Huang Lee’s Blog

Google announced it’s Google Map Navigation for Android 2.0 today. It’s huge but I almost missed the news because I was too busy. (It’s actually kinda hard to miss because they are everywhere.)

For the past few months I have been studying smartphones because I want to buy a new phone. About a month ago, I was thinking maybe I should sell my GPS after I get a smartphone because a portable GPS can totally be replaced by a smartphone (with good software). Today, Google heard my voice and announced exact what I was thinking.  :P

Features

There are quite a few features make me feel that Google Navigation can beat a portable GPS, and here are the features I think important:

1. Latest traffic info

2. Updated Map

3. Search along route (I wanted this feature on my GPS for a long time.)

4. Voice control (I have been dreaming of this feature for a long time, but I am not sure how reliable it will be.)

5. It’s free

(Other features please watch the video.)

Note that the data are on Google’s servers and it’s there servers calculate the routes, so it’s a kind of cloud computing, which means that you need good wireless Internet connection for it to work well. Sounds a little dangerous. Image that you miss a turn and while your smartphone tries to re-calculate the route, you loss wireless connection…

One may worry that how Google can make money from this. I don’t know, but here is my guess.

Two years ago, when I heard the rumor that Google would enter cell phone market. I was thinking that’s one smart move. When cell phones become more and more powerful, they are closer and closer to computers. So, if one wants to expand one’s business market, from computers to cell phones will be a good strategy. For Google, if people not only use it to search something on a computer but also on a cell phone, the market will grow significantly. More important, if people use Google on cell phone, Google can have location-based Ads. Image how many people want to find restaurants or stores on a streets… It was two years ago I thought about it, but I believe the trend is more obvious now.

Competitors

There are some other interesting observations on this news.

First, this is not the first time Google stepped in other’s territories. Google Voice is another service (the first one?). So the question is what might be the next one?

Second, Google Navigation will support Android phones first, and then maybe iPhone (depending on Apple). If I remember correctly, Google used to have cell phone products for iPhone and Android phones at the same time or sometimes iPhone has the new products earlier. I am not sure why this time is different. It might be because Apple doesn’t let Navigation Apps on iPhone. Other the other hand, it might be because Google starts thinking that Android phones have more and more impact on the market, and iPhone’s importance gets less. If this is true, people who are making Apps for smartphone should consider both kinds of phones now. Additionally, I feel that if iPhone doesn’t support it, more and more people will give up iPhone and buy an Android phone. Apple has rejected Google Voice and Latitude Apps. So, will Apple accept Google Navigation?

Finally, the impact on all other GPS companies. We saw the stock prices drop dramatically for both Garmin and TomTom today, 18%!

What’s the strategy here?

This is my view. Many many years ago, people compared electric products by their hardware because hardware technologies were very different from company to company and the performance difference can be huge. But for the past few years, the game changed, people make difference on their products by better software, especially by better UI. However, I get a feeling that this time, the game will chance again. Why? because I think both GPS companies and Google can  make good UI and similar functions on their devices. (Garmin GPS has good UI already, and I believe that’s one important reason Garmin won the GPS market before.) So, when both devices have similar UI and functions, what will differentiate them? I think it’s the service. Then the next question is, what service Google can provide but GPS companies can’t? Currently, one think I can think of is the statistic (or real-time) data that Google has. For example, the traffic condition on major streets from crowdsourcing. Basically, Google’s current strength is that it has lots of data. Google collects data and lets users generate data. For example, the function lets users make their own maps and the function lets user report problems on the map. Those data can be processed and become useful information and finally let Google provide service that GPS companies can’t do. So, interestingly, maybe in the future, the company who has more data and use them to provide service can win the market. I also believe it will be true for many areas.

On the other hand, in the short term, because Google Navigation relies on wireless connection, the stability might be an issue. However, in the longer term, people will like to have just one device for everything, and it will be a smartphone. So, I think Garmin and other GPS companies should worry about it and think about new strategy now. (Maybe collaborate with Car Companies?) This will be an interesting question for MBA students (and other people who are interested in business) to think about. If you are a CEO of a GPS company, how do you plan to survive this “Navigation War”?