In The Motorola Xoom has been on store shelves for over a month. In that time, the tablet has not sold nearly as well as the company would have liked. In fact, an analyst at Deutsche Bank believes Motorola has sold just 100,000 Xoom units since the devices launch. That puts it well behind Apples iPad, which saw 15 million unit sales last year, as well as the iPad 2, which is still unavailable across the United States.
So what went wrong with the Xoom? On paper, the device looks to be an outstanding option. It comes with a 10.1-inch display, both a front- and rear-facing camera, and it runs Googles latest operating system, Android 3.0 "Honeycomb." But it failed to catch on with customers. Now Motorola is forced to determine what its next step should be.
Luckily for Motorola, there are several ways it can go about fixing the Motorola Xoom, and although they might not be the easiest decisions to make, they are undoubtedly necessary. Here are the reasons why Xoom is failing and what can be done about it:
1. Put pressure on Google to fix Honeycomb
When Google first showed off Android 3.0 Honeycomb, the excitement surrounding the platform was palpable. Just about everyone thought that the OS, which combines elements of desktop-based software and mobile software, would best iOS. But it didnt happen, and now the Xoom is suffering because of it. The time has come for Motorola to apply some pressure on Google and get it to start working out many of the platforms kinks. As critics have said, Honeycomb just wasnt ready for prime time when it hit store shelves.
2. Wheres the differentiation?
One of the biggest issues facing the Xoom is that its not unique in any way. The device comes with a dual-core processor; so does the iPad 2. The Xoom features dual cameras; so does the iPad 2. It has a 10.1-inch display; so does both Samsungs and Dells upcoming tablets. The Xoom is just another tablet on store shelves that customers ignore because it isnt unique. Motorola must admit that and find ways to differentiate the product. Getting 4G up and running on the Xoom might be the best first step.
3. The price is wrong
Motorola was quick to point out that the Xoom comes in at $800$29 cheaper than Apples most expensive iPad 2 option. Even better, Motorola said, is that with a two-year contract consumers can get the device for $600. All the while, it failed to acknowledge that five out of the six iPad 2 options are cheaper than the contract-less Xoom. And the most apt comparisonApples 32GB iPad 2 with 3Gis $70 cheaper than the Xoom without a two-year contract. Motorola needs to drop the price of the Xoom right now. It has no other choice.
4. The enterprise doesnt care
For the most part, the enterprise is looking towards adopting the iPad 2 or waiting to see what the Research In Motion BlackBerry PlayBook will offer. Realizing that, Xoom has largely lost the corporate world. It can try and make its case for corporate customers by highlighting some of the finer business features available in the devicesuch as its recently announced partnership with Polycom for MobileTelepresencebut if it doesnt work, it might just need to forget about the enterprise and focus on consumers for now.
5. The marketing is all wrong
One of the biggest issues with Motorolas Xoom is that it hasnt been marketed effectively. Earlier ads showcasing the device didnt do enough to tell customers what they would be getting with the tablet. The ads were too focused on flash and scant on substance. The time has come for Motorola to change strategy. It needs to make it clear to customers through its marketing that the Xoom is unique, its a fine alternative to other devices, and its worth the cash they will need to dole out.
6. Verizon needs to help more
Verizon Wireless could be one of the central elements in Motorolas plans to carve out a significant portion of the tablet market for itself. After all, the Xoom is available exclusively to Verizon customers that want to access a mobile network from the device. The only issue is, Verizon is torn. It sells the Xoom as well as the iPad 2. And as recent sales figures have shown, the iPad 2 is the better bet from a revenue perspective. Motorola needs to find a way to get Verizon to effectively promote the Xoom and give it more emphasis when customers enter Verizon stores. Right now, when one enters a Verizon store, the iPad 2 takes center stage. All others, including the Xoom, sit in the shadows. Thats not good for Motorolas business.
7. Talk up the 4G
One of the core benefits of owning a Xoom is that it will soon allow customers to connect to Verizons 4G network. However, Motorola hasnt spent nearly enough time talking about that benefit. In future, 4G should lead all of its talk about the Xoom. Not only will it appeal to corporate customers that have a mobile workforce, but it will give Motorola the chance to highlight one feature that much of the competition, including the iPad 2, lacks.
8. Take timing out of the equation
Motorola probably made a mistake by launching the Xoom so early. Customers that are planning to get their hands on a tablet this year have either already decided that they want an iPad 2, or theyre waiting to see what the many other devices coming out this year will offer. At times, being early to the market is a good thing. But in the Xooms case, it was a bad idea. Now, Motorola needs to take timing out of the minds of consumers that arent decided on a tablet yet, and make them realize that opting for the Xoom now is a better idea than waiting to see what Samsung, Dell, and HP have in store.
9. It needs to stop competing against Apple
Lets face it: There is absolutely no chance that the Motorola Xoom will be able to overtake the iPad 2 in sales this yearor maybe any other year. To even consider Apples tablet a real competitor is a bit of hubris for Motorola. Every tablet maker is competing for a seat at the tablet this year, but the head chair is Apples. Motorola must acknowledge that and realize that its real competition is all the other Android-based tablet makers, as well as RIM and HP. If it can frame its strategy around that, it might have a better chance of competing.
10. If all else fails, launch a new one
The Motorola Xoom has been having trouble catching on. And although its not a failure just yet, the company needs to do something now before it turns into one. However, if those actions fail and the Xoom continues to perform poorly at retail, Motorola will have no other option but to release another Xoom tablet. That device should show that Motorola has learned from the mistakes it made with the current product. But if its just another Xoom with a few minor improvements, such a tablet will fail like its predecessor.
Source: eWeek Nike Air Max 97 High
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