According to some retail experts, Google Inc. is developing plans to launch retail stores in the United States. These stores will likely be based on a format similar to Apple’s retail format. Apple stores have been a large factor in the success of the iPhone and iPad. Google is hoping to follow a similar pattern and use its retail locations as a platform to sell Google-branded hardware.
The retail stores would have plenty of merchandise to stock its shelves. Google’s Android division has been developing home entertainment devices. Google has also developed the Chromebook laptop that is a lower priced lap top option that operates on the Google Chrome system. Google X is also building Google Glass that is a computing device that can be worn on a person’s face. Google stores could also showcase Google TV software that is embedded in TV sets that allows people to browse Web videos from their television.
Last year, Google acquired Motorola Mobility, a manufacturer of smartphones and tablets. However, Google is trying not to favor Motorola over other device makers like Samsung and Sony who also use Google’s Android operating system.
Discussion Questions:
If you were in charge of opening Google retail stores, what would be your retail strategy? In particular, what would be its target markets, retail format, and bases for sustainable competitive advantage?
SOURCE: Amir Efrati, Wall Street Journal, February 18, 2013
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