Motorola S Iridium A Go Anywhere Mobile Phone System That Beamed Signals Down Fr (1)

Motorola’s Iridium, a go anywhere mobile phone system that beamed signals down from 66 satellites, was called, “the eighth wonder of the world” by Motorola CEO Chris Galvin. However, at $1500 for a handset the size of a brick, consumers balked, and a few business customers needed the security and reliability offered in remote corners of the globe like Katmandu. As a result, Motorola’s 25 percent market share in cell phones declined steadily to 13 percent in 2001, and Motorola stock fell 16 percent from 1997-2001, during a period when the S&P was up 76 percent.1) Characterize the product space for mobile phones when Iridium began2) What trends did Nokia pursue as it designed mobile phone products in the late 1990s?3) What might a more proactive Motorola have done differently had it correctly perceived the steps its rival Nokia would take?

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