Emerging Nokia Essay

1. What strategy would you recommend for Nokia departure forward? Please develop a complete strategy that addresses the fol modesters issues resource of range does it make sense for Nokia to be in two emerging and real markets, or should they choose not to play in certain markets? How integrated should it be into manufacturing, run (apps), software development, sales, etc? Answer1 Choice of scope With dwindling sales in real countries like USA, UK, Germany, Russia and Italy and even in emerging markets like India, Indonesia and Brazil (as per Exhibit 1) despite previously having a stronghold, Nokia now had to decide if it should continue its focus on emerging markets or attempt to salvage the sales even in the developed markets. circumstance in developed markets1. The operators usually have more actor only when this was changing since the emergence of iPhone. It is a replacement market with drug exploiters feelinging for up gradation 2. Competition- Growing argument fr om companies like Motorola, Samsung, LG and Sony Ericsson. The RIMs shew of Blackberry(2002) and Apples iPhone (2007) was a further set back 3. overbold Operating System- Emergence of new substance abuser friendly operating systems such(prenominal) as Googles Android and Microsofts Windows smooth further throw Nokia on the back foot 4. Inability to understand demand- Nokia failed to identify the exploitation consumer drive for touch screen resounds 5. Target Nokia operate ond at all equipment casualty points where as competitors like Apple ( graduate(prenominal)-end segment) and Samsung( mid and high end segment) had a clearly drawn up strategySlowdown in about emerging markets1. Reverse bundling allows the manufacturer to wield more indicator than the operator 2. There is lower cost of production which helps produce sacred products at low rates 3. The growing competition from companies like Samsung that were offer the latest technology at competitive prices 4. There fore, Nokia disoriented out on the middle and high segment but continued to grow in the low-end mobile segment as it had identified the gaps in emerging markets and customized services to suit the local consumers Nokia must(prenominal) recognize the difference in the variant marketsegments and take the challenges head on to be able to operate in both markets. It must clearly identify the segments it wants to operate in and also change its positioning based on the data below. info from Exhibit 11Percentage of phone sales by segmentEmerging MarketsDeveloped CountriesMid EastAP w/o japanLatin the StatesE. EuropeJapanW. EuropeNorth AmericaBasic41%43%20%34%0%4%8%Enhanced40%44%58%45%32%29%43% skilful Phones- E. level10%7%12%10%6%34%8%Smart phone- Feature10%6%9%11%62%33%41% acuteness58%45.50%80.30%127.50%86.60%122.90%84.90%Nokia Market Share61.40%42.30%32.80%48%0.30%39.40%7.20%In emerging markets, Nokia must focus on Basic and Enhanced phones, as that is the largest segment as the mark et is still evolving and low cost handsets coupled with customized services pull up stakes help further grow its footprint. In developed countries, Nokia should carry at development of high end- high technology driven models in the Smart Phones Entry Level and Feature segment. At the same time when it comes to Japan, Nokia should look todivest as it is largely smartphone driven market and Nokia has very minute market share and does not have the requisite technology to successfully compete in that segment yet. It is essential for Nokia to follow the innovations in developed countries especially USA and adapt them to developing markets if it wants to stand up against competition in both the markets.Mobile phone industry has followed the International overlap Life Cycle but now they have reached a format where different approach is required for innovation to take place in developed and developing markets to meet their specific needs. An another(prenominal) key liaison that Nokia must do is to reconsider its Transnational Strategy and adopt a Multi-Domestic Strategy to be able to cater to the distinctive needs of both the developed and emerging markets and to be more locally responsive.Level of integratingManufacturing- It should continue to be highly integrated as that is its affection skill and contributed to operating profits with a CAGR of 13%. It helps in cost visualise especially in price-sensitive emerging markets. Operating System- Low integration. The future of Symbian isnt very bright as competitors like Android of Google and Apple already have a lot of applications to offer on their OS. hence, it must look to finding a partner for a better OS as has been shown by its adoption of windows OS. Service (Apps) Low integration. This rout out also be out stemd since it is not a core competency of Nokia and customer Value habituated to third party applications is on the rise (as per Exhibit 6) sales and Distribution- Should be highly integrated a s it has already developed a abundant distribution and achieved great penetration in emerging markets which has been a source of higher margins by direct selling to consumers and is also a core competency.2. What products should it offer smart phones, low end phones, etc? Source of advantage what allow be the distinctive competitive advantage that Nokia will offer? Choice of activities what choices should Nokia make in all its key activities, and where will it locate those activities for eg., HR policies, manufacturing, R&D, software development, sales and marketing, etc. What is the justification for your strategy testimony?Answer2Addressing the consumer needs should be the strategy for Nokia in both emerging and developed market. In the emerging markets where Nokia is already a leader, it should focus on give to the growing bottom of the pyramid consumer. The biggest advantage that Nokia offers is its reach. It should focus on its gratis(p) telecom industry trend, specifica lly in India, telecom players are winding into price war and which gave customer a higher bargaining power to switch. In such case coming up with dual sim phone would cater to the primary need of market. The applications in the phone should be in sync with local leisure such as music, newspaper and such more. Instead charging user for Life tools, revenue generation should be from advertisers. pass on time bound high end test features in low end phone during successive OS updates this will generate user awareness and need for high end smart phone.On the other hand, in developed markets, Nokia has lost its share to other players. Customer demands smartphones with high quality user interface experience and applications and data security (RIMs competency), Nokia need to target it. Nokias target should be the esteem need of user. Developing an OVI ecosystem with third party app developers, advertisers through more free and hardly a(prenominal) paid applications for users. This will gi ve Nokia a distinct advantage in the market if acted as 1st mover. More investment and development for user data security will generate trust among the users. In the mobile phone industry, the product life cycle is very short. Every course a new product is available on the shelf. Hence reactivity to the consumers need is a must. Nokia failed to do that this with the clamshell model in China. By the time it came out with the product, the trend for clamshell models had faded and Nokia lost out to competition.Key advantages of Nokiaa. 3 distinct operating system platforms that can offer the base for wide range of products catering to all user segments. b. Longest and complex supply chain in the world. It has the most cost-effective sourcing, logistics, manufacturing, and distribution of any company in the world. c. Nokia offers the OVI Store the second largest app hive away in the world which is growing 70% per month as per Tero Ojanpera, Nokias EVP for the Services. d. With the ac quisition of Navteq Corporation, it has a strong presence in the GPSworld and provides a wide range of geographic image support covering closely more than 180+ countries. e. In India. Nokia has a strong hold of hobnailed market with their distribution system handles by HCL Info systems. In Latin America, it has a dedicated team to manage the relationship with America Movil and Telefonica and to unionise sales and services across the region.Choice of activitiesa. HR policies should be locally controlled by subsidiaries to keep local culture intact. b. Manufacturing should be done on a global scale to utilize cost and resource arbitrage. summation product R&D should be centralized with satellite R&D in each market to add local flavour to the product. c. Software development centers have to be installed in countries like India or Philippines to utilize local talent and expertise in software development. d. Sales and marketing should be again localized. Country specific distributio n credit line should be adopted.