Wednesday, February 23, 2011


When I think of the first cell phones that were used, I think of Nokia. However, for the past few years this once iconic powerhouse has become almost obsolete. Analyst Ken Dulaney said, "The challenge to come back in the U.S. market is very significant." But with the aid of a new executive and a shift in strategy, Nokia is striving to make a comeback in the cell phone industry.

Nokia just announced that they will now use the Windows phone software from Microsoft in their smart phones. With this new Windows phone platform, Nokia is hoping to gain market share once again the in US. Their ultimate hope it that their phones will get backing from one of the large carriers, like AT&T or Verizon. It will be interesting to see if this company can make a rebound in the very competitive cell phone business.

From a strategy viewpoint, a few models are applicable here. The first would be the Growth Opportunities Matrix. The fact that Nokia is going to use Microsoft’s software is a new product in an existing market. Also, they plan to use a major carrier like Verizon which means that they’d be involved in an existing product and market. Furthermore, with new management begin hired on, they will leverage their general management expertise. This goes along with the hedgehog concept in that hiring Chris Weber and Jerri DeVard, who both worked at Microsoft and Verizon respectively, will help give them a clear goal and excellent leadership.

Friday, January 28, 2011

One of the emerging small chains in western United States is Sunflower Farmers Market. This organic food grocer is a lower-cost health-food/grocery-store combination focused on fresh produce and natural meats and poultry. They are generally lower priced than mainstream health-food stores such as Whole Foods and have benefited from consumer trends toward more healthful foods and lower prices. Their strategy is simple. They buy produce directly from growers and use a network of 50 to 70 private-label manufacturers to keep prices down. So, they are striving to serve the middle market of people that want health food but can not afford it.
CEO Mike Gilliland mentioned that in the start-up process, they would look at their competitors and model their behavior and then fill in the gaps. He goes onto mention that t
here is a desire for healthy food and that they are at a nexus of trends. As a result, Sunflower Farmers Market has capitalized on this trend, and in 2009 they saw sales grow by 50 percent from the year before, to about $300 million.
According to the Nielsen Co., Sunflower's three Valley stores have 0.31 percent of the Phoenix-area grocery market. That compares with Trader Joe's at 1.96 percent, Sprouts at 1.61 percent and Whole Foods at 1.11 percent.
From a strategist viewpoint, it is easy to see that there were little barriers of entry in this market. Sunflower Farmers Market was able to enter into the market and after a few years, have 50% growth and a segmented portion of the retail grocery industry. They were also able break through the supplier power barrier by purchasing their products straight from the producers and using a network of private-label manufacturers. As a result, this small chain has continued to grow over the last few years with a bright forecast for the future.

Wednesday, January 19, 2011

Apple Inc.


When one thinks of technology these days, they think of Apple Inc. Since 1977, Apple has been a constant player in the computer industry. However, it was not until early 2007 when the leaders of Apple decided to tap into the profit pool of mobile consumer electronics. While other computer companies seemed to be taking over the computer industry in the early 2000's, Apple was striving to maintain their hold in the computer market. Then, in 2007 an announcement was made that Apple Computer Inc. was changing their name to Apple Inc. and dropping the title "Computer", because computers were no longer the main focus of the company. Since then, the profit pools of mobile consumer electronics and digital music players have helped pushed Apple to have revenue over $26 billion. Last quarter alone, Apple sold 19.4 million iPods, 16.2 million iPhones, 7.3 million iPads and 4.1 million Macs. Therefore, it is clear that Apple's main source of income is no longer computers, but rather the profit pools of mobile consumer electronics, the iPhone and iPad, and the digital music players, iPods.
I found these numbers to be interesting in that they show the complete shift of emphasis Apple made when the realized the potential that their other technologies possessed. As a result, they have become very successful and have an impressive forecast ahead of them.