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The same ones they faced almost ten years ago:

1) Product supply. The success of the RAZR is looking like MOTs "jump the shark" moment. To that point, they'd been trying to play catchup to Nokia in terms of market share and wow factor. The RAZR is the culmination of that catchup. Problem is, their attempt to fill the marketplace with RAZRs while rolling out new models has created a supply backup, forcing MOT to lower prices on RAZRs to get it out of the supply pipeline.

2) Relevance. Once MOT decided that style would trump substance, the bigger challenge was not trying to get to the cutting edge, but keeping that edge sharp.

So far, models following the RAZR have not sold as well as they'd hoped, especially since there are cheap RAZRs still out there.

3) Execution. Being late to market was MOT's problem back in the 1990s. They promised new phones, but they'd arrive well after the promise date. That gave Nokia and others opportunities to fill the gap and take market share which they've grudgingly given back.

Once again, MOT blew through promises to have new models out before the Christmas shopping season. Which meant they were flogging older models like the RAZR beyond their useful shelf life at lower margins. Once again, companies like LG, Nokia, and others are jumping into the breach to fill the wow gap. Bad news for a company committed to being on the right side of cool, which pads those fat margins investors like to see.

2007-03-20 01:47:56 · answer #1 · answered by CMass Stan 6 · 0 0

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2016-10-19 03:18:37 · answer #2 · answered by ? 4 · 0 0

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