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Q. Motorola's Iridium, a go-anywhere mobile phone system that beamed signals down from 66 satellites was called the "8th wonder of the world," by Motorola CEO Chris Galvin. Explain how ever, at $1,500 for a handset the size of a brick, consumers balked, and few business customers needed the security and reliability offered in remote corners of the globelike Katmandu. As a result, Motorola's 25% market share in cell phones declined steadily to 13% in 2001, and Motorola stock fell 16% from 1997-2001, during a period when the S&P 500 was up 76%.
1) Characterize the product space for mobile phone when Iridium began.
2) Illustrate what trends did Nokia pursue as it designed mobile phone products in the late 1990's?
3) Illustrate what might a more proactive Motorola have done differently had it correctly perceived the steps its rival Nokia would take?
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