Emerging Nokia's Case Study: Emerging Nokia

This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.

Introduction of case study

Nokia, the leader of mobile phone manufacturers, has a successful strategy in the emerging markets. According to the case study, Nokia has been extremely successful in the past 15 years. They had the longest and the most complex supply chain, held almost 40 percent

Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any

The value proposition is a set of benefits or value that promise to deliver to customers to satisfy their needs (Matti, 2004). This slogan created effective value propositions, it tells what Nokia offer in a straight way and could convince the customer Nokia is focusing on the users. Therefore, the customer’s loyalty is increased and Nokia could sustain the competitive position.

The third factor is cut cost in the supply chain. Although the supply chain of Nokia may be the most complex one in the world, it was still the most efficient one. According to the value chain analysis, if the cost decreases, the profit margin increases. Nokia even employed a group of anthropologist to observe the behavior of local people and understand them. By understanding the customers, improving the logistics, sourcing, distribution and mass production, Nokia reduced the price significantly, for example, the price of 1616 model was reduced to one third of its price five years ago (Kevin,