Google Nexus One Strategy

952 Words4 Pages
Case Study 1
Darren Loy Pi Siang
TE02 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.
The Market Penetration strategy is when a company is introducing a new product into the market that has similarities to current products in the market. One of the most effective ways to use this strategy is to encourage their current customers to continue buying their products, to win over customers that are from the competitor’s side and to encourage people who have never used their products to start using it.
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The only way for consumers to acquire a Nexus One was to buy one directly from Google’s website. The reason Google did that was to generate more revenue through direct sales rather than sell the phones through retailers and carrier networks. This was a risk however, as it was inconvenient and expensive for consumers to buy a phone separate from their own phone carrier services. As a result, sales for the Nexus One were horrible. Consumers would rather get a package deal from their carrier network than having to first buy a phone from Google’s website, and then having to get carrier services separately. Therefore, using a Web-based sales model to sell the Nexus One was one of the mistakes that Google made when introducing the Nexus One.
Another mistake that Google made when introducing the Nexus One would be that Google did not advertise much for the Nexus One. Since Google was already not using carrier networks to sell their phone, most consumers did not know about the Nexus One. Only consumers who follow Google’s news would know about them launching their new product. With not much people knowing about the Nexus One, it was almost certain that Google would not do well in sales. Thus, it was a tactical mistake to invest little in advertising when introducing the Nexus One.
Lastly, Google used email to handle customer service queries rather than dedicated customer-service support. With bad customer service, reviews for the Nexus One were terrible as well.
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