These slides use concepts from my (Jeff Funk) course on Business Models at National University of Singapore to analyze the business model for Google Cardboard. Google Cardboard provides users with a virtual reality experience for a much lower price than that from Occulus Rift. It combines a fold-out cardboard mount with an Android smart phone to enable users to feel as though they are part of a video or game. It is light, does not require wires, and content will be available from YouTube and Google Play. Young males are expected to be the largest users of Google Cardboard. Google expects to make money from sales of content through Google Play. The slides describe the value proposition, method of value capture, customers, scope of activities, and method of strategic control for Google Cardboard.

1. Foo Lin Xuan
Ho Jun Loong Daryl
Li Shi
Nicholas Wong Guo Fan
Ning Jin
TeamMembers

2. Agenda
1. Introduction
2. Product Description
3. Current Ecosystem
4. Market Outlook
5. Value Proposition
6. Customer Selection
7. Value Capture
8. Strategic Control
9. Future Possibilities
10.Conclusion

3. 1. Introduction
Virtual Reality (VR)
 Technology to create the illusion of presence in a simulated
environment
 Artificially creates sensory experiences through interacting with the
artificial world

4. 2. Product Description
Google Cardboard
 VR platform developed by Google
 Fold-out cardboard mount for smartphone (Screens up to 6 inches)
 Paired with app to create “3D” Vision

5. 3. Current
ecosystem

7. 4. Market Outlook
 Apple App Store
 Amazon App Store
 Facebook
 Dailymotion
 Youku
 Tudou
Competitors
Sony Project Morpheus
End-users Content
Oculus Rift
Oculus Rift
Sony Project Morpheus

8. 5. Value Proposition
End
Users
Content
Creators

9. 5. Value Proposition
“A more immersive video and gaming experience”
 Head tracking allows users to feel as though they are part of the video / game
Example
• Mythbusters: Sharks Everywhere
End Users

10. 5. Value Proposition
“A more immersive video and gaming experience”
 Head tracking allows users to feel as though they are part of the video / game
Example
• Mythbusters: Sharks Everywhere
End Users

11. Affordable VR
 Can be made using homemade materials
 Relatively cheap price of ~40 SGD
Accessible to anyone with a smartphone
 Android
 iPhone
5. Value Proposition End Users

12. Light
 Allows users to watch videos for extended periods of
time without feeling strain on their neck
Wireless
 Users can use it everywhere in the house
 Not restricted to being near a console or a computer
Lots of content available for Google Cardboard
 Many YouTubers and music companies are
experimenting with virtual reality videos
5. Value Proposition End Users

13. GC versus competitors
Google Cardboard
($40)
Oculus Rift
($488)
Project Morpheus
(unannounced)
End Users

14. Smartphone Gaming PC PlayStation 4
Google Cardboard Oculus Rift Project Morpheus
Accessibility
Magnetic Button Keyboard and Mouse PlayStation controller
Control Scheme

15. Eve: Valkyrie (Project Morpheus / Oculus Rift)
Rollercoaster (Google Cardboard)
Graphics Google Cardboard Oculus Rift Project Morpheus

16. Strategy Canvas
0
1
2
3
4
5
6
7
8
9
10
Cost Weight Content Accessibility Control Scheme Graphics
GC Oculus Morpheus
End Users

17. End UsersCustomer Selection
Google Cardboard Oculus Rift Project Morpheus
Casual gamers Hardcore gamers

18. Customer Selection :Based on usage
 Smart phone users
 People who play casual games
 YouTube viewers
 Early adopters who want to experience VR while waiting for public
release of Oculus Rift/other VR viewers
End Users

19.  Young adults that are interested in new technologies
 Usually male
 19 – 45
 Low income
 Students
Customer Selection : DemographicEnd Users

20.  Why only males?
 VR does not add as much value for YouTube content targeted at females
 Make-up tutorials
 Dramas
 Why not hard-core gaming audiences?
 Cannot compete with Oculus Rift and Project Morpheus
Customer Selection : DemographicEnd Users

21. Video Creators
 Attracts audiences due to a revolutionary way
to experience content
 360 degree videos have attracted over a million
viewers on YouTube
 Video making equipment easily accessible to
big YouTubers
 Free Jump camera rigs in every YouTube Space
 Saves time and money for YouTube video creators
5. Value Proposition Content Creators

22. App Developers
 Can attract more gamers due to the more immersive gaming experience
 New genre of games – first mover advantage
Both
 Large hype and demand for VR content
 1 million Google Cardboard units shipped out as of May 2015
5. Value Proposition Content Creators

23. GC versus competitors : Game DevelopersContent Creators
Google Cardboard Oculus Rift Project Morpheus
 Casual gamers
 Usually spends less on games
 Larger pool of audience
 Everyone has a smartphone
 Hardcore gamers
 Willing to spend more
 Smaller pool of audience
 Requires gaming PC or console
 Established consumer base
 PC - Steam
 PlayStation 4
Revenue
Consumer
base

24.  Low cost of development
 Repetitive stages
 Simple game mechanics
 High cost of development
 High expectations from hardcore
gamers
 Graphics
 Game mechanics
 Story design
 Complexity introduces more
bugs
Cost
GC versus competitors : Game DevelopersContent Creators
Google Cardboard Oculus Rift Project Morpheus

25. Customer Selection : Video Creators
YouTubers
 Specifically those who wants to attract the
targeted end users demographic
 Video games (Lets Plays)
 Minecraft Lets Players
 PewDiePie
 Tech reviews
 YouTubers that want to provide a different form
of entertainment for their viewers
 Video blogs
Content Creators

26. Customer Selection : : App Developers
Mobile game developers
 Experienced in developing casual games that suit the VR
format – RPGs and Action Games
 Mojang, King (Activison Blizzard)
 Games that require more types of input can also be made
possible through the use of Bluetooth controllers
Content Creators

27. content
creators
$(Product)
$(Advertisement)
$(Commission)$(Revenue)
$(Revenue)
7.Method of Value Capture
Google Play YouTube
SDK game players
users

28. 1) End users of YouTube
• 360 degree videos--only
available on YouTube.
• Emphasize existing
customer
users
Google and
content
creators
SDK game players
$(Product)
$(Advertisement
& subscription)$(Commission)
$(Revenue)
$(Revenue)
$(Product)
7.Method of Value Capture

29. 2) Games on Google Play
• No licensing fee
• Google Cardboard takes a
cut of 30% from Google
Play
users
Google
and
content
creators
SDK game players
$(Product)
$(Advertisement
& subscription)$(Commission)
$(Revenue)
$(Revenue)
$(Product)
7.Method of Value Capture

30. Google Cardboard Oculus Rift
Price $40 $350 (around 9 times)
Advantage of price Extremely affordable for
general public
Great marginal revenue
generated for every piece
sold
Comparative advantage in
manufacturing
No Yes
Major methods of value
capture
Indirectly from YouTube and
Google Play
Sales of physical units
Google’s unique way of value capture

31. .
• YouTube Content Creators
• App developers
• GoPro
• Advertisers
Key Partners
More realistic gaming and
video watching
experience
Value proposition
• Develop SDK & video
creating resource
• YouTube maintenance
Customer Relationships
• Development of
Google
Cardboard SDK
• Upgrade Google
Cardboard
Key Activities
• Cardboard SDK
(intellectual)
• Android Platform
Key Resources
• Online DIY resources
• 3rd Party Manufacturer
• Advertisement
Distribution Channel
• End Users
• Content
Creators
Customer Segments
• Development and maintenance of
YouTube
• Jump rig
• Development of Google Cardboard SDK
Cost Structure
• Shared revenue
• Advertisement
• Royalty from 3rd party
• Sales revenue
Revenue Streams
GOOGLE
CARDNOARD
Google Cardboard Business Model Canvas

32. 8.Strategic control
More motivation to
create VR contents
More users in
Google Play store,
Youtube
More VR apps &
More VR Youtube videos
Low Pricing
Make Google Cardboard available to more
customers
First mover’s advantage
Make VR accessible to more people
Before the launch of Oculus Rift
Network effect:
Promote Google PlayStore, a key complimentary asset.
Cardboard SDK & JUMP
Make VR accessible to developers

33. 9.Future possibilities
Cardboard Expeditions
 Classroom of the future
Journalism to the virtual reality realm
 Immersive experience
 More impressive and effective

34. 9.Future possibilities
VR for MV & Concert
 Collaborate with media companies
 Breakthrough for MV and concert
 Attract female audiences
VR for phobia treatment & post-traumatic-stress-disorder

35. 9.Future possibilities
Google’s VR Headset.
(focus on interactive experience)
 Compatible with controller
 Targeting Stronger gamer
Compatible with other VR Headset
(focus on visual experience)
 Accessible to YouTube Videos
Oculus Rift
Project Morpheus

36. 9.Future possibilities
VR Telecommuting
 Gathering
 Meeting

37. 10.Conclusion
 Google should foster closer relationships with content creators due
to strong network effects
 Target customers within a certain demographic before crossing the
gap to the mass market

38. Q & A

39. References
• http://www.businessinsider.sg/stats-on-googles-revenues-from-
youtube-and-google-play-2015-7/#.Vi-Q-bcrLIV
• https://www.youtube.com/yt/press/statistics.html
• http://www.forbes.com/sites/ewanspence/2014/06/25/google-has-
93-of-android-users-on-the-latest-google-play-service-outperforming-
apples-ios7-adoption-rate/
• http://www.wareable.com/vr/wareable-why-google-cardboard-not-
oculus-rift-will-drive-the-future-of-vr-976