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Windows Phone 7: Microsoft's Smartphone Challenge Report 2010

Windows Phone 7: Microsoft's Smartphone Challenge Report 2010 - new market research report published

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2012-12-11 12:42:17 - Windows Phone 7: Microsoft's Smartphone Challenge Report 2010 - a new market research report on

Microsoft is poised to launch its much awaited Mobile OS "Windows Phone 7" during the holiday season of 2010. The company has started over with a rigorous effort to re-invent itself as a consumer-driven mobile OS and application provider.Amidst these developments, Visiongain brings the latest exclusive report focusing on the re-emergence of Microsoft as a key player in the smartphone market in 2011 and beyond.The report offers an opportunity to our readers to gain insight into all the latest developments and strategies that are shaping Microsoft as it plans to regain its market share in the smartphone market amidst increasing competition.Readers will discover how Microsoft´s game plan of focusing on the software and services powering the three screens (TV, mobile



phones, PC) and cloud (internet) can provide them the competitive advantage over Apple and Google.The report goes a step further and offers a comparison between Nokia and Microsoft´s falling market share and how the two companies can derive synergies using each other´s ecosystem. The report draws similarities and differences in the approaches followed by Nokia and Microsoft as they try to revive their market position. The comparison is of strategic importance as both companies have the resources and capabilities to succeed, however are not able to derive competitive advantage through internal strengths. Nokia and Microsoft can however plan to work in close alliance or form partnerships to get competitive advantage.The report then examines whether the company´s significant R&D investments in Windows Phone 7 will pay off commercially, starting in 2011. We believe that Microsoft must not be considered as a weak competitor or a partner to work with, as it tries to reinvent itself with an enhanced portfolio, marketing and product innovations in 2010. In 2009, when most companies cut back their research budgets, it spent as much as $9.5 billion on new products, up from $8.1 billion the year before. It is thus vital for vendors, network operators, OEMs, ODMs and other players in the wireless value chain to understand the strategies of Microsoft, and plan accordingly.Since 2008, Microsoft´s profitability in wireless has taken a downward turn due to poor planning. A year ago, Microsoft had a 10.2% share in the mobile OS market. According to our estimates, as of June 2010, Microsoft commands a 6.2% share in the handset market. The recent launch of Kin and its ultimate debacle has further casted a shadow on Microsoft´s future in wireless.In 2011, Microsoft plans to gain solid ground over its competitors both in terms of design and profitability. The strategy of product innovation is being combined with value discipline of customer intimacy to challenge competitors. We believe that the success of Windows Phone 7 is critical and will either make or break Microsoft´s ambition in mobile OS market. Provided Windows Phone 7 is successful, Microsoft will have a solid base to implement emergent and planned strategies to improve on its market share beyond 2011.In order to revive its market position, Microsoft needs to capture value across the entire handset ecosystem and the most important building block in this tenet is the device platform. Visiongain believes that Microsoft needs a successful mobile OS platform which it can use as a foundation for all its future applications and services.Visiongain believes that Microsoft can regain its market position only if it capitalises on opportunities and mitigates threats in its way. With huge growth expected in the smartphone segment both in saturated and emerging markets; Microsoft must position itself favourably by leveraging on its core competencies. Microsoft cannot stop at this juncture. They have to focus on making their mobile platform and other mobile software solutions the best in the market and should aggressively drive that into the mobile phone market. Visiongain believes Microsoft will have a 12% market share for its Windows Phone 7 by 2015.

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