From e-commerce to m-commerce : a new competitive environment for wireless vendors

Abstract

The Internet has created a revolution in business. It is allowing companies to connect like they have never been able to previously. Traditional companies are having to radically transform themselves as new business models become possible. These same companies are falling over themselves to cash in on the stratospheric corporate valuations brought on by the new economy, and at the same time are in a desperate battle with the same new economy companies to keep their customers, margins, and market share. However, the first shots of another revolution are being fired. Within five years, these same companies will be repeating their acts of desperation as the Web goes wireless. Today, mobile phones have become ubiquitous tools for many businesses allowing employees, customers, and suppliers to stay better connected. However, wireless voice is only the beginning. As wireless data transmission becomes possible, the Internet turns mobile, and entirely new disruptions in the business world will be created. Where the Internet changed how business was conducted, the wireless Web will change where business is conducted, and just as the Internet has become strategically important to almost every company today, so will the wireless Web be just as important to companies tomorrow. Complicating the matter, the mobile telecommunications industry is in a dramatic state of flux. Not only are handset manufacturers seeing exponential growth in mobile voice communications, but are also now beginning to grapple with the issues of data delivery over mobile devices. These next generation mobile devices will not only have to deliver voice services, but will also have to deliver data services such as email, e-commerce, and other Internet applications. This paper will address the strategic issues being faced by three mobile device manufacturers: Ericsson, Nokia, and Siemens. Furthermore, we will examine the effects the convergence of handheld and wireless devices, the multitude of standards, and the consolidation of industry players will have on an already competitive and complicated industry.