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Strategy report
TO: Proximity Mobile Team FROM: John Hasslinger DATE: October 1, 2009 SUBJECT: Strategy Report

This is my Palm strategy analysis. Palm once dominated the PDA and smart phone arena, with much larger companies such as Apple, RIM and Google aggressively competing in the market with innovative technology and software applications. Palm’s future now appears to be questionable. Palm’s survival depends on whether it can gain the Gen-Y consumers’ market from these larger companies.

Palm Inc.’s (Palm) innovational phone technology and operating system (OS) sparked the mobile-computing revolution, allowing for the integration of computer power with a cellular device (Palm Inc). It was founded by Jeff Haskins in 1993 as Palm Computing Inc. In 1997, it became a subsidiary of 3Com. On March 1, 2000, Palm Computing was renamed Palm Inc. (Palm) and 3Com made it an independent, publicly traded company on the NASDAQ. Palm is headquartered in Sunnyvale, CA. Palm’s current CEO is ED Colligan (Wikipedia).
 * Profile**

Palm’s primary source of revenue is from the sales of smartphone and related accessories through third party vendors (Palm Corp.). Palm’s sales for the 05/30/09 fiscal year were only $437M with a net loss of $876.1M. The company expects sales to drop in the 1st and 2nd quarters of the 2010 fiscal year (Palm Inc). However, Palm expects sales to increase in the 3rd and 4th quarters due to the release of the Palm Pre and Pixi.

The man force driving the competition in the smartphone arena is competition for the market with new smartphone devices and applications. Buyers have many options to choose from such as Palm’s Pre and Pixi, RIM’s BlackBerry, the Apple iPhone and Google’s Android. The main issue is which smartphone company will produce the devices and related software applications that will capture the Gen-Y market.
 * Competitive Landscape**

Palm has two fundamental problems: 1) Palm’s financial well being is weakened because its only income stream is from the sale of smartphones and legacy PDAs’ unlike its competitors Apple and Google.

2) Palm is the smallest company financially that is selling smartphones.

Thus these two limitations, limited income stream and limited financial strength present serious questions as to the future financial viability and survival of Palm.

Palm has a two part strategy. 1) __Palm’s current financial straits__ it recently held a public offering of common stock. Palm managed to sell a total of 23 million shares of common stock at an offering price of $16.25 per share. Palm received approximately $356.6M after deducting discounts and commission expenses. Palm’s chief officer, Jon Rubistein said “We couldn’t be more please with the outcome of Palm’s public equity offering. We achieved all of our objectives and now have a stronger balance sheet, a stronger shareholder base and a stronger foundation for future growth.” (Fox) However, Palm didn’t disclose how the money will be used.
 * Palm’s Strategy**

2) Palm’s direct strategy has been base of their operations. Palm’s main goal is to create a smartphone device and OS that is both powerful and allows the consumer to easily manage their on-the-go lifestyles (Palm Inc). Palm recently announced two new products that will be released in the second quarter of the 2010 fiscal year – the Palm Pre and Palm Pixi. Both of these smart phones will use the newly innovative OS, known as Palm webOS. Strategy for the new OS is to create an easy to use and customable interface for each individual consumer.

I have come to the conclusion that there are three things that attract Gen-Y consumers to one smart phone over another. They are as follows: · Strength and reliability of the wireless contractor · Slickness and ease of use of the smart phone · Ease and upkeep of useful applications for the mobile design I believe that Palm has done two little too late to gain back its once dominant platform in the smartphone market. With continuous financial losses and low demand for their mobile phone devices, Palm are currently in survival mode against the king companies like Apple, RIM and soon to be release Google Android (Benn). Unlike most of its competitors, Palm’s only revenue source is from sales of smartphones and related applications. Apple’s Iphone and RIM’s BlackBerry have what Gen –Y consumers want. Gen-Y users first want quality made and reliable smart phones that operate on sound wireless systems. Then Gen-Y’ers wants robust applications that seamlessly integrate with their smart phones. While Palm may win some customers with its new Pre and Pixi, it may be too little too late because of the size and strength of Apple, RIM and Google and the robustness of their smart phone technologies.
 * Gen-Y Implications**

Blog proposal
TO: Proximity Mobile Team FROM: John Hasslinger SUBJECT: Blog post proposal DATE: October 26, 2009

I propose that we do our Proximity blog post on Google’s upcoming position in the mobile market. This post can be used to analyze and follow Google’s strategy/movements in this market.

Google’s dominance in the mobile market is strictly in the operating system and ad service to third party vendors. Google’s services are seen in a lot of applications for Apple’s Iphone and RIM’s BlackBerry. Google is looking to expand its horizon from a strictly software platform into a hybrid one that handles its own hardware and software as apple does. They look to release their own smartphone with Android on it. This could hurt a lot of other mobile companies that are not as financially stable.
 * Rationale**

I used the following sources for this blog: [] []
 * Sources**

Report proposal
 FROM: John Hasslinger DATE: November 25, 2009 SUBJECT: Proposal for report on Android Google’s new operating system, Android, is a breath of fresh air to the mobile market. With the arrival of the Android, the market for the handset and applications become more competitive. I propose to write a report on how Android is positioning itself with the handset market (Verizon). With advances of cellular technology, a new era of cell phones has emerged. One of the newest operating systems is the Android. This operating system allows one to utilize the advantages of numerous helpful and enjoyable applications. · Consumers are looking for ways to be better connected to work and social events. · Smartphones such as the Iphone and Android are allowing people to customize their usage on a handheld device through multiple applications. · Programmers are looking for ways to create applications that are easy and friendly for the common consumer to integrate into everyday life.
 * Need **

Android is an infant in the mobile market and has a long way to go before it is competing with Apple’s Iphone and RIM’s BlackBerry. However, Android has a lot of potential. It is a custom product that one can make their own applications to fit their interests.

Clients of Proximity who are trying to attract Gen-Y consumers need this report to understand Android's potential. The proposed report, “Android, a breathe of fresh air?”, will cover the following topics:
 * Topics **

· What is Android; · What makes the android marketable compared to the BlackBerry/Iphone. · Google’s Android Market o The problems within the Android Market o Compare Apple and Android Market

=Sources = Android Market. Retrieved November 27, 2009. @http://androidmarket.net/

“The Android Market is the apps system that is used to get information into the hands of the Android’s owners”. Developers will have the ability to create their own apps and then have it distributed to people. This is similar to Youtube in that people can provide feedback of the product. Certain apps will be provided without a fee. = = Kincaid, Jason (2009, November 15). Android Market Badly Needs A Desktop Presence To Compete With The App Store. Retrieved November 27, 2009, from The Washington Post website: http://www.washingtonpost.com/wp-dyn/content/article/2009/11/15/AR2009111502526.html The author briefly discusses the issues that Android is having with its recent release on multiple service providers. He goes on to talk about the issues that the young android market is having and how it doesn’t meet up with Apple’s standards. He finishes with possible solutions for the android market.

Perenson, Melissa (2008). Google Launches Android Market. Retrieved November 27, 2009. @http://abcnews.go.com/Technology/PCWorld/story?id=6087886

The author shows that the Android Market will be a convenient operating system that will give Apple and the Iphone a challenge. The market for Android will allow people to download many applications, or apps, and use it on a wide variety of phones, whereas Apple apps are only conducive to the Iphone.

What is the Android Operating System? (2009) Retrieved November 28, 2009. [] This article covers the topics of what android is and the bases for how it works.

Revised proposal
**TO: Proximity Mobile Team** Google’s new Android operating system is the newest attempt to capture the mobile market. With the arrival of the Android, the markets for the handset and related applications have become most competitive. I propose to write a report on how Google’s Android is positioning itself in the handset market to challenge Blackberry and iPhone. Note here that I cut down this sentence to make it reflect what the report will cover not the conclusion of the report. **Save that for the recommendations section of the report itself.**
 * FROM: John Hasslinger**
 * DATE: December 14, 2009**
 * SUBJECT: Proposal for Report on the Android**

**Need**

With advances of cellular technology, a new era of Smart Phones has emerged. One of the newest Smart Phones is Verizon’s Droid which is based on Google’s Android operating system. The Android operating system allows users the latest technological software platform and related applications. Recently introduced the Android is only an infant in establishing itself in the mobile market against Apple’s iPhone and RIM’s Blackberry. However, Android has a variety of strengths and presents enormous market potential. In fact, its customizable applications potential is so great that it will eventually dominate the handset market. Thus, Proximity’s clients who are trying to attract Gen-Y consumers need this report to better understand Android's potential. Additionally, Apple’s and RIM’s managements need this report to defend their products’ market shares from imminent Google/Android domination.
 * Consumers are looking for ways to be better connected to work and social events.
 * Iphone and Android Smartphones are allowing people to customize their usage on a handset through multiple applications.
 * Programmers are looking for ways to create applications that are easy and friendly for the common consumer to integrate into daily life.

**Topics**

The proposed report, “ David (Apple) and Goliath (Google): A Handset Fight of Biblical Proportions” will cover the following topics: **I would use a modified version of the title in red above as the second order headline for your report. The title itself needs to be more descritpive - Why Google Android will soon dominate the Smartphone market, for example. There is one problem also with your Bible analogy - David kills Goliath!!**
 * What is Android?
 * Determine how the Android handset market is shaping up compared to the iPhone’s market.
 * Determine how the “Android Market” compares to Apple’s “App Store.”
 * Evaluate the financial strengths of Google and Apple.
 * Evaluate the business strengths and weaknesses of Google and Apple.
 * Evaluate the future “creative” resources of Google and Apple.
 * Evaluate and compare the Androids multi-service distribution service partnerships versus the iPhone’s mono distribution service (AT&T).
 * Analyze and evaluate Google’s biggest problem: The plan to rapidly deploy Android “applications” – the Google partnership plan to attract and reward applications developers.


 * You need to collapse these specific items into an actual set of topic headings you will use in the report. My suggestion is the following:**


 * **What Android is and how Google plans to position it**
 * **Strategic overview of Google and Apple**
 * **Applications: Android vs iPhone**
 * **Multi-service distribution vs. mono service distribution**


 * Those four topics cover the basic things you have scattered through the 8 bullet points and moves up front the general discussion of Android and Google's plans as well as a section which may have several sub-sections on the resources each player brings to the competition. Then you zero in on two key issues - apps and distribution / support. After that you have a recommendation page where you summarize your findings and the case for why you are saying that Android will dominate.**



 December 20, 2009

Ms. Rebecca Greenlow Director of Marketing Verizon Wireless 701 Catonsville, MD 21228

Dear Rebecca:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Google’s Android domination of the mobile market. Enclosed you will find a prospectus for the report I mentioned describing Google’s Android and the potential it has to dominate the mobile market.

As you noted yesterday, Google feels that it must immediately establish Android’s identity with Gen Y in order to sell Android based phones that will help manage the on the go lifestyle of today’s business and leisure society. I believe Proximity can work with you to devise a comprehensive campaign that uses mass media in order to promote the Android service.

We can provide you with customized survey and focus group results to continue to keep Google’s Android with its positive image. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have trained student marketers who can promote Android on social networks such as Facebook. Our research shows that using student representatives to befriend social networkers is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Android’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely,   John Hasslinger Associate Media Analyst

enclosure    
 * About Proximity **

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.

 **//XIMITY reports //** || ||  //connecting with Gen Y using on-demand media // ||^  || **<span style="color: maroon; font-family: "Arial","sans-serif"; font-size: 16pt;">Why Google’s Android Will Soon Dominate the Smartphone market ** <span style="font-family: "Arial","sans-serif";">John Hasslinger <span style="color: black; font-family: "Calibri","sans-serif";">David (Google) and Goliath (Apple): A Handset Fight of Biblical Proportions ||   || With the growth of Gen-Y’s dependence to be connected to the world and as Smartphones become the dominant handset device in the market, the fight for who will control the handset market becomes more competitive. With the Apple’s iPhone dominating the handset market and with the iPhone’s superior applications and marketing, the Google’s Android has a long and uphill battle to position itself within and to become the dominate product in the mobile market. || Research has shown that Gen-Y customers value reliability and strength of network service providers to guide them to a particular handset device. Google has set itself up to distribute Android through multiple service distributors unlike Apple’s mono-service distribution method. This report provides an overall view of how Google is positioning Android in the mobile market. Also it will allow Proximity’s clients to gain an understanding of the competition’s (Apple) strategy and market position that it has in the Smart Phone marketplace. || <span style="height: 77px; margin-left: 8px; margin-top: 29px; position: absolute; width: 576px; z-index: 251657728;">
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