Date Published: 
10/01/2011

Before the Smartphone era, not long ago, the companies to dominate the ‎Mobile Phone world were the hardware phone manufacturers, such as Nokia, ‎Motorola, Samsung, Sony Ericson, RIM and others.  The competition between ‎those giants was around the device specifications and features: size, weight, ‎user friendly, buttons, battery life, camera, etc. The traditional mobile ‎companies dictated the pace and we saw a wide variety of mobile devices. ‎
RIM added a whole new dimension to the game when it introduced email.  But ‎it not only became a leader, it also started the transformation in the mobile ‎world from hardware to software. These days, the change is represented with ‎the fast adaptation of the smartphone. It is not the hardware anymore, which is ‎in similar size, weight and other specs; it is all about what it can do beyond ‎enabling a simple call.‎
Computing companies, using their software advantages, got into this field. ‎Apple was the significant first followed by Microsoft with Windows-Phone and ‎Google with Android. As smartphones become ubiquitous in developed ‎markets, the traditional mobile manufacturers are losing market share to ‎iPhones and Android devices.  ‎
The Google-Motorola deal will be a key element in the head to head battle with ‎Apple and Microsoft, battling to increase their market share in the Mobile ‎world, is also looking for strategies.  RIM is working aggressively to increase its ‎‎“app appeal.”  The battleground is now almost entirely software-based.

 

Risk Management Perspective: 

Changes in Industry and within the market can lead to dramatic impact on our ‎organization in a relatively short time. Nokia’s market valuation has tumbled. It ‎traded at $37 at the end of 2007. In September 2011 it traded around $6. A well-‎structured process of market and/or industry monitoring, change identification ‎and impact assessment is essential for an organization to stay on top of its ‎game.‎

 

Industry Group: 
Large Enterprises
Industry: 
Computers - All
Country: 
United States
Risk Class: 
Strategic
Risk Class: 
Industry
Risk Type: 
Business Strategy (Model)
Risk Type: 
Competition
Risk Type: 
Mergers/Acquisitions/Divestitures

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