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Emerging Nokia Case Solution

Solution Id Length Case Author Case Publisher
1865 1056 Words (4 Pages) Juan Alcacer, Tarun Khanna, Mary Furey, Rakeen Mabud Harvard Business School : 710429
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Nokia will have to separate their competitiveness in both scenarios. One thing that can serve as a competitive advantage in both scenarios is being technologically superior. Superior enough to produce low cost offerings in developing countries and highly technologically superior products in developed countries. Nokia should integrate the developing solution and bring technical products from developing countries to fulfil needed the technical need. Or, Nokia will have to take steps to merge with other organization. It has become quite evident that if Nokia has to survive in the developed world, it will have to do more than what it has done previously.

Following questions are answered in this case study solution

  1. Nokia Success in Emerging Markets

  2. Reasons to Loose Share in Developed Countries

  3. Recommended Strategy for Nokia going forward

Case Analysis for Emerging Nokia

1. Nokia Success in Emerging Markets

There are many reasons for Nokia’s success in developing markets while poor performance and striving to hold market share in developed world. Firstly, if one looks at the target market of different mobile manufacturers then it can be observed that Nokia is catering to all three segments of low to high end customers while Samsung is aiming at middle and high, and Apple to high end customers. This provides an opportunity to serve in developing countries, like China and India, without fearing a cut throat competition, like in developed world. Targeting is a primary reason for its success in the developing world. But, targeting is not successful until Nokia brings down cost to make mobiles cheap enough to make them affordable for the bottom of pyramid customers. Nokia took advantage of its superior logistic and manufacturing facilities to lower the cost of mobile phones. At India, Nokia lowered mobile prices up to $32 while average mobile price in European markets was above $200. Not only that, Nokia was intelligent enough to sell directly to the customer, like using of HCL info system for widespread distribution. It provided customers with handsets of their choice and need. Nokia after its first failure in China deeply understood the needs and wants of customers and came up with customized handsets as per local demand. They provided sets, which are not individual bases, long battery standing, dust resistant keypads and strong body. They equipped these phones will facilities of radio and built in flash. In other words, Nokia fully localized its offerings. Services were also a key point in boosting up of sales in developing countries. Because of its superior logistic, Nokia was able to provide customer care at different towns across the country. Addition to that, it provided facilities like OVI stores to download application, which was a hit. For local farmers, it provided such services that ended the role of a middle man, and act as a cost saver for those farmers. Nokia acted as a socially responsible organization, and a money saver for poor people, it took actions to educate the farmers and children though its various services. It created a positive brand image and boosted Nokia’s sales, as a result, 55% of revenues are from low cost models.

2. Reasons to Loose Share in Developed Countries

These are few of the reasons for success of Nokia, in developing countries while in developed countries, Nokia is striving. Because of the fact that, in these countries growth is driven by phones upgrades and being techno savvy, as opposed to first time purchase in the developing world. Nokia has lost its market share in developed world because of cutthroat competition and innovation from manufacturers like Samsung, Apple and LG. These comapnies are targeting middle and upper end of customer. Nokia is successful in the developing world because, there, it’s not facing innovators like Apple and Samsung. 

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