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