Nokia External Analysis

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1.Who are the biggest customers? The most profitable? The most attractive potential customers? Do the customers fall into any logical groups based on needs, motivations, or characteristics? Please make clear what your answers are based on and state used sources.

In the past Nokia customers are consist of high-end, mid-end, and lower-end customers. But when the market was penetrated by IOS from Apple and Android from Google slowly Nokia is losing their market share.

Now their biggest customers are rural China, Nigeria, Kenya and even Norway, Poland and New Zealand have boosted Nokia’s market share recently [1].

The logical groups based on needs, motivations, or characteristics supposed to be older age customer because they prefer phone that can do the basic telephone feature such as texting, make a phone call, with long life battery. And Nokia is very good at that.

The most attractive potential customers: smartphones are attracting all categories of customers now, and the market has widened considerably. Demand for smartphones is rising sharply in developing economies. Nokia has an advantage in these markets due to its strong presence. Price becomes one of the most important factors while choosing a Smartphone in these markets. Nokia's cheaper smartphones to achieve substantial success in the developing world. A very small percentage of customers can pay for iPhone or Galaxy handsets in these markets. As a result, customers look for the next best option available.

Nokia's cheap smartphones allow these customers to buy phones with almost the same features at a low price. Customers in markets like India, Pakistan, China, SriLanka and Bangladesh have strong confidence in Nokia and show considerable brand loyalty. These countries have some of the highest mobile phone user numbers. And, it is almost impossible for the majority of the customers to afford high-end sets from Apple and Samsung. According to reports, Nokia Lumia 720, a variant of the cheap smartphones, is close to the launch in the U.S. as well. In conclusion, potential customers are people have interest in hi tech products, expecially smart phone but they can’t afford an Ifone from Apple or phones from SamSung, HTC… This segment could be young people with low budget (students, new graduated officers) [2]

Nokia could sell basic handsets to developing markets while also selling new products to customers in Europe and the U.S. who wanted to keep upgrading.

2.What elements of the product/service do customers value most? Smartphone usage activity per category
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Source: Wireless Intelligence, Zokem

* The research was conducted by Wireless Intelligence and Zokem. It was based on an analysis of more than 2,100 smartphone users (iPhone, Android, BlackBerry and Symbian) in the US and UK during January 2011. All research data was captured with on-device metering from the Zokem Mobile Life panels. Currently the panel consists 29 percent of iPhone users, 45 percent Android users, 18 percent BlackBerry users, and 8 percent Symbian users, reflecting approximately the current sales distribution of smartphones in the combined US/UK market. The US/UK panel has a statistically significant number of users from all smartphone platforms.

3.

3.1.What are the customers’ objectives? What are they really buying? So what features drive users to upgrade their device?

The customer objectives view describes the goals of the customer, the what or “what do they expect in a smartphone?”.

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The essence of the objectives of the customers can be captured in terms of customer key drivers. The key drivers provide direction to capture requirements and to focus the development. The key drivers in the customer objectives view will be linked with requirements and design choices in the other views.

Customers’ requirements for general smartphone.[3]

1. 4G —According to Mintel, 16% of cellphone owners said that the next phone they purchase will...
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