Technology and computing

A corporate strategy article by Thunderbird students.

With $100 billion in cash and closing in on the richest market cap in history, many feel that Apple is at the top of its game.[i] Nevertheless, at some point, Apple’s products will reach saturation levels at the high-end of the market in developed countries.  To keep the top spot, Apple will need to direct its growth efforts to emerging markets and find ways to make its products both relevant and widely available to customers outside of its traditional target markets.

In spite of its strong worldwide sales, Apple has long ignored an underserved market segment that, if tapped, could enrich its coffers even more.  Far away from high end markets in developed countries, lay the “poor” representing 65% the world’s population.[ii] On average, individuals in this “bottom of the pyramid” (BOP) group earn $2,000 per year or less; however, because of the large number of consumers in this group, their aggregate purchasing power is immense.[iii] This BOP segment represents a tremendous opportunity for Apple to serve a market that currently relies on second-tier technology for mobile devices and media platforms, yet is eager for lower-priced, high-quality goods and services.  In spite of their low incomes, those in the BOP segment often spend 10% to 500% more than those in higher-end segments on similar goods.[iv] By offering a high end brand at a price competitive with second-tier products, Apple could drive tremendous sales volumes and acquire a large share of the BOP market.

A corporate strategy article by Thunderbird students Patricia Breceda, Mandukhai Hansen, Nick Mohin, Ajay Mungara, and Aleksey Vlasov

In May 2010, Ajay Mungara (Thunderbird ’12) was visiting the headquarters of one of the fastest growing companies in the world, Samsung Electronics Corporation (Samsung) in Suwon, South Korea for the first time. As he passed through the high security visitor center, he looked forward to the exciting and challenging opportunity to get to work with the “Jewel[1]” of the Samsung Group. Over the past two years and many more visits, and meetings with Samsung representatives, Ajay has seen Samsungs success to forge full speed ahead, and its brand value rise to #17 on Interbrand’s 100 Best Global Brands of 2011 list.[2]

Ajay knew there’s more to Samsung than its focus on Research and Development, and was curious about knowing more. As coincidence would have it, he came upon a group of fellow Thunderbirds who have also been watching Samsung’s rise, and interested in exploring more in to how Samsung is taking lead in the global smartphone competition. Together they pondered about Samsung’s global strategy, and wanted find out how it was able to displace Apple as the world’s top selling smartphone maker by volume, and how it continued to take market share away from world’s top handset manufacturers such as Nokia and Motorola in most emerging markets. They also wondered about the challenges it could be facing as the collaboration of world’s leading software and mobile handset manufacturers continues, such as mergers of Google-Motorola, Windows-Nokia. Can Samsung sustain its success for the long term? Can it survive the battle for the most valued component, the operating “eco” system in the smartphone?

A corporate strategy article by Thunderbird students Leah Burdick, Ilan Fehler, Nicholas Kincaid, Peter Klein and David Ryan

More so than traditional businesses, online businesses have the distinct advantage of acquiring more information about their customers. The more that is known about online users’ habits, needs and preferences, the greater the value that is derived from that relationship, as the businesses are better able to cater to the needs of those online users. An online network, a system of users, is enhanced not only by the relationship the business has with the user but also by the relationships that the users have with one other. Take the telephone for example. If you were one of the first three people to own one, you could only call the other two. Fortunately, today millions of people have access to telephones and anyone of them could theoretically call any other one. Therefore, a network of users derives greater value through the network’s size and ubiquity -- the larger the network, the greater the value to both businesses and consumers.

A corporate strategy article by Thunderbird students Antonio Perez Malpica, Amar Memon, Madhavi Rao, Andrew Rivas and Kaleena Rivas

Background

Since their introduction in 1979, mobile phones have been constantly evolving and becoming an integral part of our daily lives. From the first generation of devices based on cellular networks to the introduction of digital technologies like GSM and SMS and all the way to ultra-fast third and fourth generation (4G) networks, mobile phones have become more powerful, have increased their capabilities and have turned into essential devices for consumers around the world.

According to the International Data Corporation (IDC), in September of 2010 Nokia (Symbian OS) had 40.1% of the worldwide smartphone market share followed by BlackBerry (17.9%), Android (16.3%), and Windows Phone (6.8%). The IDC predicts that by the end of 2011, Android will become the leading OS system with 39.5% of worldwide market share due to their popular royalty-free business model, their partnerships with key global mobile carriers and the popularity of its applications (most of which are free). In order to increase its market share in the smartphone industry, Microsoft must deal with the strategic issue of proving the value of its Windows Phone 7 OS to their ecosystem partners and customers particularly in emerging markets where most of the growth is expected to occur.