Motorola's Droid 2 Dilemma

Motorolas Droid 2:
Product Managers
Dilemma
Ankur Kedia
Augustus Martin
Ayush Jain
Ekta Shetty
Harpreet Kaur
Makan
Hari Chandan
Case Introduction
Motorola Droid Success Story

Oct 2009
Motorola launched Droid Smartphone
Dec 2009
Motorolas net income increased by whooping ~99% yoy after
launch of Droid Smartphone
Feb 2010
Following the success of Droid, Motorola started working on
Droid 2 launch
Customer Concerns
Tops reasons for Customer Returns of Motorolas Droid Smartphone
For both Verizon

and Motorola,
launching Droid 2
represents a
strategic doubling
down
It becomes all the

more necessary to
remove the
customer
dissatisfier which
might afect the
sales of Droid 2
Turn on/of
Main Keypad
Side keys (Volume/Camera)
Software Features
Display
Audio
No Complaint
0% 20% 40% 60% 80%
Based on the internal

findings of Verizon
team, customers are
dissatisfied with the
camera button and that
leads to return of
product
Camera Button Issue
Product Differentiation
Form
Slimmer sleek phone
with smoother
keypad
Not as big as iPhone
4 but big enough for
a decent smartphone
45-key slide-down
hardware QWERTY;
vertical and
horizontal on-screen
keyboards
3.7 inches display
Features
Style
1 GH quad core
processor, 480 x 854
pixels (~265 ppi
pixel density)
Polishedmodernvers
ion of its
predecessor
Corning gorilla glass

for protection
Adobe Flash and
HTML browsers
5 MP primary camera
with auto focus
Sleek keypad with
touch screen, multi
touch and QWERTY
keyboard available
Sturdy build with

functional styling
Slightly more
rounded edges
Customer-Value Hierarchy
Core Benefit: To talk to people
Basic Product:
Product Design
Product design is the totality of features that
afect how a product looks, feels, and functions
to a consumer
Motorola Droids camera button acts as a
barrier which afects the value to the customer
Designing features like multi-touch screen, 1
GHz processor, Adobe Flash, 5 MP camera adds
more value to the customer
Product Managers Dilemma

Keep the Current Design
Modify the physical camera
button
Remove the button
altogether
Questions To Answer
Camera Button
User trial
feedback on the
camera button
Droid 2 camera
button vs Droid
1
Internal
usability data
about a
mechanical
camera vs
software button
How to improve
the tactile feel
of pressing the
camera button
Market
Dynamics
Technical
Considerations
Importance of
mechanical button
as a differentiator
Alternative
Solutions
Consequences of
delay
Implications of
removing the
button
Additional
resources
Impact on
Schedule
Customer Value Proposition
Target
Market
Diferentiate
d&
Compelling
Evidences
High end Smartphone Market (Tech Savvy users)
Powerful 1 GHz processor

Android 2.2 Operating System
Flash supported Web Access
Intuitive Keyboard & expandable memory up to 40
GB
Based on Droid's success and end user feedback

from Verizon
User Trial Feedback

Based on Verizons feedback from the end users,
Driods Camera button has a critical issue that need
a corrective action in Droid 2
Driods Camera button has a big size and its tactile
feel is not crisp
Some end users may prefer iPhones approach,
incorporating a software only button on the display
instead of a mechanical button
Button design change request by Verizon was
supported by its usability testing data and subscriber
behavior knowledge
Market Dynamics
From 2009 to 2010, Androids share grew from 27% to 42%
and the increase in the processor speed which Droid 2
ofers could get Motorola in a very competitive position with
Apples iPhone
Rumors of launching iPhone 4 by Apple is also an issue that
is making Motorola to accelerate the launch of Droid 2
They aim to shrink the product development life cycle for
Droid2 from 10 months to 6 months
..Contd
However, modifying the camera button design would force a
slip in the launch date
Design change will not only threaten to delay the launch,
which would have significant financial implications, but could
potentially create deep fissures in the collaborative
environment of the cross functional team
Decision has to taken keeping in consideration
Objective assessment of pros and cons of the options
The financial implications of extending the market window to
slip the launch date by one week or more
Inputs from each team on the impact of resolving this issue
and delaying the launch
Industrial
Design
Team
Customer
Support
Team
Marketing
Team
Decision
Engineerin
g
Team
Account
Manager
Supply
Chain
Customer Support Team
CUSTOMER SUPPORT TEAM

Minutes of the meeting held with Verizon
Significance of the issue
Verizons expectations
Customer supports recommendation
Marketing Team
Industrial Design Team
Trade offs :
Mechanical Button :
May lose the customers who prefer software
only button like iphone
Higher price due to change in design
Delay in launch due to change in design,
approx 3 weeks
Software-only button :
May efect the relationship between Motorola
and Verizon
Higher price due to change in design
Delay in launch due to additional feature,
approx 6 weeks
Engineering Team
Recommendations by
engineering team
3 Camera buttons available in the market
a)Software button (on screen)
b) Hardware button ( like droid)
c) a mix of both
Impact of software only button
a) less chances of button getting broken
b) Users wont have to handle such huge button
Supply Chain/Manufacturing
Account Manager
Account Managers comments

Impact on droid 2 volume and sales
The average selling price/unit will down by 20 %
The initial shipping volume will go down by 10 %
Revenue hence will go down by :
~1- 0.8*0.9=0.28 *100 =28 %
Impact on long term relationship
Verizon might break their bond with Motorola
Motorola henceforth might lose a lot of revenue
Recommendations
Keeping the current design

Pros :
No delay in launch
No extra efort by industrial design team and the
engineering team
Cons :
Relationship with Verizon may be adversely efected
Lose on the market share due to dissatisfied users of Droid
Revenue may decrease by approximately 28%
Negatively impact co-marketing budget
Modifying the camera button to improve its tactile feel
Pros :
End users satisfaction would increase
Relationship with Verizon may not be efected
Cons :
Launching Schedule impact a slip in launch date
Cost Impact due to design change
Removing mechanical camera

button
in favor of a software only button
Pros :
Attracts the users who prefer software only button
Expected Increase in Revenue due to strong competing
characteristics for the tech savvy smartphone market
Cons :
Slip in launch date
May negatively impact the collaborative environment
among the teams
THANK YOU

Motorola's Droid 2 Dilemma

Uploaded by

Copyright:

Available Formats

Motorola's Droid 2 Dilemma

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Motorola's Droid 2 Dilemma

Uploaded by

Copyright:

Available Formats

What is the camera button issue that customers have with the Motorola Droid?

What is the camera button issue that customers have with the Motorola Droid?

What are the different options available to address the camera button issue?

What are the different options available to address the camera button issue?

Motorolas Droid 2:

Motorola Droid Success Story

For both Verizon

It becomes all the

Based on the internal

Camera Button Issue

Corning gorilla glass

Sturdy build with

Core Benefit: To talk to people

Product Managers Dilemma

Customer Value Proposition

High end Smartphone Market (Tech Savvy users)

Powerful 1 GHz processor

Based on Droid's success and end user feedback

User Trial Feedback

Customer Support Team

CUSTOMER SUPPORT TEAM

Significance of the issue

Customer supports recommendation

Industrial Design Team

Account Managers comments

Keeping the current design

Modifying the camera button to improve its tactile feel

Removing mechanical camera

You might also like