Harvard Case - Motorola's Droid 2: The Product Manager's Dilemma
"Motorola's Droid 2: The Product Manager's Dilemma" Harvard business case study is written by Mohanbir Sawhney, John Miniati, Kim Patrick Junsoo, Pallavi Goodman. It deals with the challenges in the field of Negotiation. The case study is 11 page(s) long and it was first published on : Feb 19, 2014
Verizon was a powerful player in the wireless industry, and Schuster knew that he needed to be strategic in his negotiations. He also recognized that Motorola needed to maintain a strong relationship with Verizon, as it was a key distribution channel for its smartphones.
3. Analysis of the Case Study
Schuster considered several negotiation strategies, including distributive bargaining, integrative bargaining, and principled negotiation. Distributive bargaining, also known as positional bargaining, is a win-lose approach in which each party tries to maximize its own gain at the expense of the other. Integrative bargaining, also known as win-win negotiation, is a collaborative approach in which both parties work together to find a solution that meets the needs of both sides. Principled negotiation is a hybrid approach that combines elements of both distributive and integrative bargaining.Schuster ultimately decided that principled negotiation was the best approach for this situation. Principled negotiation is based on four key principles:
- Separate the people from the problem.
- Focus on interests, not positions.
- Generate multiple options before deciding.
- Insist on objective criteria.
By following these principles, Schuster could increase the likelihood of reaching a fair and mutually beneficial agreement with Verizon.
4. Recommendaations
Based on the analysis of the case study, we recommend that Motorola's product manager, David Schuster, adopt the following steps to negotiate a favorable deal with Verizon for the launch of the Droid 2 smartphone:- Prepare thoroughly. Schuster should gather as much information as possible about Verizon's business, its needs, and its negotiating style. He should also develop a clear understanding of Motorola's own goals and objectives for the negotiation.
- Build a strong relationship with Verizon. Schuster should establish a rapport with his counterpart at Verizon and build trust. He should be open and honest in his communications, and he should be willing to listen to Verizon's concerns.
- Use principled negotiation techniques. Schuster should follow the four principles of principled negotiation: separate the people from the problem, focus on interests, not positions, generate multiple options before deciding, and insist on objective criteria.
- Be flexible and creative. Schuster should be willing to compromise on some issues in order to reach an agreement that meets the needs of both parties. He should also be creative in finding solutions that meet the needs of both Motorola and Verizon.
- Get it in writing. Once an agreement has been reached, Schuster should get it in writing. This will help to avoid any misunderstandings or disputes down the road.
5. Basis of Recommendaations
The recommendations in this case study solution are based on the following considerations:- Core competencies and consistency with mission: Motorola's core competency is in the development and manufacture of mobile phones. The launch of the Droid 2 smartphone is consistent with Motorola's mission of providing innovative and high-quality mobile devices to consumers.
- External customers and internal clients: The launch of the Droid 2 smartphone will benefit both Motorola's external customers (consumers) and its internal clients (Verizon). Consumers will have access to a new and innovative smartphone, and Verizon will be able to offer its customers a competitive device that will help it to maintain its market share.
- Competitors: Motorola faces competition from a number of other mobile phone manufacturers, including Apple, Samsung, and HTC. The launch of the Droid 2 smartphone will help Motorola to compete with these rivals and maintain its position in the market.
- Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): The launch of the Droid 2 smartphone is expected to be financially attractive for Motorola. The phone is expected to generate significant sales and profits, and it will help Motorola to increase its market share.
- Assumptions: The recommendations in this case study solution are based on the following assumptions:
- The Droid 2 smartphone will be well-received by consumers.
- Verizon will be willing to negotiate a fair and mutually beneficial deal.
- Motorola will be able to execute on its plans to launch the Droid 2 smartphone successfully.
6. Conclusion
By following the recommendations in this case study solution, Motorola's product manager, David Schuster, can increase the likelihood of negotiating a favorable deal with Verizon for the launch of the Droid 2 smartphone. This will benefit both Motorola and Verizon, and it will help Motorola to maintain its position as a leading mobile phone manufacturer.7. Discussion
**Other alternatives not selected:**- Distributive bargaining: Schuster could have adopted a distributive bargaining approach, in which he would have tried to maximize Motorola's gain at the expense of Verizon. However, this approach is less likely to lead to a mutually beneficial agreement, and it could damage Motorola's relationship with Verizon.
- Integrative bargaining: Schuster could have adopted an integrative bargaining approach, in which he would have worked with Verizon to find a solution that met the needs of both parties. However, this approach can be time-consuming and difficult, and it may not always be possible to find a solution that satisfies both parties.
Risks and key assumptions:
- The Droid 2 smartphone may not be well-received by consumers. If the phone does not meet expectations, it will be difficult for Motorola to negotiate a favorable deal with Verizon.
- Verizon may not be willing to negotiate a fair and mutually beneficial deal. Verizon is a powerful player in the wireless industry, and it may be difficult for Motorola to get the terms it wants.
- Motorola may not be able to execute on its plans to launch the Droid 2 smartphone successfully. If Motorola makes any mistakes in the launch process, it could damage the phone's sales and profits.
8. Next Steps
If Motorola's product manager, David Schuster, decides to adopt the recommendations in this case study solution, he should take the following steps:- Prepare thoroughly. Schuster should gather as much information as possible about Verizon's business, its needs, and its negotiating style. He should also develop a clear understanding of Motorola's own goals and objectives for the negotiation.
- Build a strong relationship with Verizon. Schuster should establish a rapport with his counterpart at Verizon and build trust. He should be open and honest in his communications, and he should be willing to listen to Verizon's concerns.
- Schedule a meeting with Verizon. Schuster should schedule a meeting with Verizon to discuss the launch of the Droid 2 smartphone. He should come to the meeting prepared to discuss Motorola's goals and objectives for the negotiation, and he should be willing to listen to Verizon's concerns.
- Negotiate a fair and mutually beneficial deal. Schuster should use principled negotiation techniques to negotiate a fair and mutually beneficial deal with Verizon. He should be willing to compromise on some issues in order to reach an agreement that meets the needs of both parties.
- Get it in writing. Once an agreement has been reached, Schuster should get it in writing. This will help to avoid any misunderstandings or disputes down the road.
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Case Description
After it introduced the extremely successful Droid smartphone into the market in 2009, Motorola quickly moved to develop the next-generation Droid 2 before the next wave of smartphones (including the rumored iPhone 4) flooded the market. The development process was moving smoothly for the company when Verizon, its biggest partner, dropped a bombshell. It wasn't happy with the mechanical camera button on the Droid 2 (citing customer feedback) and wanted it to be changed to a software button like the iPhone's. This request immediately placed Motorola in the proverbial horns of a dilemma. On the one hand, it couldn't brush away the request of its biggest and most important partner. On the other hand, changing the camera button now would mean delaying the Droid 2's entry into the market. Should the Droid 2 team remove the camera's hardware button in favor of a software button per Verizon's request, or not? John Smith, the product manager, leads the cross-functional Droid 2 team. The case setting is an emergency "war room" meeting to address this critical issue, just weeks prior to launch. John's objective is to obtain the salient facts and opinions of team members quickly so he can make an informed recommendation to his boss by the end of the day. He is concerned that this last-minute request for a design change will not only threaten to delay the launch, which would have significant financial implications, but could potentially create deep fissures in a hitherto effective team that had been running like a well-oiled machine. The case puts students in a situation that simulates a real-world discussion and allows them to experience what it is like, as a product manager, to orchestrate a meeting with cross-functional teams that have conflicting priorities and agendas. It illustrates the challenges a product manager faces while striving to make important decisions with little or no direct authority over the various teams.
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