How to expand sales of Windows Phone

8/3/2019 How to expand sales of Windows Phone

1/16

HowtoexpandsalesofWindowsPhone

andfightbackcompetingproducts

Florian Hage | October2011

FlorianHage October2011



2/16

Executivesummary

Itisnotenoughtoaim,youmusthit.

ProvideWP7freeofchargetoaggressivelypenetrate

ItalianProverb

marketandattackAndroid

Triggerdemanddemonstratingonlyuscandoservices

in order to tar et customers in B2B and B2C sectors

Explorestrategicpartnershipstocreatenewvaluestocustomers

andservenewregions

Co a oratewit ot erin ustries w ic ene it roma connectingwor


FlorianHage October2011 2HowtoexpandsalesofWindowsPhone



3/16

Worldwidesmartphone salestoendusersbyOS

MSsOS

shrunk

in

average

8%

on

a

quarterly

basis

Amazin market otential with CAGR of 30 but remarkable shifts in market shares

Actual Sales Forecasts1200

Timeforanaggressivemarketpenetration

50

100040

45

Units

600

800

25

30

35

sin

Million

Symbian

Android CAGR:

40015

20

rldwideSal

iOS

RIM

Microsoft

0

200

0

5

10W Others

2007 2008 2009 2010 2011 2012 2015

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011


FlorianHage October2011 3

,

,




4/16

SWOTAnalysis

Helpfulin

order

to

achieveobjectivesHarmful

in

order

to

achieveobjectives

soft

R&D:

16%oftotalrevenue

38%oftotalemployees

ProductPortfolio:

SalesMarket: StrongdependenceontheU.S.market

thus onmacroeconomicconditions

EuropeandAPACeachinvolvewaybiggersales

sfromMicr

Highdegree

of

integration

by

Zune,

Office,

WindowsLive,XboxLive maybeappealingto

bothyouthandbusinesspeople

UsersarefamiliarwithMSproducts

potentialIndustryGrowth: Incomparisontoitsmajorcompetitors

in2010MSgrewless

Effect SkypeAcquis.:WP7enablesVoIPcrosscountry

Financialresources: Cashreservesarerelativelyhigh

M&Aand/or

stakes

in

complementary

DelayedAction: WP7waslaunchedinQ42010,while

competitorsoperateadvancedversions

OEMs,carriers

and

end

users

may

have

nment

compan esmay mprovemo e us ness se con rac s pre erencesa rea y

SmartphoneMarket: Amazingworldwidesalesgrowthof30%p.a.

Demographicshift&highertechaffinity

CompetitiveEnvironment: Oligopolisticmarketstructure,whereMSs

majorcompetitive OSsSymbian,Android,iOS and

mtheen

vir ComprehensiveUsersHabit:

Integratedsystem

compounds

Zune,

Xbox,Officeforleisure&business

Streamingandmobilegamingflourish

RIMaccountfor94%marketshareinH12011

Acquisitionof

Motorola

Mobile

by

Google

Q32011:ApplelaunchediPhone 4S, RIMtheBB7

Nintendopushesintomobilegamingmarket

Effectsfro CollaborationwithNokia:

NokiashardwaresavvyandMSsoftware

knowhowmayreleasesufficientpro

ductivity tofightbackmarketshares

Macroeconomicconditions: A possibleeconomicturndownmayslowdown

overalldemandofbusinessesandcustomers

whichmayharmMSprospectivecatchup

FlorianHage October2011FlorianHage October2011 4HowtoexpandsalesofWindowsPhone



5/16

Targetgroups

Microsoft

is

able

to

serve

various

target

groups

but

face

strong

competitors,

too

TrendOriented TechAffinity FunctionalWorldofBusiness

MSStrength MS

Strength MS

Strength MS

Strength

OfficeApplications

HubOrganization

CloudComputing

Media (Zune)

Gaming(XboxLive)

Social(Facebook

HubOrganization

VarietyofServices

andProducts

Easeofusedue

toLiveTiles

DisplaySize

Competitors

SecurityPartnership)

Competitors

CloudComputing

Competitors Competitors

Noseriousone




6/16

Howtoexpandsalesdownthevaluechain

CurrentValueChain

Strongfocusonprivatecustomers: Microsoftthephonetosaveus

fromourphones HandsetOEMs

MobileCarrier




7/16

Howtoexpandsalesdownthevaluechain

ReinventValueChain

Microsoft targetallplayersthroughouttheentirevaluechain

HandsetOEMs StrategicPartnerships Strategicpartnershipsand

M&A tocreateadditional

MobileCarriers

Createadditionalvalues

forboth

customers,

private

valuesforbothcustomers,

privateandcorporate




8/16

HowtoexpandsalestoOEMsandmobilecarriers

ncreasemar e pene ra on Beaggressive,besmart

BreakoffstrongfocusonU.S.market,gainmarket

a ue a n av

sharesin

Europe

as

well

as

emerging

regions

Mobilecarriersshapeconsumerspreferences

PoSTrainin sean

ProvidetheWP7OSfreeofcharge

MayappeallowcostOEMsaroundtheworld OnlineTrainings

Meet

needs

in

regions

with

less

purchasing

power Highersalesratebreedshigherappdevelopment

vert s ng

workshops

Transformsalesmen intoconsultantsforWP




9/16

Howtoexpandsalestocorporations

arge ng e us nesswor Wellestablishedrelationshipstocompanies

Synchronize theWP7smartphonewithtraditional

a ue a n av

andmostly

already

existing office

infrastructure

Highworkefficiencyforbusinesspeople

BusinessA s

ean

ExpandexistingB2Bchannels

OfferonlinetrainingsforWP7 Support

Include

WP7

into

B2B

support

and

consulting Developabreakingappportfolio specializedfor

OnlineTrainings

Guaranteeahighsecurity standard




10/16

Howtoexpandsalestoprivatecustomers

arge ngpr va ecus omers a ave eren nee s Trendorientationofyouthandmidagersseekfor

applicationsprovidingsocialmedias,music,vids,

a ue a n av

photos,gaming,

shopping

etc.

Groupofelderlypredominantlyfocusonbasic

Expandmobilegaming throughcollaborations

PushVoIPwithSkype

ean Gaming

EaseofUse

Offer

webspace within

the

cloud Usechancesfromdemographicshiftinorderto

AppStore

,

Smartphonecontrolhastobeintuitively




11/16

U.S.userdemographybyOS Whouseswhat?

Today,

90%

of

all

smart

phone

users

are

younger

than

50

years

But toda s enerations row u with such communication technolo ies

i.e.futuresilveragerswillbecomeanincreasinglylargetargetgroup

ThusMicrosofthastoservewithWP7threemajorgroupsinfuture:

User

, , , ,

Age Share

OS 2010

1%

S ares

23% 35% 22%

3%

16%1829

S mbian

18 29 46%

D

19%

35%

17% 39% 27%

3%

13%3049 Android

iOS

30 49 42%

mographi

25%

3%

16%

18% 7%50

64

RIM

Microsoft

Others

50 64 11%

alshift

65+65+ 1% SilverAgersinvolve

additionalpotential

FlorianHage October2011FlorianHage October2011 11

ource:

o e,

o e

xper ence

urvey,

;own ep c on




12/16

HowtoexpandsalesthroughalliancesorM&A

ra eg c ar ners psan Createadditionalvaluesforbothcustomers,private

andcorporate

a ue a n av

Raisepresence

in

emerging

regions

Expand

existing

business

areas

Mean

Zynga (USA),10Bil.USD,BrowserGames(FarmVille,)

Createnewfieldsofoperation

LinkedIn (USA),12Bil.USD

Getaccesstonewmarkets

Tudou (CHN),3Bil.USD,counterparttoGooglesYouTube




13/16

Appuserspreferences

The

Key

Driver

of

a

successful

mobile

OS

will

be

the

App

Portfolio

available

The mobile internet is becomes increasin l social and entertainin

WillingnesstopayisremarkablyhighforGamingApps andcounting!

Games,Music&MoviesaretheTopSellersofMobileShopping

20% 60%

68%

LocalInformation(Events,Mapping,Weather,..)

SocialMedia(Facebook,Twitter,) WhichsortofApps do

youregularlyuse?

22%

39%

56%

57%

MobileVideo

PlayGamesonMobile

ForwhichoftheseApps

doyou

pay?

21%

17%

39%

41%

42%

Banking&Finance

News(National&Worldwide)

e por s ews, cores,e c.

Top5ofMobileShopping

24%

31%

Shopping

MusicPlayer(onlineradio,...)

30%

43%

Clothing&ShoesMusic,

Movies,

GMusic,

Movies

&

Games

0% 25% 50% 75%

, ,

20%

26%

Computer&Office

PrintMedia


ource:

o e,

o e

xper ence

urvey,

;own ep c on




14/16

Howtogrowwithinaconnectingworld

Outlook

Collaboratewithindustries

whichincreasinglybenefit

Electricity,Heating

HomeEntertainment

froma

connectingworld DomesticDevices SmartGrid

Navigation

Traffic

Security

OnboardEntertainment

EmbeddedSoftware

SmartGrid




15/16

Summary

, .

ItalianProverb

ProvideWP7freeofchargetoaggressivelypenetrate

themarketdowntheentirevaluechain

Trigger

demand

demonstrating

only

us

can

do

services

nor ertotargetcustomers nB Ban B sectors

Ex lorestrate ic artnershi stoem owernewvalues

tocustomersandservenewmarkets

e co a ora ons nmo onw o er n us r es

whichbenefitfromaconnectingworld

FlorianHage October2011FlorianHage October2011HowtoexpandsalesofWindowsPhone

andfightbackcompetingproducts15


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Florian Hage | October2011


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How to expand sales of Windows Phone