OPEN UNIVERSITY MALAYSIA

FACULTY OF BUSINESS AND MANAGEMENT

BBNG 3103
INTERNATIONAL BUSINESS

Name: MOHD ARIFF BIN MISNAN

Matric No: 86088888888
NRIC No.: 868888888888
Telephone No.: 013-3888888
Email Address: 8888KIzer_ttc@yahoo.com or
ariff8888an@tm.com.my

Tutor: ZURITA MOHD SALLEH

Pusat Pembelajaran: SHAH ALAM SEKSYEN 13

SEMESTER MEI 2010

Table of Contents
TOPIC

PAGE

Assignment Question

Introduction

Factor Condition

Demand Condition

Related and Supporting Industries

15

Strategy, Structure and Rivalry

17

Conclussion

25

ASSIGNMENT QUESTION

PURPOSE:
This assignment is to give learners the opportunity to apply the principles of Porters Diamond
Model of Competitive Advantage.

CASE:
The Nokia Corporation (Nokia), based in Finland, is currently the biggest cellular phone
manufacturer in the world. Nokia started in 1871, when Fredrik Idestam and Leo Mechelin, set
up a company named after the town of Nokia.

By the end of World War I, Nokia faced difficulties and was bought by a galoshes manufacturer,
Finnish Rubber Works. A few years later, the company bought Finnish Cable Works, who made
telecommunications and electricity cables. The three firms merged in 1967 to form the Nokia
Corporation. Over the years, Nokia has been involved in making a large variety of rubber and
paper products, aluminum, electricity generators, electronic components, cables, consumer
electronics etc.

The first electronic device to be manufactured by Nokia was a pulse analyzer used in the nuclear
power plants. Along with a firm called Salora Oy, they pioneered VHF radio in the mid-60s, and
later introduced an in-car radio telephone network, called ARP, using this technology. This
network was the first of its kind in Finland and certainly the most successful of its type in the
world at that time.

In the late 70s, Nokia pioneered the worlds first digital telecommunications switch, the DX200.
In 1984, it bought over Salora Oy and formed a new mobile telecoms company, called Nokia2

Mobira Oy. It released its first product that same year, the Mobira Talkman, which was a
transportable phone with a size of a briefcase that could be charged from a car cigarette lighter
socket. It also introduced one of the worlds first hand-held phones, the Mobira Cityman 900.
Despite costing more than a family saloon car, Cityman sold like hot cakes, paving Nokias way
for its current dominance of the cellular phone industry. The company changed its name to Nokia
Mobile Phones in 1989, and soon became the sole focus of the entire corporation. Today, they
make and sell more mobile phones every year than any other manufacturer.

REQUIREMENTS:
Analyze the success of Nokia using the principles of Michael Porters Diamond Model of
National Competitive Advantage.

INTRODUCTION

Like each organization, each country is known in terms of its competitive advantage, for
example, USA for computers, credit cards, and movies: .Japan for consumer electronics and
automobiles; India for software professionals. Porter has categorized various national attributes
in four groups that contribute to, or detract from, the creation of competitive advantage for the
firms of that nation. These attributes form what is known as the national diamond. Like others
country, the Nokia company was set up in 1865, when a Finnish mining engineer, Fredrik
Idestam established a wood pulp mill on the banks of the Nokia river in southern Finland to
manufacture paper. In 1967, three companies, the Nokia Forest Products Company, Finnish
Cable Works and Finnish Rubber Works merged. As Cable Works had expertise in power
transmission cables and phone lines, Nokia decided to start an electronics division to diversify
into telecom products in 1960.

Now, Nokia is a world leader in mobile communications, driving the growth and
sustainability of the broader mobility industry. Nokia connects people to each other and the
information that matters to them with easy-to-use and innovative products like mobile phones,
devices and solutions for imaging, games, media and businesses. Nokia provides equipment,
solutions and services for network operators and corporations. Nokia is a broadly held company
with listings on four major exchanges.
Nokia is engaged in the manufacturing of mobile devices and in converging Internet and
communications industries, with 128,445 employees in 120 countries, sales in more than 150
countries and global annual revenue of EUR 50.7 billion and operating profit of 5.0 billion as of
2008. Nokia produces mobile devices for every major market segment and protocol,
including, CDMA, and W-CDMA (UMTS). Nokia offers Internet services that enable people to
experience music, maps, media, messaging and games. Nokia's subsidiary Nokia Siemens
Networks produces telecommunications network equipment, solutions and services. The
company is also engaged in providing digital map information through its wholly-owned
subsidiary Navteq.

Nokia has sites for research and development, manufacture and sales in many countries
throughout the world. As of December 2008, Nokia had R&D presence in 16 countries and
employed 39,350 people in research and development, representing approximately 31% of the
group's total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial
research unit consisting of about 500 researchers, engineers and scientists. It has sites in seven
countries: Finland, China, India, Kenya, Switzerland, the United Kingdom and the United
States. Besides its research centers, in 2001 Nokia founded (and owns) INdT Nokia Institute of
Technology, a R&D institute located in Brazil. Nokia operates a total of 15 manufacturing
facilities located at Espoo, Oulu and Sal, Finland; Manaus, Brazil; Beijing, Dongguan
and Suzhou, China; Farnborough, England; Komrom, Hungary; Chennai, India; Reynosa,
Mexico; Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo,
Finland.
According to the Diamond Model of National Competitive Advantage model of Michael
Porter, a competitive strategy takes offensive or defensive action to create a defendable position
in an industry, in order to cope successfully with competitive forces and generate a
superior Return on Investment. According to Michael Porter, the basis of above-average
performance within an industry is sustainable competitive advantage.

FACTOR CONDITION
As the most successful organizations in the history of Finland, Nokia is successful in different
markets. In 1996 it estimated 6 % of net sales and a 46 % penetration rate in the Finnish market
for cellular mobile products. In Scandinavia, the market penetration rate reached 44 % in
Norway and 29 % in Denmark. Sweden was ranked as Nokias 8 major market with sales
estimated to 8 billion FIM (Nokia 1997). As the company increased its knowledge in
telecommunications in the late eighties, it entered the European and world arena. All these
indications demonstrate the local adaptation and usage of the cultural differences Nokia adopted
in the Nordic countries during the eighties and nineties.
Today, Norway is the only Scandinavian country that not is a member of the European
Union (EU). The other Scandinavian countries, Sweden and Denmark, have been members since
1995 and 1974. Finland became a member in 1994. The importance of Finlands participation in
the EU is obvious to the global localization of the Nokia Group today. Nokia is represented with
sales offices in every European country, US and in Asia. Nokia has production facilities in
Europe, Asia and the US and R&D departments in 11 counties. The organizations economic
development resolved in heavy foreign capital investment and is today represented in European
and US stock exchanges. In some respects, Nokia as a Finnish company could be identified as a
Baltic country, rather than the belongings to the western European culture and economy.

The Core Competence

Part of Nokias core competence is the knowledge and experience in the wireless cellular and
network services industry. By focusing on superior products and services, Nokia has gained
several national and international awards. Introducing new product modifications and
technological enhancements is part of the companys product leadership. With a wide range of
products, Nokia has applied products independently of technical standard or geographical
location. Nokia also participates in developing new global standards for future
telecommunication needs and trends. With its leading position as mobile phone manufacturer
and supplier of digital mobile networks, Nokias participation in development of future
technologies enables them to deliver excellent products for the next decade.
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The Nokia products are targeting to specific market segments. The Nokia design on portable
cellular phones is characterized by lifestyle, freedom, opportunities of choice, technology and
urbanization (Nokia 1997). The product design both emphasizes consumer behavior and
technical industry standards.
Nokia was the first cellular mobile manufacturer who adopted models for new ways of
thinking into their marketing operations. The general management urged marketing managers to
think of companies as repositories of skills, rather than portfolios of products. A marketing team
from Nokia went to Venice Beach in California and the Kings Road in London, to observe the
way that mobile phones were becoming fashion accessories (Economist March 1997:77).
This unusual approach resulted in a superior product design and control of consumer
segment. Nokia attached a unique value of trends, lifestyles, freedom, power, and technology
among others, into their products. This unique value perceived by the customers resulted into a
leading brand well-positioned (Keegan 1999:8-7; Quelch and Kenny 1994:153-154 and 158160).

The Unique Value

Nokia saw that the customer preferences were starting to change, and applied these changes to
their products. To spot the needs in the market, and to tell the customers that this is the phone
they need, are some of Nokias strengths. Nokia has for many years had a focus on design,
customer adaptation, and user friendliness. This has turned out to be a success, as they passed
Motorola in 1998 as the world-leading supplier of mobile phones (Nokia 1998). The unique
value seen by consumer is identified in the products unique value. The unique value can be
viewed as the customers perception on its benefit preferences divided by actual price.

 A Global Winner
The outstanding growth and success of Nokia can be summarized as the overall performance,
focus and strategic decisions made in the early days of the mobile strategic decisions made in the
early days of the mobile cellular industry. Nokia is characterized as a global winner for several
reasons
Product leadership
The operational excellence by the top Management of Nokia is one of the reasons why it resulted
in Nokia being a cellular phone product leader in the market. Identification of the internal
processes from production to distribution (TQM) the efficiencies in the production process and
the distribution channels of Nokia became the product leader in cellular phone industry.
As the history of Nokia shows that Nokia is an important part in Finland economy which
contributes to Nokia being a success in its own country of Finland. It also provide an
advantageous platform for Nokia to continue expanding its reach into other European countries.
Keeping the global focus on segments is one of the ways that Nokia was able to meet the needs
of customer and design and producing products that is in line with customer wants. As the
company grew, they identified new needs for maturing markets and created customer needs as
the products were launched.
The Global Cellular Mobile Industry
The global mobile phone industry is based on many different manufacturers and operators. The
industry is based on advanced technology and many of the manufacturers are operating in
different industries, where they use their technological skills, distribution network, market
knowledge and brand name. Three large manufacturers of mobile phones are today dominating
the global mobile phone industry; Nokia, Eriksson and Motorola. In addition to these companies
there are many manufacturers that operate globally and locally. This report focuses on the
competition among these organizations.

DEMAND CONDITIONS

Production units
Networks technology

Mobile devices and technology

China

Brazil

Finland

China
Finland

Germany

Great Britain

India

Hungary
India
Mexico
Romania
South Korea

Developing affordable mobile devices that can contribute to increased economic growth
and quality of life of customers and creating new need and wants that coincide with
customer cycle of consumption. Devices that not only affordable but also maximize the
experience of customer usage.

As the leading cellular producer in the world constant innovation is needed to compete
successfully with other cellular producer. Focusing on human technology; enhancing
communication and exploring new ways to exchange information Nokia with the help of
its R&D department have successfully create new technology or a derivative of those
technologies that is constantly requested by forward pushing markets.

Using a simple but effective catchphrase which is to connect people as a general way of
establishing its commitment to help its customers to connect to the world which helped
Nokia to achieve its major share of the cellular market in the world. Thats why Nokia
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will never stop finding new ways of connecting people which will enable them to attain
more market dominance.

Being the leading cellular company in the world Nokia is focused on building customer,
relationship and trust. Which has proven to be one of the main reason why the consumer
market would think of Nokia as having an advantage over other cellular products. In
order for Nokia to build customer relationship and trust Nokia have learned to have a two
way communication between customer and Nokia to receive information on how to
improve customer relationship and trust with the help of product innovation and
improvement.

Building friendship and trust is the heart Nokia brand which is the branding strategy of
Nokia. Using its corporate relations and responsibility as one of its platform Nokia
positioned its brand as building friendship and trust, including its image and brand
strategy.

As with other major companies in the world the Nokia Logo shows their brand
personality.

Product Variety
The product range of Nokia would cover all segments of its customer. The professional
customer would require a cellular phone with email ability, or the mass teenager market would
require entertainment functions in their product range. Nokia would also cater to many other
segments including the rugged market where Nokia developed a cell phone that is considerably
durable. Nokia arranges its product line by series. In every series of Nokia there are large
numbers of sets thus large variety. e.g. entry level include 1200,1208,1100,1110,1110i,1112
other series are 3210,3310 or the E series E71 etc.

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 Quality
Nokia gain brand personality and market shares because of its quality. Compared to its major
competitor at one time (Motorola) the quality of its cellular phone. The quality of its software
interface is also very good and reliable with an added advantage of having simple to use
interfaces as compared to Motorola.
Design
Nokia sets are of various designs such as Flip sets, Flat sets, Slide sets, Sets with rotating
camera etc. The design would be updated very rapidly and would favor heavily with market
demand. Similar functional sets could have different designs such as a single function would be
designed as flat set as well as flip sets in order to satisfy customer that prefer either type of sets.
The Nokia design would be technologically stylish and functional.
Features
Each set of Nokia has its own features. The models of Nokia are based on features. Example of
Nokia cell phone features are multimedia or internet accessible. Other features are included
which are considered basic features which is a compulsory feature for all cell phones example is
SMS features. Currently Nokia features have increasingly moved towards the communicator
where by a key pad is included for easy typing.
Brand Name
The Nokia logo is a simple logo which bears the name NOKIA. The brand name of Nokia is
written on each set. Instead of an ambiguous logo or brand name it is simple to recognize a
Nokia phone or product.
Packaging
On packaging of Nokia sets will detail information about the set which is given and packing is
made attractive by pictures showcasing the Nokia product and brand strategy of friendship. The
quality of the packaging hard box reflects the quality of the product. Each set has its own booklet
with information about its features and cell phone. And also warranty cards and other
information. If the set includes other accessories the packing would allow for different
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compartment of the packaging. Which means the quality of the product would not be
compromised due to shipment of product.
Price
Price targeting both the ends of the affordability spectrum. Not only Nokia cater for low end of
customer but also higher end of customer such as professionals and working or employed buyers.
The Nokia price range is from RM450 to RM2000 in Malaysia depending on the distribution
centre. But due to its availability around the world Nokia prices would depend on the currency
from each countries. Pricing strategy. One of Nokia pricing strategy is to offer cash allowances.
Advertising
Via TV , Sign boards , Bill boards , Radio and Newspaper, Broachers , Posters ,Dummies and
display stands
Personal selling
By product training to Distributer.
Channels
Nokia > Distributer > Whole seller > Retailer > Customer
Distributer
Nokia main distributers are I2, United mobiles, Mobile zone and Advance telecom. Nokia
mobiles are mostly available through every mobile outlet.

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 Product mix of Nokia

Classic series The Mobira series.
Original series

10009000 series

Nokia 2000 series Basic series

Nokia 3000 series Expression series

Nokia 5000 series Active series

Nokia 6000 series Classic Business series

Nokia 7000 series Fashion and Experimental series

Nokia 8000 series Premium series

Nokia 9000 series Communicator series (discontinued)

Special function phones

Nokia Eseries Enterprise series

Nokia Nseries Multimedia Computer series

Nokia N-Gage Mobile gaming devices (discontinued)

Vertu Luxury phones

Card phones (PCMCIA)

Concept phones

Other products

Digital television

ADSL modems

WLAN products

Telephone switches

GPS products

TETRA

Internet tablets

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Our target segment is heavy users

We chose this Category because heavy users have the ability to buy our product.

In this category users like latest products with latest features.

Heavy users want something new and stylish.

Target market for the Nokia mobile phone is between ages 20-40.

Who want to use Something Special

International Students

Teenager and Business class

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RELATED AND SUPPORTING INDUSTRIES

Nokia Corporation (Nokia) is a manufacturer of mobile devices and mobile networks. Nokia
connects people to each other and the information that matters to them with mobile devices and
solutions for voice, data, and imaging, games, multimedia and business applications. The
Company also provides equipment, solutions and services for its operator and enterprise
customers. Effective January 1, 2004, Nokia reorganized its structure into four business groups:
Mobile Phones, Multimedia, Enterprise Solutions and Networks. During the year ended
December 31, 2004, Nokia announced a total of 36 new mobile devices in a wide variety of
designs and technologies for all segments and at all price points. Of the products launched, 34
had color screens and 23 were camera phones, including its first mega-pixel camera phone, the
Nokia 7610. In 2004, Nokia sold 10 million phones with integrated music players.
The company includes four business groups:

Mobile Phones

Multimedia

Enterprise Solutions and

Network.

Nokia also includes two horizontal groups that support the mobile device business groups:

Customer and Market Operations

Technology Platforms.

Nokia, the Finnish telecom giant is today one of the worlds most admired companies. Fortune
magazine1 has referred to Nokia as the least hierarchical big company in the world". Nokia
generates revenues of $19.9 billion and employs about 55,000 people. Its shares are listed on the
New York, Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges. Networks deals
with data, video and voice network solutions. Mobile Phones are the clear global leader. Many
of the standard features of today's mobile phones, such as large graphic displays, signal and
battery indicators, colored covers and ringing tones were originally developed by Nokia.

15

Communication products include multimedia terminals for digital TV and interactive services
via satellite, cable and terrestrial networks.

16

FIRM STRATEGY, STRUCTURE AND RIVALRY

Group Executive Board

Olli-Pekka Kallasvuo
President and CEO of Nokia Corporation
Esko Aho
Executive Vice President, Corporate Relations and Responsibility
Robert Andersson
Executive Vice President, Devices Finance, Strategy and Sourcing
Simon Beresford-Wylie
Chief Executive Officer, Nokia Siemens Networks
Timo Ihamuotila
Executive Vice President, Sales
Hallstein Moerk
Executive Vice President, Human Resources
Richard A. Simonson
Executive Vice President, Chief Financial Officer
Anssi Vanjoki
Executive Vice President, Markets
Dr. Kai istm
Executive Vice President, Devices

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 Vision
Nokia is a consumer led company. There is a progressive and continuous increase in
consumer involvement with technology and communications globally. People are broadening
their modes of communication to include the web and, social networks are becoming central to
how people communicate.
People want to be truly connected, independent of time and place, in a way that is very personal
to them. And, Nokias promise is to connect people in new and better ways. Nokias strategy is
to build trusted consumer relationships by offering compelling and valued consumer solutions
that combine beautiful devices with context enriched services.
Objectives:

To set up a new brand image for Nokias mobile phone: Creative and Trendy

To meet the needs of the niche: Young and Rich customers who are pursuing stylish
lifestyle

To maximize current profit

To lead the mobile phone market with innovative and modern new products

The Global Cellular Mobile Industry:

The global mobile phone industry is based on many different manufacturers and operators. The
industry is based on advanced technology and many of the manufacturers are operating in
different industries, where they use their technological skills, distribution network, market
knowledge and brand name. Three large manufacturers of mobile phones are today dominating
the global mobile phone industry; Nokia, Eriksson and Motorola. In addition to these companies
there are many manufacturers that operate globally and locally. This report focuses on the
competition among these organizations.

18

 Strategy
Wherever, whenever, we believer in communicating, sharing and in the awesome potential
of connecting the 2 billion who do, with the 4 billon who dont. At Nokia, customers remain
our top priority. Customer focus and consumer understanding must always drive our day-to-day
business behavior. Nokias priority is to be the most preferred partner to operators, retailers and
enterprises. Nokia will continue to be a growth company, and we will expand to new markets
and businesses. World leading productivity is critical for our future success. Our brand goal is
for Nokia to become the brand most loved by our customers.
In line with these priorities, Nokias business portfolio strategy focuses on five areas, with each
having long-term objectives:
- Create winning devices
- Embrace consumer Internet service
- Deliver enterprise solutions
- Build scale in networks
- Expand professional services
There are three strategic assets that Nokia will invest in and prioritize:
- Brand and design
- Customer engagement and fulfillment
- Technology and architecture

Organization
Nokia comprises four business groups: Mobile Phones, Multimedia, Enterprise Solutions and
Networks. Mobile Phones connects people by providing expanding mobile voice and data
capabilities across a wide range of mobile devices. We seek to put consumers first in our
product-creation process and primarily target high-volume category sales.
Multimedia brings connected mobile multimedia experiences to consumers in the form of
advanced mobile devices and applications. Our products give people the ability to create, access

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and consume multimedia, as well as share their experiences with others through a range of radio
technologies.

Mobile Phone Market in India

NOKIAs hegemony in the GSM handset segment has increased during last six months.
NOKIAs market share (in terms of unit sold) has grown to 74% in March 06 from 61.5% in
October 05. In the colors segment too, Nokia has increased its market share to 55% in march 06
from 33.7% in march 05.In terms of value, Nokias overall market share has jumped to 70.5 % in
march 06 from 57.7% in October 05. In the colors phone category, its market share (in terms of
value) has increased to 59.3% in march 06 from 40.9% in October 05, according to ORG GFK
estimates.

Supply Chain
Nokia is committed to reducing the environmental impact of its business. It expects all Nokia
suppliers and their suppliers to take a similar approach. At Nokia, it believes in long-term
partnerships with suppliers who share our approach to ethical business. Together it works hard to
anticipate risk, demonstrate company values, enhance its governance practices, increase
employee satisfaction and look after the communities where it does business.

SWOT Analysis
Nokia is at an important crossroads in its history. Having architected many of the key
tenets for growth during the formative years of the mobile phone industry, the market with which
Nokia is so familiar may be adopting different rules, ones that it may not fully understand. The
situation Nokia faces may be similar to the period in the PC industry when Dell Computer
surpassed perennial leaders IBM, Hewlett-Packard and Compaq Computer. Why might this
happen? Because Nokia's strengths are so well-understood by its competitors, they are welltargeted and improved upon. The wireless market's evolution has slowed, making it easier to
20

challenge the incumbents. Also, the progress of technology has made many of Nokia's early
advantages easier to overcome. Nokia's leadership position is a result of paying persistent
attention to market needs and taking the right chances at the right time.
Nokia was the first to acknowledge fashion as an important element in mobile phone
purchases, and it is solidly behind the push for Multimedia Messaging Service, which could
become the first data service beyond Short Message Service to be deemed successful. There is a
significant gap between Nokia and startups, which makes it difficult to compete against Nokia.
Nokia's tie to operators has kept its products solidly in consumers' view. Yet, Nokia faces some
serious challenges.

Strengths
Nokia has long established identity (1898); lots of available resources (financial, etc.)
Nokia has high penetration rate in Europe, especially in Northern countries (close to 100%)
Nokia Consumer Electronics has access to innovative technology through group companies

Weakness
Lack of centralized marketing strategy and champion; completely different positioning strategy
depending on the country
Too many brand names (100) in one market; problem trying to find balance
Corporate culture is highly technical and operational: So what if the customer does not
understand!; lack of customer service priority
Opportunities
Potential for brand name sales in Europe and Asia-pacific
Growing replacement and supplement television market
NCE has opportunity of using its technology to enhance user-friendliness

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Threats

The market for color TVs and VCRs is a mature/saturated market; consumers are buying

less often and only to replace older units (same trend for all countries across Europe)

Cant differentiate based on technical advancement or price; competitors too fast to

match

Impact of recent purchases (for example, Sony) and mergers is unknown; competitors are

getting larger and integrating supply chains

Competitors (Samsung, Gold star, Daewoo) quickly and successfully building brand

name and image Branding Strategy In the color TV market, neither technology nor price
provides a competitive advantage. The decision a consumer makes to purchase is primarily
motivated by emotion, and is driven largely by comfort level with a particular brand. A
successful branding strategy for NCE is, therefore, critical to gaining a competitive advantage.
Specifically, NCE should brand for the following reasons:

Competitive advantage is gained through brand name (not technology or price)

According to brand awareness studies, Nokia is recognized most of the time (in

Germany, France, Italy, UK and Norway), but not necessarily affiliated with consumer
electronics such as TVs and VCRs

Consumers buy televisions based on emotion

Consumers perceive value in features that are marketed as user-friendly. In the past

Nokia has relied heavily on its ability to innovateit is a strong technology company.

However, it is not good at introducing or packaging this technology for consumers. It must
introduce a new mindset to NCE; a strategic shift that encourages customer service and
international marketing.
Internal Management Challenge faces at least two challenges within NCE that he must address
immediately:
1. Lack of a marketing champion in corporate headquarters
2. A continued reliance on technology as the main marketing approach. For example, the remote
control TV mouse is centered on technology and may frighten away potential customers who
may perceive it as too technical.
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 Options for solving these include:

Push down his ideas and force all to comply using his positional power.

Soft approachgradually getting buy-in to his plans from technical representative, sales
and marketing.

Option 1 is not viable since even though it may result in short-term agreement, it will result in
resignations, poor morale and distrust in senior management over the long run. Since the change
process can be slow, Nokia should adopt option 2 that means getting buy-in at the senior
management level.

Quality targets:
For Nokia to be number one in customer and consumer loyalty.
For Nokia to be number one in product leadership.
For Nokia to be number one in operational excellence.
Segmentation Strategy
Nokia Market Demographic
The profile for Nokia customer consists of the following geographic and demographic:
Geographic
Our immediate geographic target is rural India.
The total targeted population is estimated at 100 million.
Demographic
Male and female.
Ages 25-50, this is the segment that makes up 80% of the Nokia mobile phone market
according to the NOKIA India Ltd.
Professionals and College students.

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 Marketing Strategy
Today, the true killer data application is still text messaging, a typical example of personto-person communication. Other end-user services, however, have not taken off as expected in
recent years.
The primary reason for this slow take-up is that most of these services do not fulfill the
expectations of users. Although ring tones are one example of successful person-to-content
services, progress must be made for market take-up of other mobile data services such as:
Messaging (e.g., MMS and e-mail)
Entertainment (e.g., graphics, logos, games)
Information (e.g., directory services, news)

Marketing Objective
- Capture rural Indian market
-Target school student
- Attract Customers to New technology
- Enhance Distribution
- Maximize our revenues
- Maintain Customers Loyalty

Many Competitors in this area

Motorola

Sony Ericsson

Samsung

LG

Sharp

Panasonic.

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CONCLUSION

Nokia currently still the no.1 in mobile industry

Its growth in profit not comparable to main competitor - Motorola

New series of phone: exquisite series

Target on wealthy young adults

To maintain leadership position and generate more profit to Nokia.

STRENGTH

OPPORTUNITIES

-The Leader in the Industry

-Close cooperation with Suppliers and

Intermediaries

-Strong Financial Support for

Investment

-Tax Reduction

-Strong R&D Unit

-New Demand Created From the

Advancement of Technology

-Strong Customers Relation

WEAKNESS

THREATS

-Lack of Innovation

-Keen and Strong Competitors

-Human Resources Management

-Saturation in Current Market

-Challenges of Continuous
Technological Development

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