...product Nokia, a Finnish icon was the world’s leading mobile phone maker. Established in 1865, its principal products are mobile phones and portable IT devices. It also offers internet services such as games, music, media and applications through its Ovi platform. Ever since the revolution of Apple entering the phone market accompanied with the fast changing trend of smartphones, Nokia has since lagged behind. Nokia wish to examine and understand their target market more closely to aid in their management decisions and enhance business development. Management decision problem translated to research questions The decision problem identified were the change in consumers’ preferences and trend, the perception and positioning of Nokia in the mind of consumers and is Nokia mobile phone still in demand? From the decision problems identified from the brief were translated into research areas and then questions evident in the questionnaires. Changes in target market group demographics: what are the target market demographics? This forms into the demographic section, such as age, gender, monthly income, etc. Shifts in product preferences: what do consumers look out for when purchasing a mobile phone and what they want out of Nokia’s mobile phone which could meet their needs and expectations? Choosing 5 “must have” features in a mobile phone and factors influencing consumers’ purchasing decision. Brand perception: how consumers perceive, feel or think about Nokia as a brand...
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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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...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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...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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...mobile phone market has never been this sophisticated in our ever-changing world. As one of the largest company in mobile phone market, Nokia was once on the top in its category. From operating paper mill in Finland, Nokia transformed itself into a multinational telecommunication giant. By 1998, Nokia is the world leader in mobile phone.1 Sadly, what once a giant has now become an underdog fighting for survival due to the strategy erosion. The global market share held by Nokia smartphones was continuously declining from the 48.7 percent in the third quarter of 2007 to only 3.5 percent in the third quarter of 2012.2 Despite Nokia holds a solid value of its brand in terms of awareness through years of effort, Nokia is still struggling to revitalize its brand equity. The followings will focus specifically on understanding the rationales and outcomes of brand development decisions in order to justify those using marketing theories, and evaluating the importance of the role of marketing mix in Nokia. BRAND DEVELOPMENT DECISION Brand Strategy In latest primary brand strategy, Nokia takes on revitalizing strategy (Riezebos, 2003) by cooperating with Microsoft. Windows phone operating system is built into Nokia smart phone as an ingredient branding to generate a competitive advantage. This action intends to encourage customers’ awareness and replaces MEEGO, a former self-developed smart phone operating system, also to differentiate from others major OS in the market. Customer-Based...
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...Forces of Competition Framework 4 Market Segmentation 5 Key success factors 8 III. COMPETITVE ADVANTAGE ANALYSIS 9 o o o Emergence of Competitive Advantage 9 Porter’s Value Chain 12 Porter’s Generic Strategies 15 IV. CORPORATE STRATEGY 16 o o o The scope of the firm 16 Vertical and Horizontal Diversification 20 Managing the corporate portfolio 23 V. GLOBAL STRATEGY AND THE MULTINATIONAL CORPORATIONS 25 o o o o o Patterns of internationalization 25 Analyzing competitive advantage in an international context 25 International Location of Production 27 Global integration vs. National differentiation 27 Strategy and organization within the multinational corporation 28 VI. VII. VIII. CONCLUSION 28 APPENDIX 29 BIBLIOGRAPHY 30 I. Introduction COMPANY PROFILE Nokia is a Multinational communications and information technology Corporation, with headquarters in Finland. Even though, their product portfolio is quite diverse, their main products are mobile phones and IT devices. Nokia occupied the leadership position in the mobile phones’ industry for more than a decade; however in 2011 this position was lost. The introduction of the smartphones in the market, the scandal related with Stephen Elop’s memo, ex-CEO (Ratner Effect), and the loss of trust in the brand related with the too-early announcement of changing in the operating system (Osborne Effect); resulted in a boycott both from carriers and retailers against Nokia that had a strong negative impact...
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...Introduction This report is designed to analyze Nokia Company and provide some recommendations for actions to improve its current competitive position. In addition, this report will discuss the overview of Nokia, its competitive advantages, the environmental scanning, five forces analysis, capabilities analysis, and competitive positioning. This analysis will help Nokia company to improve its services which will help it to attract many customers. Overview “Nokia is a leader in the fields of network infrastructure, location-based technologies and advanced technologies. Headquartered in Espoo, Finland, and with operations around the world, Nokia invests in the technologies of the future. Moreover, Nokia deals in wireless technology and mobile phones. It involves producing mobile phones for all customers. Nokia offers a wide range of mobiles for target customers. Until recently, Nokia also was a key participant in the mobile devices market through its Devices & Services business. In September 2013, Nokia announced an agreement with Microsoft whereby it would sell substantially all of its Devices & Services business to Microsoft. The transaction was completed on April 25, 2014.” (Nokia 2014) Competitive Advantages Nokia started 18 months back even before Android and iPhone and this make them have strong brand name. Also, Nokia offers cost effective and compatible products. This is because it has different prices where low income earners can be afford and those of high income...
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...NOKIA MARKETING PLAN PROJECT INTRODUCTION Nokia was founded in 1865 as a paper mill in Finland. It went on to establish it’s self as a renowned mobile phone manufacturer and one of the most powerful brands in the world. In 1992 Nokia shifted its focus to primarily telecommunications and appointed Jorma Ollila as its CEO. Six years later in 1998 Nokia had established it’s self as the world’s largest mobile phone manufacturer with a turnover of 31 billion. In 2006, Olli-Pekka Kallasvuo replaced Jorma Ollila as the CEO, but was not able to reverse the decline of Nokia’s market share especially in the high end segment. Competitors like Apple, Blackberry, HTC, Samsung, and phones using Google’s Android operating system captured market share from Nokia at an alarmingly increasing rate. By the end of 2010 Android was already the most widespread smart phone operating system in the world and Nokia’s market share in the smart phone segment had declined from 38 to 31 percent in one year (Sokala). In September 2010, the appointment of the Canadian Stephen Elop as the new CEO of Nokia aroused adversarial feelings among people since Elop became Nokia’s first CEO not to originate from Finland. Elop was hired to change the course of Nokia and to stop the declining trend in Nokia’s global market share especially in the smart phone segment. The first major decision was to start extensive cooperation with Microsoft in February 2011. VISION AND STRATEGY Nokia’s mission is simple: Connecting...
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...Nokia Warns Consumers of Fare Handsets Sold Locally 1. How will the proliferation of fake Nokia handsets affect the operations of Nokia Philippines? * I think the proliferation of fake Nokia handsets have a huge effect on the operation of Nokia Philippines. The emerged of fake Nokia handsets may destroy the Nokia’s top position in the market. Nokia may lost the overall mobile phone market share in the Philippines and may suffer from declining profit margins due to fake Nokia handsets. 2. What do you think is the main cause of such proliferation? * I think the main cause of such proliferation is that there’s an existing demand on fake Nokia product which consumers can buy in a cheaper price. Since the original Nokia handsets are expensive, buyers are drawn by the opportunity to own and display what it looks like the genuine Nokia phone at a fraction of the price of the original product. The important thing is to the consumers is to get what they believe to be the same product at a bargain price. In a country like the Philippines where greater part of the population are consider poor and low income, they are not capable of buying an original Nokia which is expensive. It is rational choice for them buying a fake Nokia which is less expensive but with inferior quality over the more expensive original. 3. What measures would you recommend to Nokia Philippines in order to alleviate, if not totally eliminate, the marketing of fake Nokia handsets? * Some measures that...
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...I. EXTENDING THE NOKIA BRAND AND THE PRODUCT LINE i. NOKIA CURRENT BRAND Nokia is one of the leading brands in the industry of manufacturing mobile devices and in converging Internet and communications industries. The company is engaged in developing a range of devices for all the consumer segments and offering Internet services, Ovi, that enable people to experience music, maps, media, messaging and games. The giant mobile phone manufacturer also provides services for communications networks through Nokia Siemens Networks. The Finland-based manufacturer of mobile phones has been steadily working on its corporate brand name and the management of consumer perceptions over the last few years. Its efforts have paid off, because it is currently one of the most well-known and admirable brand in Finland in particular as well as around the world in general. The Nokia brand image is even solid in fast developing markets, where Nokia leads in market share and continues its strategy of targeting younger audiences. However, given the economic downturn and competition for high-end phones from the niche rivals like Apple’s iPhone and RIM’s BlackBerry, Nokia reported a worse-than-expected 90 per cent slump in first quarter profits of 2009. As a result, the Nokia brand image has been affected and became less dominant as it used to be in the world market. While Nokia brand image is favorable and potent in the Smartphone category, where the company still leads in terms of...
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...Batch 2 Term 6th Management Control System Activity – Project Report On Nokia Strategies Adopted By Nokia In Order To Achieve Its Goals Submitted to: Submitted by: Prof. Aniruddha Durafe Rajkamal Paroha Anshuman Singh Parihar INDEX * Introduction to Nokia * History of Nokia * Mission & Vision * Goals & Objective * Organizational Culture * Management Control System in Nokia * Nokia Product Mix * Strategy Formulation * Strategy Adopted by Nokia to achieve its goals * Strategy Goal Introduction to Nokia Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the World’s largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of € 42 billion and operating profit of € 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones. Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta...
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...University Business School, for all their assistance. I would like to thank my parents for love and support bestowed on me. Thank you for your blessings. Also I would like to thank my friends for staying by me during the difficult parts of life. Thanks for help and love irrespective of the situations. I would also like to thank all my respondents for taking out time from their busy lives to help me with my research. Last but not the least, I would like to thank God for all. Thank You!! Nikunj Daga 3 ABSTRACT _________________________________________________________________________________________________ This research studies the marketing strategies of Nokia, a high technology company in a developing country India. The study attempts to check the role of marketing activities in success of Nokia...
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...Nokia – The Success Enablers From the standpoint of innovation policy and supporting institutions the success of Nokia could be related to the Nordic decision to create the common standard Nordic Mobile Telephony (NMT). This provided Nokia with a common Nordic market of 20 million techno savvy customers before anywhere else in the world. And it provided a perfect platform for ‘infant industry development’ . When Nokia had grown sufficiently large on the back of this market it was blessed by the European Union’s decision to create a common European standard for mobile telephony – GSM. GSM grew in rapidly both in geographical scope and functions offered. Nokia was among the best positioned companies to take advantage of this the then world’s largest uniform market for mobile hand sets - Moreover, the US market didn’t manage to develop a common standard, which prevented US companies like Motorola from competing on par with Nokia globally. The Nokia Management understood that design and being user friendly was more important than being over-engineered and Nokia mobiles appealed to more age groups and customer segments than any of its competitors. It pursued the policy of design and adoption of common platform principle which provided for the growth in product portfolio by allowing economies of scale. It also enabled vigorous investment in R&D. Analog communication technology gradually gave way to digital technology , enabling operators to host new services and creating...
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...Nokia Introduction Nokia is the world leader in mobility. They make a wide range of mobile devices, services and software that enable people to go beyond communications to navigation, music, video and more. Nokia is not only the world leader in mobile phones. They are also the world’s largest camera manufacturer and a leader in digital music. Mobility has the power to help economies grow and societies develop. It is changing the world, in developed and developing countries alike. Their vision is to release this potential by extending mobile access and allowing people to do more on their mobile devices. Nokia is a truly global company, headquartered in Finland. They have sales in more than 150 countries. Nokia has worked in partnership with WWF since 2003 to raise environmental awareness among our employees and on other environmental activities. Nokia joined several other major mobile manufacturers in 2007 to sign a voluntary agreement based on the results of the European Commission’s Integrated Product Policy pilot project on mobile phones. The project focused on finding how the mobile phone industry can reduce the environmental impact of its products throughout their lifecycle. The agreement includes three key commitments: • Produce an index of environmental facts for each mobile product to enable consumers to compare products easily. • Increase consumer communications about unplugging the chargers and safe disposal of phones. • Include a default on-screen message...
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...Marketing Plan for Nokia Mobile Phone. [pic] Introduction: Nokia’s Code of Conduct defines the company’s overall principles and commitment towards legal compliance, ethical conduct, human rights, anti-corruption work and environmental protection. These high expectations extend to Nokia partners, subcontractors and suppliers, whom we encourage to strive beyond merely fulfilling legal compliance. This Policy provides further clarification to the principles of the Code of Conduct and Nokia Human Rights Approach regarding illegal trade of natural resources. This policy has been approved by Nokia Corporate Responsibility Steering Group, chaired by Nokia’s Executive Vice President of Corporate Relations and Responsibility. We are concerned about the link between the illegal extraction and trade of natural resources, and associated human rights violations, conflict and environmental degradation. Currently these issues are acute in the Eastern provinces of Democratic Republic of Congo (DRC) in the extraction and trade of ores of tantalum, tin, tungsten and gold, which flow to world markets through the DRC and adjoining countries. Once refined, these metals are commonly used within electronic products and by many other industries. Nokia does not procure metals directly and only a fraction of the world’s minerals produce originates from the DRC, but we are taking action to increase transparency, ensure responsible procurement by our suppliers and sub-suppliers, and drive positive...
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