Strategies of Nokia to capture the Market and its Downfall
Mobile phone market in India is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, change is the fast technological development of the phones. But also consumer’s but they change their phone every year, some even twice a year. One reason for these attitudes towards mobile phones has changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing.
“Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’s market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.” This report gives an overview on what is happening on the mobile phone market today and analyses Nokia’s market position in the growing market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis of the company. Half way through the report you can find information about consumer behavior and segmentation. At the end, this report introduces the main strategies and objectives of Nokia for the competitive market. Finally we try to make a conclusion of the topics discussed and attempt to give some possible answers to the question at hand.
* The methodology consist of interaction with Nokia Priority dealers to gain an insight of the company
* The study has also considered secondary sources such as books, journals, research papers and websites.
* Tools used for the research are:-
* PEST Analysis
* SWOT Analysis
* Porter’s 5 Force Model
* To understand the working of the company “NOKIA”
* To know the Marketing Strategies of Nokia.
* To understands the brand components of Nokia.
* To know the reasons for downfall of Nokia.
* To recommend strategies for its recovery.
* To know the future financial forecast of the company.
The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in South-Western Finland by mining engineer Fredrik Idestam. Elsewhere, the year 1898 witnessed the foundation of Finnish Rubber Works Ltd, and in 1912 Finnish Cable Works began operations. Gradually, the ownership of these two companies and Nokia began to shift into hands of just a few owners. Finally in 1967 the three companies were merged to form Nokia Corporation. At the beginning of the 1980s, Nokia strengthened its position in the telecommunications and consumer...