Nokia Strategy

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How does Nokia segment the market for cell phones.

Nokia’s vision is a world where everyone can be connected. The company applies differentiated market segmentation. Nokia distinguishes the market according to the different variables. The first selection is based on the demands of individuals and business firms . That explains the development of mobile devices applications which fulfill the needs of individual clients and those that provides business application and software. Second selection is based on lifestyle such as basic functionality and fashionable mobile devices under different prices to meet a variety needs of people. That kind of market segmentation is called behavioral segmentation which divides customers into groups based on the way they respond to, use or know of a product.

2.What factor were paramount in Nokia decisions to enter the game playing market?

Handset maker Nokia has launched its mobile games service in a worldwide effort to capture share in one of the fastest growing mobile segments. Nokia was entering potentially huge market segment for wireless gaming. The Nokia N-Gage was full of features - game (local or wireless), Internet, phone, PDA, hi-speed wireless modem, FM radio, etc., all in one product. Different attributes where about to satisfy different needs of more and more demanding customers. The aim of nokia was to a gain profits by creating innovative product for all who expect something more than calling and texting. They create a new segment of user.

 When the N-Gage was launched, Nokia was admited that the device was a console first and a phone a distant second. Such a notion was doomed from the start: its phone heritage was blatantly obvious - the tiny screen, primarily - and Nokia needed carriers to subsidise the device's price to make it affordable. Inevitably, consumers were going to treat it as a game-playing phone, and arguably Nokia should have accepted that and pushed a multimedia handset...
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