Managerial Economics Week 8 Individual Work Assignment

Managerial Economics Week 8 Individual Work - Assignment Example Due to such limitations in cell phone technologies, the satellite phone was the best alternative to a wireless phone. Satellites could transmit better than the wireless phones. Therefore, investors opted to use satellite technology to enhance communication and develop the cell phone industry. Most of these investors used much money to develop and implement satellite phone systems. Motorola was one of the investors who in 1991 developed the Iridium. Many companies such as Lockheed and Sony invested in the new satellite technology. The Iridium was the first satellite phone to provide voice and data solutions to customers and users in many parts of the world. Despite the fact that the Iridium gave the best services, it was not accepted by many people. Users believed that Iridium’s costs were more than the services it offered. According to consumers at the time, using the Iridium was expensive. During the time, other existing phone companies such as AT&T were providing better mobile phone services. The weak consumer response of the Iridium resulted to bankruptcy of the firm and the entire project failed. Nokia is able to adapt to variations in market shifts. Initially, Nokia started as a lumber mill in 1865. However, with increasing growth and development the company diversified into electricity production and rubber products. Collapse of the Soviet Union and recession in Europe in the 1980s left Nokia in a huge crisis. In the 1990s, Nokia changed its trends to focus on cell phones. The company developed new companies in Germany and China. As Nokia was developing and expanding, the demand for cell phones was growing in the world and Nokia was one of the companies that felt the demand for cell phones. The company registered increased market value and profits reaching peak in 2000. Nokia executives predicted that producing cell phones that could only make calls would not be profitable for the company by 2000. One of Nokia’s strategies was to