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Format Wars Case Study

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by

Rona Ram

on 6 August 2013

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Transcript of Format Wars Case Study

Format Wars
Closing Case
Apple
G
Group C
Rona Ramoutar
John Inya Agha
Vivek Persaud
Ritesh Patel
220 M
- 2010
330 M
- 2011
+ 400 M
- 2012
All Smartphone
Shipments
Technological
Segments
Hardware
Software

Companies
Apple
Android
RIM
Microsoft
Industry
Background
Sales
Differentiation
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
Service
The supplying or supplier of utilities or commodities.

Customer Service
Repairs
Upgrades
OO
G
L
E
Mobile Strategy
Practicality
and
Utility
Low Cost
Search Engine Revenue
Niche
Business Service approach
Hardware
RIM
Alliance
Business Service
Low Cost
Microsoft/Nokia
Units
Summary
Question 1
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
-Data Capabilities
-Corporate Convenience
-Time and Leisure
-User Friendly Interface
+Apps
-Multi-function Capabilities
Reassess Market
-Innovate products
License Innovative Solutions
Create Alliances
-Grow Market Share
Leverage Killer Applications
Recommendations

First Mover Advantage
New Revenue Stream
Creativity

"Copy-Cat" Competitors
Retain/Gain competitiveness
Restructuring of the industry
Question 2
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?
Question 3

Network effects
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?
Question 4
The Alliance "Can" Succeed but Possibly May Not
Behind in Development
Late Entry
Switching costs
Microsoft has a history of failure
Google licenses its Android OS to phone manufactures for free. Why would it do this?
Question 5
Google
Profit from search Engines & Advertising
Revenues through production
Incentive for Google and Developers
Apple
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.
Question 6
Reshape
"Run for their money"
Technological development
-Apps
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"
Full transcript