Communication device of the future

Watching this 3½ minute movie about the Nokia Morph concept, I came to think about Blue Ocean Strategy. For example, I found it interesting that the phone can also be used as a wrist watch. In other words, an effort is done to work across industries.

Another characteristic of Blue Ocean Strategy is simultaneously pursuing differentiation and keeping down costs. Do you have a couple of ideas on how to keep down the costs on this product? What should Nokia do?

By the way, do you think there is a chance that James Bond will use this communication device in the upcoming movie?