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.

1. Steve Bayley
Strategic Planner
@TheLincolnKing

2. Celebrity Endorsements
reek of DESPERATION

6. As do OVER-THE-TOP public
displays that are UNCLEAR how they
are RELATED TO THE BRAND

8. This all seems EERILY
FAMILIAR...

11. Nokia has about

12. 6 Billion reasons why it
won’t go out like
Blackberry

13. The biggest reason for
that is valuable
proprietary technology
patents

14. And the backing of
Microsoft

15. Windows has to be comfortable with
who they are and what they can be in
the US mobile market.

16. They will not be a market
leader

17. They can be a viable
competitor

18. Windows phone has to pursue
a differentiation strategy

19. Where is the window of
opportunity?

20. If iPhone has the mass
aspirational angle

21. and Android has a strong
male base

22. Where does that leave
Nokia?

23. The path to smartphone success is
littered with the remains of failed
competitors

24. The Corporate
Phone
The AdventurePhone
The Rebellious
Phone
The Creative
Phone

25. Its not NOKIA

26. Its the Windows Phone

27. What is Windows?

28. A Pioneer

29. Not the cool hipster iPhone,
Brooklyn gentrification pioneer

31. But a real

32. Honest to goodness

33. EXPLORER

34. One thing about
Explorer’s...

35. They tend to travel light

36. And value functionality in
the real world

37. so as a result

38. have little tolerance for

39. extraneous bells and
w
histles

40. Whether those bells and whistles are
are about social status or tech one-
upsmanship

41. In 2013, the “base models” still
have a ton of desirable features

42. When many American consumers
hear NOKIA they see this

44. That doesn’t have to be a
bad thing

45. But remember its NOT
NOKIA

46. its Windows

47. Pre-Paid & Unlocked

48. High Quality

49. In the rest of the world
these are not mutually
exclusive propositions

50. 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

51. Traditionally, mobile
technology has spread
from mature markets like
South Korea, Japan, and
the United States to
emerging markets

52. For the first time, we
are seeing the trend
reverse

53. The saturated US market
is taking mobile cues
from the Middle East &
Africa

54. Markets demanding hi-technology
for low ARPU’s are the global
drivers of affordable innovation

55. The
Smartphone

56. At this price point

58. is an emerging market

59. NOKIA Asha: The $100 smartphone
for Middle East & African markets

60. And thanks to the
Windows Phone, they no
longer have to be in the
United States

61. 520

62. This is why the 520 sold out
on HSN and in Wal-Mart
on its introduction

63. This is why Apple is
scrambling to compete in
this space...

64. iPhone 5c launch
9/10/13

65. But Windows has already
secured the first mover
advantage

66. and the word is getting out

67. Although there are
multiple Windows
phones, each owning a
sliver of a sliver of the
market

68. http://blog.adduplex.com/2013/08/adduplex-windows-phone-
statistics.html

69. The fastest growth is
coming in the value segment

70. http://blog.adduplex.com/2013/07/adduplex-windows-phone-
statistics.html

71. Its NOT 1999

72. Conspicuous Consumption
is NOT cool

73. Prestige
Value HighLow
High
Brand Positions of U.S. Handset Manufacturers - 9/13

74. 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

75. Apple made it cool to be smart...

76. Yet convinced people it was
“smart” to buy a $600 phone

77. That old Apple magic
has disappeared though

78. Explorer’s know that if you’re

79. In a line waiting
with a bunch of sheep
to accelerate your road to
poverty

80. There is no way
that could be cool!

81. http://www.wpcentral.com/nokia-lumia-521-coming-metropcs-
tomorrow-only-99
We already know the Windows
junkies love it

82. You can’t get double
digit market share
catering to a tiny niche

83. Explorers are not a tiny
niche.

84. They are basically any one
who doesn’t really care
about Apple or Samsung
or bleeding edge tech

85. They are too busy living
life

86. And just want a
smartphone that
works.

87. Where are these Explorers now?

88. They are in the market,
and shopping for a new
home

89. Non Samsung Android is
37% of the U.S. Market

90. HTC, Motorola, LG,
these identity-less droids
are competing on
features and price and
they can’t win

91. Windows Phone is up
to 4% of the U.S.
Market in Q2 2013

92. That’s up from 1% at
the same time last year

93. In France over the
same period Windows
Phone moved from
2.3% to 9%

94. What are the driving
forces in the U.S.
Market?

95. Democratization of the
Smartphone

96. Changing Societal Concerns,
Attitudes, and Lifestyles, away
from conspicuous
consumption and toward value

97. The United States as A
PART of the global
community, not APART
from it.

98. The winds of change
are at the back of the
Windows Phone

99. Just keep both hands on the ball and your legs
moving and 15% market share should be a given

100. END