Emerging Nokia Case Essay

2298 Words Jul 5th, 2013 10 Pages
1. Problem
Even though Nokia’s strategy in emerging markets has been successful –making the company the market leader in India and China with market shares of 60% and 40% respectively– the company’s position in the developed markets has been deteriorating. Nokia used to lead the mobile phone market in North America and Europe in the 90s and early 2000’s and now the company is losing share mainly to Apple, Samsung and RIM. At the end of 2009 market share in the US dropped from 33% in 2002 to 10%; in Europe revenue declined by 15% in 4Q2009 and it was pulled out of Japan. The question that rises is if Nokia should continue to operate in both developing and developed markets or select one over the other and what strategies the company
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Opportunities in the Mobile Phone Industry
First, Nokia can explore other high growth emerging markets and before starting they can replicate their effective market research and behavioural studies to better understand the customer needs since demand for mobile phone in developing countries is growing more than the developed countries. As stated by the case the high-end segment represents less units in the marketplace but it’s more profitable economically, therefore Nokia must adapt its portfolio and improve its product offers to exploit the opportunity of this segment that is mostly American but it could become a worldwide story in the long run . On the low-end segment Nokia has the opportunity of getting the trust of customers and make them become enduring Nokia customers. Lastly, since mobile phone operators had acquired substantial power and influence in the industry, the company could explore deals with largest phone operators in both the emerging and developed regions (e.g. the deal Apple/AT&T)

Threats in the Mobile Phone Industry
Despite the risk of economic turmoil that can keep customers from buying mobile phones or replacing or upgrading their existing phones there is the risk of facing more competition especially from China, where manufactures have started offering cheaper devices and where companies have

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