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A CASE STUDY ON NOKIA
BASED IN FINLANDEMPLOYS NEARLY 130,000 PEOPLE
38% MARKET SHARE IN 2009
WAS NUMBER ONE IN THE WORLD IN TERMS OF SALES
HISTORYStarted as a paper mill in 1865
First electronic device-pulse analyzerKept diversifying product line-eventually producing radios, TVs, and computers
Near bankruptcy after World War One-joined with rubber works and cable works
From 1992focused only on telecommunications
Barriers to enter are high
Companies struggling to expand
NOKIA PRODUCT MIX
STRENGTHSNokia has ten series of cell phone; eight of them are used Symbian operating system.
Nokia Corporation purchased Symbian, Ltd in 2008
High quality and solid shell
WEAKNESSThe company, though, is often criticized for poor after sales services.Took a long time to enter the highly productive and booming smartphone market.
Some of Nokia’s products are not affordable for middle and lower class consumersConstant competition from rivals Android and iOS
Opportunities to expand the range of products and their prices. Also bring in new features and applications on to Windows OS
High price, high quality, high tech and numerous functions also mean high profits
Smart phones are the future of cell phones
Although an unlocked Iphone’s price is more than $700 dollars, but customers could only spent $199 dollars buy an Iphone with two years AT&T services
Low-cost threats by China mobile companies and others can cause big problems
Strong competition from other Smartphones companies will make it hard for Nokia to maintain and expand their market share.
•Create winning devices
•Build scale in networks
What has been the keysto Nokia’s Global Strength?
All price points for various markets
Durable , Reliableand Affordable
Have a finger on the pulse of every country and their culture
Developed GSM – International Roaming
What can Nokia do to gain market share in US and UK?
Use Market Adaptation
Market to the specific needs and wants of the US and UK
Develop a practical understanding of consumer needs, values, and affordability based on demographics
Study and Evaluate potential markets
What are the greatest threats to Nokia ?
Competitors and the fast paced world of mobile - technology
Other companies that have gained significance market share with better product differentiation
Nokia evolved on a slower rate in the quest to maintain low prices.
Created by Bikash Sahoo, NIT-
Rourkela, during a Marketing
Internship under Prof. Sameer Mathur, IIM-