Is Google Brand As Strong As We Think It Is With Nexus One Stumble?
It looks like Google finally stumbled with their new Nexus One wireless phone
. This is an important branding lesson for Google and for the rest of us. Its not that Google cannot be successful in the wireless world, just look at Android, but it does mean that no one, not even as successful as Google, can control a market. The market has a mind of its own. So your goal is to deal with the challenges and understand the market and the opportunities it presents.
Google has built their brand successfully over the last several years. They have grown into an online monster beyond simple search engines where they started. Remember when Google entered the space? The talk was how it was so good because it gave quick results. Since then the company has successfully grown into business after business, online. They have become one of America's success stories.
One reason they were successful is they were in at the early stages of a new technology called the Internet. People had a blank space in their mind. They were creating a pegboard in their mind, which described the industry. Without that framework nothing made sense because there was no way to compare or judge success.
We enjoyed search engines from companies like Yahoo, but the space was new and Google jumped in with their quick search and started making real waves.
When an industry is new you help the customer create a frame of reference in their mind from which they can compare. Compare important parts from non-important parts. Compare winners and losers.
That's where Google won over the last several years. They are the king, online. However now they want to move into and take over other industries like wireless. This is a much tougher nut to crack.
Not impossible though. Look at Apple's success with the iPhone. The iPhone changed a segment of the wireless industry and as such it opened new opportunities for a lot of other companies. Look at all the other smart phone handset makers and App providers.
The wireless industry has been around for around 25 years. It was the same place as always until Apple changed it about four years ago. They created the new framework in the mind.
Now customers compare anything new in wireless to the iPhone. That is good for Apple, but much harder for Google.
Google can be successful, but they have to play by the rules. They can either compete in the wireless space in general, or they can compete in the smart phone space supercharged by Apple a few years ago, or they can create another category.
Their mistake was jumping into wireless and assumed the world would follow. They had the benefits of the Google name and past success. They had favorable press. They had much buzz. It seemed everything was working in their favor.
However now we hear Google is not happy with their limited success in wireless. Android is fine. The problem is their Nexus One.
Android puts Google software on others devices like Motorola or HTC. The Nexus One however is the first attempt for Google to become its own handset maker like Apple. Actually the Nexus One kicked their other handset partners in the teeth when launched. They saw themselves both partners with and competing with Google. But that is another story.
Google tried to do too much too soon. The marketplace was just reworking the brain model they had of the wireless industry trying to fit in the new Google Android. That seems to be working fine. Not as strong as Apple, but still respectable.
However when Google at the same time confused the marketplace and created a new handset called Nexus One, that was too much.
What is the Nexus One? What does this mean? When launched I said it sounded like hair gel. Apparently hair gel and cell phones don't mix well. Is it the name that is the problem? It plays a role, but is not the only problem.
The main problem is Google misjudged the marketplace. They thought they were bulletproof. They thought anything with a Google name would be successful. That was a youthful mistake full of arrogance.
Now they know the marketplace has a mind of its own. So the question now is what is next? There is still an enormous opportunity in the wireless world for Google. I think they need to throttle back and rethink their entry.
Perhaps they should create a new category. Google is first an advertising company. The rest of what they do supports their ad business.
Position the phones in that area. They can be the first in that brand new area. Over the last fifteen years we have seen many similar models tried and failed. Many companies have given away free long distance if customers would listen to an ad every couple minutes. Sounded good, but did not work.
So Google really has to create a new way for customers to think about wireless. Will they take over? No. If successful it will only be a part of the wireless industry. However that could be just what Google needs.
They want to create a wireless handset that customers will use not only to make calls, and not only to surf the web, but somehow to interact with Google and their advertising world and open up enormous new opportunities.
However they should do this the right way. A lot of companies are watching Googles next step. Are they a partner with or a competitor to carriers like AT&T, Verizon, Sprint and T-Mobile, and handset makers like Nokia, Samsung, Ericsson, LG, Motorola and HTC. All of a sudden this is getting to be an interesting game.
This first effort was strike one for Google. Expect them to stay in there and get ready for the next pitch.
by: Jeff Kagan
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