Kennedy+Stradgey+Report

TO: Proximity mobile team FROM: McGregor Kennedy DATE: Feburary 23, 2010 SUBJECT: Nexus One strategy analysis

With Google’s recent release of the Nexus One into the mobile market, many analysts believe this phone has potential to become a top competitor alongside the iPhone. However, if it is going to become a top model, It must incorporate features that top the already existing features of the iPhone while providing enough customer support to resolve issues.

Google is am internet based service provider who specializes in internet search technologies. The company was founded by Larry Paige and Sergey Brim in 1998. It wasn’t until 2004 that Google made their IPO. Google’s initial goal was “to organize the world’s information and make it universally accessible and useful”. Currently Eric Schmidt serves as their CEO at their location in Mountain View California.
 * Profile**

Google’s major revenue stem from advertisement with the breakdown as follows;

-99% revenues from online advertising. -1% revenues from licensing and other

Since the release of the Nexus One on January 5th, there have been complaints; Poor connectivity inside their 3G network, a lack of customer service, and unreliable applications to spot a few. If Google could address the current problems with their phone, there is a chance to see an increase in revenues unrelated to advertising. (Gustin, 2010)

The issue the Nexus One faces is that there are many similar competitors who have already established their name. Many Smartphone’s on the market already incorporate all the features users look for along with their own applications. Another issue is the price of a carrier’s plans.
 * Competitive Landscape**

Apple’s iPhone has had a successful run thus far; it incorporates many standard features while adding Apples trademark items such as iTunes and their application store. RIM’s Blackberry also does a good job of adding originality with their Blackberry Messenger (BBM) system. It is unclear what direction this landscape will go, but it is apparent people are looking for new technology to be incorporated.