Pest Analysis of Nokia and Motorola and Their Marketing Mixes and More

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1. INTRODUCTION :

There is no doubt, that with the invention of the telephone, telecommunication has become one of the essential innovations of human being since the 19th century, and at the present time, companies which support worldwide dialogue as premier leaders are the celluler phone manufacturers.

I vividly remember the first time a mobile phone, the legendary Nokia 8110, had been welcomed in our family through my father. Although it was Motorola Incorporation that launched the first mobile in 1973 into the market by Martin Cooper, who was working as an engineer for the company at that time, Nokia had managed to astonish people in my country, Turkey, by the 8110. It had all the attention, for a specific period of time, in Turkey. This product, the 8110, was launched in 1996, and is one of the most significant things that remains in my mind since my childhood. Over time, since the first mobile invented by Martin Cooper, there have been a thousandfold evolving new technologies created by companies pertaining to the phone industry. 60 percent of the world has mobile phones today. With this percentage, beyond dispute, the celluler phone sector addresseses an immense market reality all over the world. Therefore, I've found the mobile phone and handset manufacturering industry worth researching. Among these companies, Nokia ( Finland ), seems to be the market leader, is ahead of its American competitor Motorola by far. In addition to those two, there are Samsung ( S. Korea ), LG ( S. Korea ), Siemens ( Germany ), and Sony Ericsson ( Japan/Sweden ) as their hard rivals to share the market. I chose Nokia and Motorola to analyse as they alternate taking the top seat of the market.

2. HISTORY OF THE TWO ( Nokia and Motorola)

2.1 Motorola :

When Motorola started in the market, the first product it produced was a battery eliminator. Paul and Joseph Galvin, the masterminds of the firm, suggested Motorola as the company name when it started generating car radios in 1930; the name is a combination of "motor" and "victola" (http://en.wikipedia.org/viki/Motorola ). The word Motorola has been used as a brandmark since then.

2.2 Nokia :

Compare with its competitor Motorola, Nokia started its business with a quite different subject. In 1865, when engineer Fredrick Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, starting manufacturing paper (http://en.wikipedia.org/viki/Nokia ). In 1871, the company was renamed by him as the Nokia Company, as its current name today.

3. ABSTRACT :

In this study, I will mention about marketing mix strategies of both the Nokia Company and Motorola Inc. and make distinctions between the two. I am going to touch on macro environments, PEST analysis, which rule their market shares as the external factors. Then, I am going to conclude and finish my assignment with a last part that includes forecasts for the companies and my personal recommendation about what they should do for the near future.

4. THE MARKETING MIX :

With its abreviation 4P's, the marketing mix assumptions help a business to identify what their controllable variables are and how the business can use them in the most suitable way they need. All can be summarised under the titles belove:

Product strategies : How will you design, package and add value to the product?

Pricing strategies : What pricing strategy is appropriate to use?

Place strategies : Where will the firm locate?

Promotion strategies : How will the firm promote its product?

4.1 THE MARKETING MIX OF NOKIA AND MOTOROLA

4.1.1 Product Strategies :

The premier strategy to win in the market is to have a good product, compared with their rivals, if it is possible to make it! Companies, which are known as masters of their market, run in such an ever-lasting race to be first on launching the latest technology with the latest fashion to their...
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