Mobile Makers and Microsoft

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Case Study 3 : Building and controlling an ecosystem:mobile makers and Microsoft, p.121 1. Why are there battles going on between mobile manufacturers and Microsoft? What is the logic behind this? Mobiles are a very competitive market with each company attempting to come up with new innovative ideas and products to implement into their phones either through software or hardware (actual phone). Now as most mobile manufacturers have somewhat settled in how much market share they currently have or predicting, they will shun new competitors into the market. Now in Microsoft’s place, it has dominated the PC market for a long time and still continues to do so. And when Microsoft attempts to enter the Mobile market, competing manufacturers will stall and delay the deployment of Microsoft’s operating system into mobile phones. Manufacturers know that Microsoft is a big threat because if customers prefer using the Microsoft operating system compared to their current one, then they will start losing customers wanting to buy their latest phones. Every manufacturer in the market have their own operating system, now if Microsoft’s operating system becomes the standard in the next generation firms, then manufacturers are worried they will simply become assembly companies. Mobile phone companies use three major defence strategies (Shepherd, 2010, pp. 121) which are alliances, licensing and application. In terms of alliances, manufacturers pair up with other companies to produce and work together to put out mobile phones with their partner’s operating system. For example, a lot of the Nokia phones use the Symbian operating system in their phones and it seems that Nokia is the only company to have resisted making a deal with Microsoft. Microsoft have been working with other manufacturers to set up a deal for their operating system to be used in some of their phones. Now

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