International Business- How Nokia Seeks Global Business Advantage Through Spulber’s, (2007) ‘Star Analysis’ and Any Other Relevant Theory.

1547 Words Dec 5th, 2012 7 Pages
International Business- How Nokia seeks Global business advantage through Spulber’s, (2007) ‘Star Analysis’ and any other relevant theory.
Mobile phone giant Nokia, a multinational corporation based in Espoo, Finland and is currently the world’s largest manufacturer boasting a market share of 31% worldwide (www.Nokia.com/Results, 2011). Despite Nokia being regarded amongst the most successful and economically dependent brand within Finland, it was the corporation’s Global strategy that would lead to it becoming a market leader and rapidly gaining worldwide acclaim for its excellence. This essay will include in depth detailing of how Nokia represents Spulber’s (2007) ‘Star analysis’ in their global strategy using newspapers, databases,
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Nokia understand that in order to compete in developed markets such as the US and UK, they must offer both competitive pricing alongside new cutting edge technology. Similarly in developing nations usually LEDC’s, pricing must be sympathetic to economic conditions and requirements. For example in order to achieve global advantage targeting India’ already the second-largest and fastest-growing telecommunications market in the world’, (T.Wells, p255, 2004) Nokia are able to strive for maximum growth.
US securities & exchange commission (2008)

Nokia seeks to gain advantage over competitors by focusing on customer countries with high growth rates and delivering services that satisfy consumer needs. This is shown by Nokia ‘joining forces with host of partners in India to deliver services through its Nokia Life Tools - a range of agriculture, general information and educational services targeted at rural consumers’, (Warc, 2009).
Seeking to recover sunk costs quickly, Nokia employs a price skimming strategy as a first mover, whereby its sets a relatively high starting price before lowering the price over time as competition builds. In consumer countries such as China and India price elasticity of demand is high due to low per capita income and the emergence of low cost substitutes. Nokia seeks to gain competitive advantage by offering tailored products at cheaper prices as expensive and highly innovative models will not sell. Developed customer

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