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TO: Proximity Mobile Team FROM: Aaron Goldberg DATE: March 1, 2010 SUBJECT: Google Nexus One/ Android Strategy Analysis

Here is my Google Nexus One strategy analysis. Although the Nexus One is new in the market, many believe that it is capable of becoming a major player. The Nexus One does not have nearly the number of applications its competitors have and is severely lacking in customer service. If Google is able to correct these problems, however, this product may become much more appealing to Gen-Y users.

Google "hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program. This program uses pay-per-click advertising, where the advertisers specify which words should trigger their ads, and how much they are willing to pay per click. The ordering for which ads will be placed where depends on the amount the advertiser is willing to pay. The Nexus One, or Android, is Google's first cellular phone. Google is a "multinational public cloud computing and Internet search technologies corporation" (Wikipedia 2010). The two founders of Google are Larry Page and Sergey Brin. They incorporated Google in 1998 as a privately held company, later making their first public offering in 2004. The C.E.O. of Google today is Eric Schmidt.
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 * Google generated $21 billion using Adwords in 2008, and earned $23.651 billion in revenue in 2009. This was up from $21.756 in 2008 (Investor 2010).

****Google's Competition** The main issue facing the Nexus One is that they are new in a market with established competitors. Apple's iPhone and RIM's Blackberry have already achieved major success as smartphones, combining state of the art technology with good customer service and service providers.

Currently, the Nexus One works with the T-Mobile service. There are reports, however, that by the end of March Droid users will also be able to sign up with Verizon Wireless. This would make the Nexus One a much more appealing option to Gen-Y users, as Verizon is one of the top cellphone service providers.
 * Nexus One's Strategy**

Also, in the near future all U.S. Nexus One phones will be getting upgraded to 2.1 firmware. This would mean a faster phone and improved applications. This upgrade will also be free to Nexus One owners.

**Gen-Y Implications** Nexus One has the potential to be a major competitor in the smartphone market, but some changes must be made. In order to compete with other smartphones such as Apple's iPhone or RIM's Blackberry, they are going to have to add new applications. They are also going to have to improve on customer service. If Google can improve upon these two areas they have the potential to sell to a lot of Gen-Y users. Google Investor Relations - Financial Tables. (n.d.). //Google Investor Relations//. Retrieved March 3, 2010, from http://investor.google.com/fin_data.html Nexus One. (n.d.).//Wikipedia.org//. Retrieved March 2, 2010, from en.wikipedia.org/wiki/Google_nexus_one lund. (n.d.). Google - Wikipedia, the free encyclopedia. //Wikipedia, the free encyclopedia//. Retrieved March 3, 2010, from http://en.wikipedia.org/wiki/Google ** Wimberly, T. (2010, February 27). All U.S. Android phones to receive Android 2.1, but some will require a wipe – Android and Me. //Android and Me//. Retrieved March 3, 2010, from http://androidandme.com/2010/02/news/all-u-s-android-phones-to-receive-android-2-1-but-some-will-require-a-wipe/ Park, W. (2010, January 5). Google bringing Nexus One to Verizon in Spring 2010.//IntoMobile - Cell Phone News, Information, and Analysis//. Retrieved March 3, 2010, from http://www.intomobile.com/2010/01/05/google-bringing-nexus-one-to-verizon-in-spring-2010.html
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