NUST Business School

MKT 858 – Product Policy & Innovation

ASSIGNMENT # 1
Causes of the Failure of Google Glasses

Submitted to;
Dr. Owaid Anwar Golra

Submitted by;
Shujat Ali Khan
MS I&E 2k22

Date: 12 March 2023

 GOOGLE GLASSES – ANALYSIS OF THE FAILED
PRODUCT LAUNCHED BY A TECH GIANT

01 - Background

Sergey Brin, a famous American entrepreneur, computer scientist, and cofounder of

Google decided to raise a research and development division within the organization
to focus on developing breakthrough technologies with the aim to solve some of the
world’s biggest problems. The R&D division was named Google X (now called X
Development LLC).
Two years after the creation of Google X in 2010, Google announced Google Glass,
2012 as a futuristic wearable device that would revolutionize the way people interact
with technology. It was revealed that technology was kept secret and developed in a
dedicated research lab operated by Google X.

02 - Product Description

It was a wearable set of glasses with a transparent display exactly above the right
eye as shown in fig.1. The device has the following features:
1. A built-in camera to take photos, and videos, and share content on social
media or the cloud.
2. Cloud-based storage service.
3. Access information using voice commands or touch the frame’s side.
4. An internet connection via WIFI and smartphone tethering.
5. A high-resolution prism floating above the user’s sight.
6. Operated by the android operating system.

Figure 1 Consumer Version of Google Glass - Enterprise Edition 2

The features allowed it to be used for social media integrations, news updates,
weather reports, and several other related applications.
03 - Marketing Strategy and Launch

Google Glasses were released in two versions. The initial version was made
available to developers and early adopters through an invitation-only program. In
early 2013, Google released a promotional video showcasing the potential uses of
Google Glass. The video generated a lot of excitement and media coverage, making
Google Glass one of the most anticipated tech products of the year. In April 2013,
Google announced that it will expand the Google Glass program and make it
available to a group of selected “explorers” who are interested in trying the device
and providing feedback. However, the $1,500 price tag made it out of the reach of a
majority of the consumers.
Next year, Google continued refining and improving the device and adding new
features, releasing several upgrades during the process. However, even the added
features failed to grab mass consumer attention. In 2014, Google faced a major
setback when several high-profile incidents involved the product. The one that got
the most attention was when a woman was assaulted for wearing Google Glass in a
San Francisco bar causing a severe backlash against the product.
Finally, in January 2015, Google announced that it is discontinuing the consumer
version of the product and shifting its focus to developing the technology for use in
enterprise and industrial settings.
Since 2015, Google continued to develop Google Glass for multiple industries like
manufacturing, healthcare, and logistics. However, the consumer version was a
complete failure, unexpected from a tech giant like Google.
Next, let’s analyze the causes of the product failure in light of the seven-step product
development process.

04 - Failure Analysis

The new product development (NPD) process consists of the following seven stages:
1. Idea generation
2. Research
3. Planning
4. Prototyping
5. Sourcing
6. Costing
7. Commercialization
Let’s analyze Google X’s strategy in all seven areas and identify the flaws that lead
to product failure.
4.1 - Idea Generation

This is the first step in NPD. Idea generation refers to the ideation, iteration, and
brainstorming of new product ideas. It can be done through brainstorming, market
research, or customer feedback.

4.1.2 – Google X Strategy for Idea Generation

The idea of Google Glasses originated with the concept of creating a smart contact
lens that could display information directly to the user’s eye. The project was led by
engineer and designer Babak Parviz and began in 2010. However, after some
experimentation, it was soon realized that the technology needed for such a device
is not mature yet. Thus, after several brainstorming sessions and iterations, the team
finally came up with the idea of wearable smart glasses.
This leads us to the next step in NPD, i.e., research.

4.2 - Research

In the context of NPD, research refers to the market research conducted prior to
planning the product design and development. In this stage, the idea is validated
through feedback from a substantial and unbiased audience.
At this stage, test marketing is usually done by releasing the idea to a very small
group of the target market to get initial feedback. Two important things tested at this
stage are product desirability and product demand.

4.2.1 – Google X Strategy for Research

While google conducted extensive research on the technical capabilities and the
engineering aspect of the product, it did not thoroughly research how customers
would perceive the product, and use it in their daily lives. In fact, the project was kept
secret for more than a year and millions of dollars of investment were made without
any prior market research.
The lack of research led to the following problems:
1. High price point: The initial price tag of $1,500 shrunk the target market and
despite having some unique features, it remained unattractive for most of the
target customers. Had some research been conducted prior, the disaster
could have been avoided.
2. Privacy concerns: The lack of research led to the point where Google Glass
faced severe criticism from privacy advocates and media who raised
questions about the device’s ability to capture photos and videos without the
 subject’s knowledge and consent. This raised ethical and legal concerns
about the use of the product.
3. Social stigma: Many people were uncomfortable with the idea of wearing a
device that would make it appear as if the wearer is constantly recording or
photographing their surroundings. This led to a social stigma and made
device usage difficult.
4. Design Flaws: The design was technically sound, but not user-friendly. It was
bulky and uncomfortable to wear for a longer period of time.
Let’s now discuss the next phase in NPM.

4.3 - Planning
In this stage, the product is drawn, sketched, or illustrated using paper or any
CAD/CAM software. Based on the research, different features and functions of the
product are clearly mentioned and described.

4.3.1 – Google X Planning Strategy

The planning phase of Google Glasses is kept highly confidential and no information
is made public in this regard. However, keeping in view that the research was not
conducted beforehand, it is safe to assume that the planning was flawed because
the planning is always done based on prior research.

4.4 - Prototyping
Once the product development plan is in place, the next step is to create a working
prototype or model of the product. This involves designing and engineering the
product, testing it, and making any necessary changes to improve its functionality.
The finished product at this stage is used as a sample for mass production. This
usually takes a lot of experimentation before a prototype is finalized for the next
stage.

4.4.1 – Google X Prototyping

Google X created its prototype without proper planning and research. This led to
huge disappointment among the customers and the Google team alike. The
prototype has the following major defects:
1. Limited Functionality: Google Glass made a reputation as a novelty item
instead of a practical device for everyday use due to its limited functionality.
The device was primarily used for taking photos and videos, receiving
notifications, and conducting internet searches. It did not offer enough value in
terms of functionality to justify the high price point.
 2. Limited battery life: Google claimed that the battery lasts one full typical day.
However, it had a battery life of around 30 minutes for video shooting. The
battery typically lasted around 8 hours on average.
3. Bad Design: The glasses were bulky and uncomfortable.

4.5 - Sourcing

In this step, the necessary materials and resources for producing the product are
sourced. This includes identifying and selecting suppliers, negotiating prices, and
managing the supply chain.

4.5.1 – Google X Sourcing Strategy

Google's supply chain is complex and involves a variety of suppliers, manufacturers,

and logistics partners from around the world. The company works with a large
number of suppliers across different categories, including electronic components,
computer hardware, software, and other materials needed for its products and
services. Overall, Google's supply chain is highly complex and involves a large
number of stakeholders from around the world.
Google worked with a range of suppliers and partners for the development and
production of Google Glass. Some of the key partners involved in the supply chain
for Google Glass include:
1. Pivothead: Pivothead supplied the camera modules used in the first
generation of Google Glass.
2. Foxconn: Foxconn was the primary manufacturer of Google Glass,
responsible for the final assembly of the device.
3. Toshiba: Toshiba provided the micro-display used in the device's display.
4. Synaptics: Synaptics provided the touchpad controller used in Google Glass.
5. Texas Instruments: Texas Instruments provided the OMAP 4430 processor
used in the device.
6. Luxottica: Luxottica, a major eyewear manufacturer, partnered with Google
to develop more stylish and fashionable frames for Google Glass.
7. DHL: DHL was one of the logistics partners responsible for transporting
Google Glass components and finished products around the world.
With years of experience and the vast number of resources available, google was
able to formulate an excellent sourcing strategy with the help of trusted business
partners around the globe.
Therefore, the failure of the product cannot be attributed to the sourcing strategy of
Google X for Google Glasses.

4.6 - Costing

Once the sourcing is complete, the costs associated with producing the product are
calculated. This includes direct costs such as materials and labor, as well as indirect
costs such as overhead and marketing.
The total cost of goods sold determines the retail price and gross margin.

4.6.1 – Google X Costing Strategy

Lack of research led to bad planning which in turn resulted in high development
costs. Due to high development costs, the Google team failed to come up with a
clear pricing strategy. Glass was initially priced at $1,500, which was too expensive
for the mass market.
Bad costing strategy singlehandedly played the most important role in the product’s
failure and proved to be the biggest barrier to its mass adaptation.

4.7 - Commercialization

The final step is to launch the product into the market. This involves developing a
marketing and sales plan, setting pricing, and determining distribution channels. It
also involves monitoring the product's performance and making any necessary
adjustments to ensure its success.

4.6.1 – Google X Commercialization Strategy

Google X was not able to commercialize the product properly despite all the media
hype because the commercialization strategy was flawed from the beginning. Google
X decided to commercialize the product in two stages:
1. Making it available to the developers
2. Making it available to the common consumers
By not making the product available to the consumers from the beginner, the
commercialization strategy failed to leverage the benefits offered by minimum viable
product (MVP) and hence, the common people were not able to adopt something
they were never part of when it was under development.
Moreover, Google X was not able to commercialize the product due to its high price,
limited usage, privacy concerns, and overall bad market research to begin with.

05 - Conclusion
To summarize, Google failed to thoroughly research customer needs and market
demand, lacked a clear target market and supply chain strategy, and struggled to
price and market the product effectively. These missteps led to the failure of Glass to
achieve commercial success.