Micro Economin Study of Noki'a Market in India

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A Report on
NOKIA

By-AMIT MUKHERJEE
Roll No-10(PGDM-A)
Index
Introduction……………………………………………………………3 Compliments and Substitutes available for Nokia mobiles………4 Market share of Nokia in India………………………………………7 Demand of Nokia phones……………………………………………8 Supply curve for Nokia in India……………………………………...9 Factors affecting Supply of Nokia in India………………………...10 Macro-Economic Factors affecting Demand of Nokia in India……………………….............................................................11 Future demand of Nokia’s mobiles………………………………...12

Introduction
Nokia is a world famous mobile manufacturing company from Finland which started in1865. It is a global leader in the manufacturing of mobiles with sales in more than 150 countries and market share up to 30 %. Nokia was launched in India in 1995 and since then has steadily progressed to become the number 1 mobile selling company in India.

Nokia has also has a subsidiary Nokia Siemens Networks which produces telecommunications network equipment and provides solutions and services. Nokia produces mobile phones in every segment of mobile phones such as GSM, CDMA and W-CDMA.

Nokia is also highly responsible for driving a healthy part of the Finnish economy. It accounted for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki). It is a steady contributor to the GDP growth o Finland and it alone accounted for about 1.5% GDP growth of Finland in 1999.

Some of the recent highpoints of brand Nokia are given below:- * The Nokia brand, valued at $29.5 billion, is listed as the eight most valuable global brands. * It is the 41st most admirable company worldwide in Fortune's World's Most Admired Companies list of 2010. * According to Fortune Global 500 list of 2010 it is the world's 120th largest company.

Compliments and Substitutes available for Nokia mobiles
Substitutes: - Nokia as a market leader in the India in the mobiles segment has a market share of about 39%. Following are the major competitors for Nokia mobiles in India which act as its substitutes. * Samsung

* LG
* Sony Ericsson
* Business phones like Blackberry, HTC, etc.
* Newcomers like Micromax, Karbonn mobiles, etc.
In the high end category comparison of Nokia’s X6 and Samsung’s Galaxy Ace can be made which offer similar features. These two products are perfect substitutes for each other and differentiation can be made in the minds of the consumer only on the terms of brand loyalty.
Nokia x6 Samsung Galaxy Ace

Indifference Curve for Perfect Substitutes

Samsung prices on x-axis, Nokia prices on Y-axis With the comparison of prices of Nokia and Samsung we can clearly see that they act as perfect substitutes for each other. A Samsung Galaxy Ace mobile can be bought for about 12350 whereas a Nokia X86 can be bought for about 14150. Thus the indifference curve formed by these products represents a straight line. Compliments: - The major compliment for a mobile equipment selling company like Nokia is the telecommunications sector. The growth and performance of the telecommunications sector greatly affects the business of Nokia.

With a subscriber base of more than 851 million,[5] the Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The mobile subscriber base has grown by a factor of over a hundred and thirty, from 5 million subscribers in 2001 to over 851 million subscribers...
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