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Strategic Management Its Concepts And Processes

  0 Downloads   |   3 Pages 623 Words   |   Published Date: 24/04/2017

Question:

Identify three reasons why starting a smart phone company now is not a good idea.
 
 

Answer:

Microsoft Corporation’s choice to operate in its contracted cell telephone operations leaves the product operations wagering that it can restore its fortunes in a basic business sector fragment by concentrating on the one range where despite everything it might have quality: securing and overseeing cell phones on corporate systems. (Greene, 2016)

Microsoft must set up its Windows working framework on a considerable part of cell phones or acknowledge a reduced nearness in the innovation scene, where cell phones dwarf PCs—and it may not get another chance, said Forrester Research Inc. expert Julie Ask.

Have you ever wondered why Microsoft almost backed out of the Smartphone?

As said by the researchers itself- Microsoft sort of gave up on the customer.

And it was the right move as well because it’s the best strategy to save you from the huge loss of not being able to match it to the customer’s perception and demand level.

Thus the three reasons why starting a smart phone company now is not a good idea are:

  1. Immersion created in economies and rising rivalry in developing markets like India, Indonesia and Latin America is crushing out weaker players and forcing the benefits of those that remain.

Thus if at all you open one- it’s very hard to survive in the market where things work on old operating systems and the brands which the customers buy from years. (Cheng, 2016)

The strategy here is this only- you need to take the decision which is as per the current scenario and demand overestimation by companies like Sony Corporation even is a bad sign for a company to think of venturing in the smartphone business.

  1. Cell phones are currently commoditized. Everybody has one, even in developing nations and Samsung's cell phone recuperation is prone to be brief because of the perpetually expanding rivalry and narrowing item separation as lower-cost contenders' handsets make strides. (Stern, 2016)

This is another strategy which is being followed by the lower cost competitors in this smart phone market. Thus in such a condition and volatility of the market- one should not think of opening the smart phone because it takes time to build upon the trust of the customers and moreover the present foundation can be laid only if you have a low cost smartphone.

  1. The latest technology is doing far better.

The most energizing versatile innovation is one that takes care of your current cell phones most concerning issue: battery life. Thus if at all you are thinking of a new company with a smart phone business- it’s not a good idea as now the demands and technology expectations have gone way too high. Consumers not just need the smart features but durability and a lot more. Thus to settle in this environment with a new ‘smart phone’ only is not something which can be strategized so easily.

Regardless of the fact that we trust that the new technology will come, it will take a while—and not these advancements will hit the ground in the meantime.

This smart phone industry is going down and thus many chose not to indulge.

 

References

Greene, J. 2016, Microsoft to Streamline Smartphone Hardware Business, Wall Street Journal. Available from- https://www.wsj.com/articles/microsoft-to-streamline-smartphone-hardware-business-1464166803. Retrieved on 3rd August, 2016

Cheng, J. 2016, In Smartphone Market, the Squeeze Is On, Wall Street Journal. Available from- https://www.wsj.com/articles/in-smartphone-market-the-squeeze-is-on-1461844808. Retrieved on 3rd August, 2016

Stern, J. 2016, Smartphones Are Boring: Here’s What Happens Next, Wall Street Journal. Available from- https://www.wsj.com/articles/smartphones-are-boring-heres-what-happens-next-1459963697. Retrieved on 3rd August, 2016

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