There are rumors in the mobile telecom industry today implying that a launch of a Gphone by Google might not be far away. By bringing both new technology and a new business model onto the mobile phone market, this occurrence could have a dramatic impact on the entire industry. The purpose of this thesis is to analyze a possible entry by Google into the mobile phone market in order to predict how this would affect traditional mobile phone manufacturers like Sony Ericsson. The thesis is based on a qualitative study, using mainly secondary data, and the thesis should be seen as having an understanding purpose. In brief, the authors came to the conclusion that the launch of a Gphone by Google would indeed have dramatic effects on the mobile phone market and it would constitute a threat to the survival of traditional mobile phone manufacturers like Sony Ericsson. However, by adapting quickly to the new circumstances, an entry by Google could also be considered to bring an opportunity for Sony Ericsson.
Contents
. Introduction
1.1 Background
1.2 Formulation of the problem
1.3 Purpose
1.4 Delimitations and assumptions
1.5 Contribution
1.6 Thesis disposition
2. Theoretical framework
2.1 Creative destruction
2.2 The S-curve
2.2.1 Basics
2.2.2 Innovator’s dilemma
2.3 Network externalities
2.3.1 Basics
2.3.2 The supply chain
2.3.3 Standards
2.3.4 Large, open systems
2.4 Summarizing the theoretical section
3. Research design and method
3.1 Method
3.2 Type of data used
4. Empirics
4.1 A brief history of mobile phones
4.2 The mobile phone market today
4.3 Open Handset Alliance members and the mobile phone market
4.4 A brief history of mobile network systems
4.6 Sony Ericsson
4.6.1 Numbers and outlook
4.6.2 Products
4.6.3 Symbian and Microsoft Windows Mobile
4.6.4 Position in the market
4.6.5 The evolving product strategy
4.6.6 Standardization
4.7 Google
4.7.1 Google at a glance
4.7.2 The start, the IPO, and some numbers
4.6.3 What makes Google special?
4.7.4 How does Google make money?
4.7.5 Googling on your mobile phone
4.7.6 Android
4.7.7 The first sign of a Gphone?
4.8 Definition of open source
5. Analysis
5.2 Creative destruction
5.2.1 The knowledge base
5.2.2 Entry on the market
5.2.3 The S-curve
5.3 Network externalities
5.3.3 Standards
5.4 Two versions of the Gphone
5.5 SWOT analysis
5.5.1 High-end segment
5.5.2 Low-end segment
5.6 Indirect threats to Sony Ericsson
5.7 Why should Google launch a Gphone?
5.8 Alternative arguments
6. Conclusions
7. Critique, discussion and further research
7.1 Discussion of the result
7.2 Critique
7.3 Suggested further research
8. References
Appendix
Author: Foed Hagström,Caroline Kennergren
Source: Stockholm School of Economics