0.20 2 0.20 2 0.20 5 0.50
Geographical presence 0.20 4 0.80 4 0.80 2 0.40 2 0.40
Market Share 0.10 4 0.40 4 0.40 2 0.20 1 0.10
Totals 1.00 4.02 3.50 2.51 2.58
It should partner with Luxottica because according to the CPM It has the highest score of 4.02 hence for competitive success it should partner with Luxottica.
4. Use strategic analysis Frameworks to explain how customer adoption are linked to decisions about distribution strategy and partner choices
Ans: The different Customer groups when it comes to adoption of a new product are:
Innovators Early adopters Early Majority Late Majority Laggards
The different distribution strategies that the company should follow for these are:
For Innovators use the Go direct strategy because these are really few and the company can afford to make and send to these people
For Early adopters use the same strategy For Early majority use the partnership strategy as the demand
will increase in this case and Google will not have the competency (production and distribution) to fulfill this demand
Late majority are the people that want to see other people use it before they use it. The reasons could range from high prices and no idea about technology. In this case use open source and platform
Use open source for laggards also