In the first quarter of 2013, more than 60 million handsets were shipped to India. The overall segment saw a year on year growth of 24 per cent and the smartphone segment constituted 74 per cent of this growth. Clearly, the smartphone market is the driving force behind the overall growth. Even though its Indian market share is the third largest globally, it is still in its high-growth stage. This means any company that can successfully differentiate itself and lead the innovation curve has a very good chance of getting a slice of the market share. And, at the end of this growth stage only two or three major players will survive, because of further consolidation.
RECOGNISING THE OPPORTUNITY
With the rolling out of 4G services in the near future, the growth in the smartphone segment is only going to continue. Smartphones have evolved to affect the sales of feature phones and tablets. Clearly, this is the segment that Windows should focus on.
There are many challenges that Microsoft faces.
First, Android OS continues to dominate the market with a majority share. Android and iOS have a very strong and clear differentiation in the minds of the consumer and this is evident by the their fan communities.But when it comes to Windows OS, its differentiation is not distinctive and this has in turn affected its positioning.
Microsoft also has to compete with the likes of Samsung, Sony and HTC, all of whom have recognised that in order to stay in the race, they will have to continuously innovate and focus on research and development. Micromax and Karbonn who have steadily gained market share are known for their phones with great value for money.
The FutureFirst, the challenge for Windows will be to create a seamless ecosystem that comprises mobile devices, Windows tablets, PCs and Xbox.
Secondly, companies will also have to be a step ahead of the competition by imagining the evolution of smartphones. Thus, the success of Nokia in India has a lot to do with how it fares in the international markets. For that to happen, Nokia will have to race against time to develop futuristic technologies such as augmented reality, flexible screens, seamless voice control and more. I asked a few owners of Nokia Lumia, the reason why they chose a Windows phone over Android and iOS. A significant number of the replies included that they wanted to switch from their Android. The tiled interface of Windows 7 was, according to them, a refreshing change from the huge number of on-screen icons in any Android or iOS phone. The interface differentiates the Windows OS. So, the focus of Windows phones should be on making the phones stylish and urbane, to target the youth segment. Back it up with a product that is irresistible. Consider expanding the App Store and entering into all customer segments with varied price points.
Fourth, Nokia has one of the best networks of dealers across the country. This extensive dealer network can be leveraged to push the sales of Windows handsets in India.
Microsoft is one of the largest players in the enterprise markets. Microsoft will be able to strengthen its position in the market if it can offer an exciting product with integrated MS Office and enterprise IT solutions along with its smartphones to its enterprise clients. Music is extremely popular among Indian youth. Sadly, there is no smartphone which makes it simple to browse, download or stream music. Microsoft can create an easy-to-use Media app that will attract the consumer market.
Digital and viral marketing can be very helpful in increasing the awareness about the product, which is the first step for customer engagement according to the AIDA model.
According to a research by IDC, Nokia will have 10.2 per cent share in a market dominated by Android phones. Since it is a highly competitive market, it is going to be an uphill task for Nokia to regain its market share even if the above-mentioned recommendations are implemented. But, as mentioned earlier, by keeping both eyes on innovation, it can definitely be a major player once again.
(The author is pursuing MBA from Symbiosis Centre for Management and Human Resource Development, Pune.)