Motorola's Droid 2

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Motorolas Droid 2

Product ManagersDilemma


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Case Introduction


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Motorola Droid Success Sto

Oct 2009

Motorola launched Droid Smartphone

Dec 2009

Motorolas net income increased by whooping ~99%launch of Droid Smartphone

eb 20!0

ollowing the success of Droid" Motorola started worDroid 2 launch


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Customer Concerns

$o omplaint

&udio

Display

Software eatures

Side #eys '(olume)amera*

Main +eypad

,urn on)o-

0% 20% .0% /0% 0%

Tops reasons for Customer Returns of Motorolas Droid Smartphone

1ased on the internalndings of (eri3on

team" customers aredissatised with the

camera button and thatleads to return of

product

or botand Molaunchirepresestrategdown5

6t becomore nremo7ecustomdisatismight a

sales o


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Camera Button Issue


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Product Dierentiation

!eatures!orm

Slimmer slee" phone#ith smoother"eypad

$ot as %ig as iPhone& %ut %ig enough fora decent smartphone

&()"ey slide)do#nhard#are *+,RT-./ertical andhori0ontal on)screen"ey%oards

13 inches display

St

4 56 7uad coreprocessor8 &9 ; 9(els ( ppipi;el density?

Corning gorilla glassfor protection

@do%e !lash and

6TMA %ro#sers

( MP primary camera#ith auto focus

Slee" "eypad #ithtouch screen8 multitouch and *+,RT-"ey%oard a/aila%le

Polishedion of itspredece

Sturdy %function

Slightly rounded


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Customer)alue 6ierarchy

ore 1enet8 ,o tal# to p

1asic roduct8


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Product Design

roduct design is the totality of features

a-ect how a product loo#s" feels" and funto a consumer

Motorola Droids camera button acts as abarrier which a-ects the 7alue to the cust

Designing features li#e multi:touch screen;


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Product Managers Dilemm

+eep the urrent Design

Modify the physical camerabutton

>emo7e the buttonaltogether


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*uestions To @ns#er

Mar"etDynamics

Camera Button

Importance ofmechanical %uttonas a dierentiator

Conse7uences ofdelay

TecConsid

@lternaSolutio

Implicaremo/i%utton

@dditioresourc

ImpactSchedu

ser trialfeed%ac" on thecamera %utton

Droid 2 camera%utton /s Droid4

Internalusa%ility data

a%out amechanicalcamera /ssoft#are %utton

6o# to impro/ethe tactile feelof pressing thecamera %utton


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Customer alue Proposition


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ser Trial !eed%ac"

1ased on (eri3ons feedbac# from the end users" Driods abutton has a critical issue that need a correcti7e action in D

Driods amera button has a big si3e and its tactile feel is n

Some end users may prefer ihones approach" incorporatisoftware only button on the display instead of a mechanica

1utton design change reEuest by (eri3on was supported byusability testing data and subscriber beha7ior #nowledge


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Mar"et Dynamics

rom 2009 to 20!0" &ndroids share grew fro

to .2% and the increase in the processor spwhich Droid 2 o-ers could get Motorola in a competiti7e position with &pples ihone

>umours of launching ihone . by &pple is aissue that is ma#ing Motorola to accelerate launch of Droid 2

,hey aim to shrin# the product de7elopment

cycle for Droid 2 from !0 months to / month


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Decision

6ndustrial

Design

,eam

ustomer

Support

,eam

&ccountManager

Supplyhain

ngineering

,eam

Mar#eting

,eam


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Customer Support Team


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CSTM,R SPPRT T,@M

Minutes of the meeting held with (eri3on

Signicance of the issue

(eri3ons eBpectations

ustomer supports recommendation


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Industrial Design Team


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,ngineering Team


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1 Camera %uttons a/aila%le in the mar"eta? Soft#are %utton ecommendations by engineering team


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Supply ChainEManufacturin


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@ccount Manager

@ t M


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@ccount Managers commen

6mpact on droid 2 7olume and sales

,he a7erage selling price)unit will down by 20 %

,he initial shipping 7olume will go down by !0 %

>e7enue hence will go down by 8 ~!: 0?I0?9J0?2 I!00 J2 %

6mpact on long term relationship

(eri3on might brea# their bond with Motorola

Motorola henceforth might lose a lot of re7enue


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Recommendations


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Feeping the current design ros 8

$o delay in launch $o eBtra e-ort by industrial design team and the

engineering team

ons8

>elationship with (eri3on may be ad7ersely e-ecte

Kose on the mar#et share due to dissatised users >e7enue would decrease by approBimately 2%

$egati7ely impact co:mar#eting budget

Modifying the camera %utton to impro/e its tactile feel


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Modifying the camera %utton to impro/e its tactile feel

ros 8

nd users satisfaction would increase

ons 8

Kaunching Schedule impact G a slip in launch

ost 6mpact due to design change

%utton


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%uttonin fa/or of a soft#are only %u

ros 8

>emo7al of mechanical button that is acting asdisatiser would increase the chances of purch

Bpected 6ncrease in >e7enue due to strong cocharacteristics for the tech G sa77y smartphone

ons 8

Slip in launch date May negati7ely impact the collaborati7e en7iro

among the teams


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Motorola's Droid 2

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