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Table of Contents

Market Study
Published: July 2010
Pages: 106
Tables: 26
From: GBP 1499.00  Buy Now!
Research from: Visiongain
Sector: Mobile Content & Apps

Visiongain's latest exclusive report focuses on the re-emergence of Microsoft as a key player in the telecoms market in 2010 and beyond.

Visiongain brings an updated edition of the Microsoft in Wireless report that offers an opportunity to our readers to gain insight into all the latest developments and strategies that are shaping Microsoft as it plans to comeback 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 provides a strategic analysis of Microsoft's current position how the company is evolving, as well as its plans to evolve in future in the face of changing wireless industry landscape. We examine in detail its financial resources, capabilities, core competencies, partners, customers and product portfolio in the wireless industry. Finally, visiongain analyses the options for Microsoft to establish its brand image against the fierce competition.

The report examines whether the company’s significant R&D investments in Windows Phone 7 will pay off commercially, starting in 2011. We also provide an overview of its environment and its market strategy. 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.

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.

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.

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 and beyond.

What is the subject related to?
• Mobile Devices
• Mobile device manufacturers
• Smartphones
• Data services
• Service innovations
• Data Usage
• Revival strategies
• Competition in the OS market
• Mobile Operating systems
• Mobile applications and services
• Google and Apple’s foray in mobile domain

Questions answered by the report:
• What is Microsoft's current market positioning: including opportunities for growth?
• How does Microsoft’s vision of ‘3 Screens and a Cloud’ fit into its broad strategy?
• What are the challenges that Microsoft faces?
• How is Microsoft's strategic relationship with mobile operators changing?
• Is Microsoft's handset portfolio adequate to challenge Apple and Google?
• What is Microsoft's strategy in relation to developed and emerging markets?
• What are the options in front of Microsoft?

This report will act as a guide for:
• Operators: They can make informed decisions about Microsoft’s product portfolio in mobiles. They can also gain an insight into how the company is positioning itself to take advantage of the growth phase in data services.
• Handset Vendors: They can analyse the current issues facing Microsoft and gain an insight into its competitive strategies. They can also compare their portfolio against Microsoft’s and the plan accordingly to gain competitive advantage.
• OS Vendors: They can evaluate the smartphone OS solutions and design strategies to gain competitive advantage.
• New entrants: They can use this report as a guide towards formulating OS strategies.

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