Diefebach,D+strategy+report

Diefenbach, D

TO: Proximity Mobile Team FROM: David Diefenbach DATE: March 1, 2010 SUBJECT:Google Nexus One Strategy Analysis

Here is my strategy analysis for the Proximity mobile team on the smartphone known at Google's Nexus One. Although there are numerous smartphones that are at the top of the market today, Google attempts to be number one in the eyes of consumers. However, Google faces pricing issues, as they release the Nexus one in a very unstable and low market. Its only hope is to outshine its competitors.


 * Profile**:

The Nexus One is an extremely versatile smartphone, using the Android open source mobile operating service. This phone is manufactured by the HTC Corporation, the High Tech Computer Corporation, originally manufacturing Microsoft's Window Media software based phones. The Company decreased its focus on Microsoft's software and headed in the direction of the Androids systems. On January 5, 2010, HTC released it's Nexus One smartphone using the Androids operating services. The Nexus Ones phone features include the ability to transcribe voice to text, noise canceling dual microphones,and voice directions while driving. Google is currently using T-mobile as their primary service providers,however, there are different versions of the Nexus One in development for both Verizon in the US and Vodafone in Europe.


 * Competitive Landscape:**

One of Google's main competitors when it comes to smartphones, is Apples Iphone with its primary service provider AT&T. Google has sold 80,000 of the Nexus One handsets after one month on the market, a disappointing figure for a phone that was intended to outshine and outsell its competitor the Iphone. Since consumers must be locked into a 2 year contract when purchasing a phone of their choice, they tend to lean more to the Iphone for its large application capacity and cheaper price. However, its competitor starting price is $199 without contract and $99 with one. Buyers of the iPhone over the past years can't even consider the Nexus One without incurring hefty early termination fees or paying up a full $529 for the unsubsidized model.


 * Nexus Ones Strategy:**

The Nexus One's features include: Other features include a light sensor, proximity sensor and an accelerometer, as well as GPS and WiFi. An enhanced Android 2.1 software, providing its consumers with live, interactive wallpapers, and new weather and news widget and new ways to view photos. The company added voice commands to all applications on the phone that have text input fields, meaning that users can dictate email and send out tweets on Twitter. Additionally, users can ask to navigate to a point of interest via a voice command, and then the Google Maps Navigation application will deliver spoken turn-by-turn directions. The company also added Google Earth to the phone. The Nexus One is Google's attempt to beat its competitors in its software upgrade, Android application store, business use, and its sleek, easy to use design. Google is also providing a Googel-hosted Web store to allow its consumers to purchase the phone and its accessories online. The Nexus One provides a updated software in order to compete with the Iphone's application capacity. Selling an unsubsidized model starting at $529 without a contract enables first time users the chance to purchase the phone alone. However, it can be purchased at $179 with a contract through T-Mobile. Point being, that although the Nexus Ones competitors specialize in applications, Google is providing a web based mobile device that has altered the way consumers access information online.
 * 11.5mm thin,
 * Runs on Android 2.1 software
 * wi1 GHz Qualcomm Snapdragon processor
 * A 3.7-inch amolded touchscreen display
 * 5-megapixel camera with LED flash.


 * Gen-Y Implications:**

The biggest dispute regarding the consumption of the Nexus One is whether it even comes close to its competitor the Iphone. Nexus One has an updated Android 2.1 software that allows the phone to run smoother and have a larger application capacity. However, in all attempts to outsell Iphone, it ceases to do so. Googles new phone is priced high in a low market. Iphone buyers are staying with their two year contract simply because its cost efficient. The only consumers of the Nexus One at this point are those who purchased smartphones as they were new and their two year contract has ended. Therefore, Google is faced with the decision of decreasing the initial price of the phone in order to comply with consumers needs, ultimately losing profit. They are faced with a troubling issue that will either make or break the Nexus One.

Munarriz, Rick Aristotle .(January 6, 2010). Why Nexus One May Become Nexus Done.//The Motley Fool.// Retrieved from http://www.fool.com/investing/high-growth/2010/01/06/why-nexus-one-might-become-nexus-done.aspx
 * References:**

Haras, Mark. (February 8, 2010). Google's Nexus One sales slow with cheaper competition on the way.//Broadband Genie.// Retrieved from http://mobile.broadbandgenie.co.uk/broadband-news/googles-nexus-one-sales-slow = =