If the manufacturers of Google Glass managed to reduce the production cost to $10, how would you respond?

The interviewer is requesting you to imagine a scenario in which the production costs for Google Glass, a high-tech and generally pricey item, have been greatly decreased. This question aims to evaluate your ability to conduct market analysis, think strategically, and demonstrate sound judgment in the given situation. When formulating your response, keep the following key points in mind: Examine the implications for the current market. Identify possible new markets or business opportunities arising from the reduced costs. Assess how this change could affect Google's overall business strategy. Consider potential reactions from competitors and the overall shifts in the industry. Evaluate how this might alter consumer perceptions of a product that was previously seen as exclusive.

With the production cost of Google Glass reduced to $10, the initial objective should be to preserve the product's high-quality image while significantly lowering the retail price to enhance accessibility for a broader audience. This approach could potentially boost sales volume and market share, allowing the product to penetrate new markets. However, it’s essential to consider that excessively reducing the price could compromise the 'exclusivity' that Google Glass currently possesses, which might attract a different demographic while alienating existing customers. Striking a balance between maintaining brand value and achieving greater market penetration is vital. Additionally, with such a competitive price, we must anticipate competitors introducing similar products. Therefore, part of our strategy should concentrate on securing a strong market presence, possibly through further innovation, maintaining superior quality, or targeting specific niche markets.

If the production costs of Google Glass were lowered to $10, it would present a fantastic opportunity to capitalize on this affordability and expand the product into new markets. For instance, we could partner with educational institutions to incorporate Google Glass into learning environments, or collaborate with construction companies to enhance project visualization. Additionally, we could focus on forming partnerships for exclusive content that would set our product apart from competitors. Instead of significantly lowering the price, we could develop multiple versions of Google Glass tailored to different consumer demographics, such as a premium model for tech enthusiasts, a standard version for everyday users, and an affordable option for the broader market. Furthermore, such a significant reduction in production costs might encourage us to allocate some of the potential profits towards Corporate Social Responsibility (CSR) initiatives, ensuring that our efforts also contribute positively to society. This approach would also help in fostering a strong brand image.