Nokia Case Study

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NOKIA 6630

A Product Development and Launch Case Study

Discussion Issues

How would you assess the competitive position of Nokia in the market ? What are the current and future threats for their product portfolio ? Is Nokia’s positioning clear ?
How relevant or appropriate is their NPD strategy? Give details. What would you do differently, if anything ?

EXECUTIVE SUMMARY

This case study is about the launch of new product Nokia 6630 by Nokia Corp. on 14 June 2004. Nokia 6630 is the first 3G mobile phone of Nokia introduced to the 3G market. It marked Nokia’s first steps in a new market niche.

Nokia 6630 represents the most advanced 3G mobile phone with the latest digital applications. It reflects the radical changes in mobile phone technology moving from the analogue service to the digital era. In general, the launch of Nokia 6630 is successful thanks to excellent marketing strategies. By the fourth quarter 2004, Nokia 6630 has been marketed by more than 30 3G service operator around the world. In Western Europe, Nokia 6630 has been the best selling 3G mobile phone. As a result, the sales of Nokia 6630 has significantly contributed to the increase in operating profit of 53% to EUR 164 million for the Multimedia group in the fourth quarter 2004.

The successful launch of Nokia 6630 illustrates that product innovation is the key to success in the market.

TABLE OF CONTENTS

EXECUTIVE SUMMARY2
INTRODUCTION4
ABOUT THE FIRM5
THE INDUSTRY9
THE TECHNOLOGY15
THE INNOVATION18
THE MARKETING STRATEGIES21
THE RESULT25
COMMENTARY26
REFERENCE LIST27

INTRODUCTION

Product innovation has been known as a critical factor to success of a firm in the market. This case study will analyse the launch of Nokia 6630, a 3G mobile phone to illustrate the importance of product innovation.

This case study comprises 7 parts:
-analysis of the firm
-analysis of the industry that the firm is competing in
-analysis of the technology of the related product launch
-analysis of the product innovation
-analysis of the marketing strategies that the firm uses in launching new product -analysis of the result of the launch, and
-comments on the product innovation

The data used in this case study is achieved from secondary sources such as the company’s reports, professional organizations’ report, industry reports on the Internet.

ABOUT THE FIRM

Established in 1865 in South-Western Finland by mining engineer Fredrik Idestam, Nokia originally operated in forestry industry. However, from the beginning of the 1980s, Nokia focused in its core business, telecommunications and consumer electronics markets through the acquisitions of Mobira, Salora, Televa and Luxor of Sweden. In 1987, Nokia acquired the consumer electronics operations and part of the component business of the German Standard Elektrik Lorenz, as well as the French consumer electronics company Oceanic. In 1987, Nokia also purchased the Swiss cable machinery company Maillefer. By the end of 1980s, Nokia became the largest Scandinavian information technology company through the acquisition of Ericsson's data systems division. In 1989, Nokia conducted a significant expansion of its cable industry into Continental Europe by acquiring the Dutch cable company NKF.

In 1987, the first NMT handportable phone, the Nokia Cityman, was launched by Nokia. Yet, the Nokia era had not come until Jorma Ollila, then President of Nokia Mobile Phones, was appointed to head the entire Nokia Group in 1992 with the sole commitment on telecommunications in the digital age.

Nokia now is the world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia commits to enhancing people's lives and productivity by providing easy-to-use and innovative products like mobile phones, and solutions for imaging, games, media, mobile network operators and...
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