Over the past few thousand years of evolution, the way we pay has changed shapes and materials. It has gone from gold to coins, paper money to plastic cards and now with Google’s venture into the mobile payment industry, we are at the threshold of the next big shift.
Google Wallet is a mobile payment Android app that transforms a phone into a wallet. This app utilizes the Near Field Communication (NFC) technology that allows its users to pay for purchased items and redeem offers. At this initial stage of business, there are many features and factors that Google needs to change in order to bring about the mass adoption of this service.
As the Business Technology Analysts at Google, we - Kritika Maheshwari, Malvika Saraf and Rohan Handa aim at addressing the hurdles for this technology and the methods to bring it to fruition. In the process we evaluate Google’s profit motivation and the bigger strategy behind this service. First, we explain the business approach which describes the importance of the adopted business model. We use Porter’s Five Force analysis to determine the competitive intensity in the market followed by SWOT analysis to give recommendations that will help in the mass adoption. Finally, we focus our paper on formulating a strategy canvas in order to study the existing payment methods in comparison to our service. The paper concludes with recommendations to Google for promoting wide customer acceptance.
Table of Contents
1. Introduction
2. Business Model
2.1 Business Approach
2.2 Stakeholders
2.3 Target Customers
2.4 Buyers of Google Wallet
2.5 Revenue Sources
3. SWOT Analysis
3.1 Strengths
3.2 Weakness
3.3 Opportunities
3.4 Threats
4. Strategic Analysis: SWOT
5. Porter’s Five Force Analysis
5.1 Existing Rivalry
5.2 Bargaining Power of Buyers
5.3 Bargaining Power of Suppliers
5.4 Barriers to Entry
5.5 Threat of Substitutes
6. Key Points: Porter’s Analysis
7. Strategy Canvas
7.1 Convenience of making online and offline transactions
7.2 Convenience of mobility
7.3 Personalization and Location
7.4 Security
8. Recommendations
Objectives and Core Topics
The primary objective of this report is to analyze the strategic positioning of Google Wallet within the evolving mobile payment landscape, identify adoption hurdles, and provide actionable recommendations to achieve mass-market acceptance.
- Evaluation of the collaborative business model for mobile payments.
- Strategic assessment through SWOT and Porter’s Five Forces.
- Comparative analysis of transaction convenience and security features.
- Strategies for merchant and consumer acquisition.
- Integration of mobile cloud computing and enhanced personalization.
Excerpt from the Book
Business Approach
The Collaborative model
We choose this model based on our ultimate goal of a fuller market adoption. Since, this model emphasizes on the need for us to manage and work with all the parties in the mobile payment ecosystem; it facilitates an efficient, holistic environment, providing oversight, business rules and standards for all the service providers.
By collaborating with large and reputed banks like Citibank, trusted credit card companies like MasterCard, large telecommunication companies like Sprint and quality handset manufacturers like Samsung, we will be able to leverage on our partner’s wide customer base in the US market and promote our mobile wallet through them. This will not only help us establish our presence, but also give us a brand recognition in this emerging market.
Summary of Chapters
Introduction: Outlines the shift in the payment industry and Google's vision for a simplified, secure mobile wallet ecosystem.
Business Model: Details the collaborative strategy involving banks, mobile operators, and manufacturers to ensure broad market reach.
SWOT Analysis: Examines the internal strengths and weaknesses of Google Wallet alongside external market opportunities and threats.
Strategic Analysis: SWOT: Provides specific strategic suggestions to leverage identified strengths against market threats.
Porter’s Five Force Analysis: Evaluates the competitive landscape, highlighting high bargaining power of suppliers and moderate entry barriers.
Key Points: Porter’s Analysis: Concludes that intense competition requires urgent market penetration and strategic partnerships.
Strategy Canvas: Compares the value curves of Google Wallet and traditional credit cards regarding transaction convenience, mobility, and security.
Recommendations: Suggests moving toward mobile cloud payment, adding health care features, and reducing merchant switching costs.
Keywords
Google Wallet, Mobile Payments, NFC Technology, Collaborative Model, SWOT Analysis, Porter’s Five Forces, Mobile Cloud Computing, Market Adoption, Transaction Security, Electronic Commerce, Digital Wallet, Strategy Canvas, Consumer Behavior, Merchant Integration, Financial Services.
Frequently Asked Questions
What is the core focus of this report?
This report focuses on analyzing the business strategy and competitive positioning of Google Wallet as it seeks to transform the mobile payment industry through NFC technology.
What are the central themes discussed?
The themes include the collaborative business model, competitive market analysis, technological hurdles, consumer and merchant adoption factors, and strategic growth recommendations.
What is the primary research goal?
The goal is to identify how Google can move from the initial beta stage to mass-market acceptance by addressing specific technical and business challenges.
Which analytical framework is used?
The authors employ both a SWOT analysis to identify internal/external factors and Porter’s Five Forces to assess market intensity and bargaining power.
What is covered in the main body?
The main body covers the collaborative partnership strategy, a detailed SWOT breakdown, competitive benchmarking against credit cards, and actionable recommendations for future growth.
What defines the success of this technology?
Success is defined by widespread customer acceptance, seamless integration with various stakeholders, and establishing a secure, efficient ecosystem that replaces traditional plastic cards.
How does the report address merchant barriers?
The report identifies the high cost of NFC equipment as a barrier and recommends that Google follow competitors like ISIS in providing necessary hardware to merchants to reduce switching costs.
Why is the "Collaborative Model" emphasized?
It is essential for building a holistic environment where mobile operators, banks, and retailers can interact, allowing Google to leverage existing customer bases for faster market penetration.
What is the role of cloud computing?
The authors view mobile cloud computing as the next technological milestone, recommending that Google integrates it to enable direct-to-mobile billing services.
- Quote paper
- Rohan Handa (Author), Kritika Maheshwari (Author), Malvika Saraf (Author), 2011, Google Wallet - A Glimpse into the future of mobile payments, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/183132
