Google Glass Strategy If Unit Production Cost Falls to Ten Dollars

Quick Overview

A product strategy interview question set in a hypothetical where the suppliers of Google Glass cut the cost of making each unit to ten dollars. It tests separating what cheaper hardware fixes from what it does not, choosing a goal and market, reasoning about pricing and unit economics, and weighing privacy and competitive risks.

Google Glass Strategy If Unit Production Cost Falls to Ten Dollars

Company: Google

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

Suppose the suppliers that build Google Glass bring the cost of producing one unit down to \$10. As the product manager, what would you do? ```hint Cost was one barrier of several List why Glass struggled to win users in the first place, then ask which of those reasons a cheap unit removes and which it leaves untouched. ``` ### Clarifying Questions - Are we talking about the consumer version of Glass, the enterprise edition used by frontline workers, or a new product built on the same hardware? - Does the \$10 cover only making the device, or also shipping, retail, warranty and support? - Is the lower cost exclusive to Google, or will competitors have access to the same parts and suppliers? - Should I optimize for hardware profit, for the number of people using Glass, or for Google's position in wearables and AI assistants? ### What a Strong Answer Covers - A clear view of what cheaper hardware changes (price, margin, distribution, room to subsidize) and what it does not (use case, privacy, social acceptance, comfort, battery) - A chosen goal and target market, justified by where Glass has and has not found real use - Pricing and business-model reasoning that is not simply cost-plus, with unit economics that count the costs beyond production - A go-to-market plan covering developers, partners, distribution and phasing - Risks such as privacy backlash at scale, a cheap-toy perception and competitors matching the cost, plus the metrics that decide whether to scale ### Follow-up Questions - If you sell Glass close to cost, where does the money come from, and what would make you raise the price later? - How does a camera on many more faces change your privacy approach, and what would you build into the hardware? - Competitors reach the same production cost a year later. What in your plan still holds?

Overview: A product strategy interview question set in a hypothetical where the suppliers of Google Glass cut the cost of making each unit to ten dollars. It tests separating what cheaper hardware fixes from what it does not, choosing a goal and market, reasoning about pricing and unit economics, and weighing privacy and competitive risks.

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Google
Jul 21, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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Suppose the suppliers that build Google Glass bring the cost of producing one unit down to $10. As the product manager, what would you do?

Clarifying Questions Guidance

  • Are we talking about the consumer version of Glass, the enterprise edition used by frontline workers, or a new product built on the same hardware?
  • Does the $10 cover only making the device, or also shipping, retail, warranty and support?
  • Is the lower cost exclusive to Google, or will competitors have access to the same parts and suppliers?
  • Should I optimize for hardware profit, for the number of people using Glass, or for Google's position in wearables and AI assistants?

What a Strong Answer Covers Guidance

  • A clear view of what cheaper hardware changes (price, margin, distribution, room to subsidize) and what it does not (use case, privacy, social acceptance, comfort, battery)
  • A chosen goal and target market, justified by where Glass has and has not found real use
  • Pricing and business-model reasoning that is not simply cost-plus, with unit economics that count the costs beyond production
  • A go-to-market plan covering developers, partners, distribution and phasing
  • Risks such as privacy backlash at scale, a cheap-toy perception and competitors matching the cost, plus the metrics that decide whether to scale

Follow-up Questions Guidance

  • If you sell Glass close to cost, where does the money come from, and what would make you raise the price later?
  • How does a camera on many more faces change your privacy approach, and what would you build into the hardware?
  • Competitors reach the same production cost a year later. What in your plan still holds?