Steve Bayley
Strategic Planner
@TheLincolnKing
Celebrity Endorsements
reek of DESPERATION
As do OVER-THE-TOP public
displays that are UNCLEAR how they
are RELATED TO THE BRAND
This all seems EERILY
FAMILIAR...
Nokia has about
6 Billion reasons why it
won’t go out like
Blackberry
The biggest reason for
that is valuable
proprietary technology
patents
And the backing of
Microsoft
Windows has to be comfortable with
who they are and what they can be in
the US mobile market.
They will not be a market
leader
They can be a viable
competitor
Windows phone has to pursue
a differentiation strategy
Where is the window of
opportunity?
If iPhone has the mass
aspirational angle
and Android has a strong
male base
Where does that leave
Nokia?
The path to smartphone success is
littered with the remains of failed
competitors
The Corporate
Phone
The AdventurePhone
The Rebellious
Phone
The Creative
Phone
Its not NOKIA
Its the Windows Phone
What is Windows?
A Pioneer
Not the cool hipster iPhone,
Brooklyn gentrification pioneer
But a real
Honest to goodness
EXPLORER
One thing about
Explorer’s...
They tend to travel light
And value functionality in
the real world
so as a result
have little tolerance for
extraneous bells and
w
histles
Whether those bells and whistles are
are about social status or tech one-
upsmanship
In 2013, the “base models” still
have a ton of desirable features
When many American consumers
hear NOKIA they see this
That doesn’t have to be a
bad thing
But remember its NOT
NOKIA
its Windows
Pre-Paid & Unlocked
High Quality
In the rest of the world
these are not mutually
exclusive propositions
Microsoft will also need to ship
more low-cost smartphones
to high-growth emerging
markets if it is to continue building
o...
Traditionally, mobile
technology has spread
from mature markets like
South Korea, Japan, and
the United States to
emerging...
For the first time, we
are seeing the trend
reverse
The saturated US market
is taking mobile cues
from the Middle East &
Africa
Markets demanding hi-technology
for low ARPU’s are the global
drivers of affordable innovation
The
Smartphone
At this price point
is an emerging market
NOKIA Asha: The $100 smartphone
for Middle East & African markets
And thanks to the
Windows Phone, they no
longer have to be in the
United States
520
This is why the 520 sold out
on HSN and in Wal-Mart
on its introduction
This is why Apple is
scrambling to compete in
this space...
iPhone 5c launch
9/10/13
But Windows has already
secured the first mover
advantage
and the word is getting out
Although there are
multiple Windows
phones, each owning a
sliver of a sliver of the
market
http://blog.adduplex.com/2013/08/adduplex-windows-phone-
statistics.html
The fastest growth is
coming in the value segment
http://blog.adduplex.com/2013/07/adduplex-windows-phone-
statistics.html
Its NOT 1999
Conspicuous Consumption
is NOT cool
Prestige
Value HighLow
High
Brand Positions of U.S. Handset Manufacturers - 9/13
Rivalry BuyersSuppliers
New Entrants
•Rivalry is weak
•Cost of switching is high
(early termination fees),
but falling (an...
Apple made it cool to be smart...
Yet convinced people it was
“smart” to buy a $600 phone
That old Apple magic
has disappeared though
Explorer’s know that if you’re
In a line waiting
with a bunch of sheep
to accelerate your road to
poverty
There is no way
that could be cool!
http://www.wpcentral.com/nokia-lumia-521-coming-metropcs-
tomorrow-only-99
We already know the Windows
junkies love it
You can’t get double
digit market share
catering to a tiny niche
Explorers are not a tiny
niche.
They are basically any one
who doesn’t really care
about Apple or Samsung
or bleeding edge tech
They are too busy living
life
And just want a
smartphone that
works.
Where are these Explorers now?
They are in the market,
and shopping for a new
home
Non Samsung Android is
37% of the U.S. Market
HTC, Motorola, LG,
these identity-less droids
are competing on
features and price and
they can’t win
Windows Phone is up
to 4% of the U.S.
Market in Q2 2013
That’s up from 1% at
the same time last year
In France over the
same period Windows
Phone moved from
2.3% to 9%
What are the driving
forces in the U.S.
Market?
Democratization of the
Smartphone
Changing Societal Concerns,
Attitudes, and Lifestyles, away
from conspicuous
consumption and toward value
The United States as A
PART of the global
community, not APART
from it.
The winds of change
are at the back of the
Windows Phone
Just keep both hands on the ball and your legs
moving and 15% market share should be a given
END
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
Nokia Microsoft's path to a sustainable position in the United States mobile market.
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Nokia Microsoft's path to a sustainable position in the United States mobile market.

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Why the iPhone5c is not the be all end all and the Windows phone has a fighting chance. Nokia, Strategy, Windows Phone, Mobile strategies in African markets outline the path to success in the United States.

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Nokia Microsoft's path to a sustainable position in the United States mobile market.

  1. 1. Steve Bayley Strategic Planner @TheLincolnKing
  2. 2. Celebrity Endorsements reek of DESPERATION
  3. 3. As do OVER-THE-TOP public displays that are UNCLEAR how they are RELATED TO THE BRAND
  4. 4. This all seems EERILY FAMILIAR...
  5. 5. Nokia has about
  6. 6. 6 Billion reasons why it won’t go out like Blackberry
  7. 7. The biggest reason for that is valuable proprietary technology patents
  8. 8. And the backing of Microsoft
  9. 9. Windows has to be comfortable with who they are and what they can be in the US mobile market.
  10. 10. They will not be a market leader
  11. 11. They can be a viable competitor
  12. 12. Windows phone has to pursue a differentiation strategy
  13. 13. Where is the window of opportunity?
  14. 14. If iPhone has the mass aspirational angle
  15. 15. and Android has a strong male base
  16. 16. Where does that leave Nokia?
  17. 17. The path to smartphone success is littered with the remains of failed competitors
  18. 18. The Corporate Phone The AdventurePhone The Rebellious Phone The Creative Phone
  19. 19. Its not NOKIA
  20. 20. Its the Windows Phone
  21. 21. What is Windows?
  22. 22. A Pioneer
  23. 23. Not the cool hipster iPhone, Brooklyn gentrification pioneer
  24. 24. But a real
  25. 25. Honest to goodness
  26. 26. EXPLORER
  27. 27. One thing about Explorer’s...
  28. 28. They tend to travel light
  29. 29. And value functionality in the real world
  30. 30. so as a result
  31. 31. have little tolerance for
  32. 32. extraneous bells and w histles
  33. 33. Whether those bells and whistles are are about social status or tech one- upsmanship
  34. 34. In 2013, the “base models” still have a ton of desirable features
  35. 35. When many American consumers hear NOKIA they see this
  36. 36. That doesn’t have to be a bad thing
  37. 37. But remember its NOT NOKIA
  38. 38. its Windows
  39. 39. Pre-Paid & Unlocked
  40. 40. High Quality
  41. 41. In the rest of the world these are not mutually exclusive propositions
  42. 42. Microsoft will also need to ship more low-cost smartphones to high-growth emerging markets if it is to continue building on its recent nominal share increases. - Brad Reed BGR.com 9/5/13
  43. 43. Traditionally, mobile technology has spread from mature markets like South Korea, Japan, and the United States to emerging markets
  44. 44. For the first time, we are seeing the trend reverse
  45. 45. The saturated US market is taking mobile cues from the Middle East & Africa
  46. 46. Markets demanding hi-technology for low ARPU’s are the global drivers of affordable innovation
  47. 47. The Smartphone
  48. 48. At this price point
  49. 49. is an emerging market
  50. 50. NOKIA Asha: The $100 smartphone for Middle East & African markets
  51. 51. And thanks to the Windows Phone, they no longer have to be in the United States
  52. 52. 520
  53. 53. This is why the 520 sold out on HSN and in Wal-Mart on its introduction
  54. 54. This is why Apple is scrambling to compete in this space...
  55. 55. iPhone 5c launch 9/10/13
  56. 56. But Windows has already secured the first mover advantage
  57. 57. and the word is getting out
  58. 58. Although there are multiple Windows phones, each owning a sliver of a sliver of the market
  59. 59. http://blog.adduplex.com/2013/08/adduplex-windows-phone- statistics.html
  60. 60. The fastest growth is coming in the value segment
  61. 61. http://blog.adduplex.com/2013/07/adduplex-windows-phone- statistics.html
  62. 62. Its NOT 1999
  63. 63. Conspicuous Consumption is NOT cool
  64. 64. Prestige Value HighLow High Brand Positions of U.S. Handset Manufacturers - 9/13
  65. 65. Rivalry BuyersSuppliers New Entrants •Rivalry is weak •Cost of switching is high (early termination fees), but falling (annual upgrade options) •Android brands are weakly differentiated among themselves •Overall buyer demand is growing slow, but value options are outpacing the general market •Apple and Samsung dominate the market •Buyer bargaining power is strong •There is a shortage of options meeting customer performance expectations at the desired price point •Customers feel they have to make compromises on quality •Available products are not adequately differentiated •Buyers can easily stick with what they have and postpone purchase •Suppliers bargaining power is moderate •Apple has deep backward integration and hand-picks suppliers •Androids are considered a commodity •Samsung has made strides in “un- commoditizing” the Android market •Developers have relatively free reign for Android & Windows •Threat of New Entrants is weak •Barriers to entry are high - Only well capitalized multinationals compete in the handset game •Apple is willing to contest new entry with the iPhone 5c vs, the 520 •Apple is looking to expand by entering the value segment, where traditionally, small Android players have splintered the the market share Substitutes •Threat of Substitutes is moderate •The 520 is a superior product vs. existing similar priced Androids •iPhone 5c is a potentially brand compromising move from Apple •First movers to differentiate will have significant advantage. Once the segment takes off the market will again commoditize Competitive Analysis
  66. 66. Apple made it cool to be smart...
  67. 67. Yet convinced people it was “smart” to buy a $600 phone
  68. 68. That old Apple magic has disappeared though
  69. 69. Explorer’s know that if you’re
  70. 70. In a line waiting with a bunch of sheep to accelerate your road to poverty
  71. 71. There is no way that could be cool!
  72. 72. http://www.wpcentral.com/nokia-lumia-521-coming-metropcs- tomorrow-only-99 We already know the Windows junkies love it
  73. 73. You can’t get double digit market share catering to a tiny niche
  74. 74. Explorers are not a tiny niche.
  75. 75. They are basically any one who doesn’t really care about Apple or Samsung or bleeding edge tech
  76. 76. They are too busy living life
  77. 77. And just want a smartphone that works.
  78. 78. Where are these Explorers now?
  79. 79. They are in the market, and shopping for a new home
  80. 80. Non Samsung Android is 37% of the U.S. Market
  81. 81. HTC, Motorola, LG, these identity-less droids are competing on features and price and they can’t win
  82. 82. Windows Phone is up to 4% of the U.S. Market in Q2 2013
  83. 83. That’s up from 1% at the same time last year
  84. 84. In France over the same period Windows Phone moved from 2.3% to 9%
  85. 85. What are the driving forces in the U.S. Market?
  86. 86. Democratization of the Smartphone
  87. 87. Changing Societal Concerns, Attitudes, and Lifestyles, away from conspicuous consumption and toward value
  88. 88. The United States as A PART of the global community, not APART from it.
  89. 89. The winds of change are at the back of the Windows Phone
  90. 90. Just keep both hands on the ball and your legs moving and 15% market share should be a given
  91. 91. END

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