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Emerging Nokia: Submitted by Section - 2, Group - 2

Nokia was the market leader in mobile handsets in 2009 with 38% global market share, but started losing revenue and market share thereafter. Emerging markets presented opportunities for growth through cost leadership strategies and pre-paid payment systems. However, Nokia failed to adapt to changing market conditions like the rise of Android and touchscreen phones. It was slow to respond, complacent, and made inappropriate strategic choices like focusing too much on services rather than innovation. As a result, competitors like Samsung and Apple surpassed Nokia.

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69 views6 pages

Emerging Nokia: Submitted by Section - 2, Group - 2

Nokia was the market leader in mobile handsets in 2009 with 38% global market share, but started losing revenue and market share thereafter. Emerging markets presented opportunities for growth through cost leadership strategies and pre-paid payment systems. However, Nokia failed to adapt to changing market conditions like the rise of Android and touchscreen phones. It was slow to respond, complacent, and made inappropriate strategic choices like focusing too much on services rather than innovation. As a result, competitors like Samsung and Apple surpassed Nokia.

Uploaded by

susmita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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EMERGING NOKIA

SUBMITTED BY
SECTION -2, GROUP - 2
BACKGROUND
• Nokia entered telecommunication sector in 1981 by acquiring Finnish
government telecom company.
• Nokia has handset’s market share of 38% worldwide in 2009 and market leader
in many emerging countries.
• Later from 2009 started losing revenue in European market(15% decline in
2009)
• Competitors such as Samsung, Sony, Motorola started strengthening
themselves which impacted nokia’s position in market.
EMERGING MARKETS ANALYSIS
• Cost leadership strategy – low disposable income, so prices had to be kept low
• Growth in cell phone penetration by first-time purchasers.
• Device manufacturers sell directly to the end consumer.
• Services – important selling point. Eg: SMS packs.
• Pre-paid payment system.
• Fixed number of minutes when consumers buy a specific handset.
DEVELOPED MARKETS ANALYSIS

• Relatively inelastic demand


• Growing competition from Samsung, LG, Motorola and Sony Ericcson.
• Emergence of new operating systems – Android and Windows.
• Handsets sold through the operators who offered it on a contract basis.
WHY DID NOKIA FAIL? -
Did not adapt
• Accelerating market changes - Failed to adapt and compete, slow to respond
to changes
• Complacency prevailed – they kept working on their own technology without
accepting its limitations and adopting other innovations.
• Problems in operating system – Symbian gave Nokia an early advantage but
eventually lost its place.
• Did not adapt to the right direction – From changed from Symbian to
windows instead of android

SHUSHMITHA (DM20249)
Strategic choices were not appropriate
• Problems in operating system – Symbian gave Nokia an early advantage but
eventually lost its place.
• Focused a lot on distribution, services, etc in emerging markets – led to lower
importance to its core competency and innovation.
• Nokia demonstrated that in the nascent multipolar world, new global leaders
must excel in both advanced and emerging nations.
• Inability to understand demand – for touch phones.
• Nokia's U.S. operations exemplify its strategic erosion – low responsiveness
and flexibility in U.S. compared to other markets.

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