HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Florian Hage |October2011

FlorianHage

October2011

Executivesummary

Itisnotenoughtoaim,youmusthit.
ItalianProverb ProvideWP7freeofchargetoaggressivelypenetrate marketandattackAndroid Triggerdemanddemonstratingonlyuscandoservices inordertotargetcustomersinB2BandB2Csectors in order to target customers in B2B and B2C sectors Explorestrategicpartnershipstocreatenewvaluestocustomers andservenewregions Collaboratewithotherindustrieswhichbenefitfromaconnectingworld ll b ih h i d i hi h b fi f i ld

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Worldwidesmartphone salestoendusersbyOS
MSsOSshrunkinaverage8%onaquarterlybasis AmazingmarketpotentialwithCAGRof30% butremarkableshiftsinmarketshares Amazing market potential with CAGR of 30% but remarkable shifts in market shares Timeforanaggressivemarketpenetration Actual Sales Forecasts
1200 1000 800 Symbian Android 600 iOS RIM Microsoft Others 200 0 Q12008 Q22008 Q32008 Q42008 Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 2007 2008 2009 2010 2011 2012 2015 400 CAGR: 30% 30 %

50 45 Wo orldwideSale esinMillionUnits 40 35 30 25 20 15 10 5 0

Source:Gartner,Canalys Source: Gartner Canalys

Source:Gartner,August2011 Source: Gartner August 2011

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

SWOTAnalysis
Helpfulinorderto achieveobjectives R&D: 16%oftotalrevenue 38%oftotalemployees ProductPortfolio: HighdegreeofintegrationbyZune,Office, WindowsLive,XboxLive maybeappealingto bothyouthandbusinesspeople UsersarefamiliarwithMSproducts SkypeAcquis.:WP7enablesVoIPcrosscountry Financialresources: Cashreservesarerelativelyhigh M&Aand/orstakesincomplementary companiesmayimprovemobilebusiness i i bil b i SmartphoneMarket: Amazingworldwidesalesgrowthof30%p.a. Demographicshift&highertechaffinity ComprehensiveUsersHabit: IntegratedsystemcompoundsZune, Xbox,Officeforleisure&business Streamingandmobilegamingflourish CollaborationwithNokia: NokiashardwaresavvyandMSsoftware knowhowmayreleasesufficientpro ductivity tofightbackmarketshares Harmfulinorderto achieveobjectives SalesMarket: StrongdependenceontheU.S.market thus onmacroeconomicconditions EuropeandAPACeachinvolvewaybiggersales potential IndustryGrowth: Incomparisontoitsmajorcompetitors in2010MSgrewless DelayedAction: WP7waslaunchedinQ42010,while competitorsoperateadvancedversions OEMs,carriersandendusersmayhave setcontracts/preferencesalready t t t / f l d CompetitiveEnvironment: Oligopolisticmarketstructure,whereMSs majorcompetitive OSsSymbian,Android,iOS and RIMaccountfor94%marketshareinH12011 AcquisitionofMotorolaMobilebyGoogle Q32011:ApplelaunchediPhone 4S, RIMtheBB7 Nintendopushesintomobilegamingmarket Macroeconomicconditions: A possibleeconomicturndownmayslowdown overalldemandofbusinessesandcustomers whichmayharmMSprospectivecatchup

Effectsfromtheenviro onment

Effects sfromMicro osoft

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Targetgroups
Microsoftisabletoservevarioustargetgroups butfacestrongcompetitors,too TrendOriented WorldofBusiness TechAffinity Functional

MSStrength
Media(Zune) Gaming(XboxLive) Social(Facebook ( Partnership)

MSStrength
OfficeApplications HubOrganization CloudComputing p g Security

MSStrength
HubOrganization Varietyof Services andProducts CloudComputing

MSStrength
Easeofusedue toLiveTiles DisplaySize p y

Competitors

Competitors

Competitors

Competitors Noseriousone

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Howtoexpandsalesdownthevaluechain
CurrentValueChain
Strongfocuson privatecustomers: thephonetosaveus fromourphones Microsoft

HandsetOEMs

MobileCarrier

Private Customer PrivateCustomer

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Howtoexpandsalesdownthevaluechain
ReinventValueChain
targetallplayersthroughout theentirevaluechain Strategicpartnershipsand M&A tocreateadditional valuesforbothcustomers, l f b h privateandcorporate HandsetOEMs Microsoft

StrategicPartnerships M&A
Createadditionalvalues forbothcustomers,private andcorporate and corporate

MobileCarriers

Private Customer PrivateCustomer

Corporate Customer CorporateCustomer

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

HowtoexpandsalestoOEMsandmobilecarriers

Increasemarketpenetration I k t t ti Beaggressive,besmart BreakoffstrongfocusonU.S.market,gainmarket sharesinEuropeaswellasemergingregions Mobilecarriersshapeconsumerspreferences Offerinappstores Offer in app stores

V l Ch i N i ValueChainNavi

Mean M ProvidetheWP7OSfreeofcharge y pp MayappeallowcostOEMsaroundtheworld Meetneedsinregionswithlesspurchasingpower Highersalesratebreedshigherappdevelopment Involveretailers bydesigningproducttrainingsand Involve retailers by designing product trainings and workshops Transformsalesmen intoconsultantsforWP
FlorianHage October2011 HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

PoS Trainings PoSTrainings

OnlineTrainings

Advertising Ad i i

Howtoexpandsalestocorporations

Targetingthebusinessworld T ti th b i ld Wellestablishedrelationshipstocompanies Synchronize theWP7smartphonewithtraditional andmostlyalreadyexisting officeinfrastructure Highworkefficiencyforbusinesspeople costeffectivenessforcorporatecustomers cost effectiveness for corporate customers

V l Ch i N i ValueChainNavi

Mean M ExpandexistingB2Bchannels g OfferonlinetrainingsforWP7 IncludeWP7intoB2Bsupportandconsulting Developabreakingappportfolio specializedfor corporations Guaranteeahighsecurity standard

BusinessApps pp

Support OnlineTrainings

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

Howtoexpandsalestoprivatecustomers

Targetingprivatecustomers allhavedifferentneeds T ti i t t ll h diff t d Trendorientationofyouthandmidagersseekfor applicationsprovidingsocialmedias,music,vids, photos,gaming,shoppingetc. Groupofelderlypredominantlyfocusonbasic functionsandease of use functions and easeofuse

V l Ch i N i ValueChainNavi

Mean M Expandmobilegaming throughcollaborations yp PushVoIPwithSkype Offerwebspace withinthecloud Usechancesfromdemographicshiftinorderto captureSilverAgers,whohavehighpurchasingpower capture Silver Agers who have high purchasing power Smartphonecontrolhastobeintuitively

Gaming EaseofUse AppStore

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

10

U.S.userdemographybyOS Whouseswhat?
Today,90%ofallsmartphoneusersareyoungerthan50years Buttoday sgenerationsgrowupwithsuchcommunicationtechnologies, But todays generations grow up with such communication technologies, i.e.futuresilveragerswillbecomeanincreasinglylargetargetgroup ThusMicrosofthastoservewithWP7threemajorgroupsinfuture: a)BusinessPeopleb)Youth (games,)andc)SilverAgers(news,mapping,localinfos,) a) Business People b) Youth (games ) and c) Silver Agers (news mapping local infos )
Age 18 29 Share
User Shares h

46% 1829

23%

35%

22% 3%

16%

OS De emographic calshift
Symbian y Android iOS RIM Microsoft Others

2010 1% 19% 35% 25% 3% 16%

30 49

3049 42%

17% 15% 29% 28%

39%

27% 3%

13%

50 64

5064 11% 18% 7%

65+

65+ 1%

SilverAgersinvolve additionalpotential

Source:Adobe,MobileExperienceSurvey,2010;own d i ti S Ad b M bil E i S 2010 depiction

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

11

HowtoexpandsalesthroughalliancesorM&A

StrategicPartnershipsandM&A St t i P t hi d M&A Createadditionalvaluesforbothcustomers,private andcorporate Raisepresenceinemergingregions

V l Ch i N i ValueChainNavi

Mean Expandexistingbusinessareas Zynga ( (USA),10Bil.USD,BrowserGames(FarmVille,) ) ( ) Createnewfieldsofoperation LinkedIn (USA),12Bil.USD Getaccesstonewmarkets Tudou (CHN),3Bil.USD,counterparttoGoogles YouTube

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

12

Appuserspreferences
TheKeyDriverofasuccessfulmobileOSwillbetheAppPortfolioavailable Themobileinternetis/becomesincreasingly social and entertaining The mobile internet is/becomes increasingly socialandentertaining WillingnesstopayisremarkablyhighforGamingApps andcounting! Games,Music&MoviesaretheTopSellersofMobileShopping
SocialMedia(Facebook,Twitter,) LocalInformation(Events,Mapping,Weather,..) PlayGamesonMobile MobileVideo GetSportsNews,Scores,etc. G tS t N S t News(National&Worldwide) Banking&Finance MusicPlayer(onlineradio,...) Shopping Travel(Booking,Timetables,) Travel (Booking Timetables ) 0%
Source:Adobe,MobileExperienceSurvey,2010;own d i ti S Ad b M bil E i S 2010 depiction 31% 24% 24% 20% 39% 22% 17% 21% 42% 41% 39% 60% 57% 56% 68%

WhichsortofAppsdo youregularlyuse?

ForwhichoftheseApps doyoupay?

Top5ofMobileShopping Music,Movies,G Music,Movies&Games Clothing&Shoes Electronics PrintMedia 50% 75% Computer&Office

30% 28% 26% 20% 43%

25%

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

13

Howtogrowwithinaconnectingworld
Outlook
Collaboratewithindustries whichincreasinglybenefit fromaconnectingworld Automotive Navigation TrafficSecurity OnboardEntertainment EmbeddedSoftware SmartGrid EmbeddedSystems Embedded Systems Electricity,Heating HomeEntertainment DomesticDevices SmartGrid

Commercial

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

14

Summary

It is not enough to aim you must hit Itisnotenoughtoaim,youmusthit.

ItalianProverb

ProvideWP7freeofchargetoaggressivelypenetrate themarketdowntheentirevaluechain

Triggerdemanddemonstratingonlyuscandoservices inordertotargetcustomersinB2BandB2Csectors i d i B2B d B2C Explorestrategicpartnershipstoempowernewvalues p g p p p tocustomersandservenewmarkets Setcollaborationsinmotionwithotherindustries Set collaborations in motion with other industries whichbenefitfromaconnectingworld

FlorianHage

October2011

HowtoexpandsalesofWindowsPhone andfightbackcompetingproducts

15

Thankyouverymuch Thank you very much foryourattention

Florian Hage |October2011

FlorianHage

October2011

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