Case Study Monika Mobile Phones
Basic Industries and Consumer Electronics Telecoms network division was thriving – demand grew (Monika had a head start on competitors because the Finnish telecoms infrastructure sector had been deregulated sooner than those in most European countries Monika under Loyola 1992-2006 Implemented “the Monika Way’ – highlighting Ionians core values of customer satisfaction, respect for the Individual, achievement and continuous learning Adopt a back to basic approach – series of major assets sales – centering the company on four key business areas: mobile phones, consumer electronics, networks and cables
Telecommunications and mobile phones ? focal points of Nikolas strategy 1999 Knock controlled one third of the essential patents for GSM standards – guaranteed continuous cash flows in technology licensing Recognized opportunity in Japans 70% market growth – 1992 agreement with Japanese mobile operator DID to design phones used on their network – first European manufacturer to make a deal in Japan COST
ADVANTAGE / DIFFERENTIATION
Monika Mobile Phones 1992: Monika launched first mass-produced digital phone COST ADVANTAGE Monika aggressively sought patents for its new technology developments – early patent tragedy Identified Asia as the region with the highest growth potential Ionians product Innovation, flexibility and rapid responsiveness to market differences allowed Monika to expand globally Observer: Monika Invested In each vertical of the handset ecosystem – manufacturing, distribution, and design R+D p. 6 unlike Its larger competitors focused on multiple business units. Monika had divested many of its non- core units Monika was completely focused on mobile phones; others had consumer electronics, home appliances, etc.
Ericson and Motorola were also vertically integrated providing infrastructure and handsets While other highly diversified interiors viewed handsets as secondary products Change official language to English First Finnish company on the New York stock exchange Monika and an Evolving Consumer Market Monika 2100: worlds smallest and lightest phone In 1994 Market mobile phones as fashion accessories Hired young art school designers to keep up with trends Monika at Its Peak Retail Prices of GSM phones continued to drop 2003: first touch screen devices Ionians Emerging Market Strategy By 2000: Monika turned its attention to emerging markets Sold handsets in over 130 countries Monika split handset division unit into 9 separate business centers based on geography to work on specific markets – in order to respond faster to specific market demands Reorganized itself into 4 divisions: mobile phones, multimedia phones, enterprise solutions and networks Increased Competition by the midst sass the industry was increasingly competitive south Korean manufacturer Samsung entered European markets shortened product life-cycles, increased pressure on design, manufacturing and distribution many operators in Europe and US agreed to terms with Asian contract manufactures or handset vendors to provide lower cost handsets as more manufacturing was outsourced, original design manufacturers DMS produced hones for other firms to sell under their brands Threatened to commoditized handset production and disrupt the vertical industry model of company’s like Monika 36 Standards and Convergence 2005: 36 networks allowed the mobile internet to grow Monika under Koalas (2006-2010) 2006: Monika and Siemens agreed to combine their network infrastructure operations in response to low price competition from Asia – Monika Siemens Network replacing Monika Networks Rise of Smartness and Apple phone Launch Growing demand for smartness (web browning, e-mail, maps, games, APS, etc. 007: introduction of phone included more computing features than competing smartness + delivered cool form factor (reminiscent of Ionians success in 1990 to turn handset into fashion accessory Monika and the US Market 2007: opening of research center in Silicon Valley New strategy needed in US market 2007 Monika released the Monika 6555 Signed deal with Asian contractor to develop a phone for Verizon to be released in 2008 – phone was to be outsourced entirely Change as Monika historically relied on in- house handset manufacturing and assembly Industry Shift to Software Smartened operating systems became more important Smartness became part of an ecosystem of consumer devices (Tunes, social media, etc) Ionians Response 2007 launched online store Vi to sell songs games, etc.
Industry as a whole is moving from a device industry to an experience industry Stephen Elopes Burning Platform 2010-2013 Shareholders were unhappy with Ionians failure to release a product that could compete with the phone First non-Finnish CEO – radical change A new operating System Decision to abandon Simian and replace it with Microsoft Windows Phone 7 software Simian support was outsourced to Accentuate In summer 2011 Monika made its largest marketing push to reestablish a presence in North America with Windows Phone Products 2011.
