Motorola 's Iridium, a go-anywhere mobile phone system that beamed signals down from 66 satellites was called the "eight wonder of the world," by Motorola CEO Chris Galvin. However, at $1,500 for a handset the size ofa 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) What trends did Nokia pursue as it designed mobile phone products in the late 1990's?
3) What might a more proactive Motorola have done differently had it correctly perceived the steps its rival Nokia would take?