This document discusses mobile business strategies and the mobile environment. It covers various wireless technologies including WiFi, HiperLAN, Bluetooth, ZigBee, WirelessUSB, Ultra Wide Band, and WiMAX. It also discusses location-based services, approaches to mobile business like NTT DoCoMo's "MAGIC" strategy, and outlines a mobile business roadmap and value chain. Key factors in analyzing the mobile environment are discussed such as Porter's 5 Forces and SWOT analyses.

1. Mobile business
strategy
Lecture 2

2. The mobile business
environment
• Mobile business is a broad definition that
includes communication, transactions, and
different valued-added services that are
made available by using portable devices
• Another essential definition of “mobile
commerce” is that it is referred to as
“transactions with monetary value,
conducted by mobile Internet.”

3. Wireless world
The wireless world is a complex
environment consisting of different and
competing technologies.
• WiFi
• HiperLAN
• Bluetooth
• ZigBee
• WirelessUSB
• Ultra Wide Band
• WiMAX

4. WiFi
The first WLAN (wireless local area network)
standard offering the capability to connect
wirelessly to LAN; this technology developed rapidly
with a wider offer of bandwidth (Gratton & Gratton,
2004).
• Strengths:
– Expanding existing network without cables;
– expanding network where cables are difficult to install,
rapidly evolving with users’ need;
– largely used and close at hand;
– one of the fastest wireless technology
• Weakness:
– Difficult set up and configuration

5. HiperLAN
This technology is used in Europe and provides a
different set of wireless communication
specifications providing WLAN support. It is also
compatible with 3G, enabling voice, and imaging
communications (Gratton & Gratton, 2004)
• Strengths:
– WLAN support provided, data rate of 54 Mbps,
the 3G applications support
• Weakness:
– Located only in Europe

6. Bluetooth
From the name of the Viking king Harald whose aim
was to join together the Nordic European
territories, a cable replacement technology to
overtake the messy cables around laptops and
desktops. Infrared was also engineered to tackle
similar issues (Gratton & Gratton, 2004)
• Strengths:
– Can be incorporated in many products and devices, low
cost resulting in cheaper products, can make use of low
power schemes, ease of use for consumer
• Weakness:
– Small data rate available, uses the same frequency as
other devices

7. ZigBee
Introduced to disseminate a large range of
products and devoted to businesses willing to
develop wireless products. It works with IEEE to
set up a new standard (Gratton & Gratton,
2004).
• Strengths:
– Low power consumption and cost, affordable
wireless solutions, fast wireless development,
avoids coexistence
• Weakness:
– Uses the same frequency of other
technologies and may overlap with Bluetooth

8. WirelessUSB
Short-range wireless technology operating on
the 2.4 GHz unlicensed spectrum; developed by
Cypress Semiconductors to gap fill Bluetooth
shortcomings (Gratton & Gratton, 2004).
• Strengths:
– Low power consumption, affordable wireless
solutions, allows fast wireless development
• Weakness:
– There are restricted applications, uses same
frequency of other technology, mostly
unknown and not widely available

9. Ultra Wide Band
The FCC in the U.S. recently approved this
technology, which is similar to Bluetooth, but
can travel a distance up to 230 feet through
obstacles by using minimal power. Currently two
types of application exist: radar and voice/data
communications
• Strengths:
– Low power consumption, can overtake
obstacles, its radio waves travel further
• Weakness:
– Early development stage and mostly unknown

10. WiMAX
• Represents the next evolution in broadband
wireless technology and will be backed by Intel.
This new technology, designed so that it does not
require line of sight, should allow higher-speed
downloads over much longer ranges than WiFi.
• WiMAX should have clear advantages of speed
and simplicity over 3G technologies for in-vehicle
entertainment, flexible CCTV, and security
systems; WiMAX devices could represent a user’s
second or third broadband connection

11. Location-based services
• Micro-Payment (Coca-Cola vending
machines in Finland use SMS
payment)
• Gambling (lotto, instant games, and
sports)
• Intelligent Advertising (receive
advertisements via SMS or MMS)

12. Approaches to mobile business
“MAGIC” (by NTT DoCoMo)
– Mobile
– Anytime
– Globally
– Integrated
– Customized.
Ericsson developed the “0-1-2-3” approach:
– 0 written manuals
– 1 simple button to the Internet
– 2 seconds of delay waiting to access the service
– 3 keys to gain access to services and features

13. Mobile business roadmap
to success
• Porter’s 5 Forces Analysis (Porter,
1980)
• SWOT (strengths, weaknesses,
opportunities, and threats)
• Do the assessment twice:
– firstly at higher level (macroeconomic
level)
– secondly at lower/specific industry level
(micro-economic).

14. Five lenses to see mobile
• Mobile business can be analyzed into five
different wedges:
– movement, is the most obvious, as movement or
changing places
– moment – more simply, time (possible to
manipulate passing time, planning, scheduling,
and postponing, and even multitasking)
– me – remarkable amount of customization
features (ring tones, colored screensavers, covers,
and accessories)
– money (mobile phone that can easily replace
wallet and coins, and enable mobile banking)
– machines – many mobile devices that can
perform different tasks

15. Marketing dimensions
OWNERSHIP Personal phone, business phone,
parents’ phone, supplementary
phone
CONTACTS Few, many, random
LOCATION National, overseas, movers, and
shakers
TIME Weekday, night, day, weekend
BEHAVIORS Mostly caller, mostly receiver,
sending data, images, files,
music, call backer, avoider

16. Value chain for
the wireless business
Network
• Back end
system
• Web and WAP
server
• Internet
• Mobile
network
Technology
• SW
development
• Payment and
security
solutions
• SW platform
Content
• Provision
• Applications
• Aggregation
Interface
• Portals
• Devices
Customers
• Individuals
• Companies
• Institutions