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Format Wars Case Study
Transcript of Format Wars Case Study
John Inya Agha
+ 400 M
A marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products
Proprietary Operating System
Brick & Mortar Stores
Emphasis on innovation
The supplying or supplier of utilities or commodities.
Search Engine Revenue
Business Service approach
Microsoft and RIM were selling smartphones several years before Apple and Google entered the market. Why then do you think Apple and Google’s Android phone are now starting to dominate the market?
Gear Towards Current User Trends
-Time and Leisure
-User Friendly Interface
License Innovative Solutions
-Grow Market Share
Leverage Killer Applications
First Mover Advantage
New Revenue Stream
Restructuring of the industry
Why did Apple place such emphasis on the applications that run on the iPhone? What is it trying to achieve by heavily promoting applications? Why did other companies rush to copy Apple’s strategies?
Apple and Google are pursuing different strategies – Apple sells the device and the OS as a bundle (the iPhone), whereas Google does not make devices and licenses its Android OS phones to other device makers. Both companies are gaining share. What does this teach about the right strategy for prevailing in a format war?
Build the installed base
Leveraging a positive feedback loop
Inducing customers to bear the switching costs
Lock the market into its technology
Jump start and accelerate demand
Locking out competing formats.
Microsoft and Nokia have both been losing share in the smartphone business. They have now decided to enter into an alliance. How are they hoping to reshape competition in the smartphone business? Do you think they will succeed?
The Alliance "Can" Succeed but Possibly May Not
Behind in Development
Microsoft has a history of failure
Google licenses its Android OS to phone manufactures for free. Why would it do this?
Profit from search Engines & Advertising
Revenues through production
Incentive for Google and Developers
Main profit derived from devices
- Additional profit derived from Ads & Apps
What do you think the structure of the smartphone market will look like a decade from now?
The structure will be a shorter life cycle and first mover advantage.
"Run for their money"
Depends on factors
A battle between proprietary formats that compete for the same market, typically for data storage devices and recording formats for electronic media
Apple VS Google VS RIM
Microsoft & Nokia = "Noki-Soft"