{"id":7760,"date":"2013-09-04T12:43:22","date_gmt":"2013-09-04T17:43:22","guid":{"rendered":"http:\/\/mjtsai.com\/blog\/?p=7760"},"modified":"2013-09-04T12:43:22","modified_gmt":"2013-09-04T17:43:22","slug":"microsoft-and-nokia","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2013\/09\/04\/microsoft-and-nokia\/","title":{"rendered":"Microsoft and Nokia"},"content":{"rendered":"<p><a href=\"http:\/\/stratechery.com\/2013\/the-deal-that-makes-no-sense\/\">Ben Thompson<\/a>:<\/p>\n<blockquote cite=\"http:\/\/stratechery.com\/2013\/the-deal-that-makes-no-sense\/\">\n<p>I have argued that Stephen Elop <a href=\"http:\/\/stratechery.com\/2013\/blackberry-and-nokias-fundamental-failing\/\">made a massive strategic error<\/a> by choosing Windows Phone over Android; coming from Microsoft, he failed to appreciate that Nokia&rsquo;s differentiation lay not in software, but in everything else in the value chain. <em>It would have been to Nokia&rsquo;s benefit to have everyone running Android, including themselves.<\/em> Everyone would have the same OS, the same apps, may the best industrial design, distribution, and supply chain win.<\/p>\n<p>Elop threw it all away.<\/p>\n<\/blockquote>\n<p><a href=\"http:\/\/stratechery.com\/2013\/another-nokia-explanation-the-same-conclusion\/\">Follow-up<\/a>:<\/p>\n<blockquote cite=\"http:\/\/stratechery.com\/2013\/another-nokia-explanation-the-same-conclusion\/\"><p>Will Elop be CEO? If my original theory is true &#8211; that Nokia was on the verge of leaving Windows Phone, either for Android or bankruptcy &#8211; then Elop simply can&rsquo;t be a serious candidate.<\/p>\n<p>[&#8230;]<\/p>\n<p>The problem for Microsoft in mobile is that <a href=\"http:\/\/stratechery.com\/2013\/the-android-detour\/\">Android has completely destroyed<\/a> the value of a licensed OS; Microsoft&rsquo;s traditional software model is broken. The only way to make money is to sell hardware to a segment of the market (with lower margins relative to software), or services that sit on top of OSs (with lower prices relative to software).<\/p>\n<p>[&#8230;]<\/p>\n<p>If you believe that strategy is about making choices, then it&rsquo;s clear that &ldquo;Devices and Services&rdquo; isn&rsquo;t a strategy at all.<\/p>\n<p>[&#8230;]<\/p>\n<p>They ought to pursue a strategy &#8211; services &#8211; that entails just that: being everywhere. Unfortunately, they now have $7 billion more reasons and the distraction that comes with them to pursue a strategy that they themselves see as winning <a href=\"http:\/\/www.zdnet.com\/idc-microsoft-at-odds-over-future-windows-phone-market-share-7000020233\/\">only 15% of the market<\/a>.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Ben Thompson: I have argued that Stephen Elop made a massive strategic error by choosing Windows Phone over Android; coming from Microsoft, he failed to appreciate that Nokia&rsquo;s differentiation lay not in software, but in everything else in the value chain. It would have been to Nokia&rsquo;s benefit to have everyone running Android, including themselves. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[248,101,37,221],"class_list":["post-7760","post","type-post","status-publish","format-standard","hentry","category-technology","tag-android","tag-business","tag-microsoft","tag-nokia"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/7760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=7760"}],"version-history":[{"count":0,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/7760\/revisions"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=7760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=7760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=7760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}