Tuesday, November 01, 2011

The answer to Microsoft and Nokia's problem

Again, this is the problem of suppliers and relationship with suppliers and complementors, who are in this case the app developers.


A part of a model using Value Net concept by Brandenburger and Nalebuff (1995) that we drew out last year.

I thought it's very obvious for other mobile software developers that there is a shortage of apps on their platforms. A lot of people, use iPhone or iPad because of the variety of apps that they offer. And the apps looks beautiful on the device. (I wanted to buy an iPad because I can flip thru pages on Flipboard.)
It's a very good job for Nokia to develop a new smartphone within a very short time frame. Elop has just been to the company for less than a year. So, it's amazing they can develop a good hardware in short time. But, why don't they think about the complementors before that? They could also work together with Microsoft to boost the popularity of Windows Phone among the app developers.

Now, Nokia and eBuddy has just announced a partnership. Although I work for the company and the guy who closed the deal with Nokia sitting in the same room with me, asking me candies or cookies every day he comes to the office, I don't have a lot of information as the public has. (I tend not to discuss work-related things with my friends as well so normally have no idea what they are working on). eBuddy has partnership with a lot of OEMs and carriers, to make the eBuddy apps more popular among the users of the devices (Archos, Nokia,...) or among the carriers (Vodafone, T-Mobile, Singtel,...). Getting more users is beneficial to eBuddy. It's always good to have more users.
So in this case, what do you think the deal between Nokia and eBuddy? Did eBuddy have to pay Nokia for being pre-installed on their device? Or does Nokia pay eBuddy for installing our apps on their devices?

It will be clearer if you go back to the first paragraph, understanding the importance of the Suppliers or Complementors. Microsoft and Nokia did not do something on time, compared with Apple and Google to get the interesting apps out there in the market, on the platform.

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