Foo Lin Xuan
Ho Jun Loong Daryl
Li Shi
Nicholas Wong Guo Fan
Ning Jin
TeamMembers
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
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
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
3. Current
ecosystem
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
5. Value Proposition
End
Users
Content
Creators
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
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
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
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
GC versus competitors
Google Cardboard
($40)
Oculus Rift
($488)
Project Morpheus
(unannounced)
End Users
Smartphone Gaming PC PlayStation 4
Google Cardboard Oculus Rift Project Morpheus
Accessibility
Magnetic Button Keyboard and Mouse PlayStation controller
Control Scheme
Eve: Valkyrie (Project Morpheus / Oculus Rift)
Rollercoaster (Google Cardboard)
Graphics Google Cardboard Oculus Rift Project Morpheus
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
End UsersCustomer Selection
Google Cardboard Oculus Rift Project Morpheus
Casual gamers Hardcore gamers
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
 Young adults that are interested in new technologies
 Usually male
 19 – 45
 Low income
 Students
Customer Selection : DemographicEnd Users
 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
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
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
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
 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
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
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
content
creators
$(Product)
$(Advertisement)
$(Commission)$(Revenue)
$(Revenue)
7.Method of Value Capture
Google Play YouTube
SDK game players
users
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
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
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
.
• 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
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
9.Future possibilities
Cardboard Expeditions
 Classroom of the future
Journalism to the virtual reality realm
 Immersive experience
 More impressive and effective
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
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
9.Future possibilities
VR Telecommuting
 Gathering
 Meeting
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
Q & A
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

Google Cardboard

  • 1.
    Foo Lin Xuan HoJun Loong Daryl Li Shi Nicholas Wong Guo Fan Ning Jin TeamMembers
  • 2.
    Agenda 1. Introduction 2. ProductDescription 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 GoogleCardboard  VR platform developed by Google  Fold-out cardboard mount for smartphone (Screens up to 6 inches)  Paired with app to create “3D” Vision
  • 5.
  • 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.
  • 9.
    5. Value Proposition “Amore 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 “Amore 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  Canbe 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 usersto 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 GoogleCardboard ($40) Oculus Rift ($488) Project Morpheus (unannounced) End Users
  • 14.
    Smartphone Gaming PCPlayStation 4 Google Cardboard Oculus Rift Project Morpheus Accessibility Magnetic Button Keyboard and Mouse PlayStation controller Control Scheme
  • 15.
    Eve: Valkyrie (ProjectMorpheus / 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 WeightContent Accessibility Control Scheme Graphics GC Oculus Morpheus End Users
  • 17.
    End UsersCustomer Selection GoogleCardboard Oculus Rift Project Morpheus Casual gamers Hardcore gamers
  • 18.
    Customer Selection :Basedon 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 adultsthat are interested in new technologies  Usually male  19 – 45  Low income  Students Customer Selection : DemographicEnd Users
  • 20.
     Why onlymales?  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  Attractsaudiences 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  Canattract 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 costof 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.
  • 28.
    1) End usersof 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 onGoogle 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 OculusRift 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 ContentCreators • 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 motivationto 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 forMV & 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 VRHeadset. (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.
  • 37.
    10.Conclusion  Google shouldfoster 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.
  • 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