Situation analysis – Introduction to the case study
Technology has brought us into significant level of interface computing life. Mobile phone is one of the classic examples to prove that member of society has been influenced by the advance of high technology. Generally, people are demanding extensive technology within the mobile phone in term of the operating system which the manufacturers offer. Handset users are seeking for the software which provide them with most simplified use but yet still high-tech. In 2001, Microsoft made a move by producing Windows CE Pocket PC OS which …show more content…
Furthermore, the external strategies which Microsoft uses are first mover and strategic alliances. Microsoft has a benefit to become the first mover advantage. Microsoft was the one to create the smartphone in the concept of downsizing the PC. Thus, by adopting the pioneering strategy, Microsoft will be benefited in such a way that other handset manufacturers will follow the same innovation. Becoming the first mover may rule to gain market leadership as it offers a new innovation in the market (Rahman & Bhattacharyya, 2003). Moreover, Microsoft also conducted strategic alliances with some handset vendors. Microsoft collaborated with Samsung, LG, Sony Ericsson, as well as Nokia to gain the market share. Strategic alliances are trading partnership to enhance the effectiveness by exchanging organisation’s resources in order to attain maximized profit (Todeva & Knoke, 2005).
3.0 Recommendation / Choice of Solutions
One of the recommendations that can be proposed is to join venture with Microsoft as it already being implemented by some of the major vendors. However, the joint venture must benefit both sides. Taking part of the deal with Microsoft might cause the mobile manufacturers to increase the cost of production. Vendors of handset may have to pay the deal with Microsoft as each handset will be licensed with Microsoft operating system. If they are conducting joint venture, there must be a good deal