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Strategic formulation of nokia phone
Nokia case studies
Nokia case studies
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Nokia in India Introduction Nokia, the global leader in mobile handsets had come a long way since it entered India in 1995. From winning the CII Brand of the Year award in 2005 to being invited to Harvard to talk on how the company had penetrated the Indian market, Nokia’s Indian operations had become a global case study of sorts. In brand surveys across Indian cities and demographics, Nokia topped the awareness list. More than half of the 49 million mobile users in India carried a Nokia handset. Six out of every 10 people who bought a mobile phone in India picked up a Nokia. Many of them had made their first ever-mobile call on a Nokia phone over a Nokia network. The 1100, the phone which was 'Made for India', had become Nokia's largest selling model globally. Nokia had pursued a cost leadership strategy in India, looking for various ways to cut costs. These included, setting up a manufacturing base for handsets in India, creating financing options for cellphones and working with cellular operators to reduce airtime costs. Nokia had also established a formidable distribution network that reached over 25,000 dealers, a network that was about three times the size of Samsung's, six times that of Sony-Ericsson's and one-fourth of Hindustan Lever’s (India’s largest fast moving consumer goods company). Nokia had preferred to work with distributors associated with dealers of fast moving consumer goods (FMCGs) and consumer durables. Many of Nokia’s regional distributors were former FMCG middlemen who found the margins in the mobile phones business more attractive. In the infrastructure business, Nokia Networks had become a key supplier to all five GSM operators in the country; Bharti, BSNL, BPL, Hutchison, and IDEA. Nokia Networks worked closely with operators to lower the total cost of ownership and usage for consumers. Nokia had demonstrated its commitment to India by setting up three R&D centres (Hyderabad, Bangalore and Mumbai) that worked on next-generation packet-switched mobile technologies and communications solutions. Background Note Over the last decade, Nokia had emerged as the clear market leader in the mobile device market in India. The company offered a wide product range to meet the needs of different consumer segments, ranging from advanced business devices, high performance multimedia devices, to an affordable range of entry level phones for first time subscribers. In 1997, Nokia India rode to market leadership on its Nokia 2110 model. Subsequently, it launched the Nokia 1610 and Nokia 8110. With India (along with China) having become one of the two most happening telecommunications markets in the world, Nokia continued to increase its commitment. In September 2003, Nokia India signed a deal with Reliance Infocomm to offer CDMA 2000 1X
Mobile is the first order priority device for access because people are connecting with others, finding entertainment, and doing business—all with smart phones. The prices of mobile phones are never over $1,000 in today’s world. They are affordable and accessible. As the result of the changes the worldwide and national business environment has undergone, people own 1-2 cell phones on average. However, the mobile markets in US seems to have been saturated.
In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.
The company expanded in the 1950aê¡?s and 1960aê¡?s and became semiconductor producers for other manufacturers. Motorola also became a global company in the 1960aê¡?s. In the 1970aê¡?s Motorola introduced the companyaê¡?s first microprocessor and a prototype for the worldaê¡?s first commercial portable phone. In the 1980aê¡?s and 1990aê¡?s Motorola provided the worldaê¡?s first computerized engine control, invented the Six Sigma quality improvement process, launched the MicroTac which was then the smallest and lightest cellular phone on the market. In the 21st century Motorola has provided the worldaê¡?s first GPRS cellular system, the worldaê¡?s first wireless cables modem gateway, and the MOTORAZR V3 cellular phone.
BA#v=onepage&q=price%20of%20cell%20phone%20in%201980s&f=false Chowdhury. R. Evolution Of Mobile Phones: 1995 - 2012. (n.d.). Retrieved from http://www.hongkiat.com/blog/evolution-of-mobile-phones/ MobiThinking. Global mobile statistics 2013 Part A: Mobile subscribers; handset market share; mobile operators. (n.d.). Retrieved from http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/a#subscribers Poole. I. History of Mobile Phone. (n.d.). Retrieved from http://www.radio-electronics.com/info/cellulartelecomms/history/mobile-cell-phone.php UMTS World. History of UMTS and 3G development. (n.d.). Retrieved from http://www.umtsworld.com/umts/history.htm WorldMapper. Cellular Subscribers 1990. (n.d.). Retrieved from http://www.worldmapper.org/display.php?selected=333
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
Nokia is a technology company that has become a global leader in the technology industry. Historically, the company has grown from being the finish roots, to the situation of bringing expertise and technological change in the technology industry. The innovation technologies developed by the firm improve the connectivity of the people from different parts of the world. The products from the company are consumed worldwide. It deals with the production of mobile phones, iPad, computers and other technology products. The market is sensitive since it encounters stiff competition from competitors such as the Samsung, Techno and other mobile producing companies. The customers of the Nokia products are thus sensitive as they can shift from purchasing Nokia products and purchase those from the competitors. Furthermore, the customers are technology based because they majorly consumed technology based
Advent of smartphones leading to M-commerce in India A Frost & Sullivan report indicates that India adds five million new internet users a month and all are on mobile. " There are 230 million internet users out of which 130 million are mobile internet users [13]. Mobile is driving the market, especially in tier two and tier three cities in India. Half of the online shoppers in tier three cities are already on mobile, compared with just
The following report presents an Integrated Marketing Plan for Nokia in the UK. The plan deals with media planning, segmentation, strategic and tactic planning of IMC, evaluation and such. The main aim of this plan is to expand Nokia’s consumer base, establish Nokia’s brand values and position it among the target audience, and also communicate the brand values with customers effectively, while simultaneously influencing sales to grow. This plan is created to ensure maximum effectiveness in Nokia’s marketing approach. The main aim of this plan is to assist Nokia in their IMC activities in the UK.
By the end of 2003, Nokia was the clear market leader in the mobile phone industry in terms of sales and profitability. It was ahead of giant companies like Motorola, Ericsson, Siemens, Samsung, and other worthy competitors. Since the early 1990s, Nokia's Strategic Intent was to build distinctive competency in product innovation, rapid response, and global brand management. Its strategic intent required rapid growth in the core businesses of mobile phones and telecommunications networks. This goal was achieved by Nokia's development of new products and expansion into new markets. In order to become the global leader as it is today, the company had overcome numerous challenges and obstacles over the last decade.
[1] “A $400 Phone for the masses?-India’s Micromax, known for low price handsets, pushes into smartphones arena” ProQuest document ID: 929135140 [2012]
In November 2000, Mauritius Telecom entered into a strategic partnership with Orange (formerly France Telecom) with a view to strengthening and securing its market share, pending the total deregulation of the telecommunication sector in Mauritius. By combining the technological and global strength of Orange, and the local and regional experience of Mauritius Telecom, the two companies have been able to offer innovative and useful technologies to new markets. Orange has shared a lot of its Information technology expertise to Mauritius Telecom.
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
Nokia started in 1865, when a mining engineer built a wood-pulp mill in southern Finland to manufacture paper. Over the next century, the company diversified into industries ranging from paper to chemicals and rubber. In the 1960s, Nokia ventured into telecommunications by developing a digital telephone exchange switch. In the 1980s, Nokia developed the first "transportable" car mobile phone and the first "handportable" one. During the early 1990s, Nokia divested all of its non-telecommunications operations to focus on its telecommunications and mobile handset businesses.
In 2007, Apple designed the first touch screen phone and it was a huge change and after three years, everyone wants to buy touch screen phone and Apple became the super star of the smartphone market. Apple’s unique designs changed the definition of fashion in the smartphone world, sine then, apple become the leader of smartphone market.