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Can the Droid Save Motorola?

November 14th, 2009 Comments off

motorola-logoWe talk a lot in this course about the importance of Time in terms of strategy.  Once very important concept is that companies have to introduce products at the right time to capture market share.  The mobile phone industry is usually a great area to look at when it comes to this phenomenon for a few reasons:

  1. Companies that miss out on an important trend (such as putting a camera on a phone) may find themselves quickly behind the competition as consumers migrate to devices made by others.
  2. Loyalty to a particular brand seems to be very weak for most consumers.  It also is weak for the service providers.  I had a representative at a T-Mobile store all but refuse to sell me a Motorola phone even though they had it on the sales floor.  She was insistent that I buy a Samsung instead but I wanted to avoid the cost of replacing my car chargers and learning how to use a new brand so I finally won that battle.
  3. Consumers are typically only in the market for a new handset every two years.  Therefore timing is everything when it comes to introducing a new model.  It is no accident that Palm and Sprint introduced the Pre earlier this year just as the early-adopters of the Iphone had expiring contracts with AT&T.

The once mighty Motorola finds itself in a position that the introduction of the Droid phone this week could make or break the company not only in the near-term but perhaps for good.

He said when he arrived at Motorola he found a company with “a dysfunctional management culture” that simply didn’t understand that consumer preferences had shifted. Customers no longer wanted just a phone for making phone calls. Instead, they wanted a device that could also access the Internet, give them directions, and provide text-based communications.

Can the Droid save Motorola? Marguerite Reardon. CNET News. October 30, 2009 4:00 AM PDT

Anatomy of an IKEA Product

April 7th, 2009 Comments off

As mentioned in class, the biggest lesson IKEA has to offer with regards to this class is that they start with the price and work backwards toward the cost.  This is target costing in the real world.

  • Anatomy of an IKEA product by Daniel Terdiman.  CNET News, April 19, 2008