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 of the worldwide market share. However, compare with the success in India and China, the power of Nokia in the developed world was weakened in recent years. The revenue in Europe declined by 15 percent, the situation is much worse in America and Nokia even pulled out of Japan after 20 years operations. Now, whether continue operating in both the developing and developed markets and what kind of mobile devices should they offer have been really urgent issues. The case study also introduces the history of Nokia and phone industry, the emerging markets of mobile phones and what Nokia did in emerging markets to provide us a better understanding of this case.
Competition between 1995 and 2010
From 1995 to 2010, Nokia has been facing fierce competition from several aspects, especially the last 5 to 10 years. 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 encourag...
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... market in the main competitors, Nokia gained over half of its revenue from low end phones. This production strategy made Nokia a very strong competitor in the mobile phone industry.
The last factor is creating corporate social responsibility, especially in India. Nokia focused on the distribution of rural areas and produce low end models to them, while the main competitors forego this market. The multilayered distribution organization ensured that Nokia’s handsets could reach the villages and towns with fewer than 30 thousand people. In addition, Nokia developed Life tools that provide information of agricultural information, education and entertainment in India. The life tools helped the farmers gain more profit by providing them the final asking price and provide access to general knowledge and courses that benefited the locals a lot (Rajasee and Shubhada, 2010).
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