...On June 12, 2009, Finland-based telecom giant, Nokia Corporation (Nokia) launched its Nokia Life Tools (NLT) service in the state of Maharashtra in India. This was a bid to expand its rural base in the country. The service was commercially rolled out after the successful implementation of the pilot program in Maharashtra, in November 2008. The launch of the NLT service marked the increasing accessibility of value-added services (VAS) to rural consumers in India. Targeted at the rural consumers, the NLT service offered a range of services in the areas of agriculture, education, and entertainment to address the information gaps in the rural community. Nokia began focusing on the Indian rural market in 2003 when it launched a mobile handset with features such as longer battery life, one-touch flashlight, etc., that catered to the needs of the rural consumers. Over the years, it extended its support to the rural markets by launching several low-end phones that rural consumers found affordable. However, the company felt the need to serve the rural market by offering a value proposition along with its handsets. It noted that the rural consumers, especially farmers and students, had little or no access to the information they needed due to lack of resources and erratic Internet connections. This prompted Nokia to launch a service that would be embedded in its handsets and would serve the needs of the rural community. In November 2008, the company launched a pilot program for testing...
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...Supplemental In-Depth Integrative Case Nokia Targets the Base of the Pyramid One of the most widely used clichés in the world of business is the so-called 80/20 rule. In the realm of sales, the rule is sometimes interpreted as “80 percent of our sales come from 20 percent of our customers.”1 One recent business theory that has challenged this rule is the so called BOP or Bottom of the Pyramid perspective, developed and popularized by C.K. Prahalad.2 It refers to the around 4 billion people at the bottom of the economic pyramid with a purchasing power of US$2,000 per year or less. Prahalad and colleagues have proposed that these low-income consumers represent great potential but require a unique mix of pricing, promotion, low cost delivery, and effective communication in order to successfully reach.3 The key to selling to BOP consumers is that an MNC strategy be affordable, accessible, and socially driven. Nokia is one company that is taking this perspective seriously. Business interest in BOP markets is rising. Multinational companies have been leaders in this trend, especially in food and consumer products. And large national companies have also taken a leadership role, proving to be among the most innovative in meeting the needs of BOP consumers and producers, especially in such sectors as housing, agriculture, consumer goods, and financial services. And small start-ups and social entrepreneurs focusing on BOP markets are rapidly growing in number. But perhaps the strongest...
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...Supplemental In-Depth Integrative Case Nokia Targets the Base of the Pyramid One of the most widely used clichés in the world of business is the so-called 80/20 rule. In the realm of sales, the rule is sometimes interpreted as “80 percent of our sales come from 20 percent of our customers.”1 One recent business theory that has challenged this rule is the so called BOP or Bottom of the Pyramid perspective, developed and popularized by C.K. Prahalad.2 It refers to the around 4 billion people at the bottom of the economic pyramid with a purchasing power of US$2,000 per year or less. Prahalad and colleagues have proposed that these low-income consumers represent great potential but require a unique mix of pricing, promotion, low cost delivery, and effective communication in order to successfully reach.3 The key to selling to BOP consumers is that an MNC strategy be affordable, accessible, and socially driven. Nokia is one company that is taking this perspective seriously. Business interest in BOP markets is rising. Multinational companies have been leaders in this trend, especially in food and consumer products. And large national companies have also taken a leadership role, proving to be among the most innovative in meeting the needs of BOP consumers and producers, especially in such sectors as housing, agriculture, consumer goods, and financial services. And small start-ups and social entrepreneurs focusing on BOP markets are rapidly growing in number. But perhaps the strongest...
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...RAKEEN MABUD Emerging Nokia? It was December of 2009 and D. Shivakumar, the Managing Director of Nokia India was catching up over coffee with Colin Giles, his counterpart in the China office, and Chris Braam, who was in charge of operations in the Middle East and Africa. The gathering was somewhat celebratory in nature: Giles had recently been promoted to global head of sales. Before Giles left his Greater China market role, his colleagues wanted to get his thoughts on Nokia’s future in the region. The three men had no doubt that Nokia’s strategy in emerging markets had been successful: Nokia was the market leader in India and China, with market shares of 60% and 40%, respectively.1 The company also had made inroads into Africa and South America. However, Nokia had lost ground in the developed world: the company only sold one in 10 handsets in the U.S. (compared to one in three in 2002),2 and it had recently pulled out of Japan after 20 years of operations. Nokia’s revenues in Europe declined by 15% in the fourth quarter of 2009.3 However, Nokia was famous for its ability to reinvent itself. From its beginnings as a paper mill turned rubber manufacturer turned electronics company, and finally, as the world’s largest producer of mobile phones, Nokia possessed an unmatched ability to face obstacles head on and come out on top. Said former CEO Jorma Ollila, “Finns live in a cold climate. We have to be adaptable to survive."4 But what now? Should Nokia stay the course...
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...BUSS5000/CRITICAL THINKING IN BUSINESS Semester 1 2016 Assessment 4: Major Case Analysis and Evaluation Due date: Weight: Length: Monday, 23 May 10:00am on Blackboard via Turnitin 20% 1700 words (including references) Questions Read the ‘Emerging Nokia’ case that is accessible on the link that is on the BUSS5000 Blackboard site and then respond to the following questions. In responding to Question i and Question 11 below, your analysis you should only use the information that is provided in the case. Extra research can be done to substantiate your analysis and frameworks. 证实 i. Using the most relevant frameworks and concepts from those that we have covered in BUSS5000, critically evaluate and analyse the competition that Nokia faced between 1995 and 2010. ii. Identify and critically analyse any five (5) factors that you consider to have contributed to Nokia sustaining its competitive position during the 1995 and 2010 period. iii. Identify four (4) challenges you think Nokia might face in one of the emerging markets mentioned in the case and recommend ways that Nokia could address each of these challenges so as to enhance its performance post 2010. Justify your answer. Assessment Criteria Demonstrate knowledge of frameworks and business concepts covered in lectures, tutorials and unit readings. (35%) Show evidence of critical thinking in analysing the assigned case. (30%) Demonstrate responsible application of ethical and social awareness...
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...Emerging Nokia Case Study JANUARY 3, 2012 Defining the Nature of the Problem The nature of global markets has been rapidly changing in the last twenty – twenty five years. These changes to a great degree have been determined by the major breakthroughs in the geopolitical makeup of the world. One of the pivotal events that fueled the economic changes around the globe was the collapse of the communist bloc in the beginning of the 1990s and consequently the dismantling of the bi-polar world order that had been previously characterized not only by two antagonistic ideologies, but also by two incompatible and mostly isolated from each other marketplaces. The description of that old world order was often referred to as “the free and the communist world”, “the West and the East”, which later morphed into” developed and developing” countries. As the pure and acute ideological division of the world has moved to the fringes of the global agenda, leaving the front stage of the world community focus to the global economic, ecologic and broader humanitarian challenges, the new world paradigm has been more and more often referred to as “developed and emerging economies”. The playing out of these new global realities is very vividly represented by the nature of the challenges and the business decisions required of the executives of the world-renown engineering and telecommunications giant – Nokia, which is mostly known to the world for its leading role in the mobile phone handsets industry...
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...International Management Managing Across Borders and Cultures Case study Nokia: Business Interests VS German Pressures Class 2 Group leader: Roger 12901227 Group members: Froggen 12901204 Henry 12902158 Himi 12901225 Eudora 12901203 Word count: 1953 words Menu Background (Roger) 1 Question 1 (Froggen) 2 Question 2 (Henry) 3 Question 3 (Himi) 4 Conclusion (Eudora) 5 The case study of Nokia Background As a well-known mobile handset maker in the globe, Nokia occupied a 40 percent market share once. However, with mobile industry progressing at an unprecedented rate, the competition was becoming increasingly fierce with encroaching on the market share of Nokia. Due to such situation, the whole mobile handset industry was marked by declining prices and depressed margins making companies look at low-cost production options. Nokia, was also making their efforts to reduce the cost, so they made decision to close the company in Bochum and built a new one in Romania although they were a little worried about the negative...
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...Struggling Nokia aims high with low-end phone Bargain-basement handset touted as cash spinner in battle to catch upmarket rivals Tuesday, 30 April, 2013, 5:32am * The Nokia 105 has been released in some Asian markets. As Nokia battles to catch Apple and Samsung Electronics in the market for smartphones costing US$500 or more, it's counting on a bare-bones handset that sells for just US$20 to give it an edge. Priced 97 per cent below the latest iPhone, the Nokia 105 features preloaded games, a colour screen, a radio, a speaking clock and a torch. The phone, Nokia's cheapest, has been available for a few weeks in India and Indonesia and will soon start selling in Europe. Even with its bargain-basement price, the 105 is critical to Nokia's entire handset business. Nokia reported on April 18 that it sold about 11 million fewer mobile phones in the first quarter than analysts had projected, with sales of basic phones plunging 21 per cent to 55.8 million units. A failure to revive the low-end business would leave Nokia without an important source of cash as it seeks to develop challengers to the iPhone and Samsung handsets that run Android. Falling sales of simpler phones were "definitely worrisome", said Mika Heikkinen, a fund manager at FIM Asset Management in Helsinki."They have to get this under control." Nokia chief executive Stephen Elop points to the 105 as a signal that the low-end business can recover after a difficult quarter. While demand for the iPhone...
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...Nokia Case Study Introduction: The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. This essay will firstly assess and consider the balance of marketled and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary (Prahalad and Hamel, 1990; Mintzberg et al, 1995; Greenley and Oktemgil, 1996). Following the discussion, the essay just analyzes Nokia’s strategies and empirically justified the reciprocal and complementary relationship between these two approaches. On the process of Nokia’s development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry...
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...Nokia Case Study Introduction: The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. This essay will firstly assess and consider the balance of marketled and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary (Prahalad and Hamel, 1990; Mintzberg et al, 1995; Greenley and Oktemgil, 1996). Following the discussion, the essay just analyzes Nokia’s strategies and empirically justified the reciprocal and complementary relationship between these two approaches. On the process of Nokia’s development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry...
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...MANAGEMENT ASSIGNMENT NOKIA CASE STUDY JESSLYNE (090503322) STRATEGIC MANAGEMENT ASSIGNMENT NOKIA CASE STUDY SUMMARY Nokia, once a world leader in wireless telecommunications, has lost nearly 39% of its market share to its competitors and in some instances to no name companies. In 80s and 90s Nokia expanded through the acquisition of many other companies with various technologies. Due to this rapid expansion, Nokia lost focus of its ingenuity in wireless communications. However Nokia reorganized by selling most of its businesses which were not performing well and directed its focus once again to its wireless technologies. Acquisition of Sega in 2003 and then merger with Siemens AB in 2006 put Nokia once again in a place where it could compete its rivals. RIM’s blackberry and Apple’s iPhone are the major rivals and have a large market share from business users and consumers. * According to Nokia’s business strategy; the winning strategy is based upon the following factors. Best mobile devices regardless the price and geographical location * Provide extensive internet solutions on mobile devices * Enter into the markets by providing business mobility solutions to the corporate users Analysis: I believe that Nokia’s strategy is a winning strategy for the following reasons: * Business solutions: Innovative Business mobility solutions will attract the corporate users, since Nokia devices are based upon a very stable platform, and Nokia has a very long...
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...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through following...
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...number of mobile phone users reaches more than 1 billion marks. The competitors are the key to force the participants to develop and increasing their percentage in the global market share and undeniably, the company name Nokia is one of the remarkable firms in this industry. Therefore, this report will be discuss about Nokia and provide you the information as well as opinions to complete the question above. In the next paragraph, there will be consisting of how did the owners start their company. In this section, it will be a brief detail of how the company had started and background of its company. Some of the information will be based on the past of the company, which is not directly related to the Nokia Telecommunication Company, but it will provide you a summary of how Nokia Telecommunication Company established. Nokia got its start in 1865, when Fredrik Idestam established a paper mill on the banks of the Nokianvirta River, Finland. Afterward, in the year 1871 Idestam teamed up with his cofounder Leo Mechelin and named their company “Nokia”. In the first Nokia era, Nokia successfully exposed there professional in making paper in paper mill industry. In 1898, Nokia’s rubber business was founded. Now there were 1 two companies in Nokia’s hand. Despite, as Nokia was on the right track on building thriving company. Consequently, Idestam who was the owner of the company...
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...Internal and External Environments Nokia and Facebook Student’s Name Professor’s Name Date Internal and External Environments of Nokia and Facebook Nokia Environmental Analysis Internal Environment Nokia being the most renowned name in the world has a very big network which is distributed across the world, and has large selling when it is compare to other phone company in the world. It is of very high quality and has user-friendly features. The company has strong financial base which enables it to make innovations with a lot of ease. Nokia has a high product range which makes it very attractive many customers. Nokia’s financial health is strong, which makes it very profitable. Essentially, the price of the product is actually the main issue, as some of the Nokia’s products are not friendly to the users, which fail to sail through in the market. The service centres in some countries are quite few quite often there or no quality after sales services. Most of these product models are quite heavy to carry and not easy to handle. External Environment The digital market is developing so fast. Hence, Nokia has the opportunity to improve its sales as well as its share n the market. Due to An increase in the income level of the people, the purchasing power also increases; therefore, Nokia has to strategically go for the right customer so as to be able to achieve a big gain out of this important situation (Nokia Company, Investor relations, 2015). Also, they would have the good chance...
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... (BM-25178) TABLE OF CONTENTS Acknowledgement 02 Executive Summary 03 Company Introduction 04 Company History) 05 a) First Mobile Phone 06 b) GSM Introduction 06 c) Strategic Change 07 Vision, Mission, Organization Direction 07 Environmental Analysis (Internal) 09 Environmental Analysis (External) 12 a) Pestle Analysis 12 b) Porter five forces Analysis 14 SWOT Analysis 18 Market/Competitor Analysis 19 Strategic Analysis 23 a) Corporate Strategy 25 b) Business Strategy 25 c) Operational Strategy 25 d) Supply Chain Strategy 26 e) Defensive Strategy 26 f) Competitive Strategy 26 Nokia Marketing Strategies Analysis 27 a) Segmentation by Geographically 27 b) Segmentation by Demographically 28 c) Segmentation by Consumer / Business 28 Marketing Mix Strategies 29 a) Product b) Price c) Place d) Promotion Key Strategic Issues Face Nokia 30 Nokia Leading Mobile Series 31 a) N Series 31 b) E Series 32 c) X Series 33 d) Asha Series 33 e) Lumia Series 34 References 35 ACKNOWLEDGEMENT One of the great pleasures of writing the report is acknowledging the efforts of our teacher and friends whose hard work, cooperation, friendship and understanding were crucial to the preparation of this report. First of all, we would like to acknowledge the efforts of Sir Khalid Jamil Ansari whose sincerity, loyalty, hard working and kind parental attitude helped us to complete this project report. Very special thanks to Mr. Abdul Raheem and Miss Nosheen...
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