Strategy of Nokia for New Product Development

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Strategy of Nokia for New Product Development

Introduction

Founded as a paper mill company in Finland back in 1865, Nokia has evolved into a diversified industrial company by merging with Finnish Rubber Works (establish in 1898) and Finnish Cable Works (establish in 1912) in 1967. Since then, the company has been known as Nokia Corporation and become the world largest mobile phone company. Eastern and western Europe are the main market until the liberalization of trade with former Soviet bloc started which led to increased the competition for Finnish companies. Therefore, Nokia looks to expand globally and finally become a key global player in the telecommunications industry.

The company introduced their first handheld phones, Mobira Cityman 900 in 1987. Five years later, in 1992 Nokia has launched their first GSM phone, the Nokia 1011. In 1994, Nokia has introduced a new mobile phone, Nokia 2100 and received tremendous response from users worldwide. They manage to sell 20 million of the mobile phone worldwide far above their original target of 400,000.

Along with the innovation in Technology and demand from the consumer, Nokia has introduced Smartphone using the Symbian Operating System (OS) into the market in 2001. The Symbian OS is designed specifically for the requirements of advanced 3G mobile phones. Symbian OS allows 3G connectivity easier and faster, offer a wide range of Smartphone application and high games quality. Nokia once has dominated the market with 40% of all global mobile phone sales in 2007.

However, Nokia has suffered a declining market share due to growing use of the Smartphone from their rivals such as Apple iPhone device which running on iOS and a few devices from Samsung, HTC, and Google which running on Android OS that well known as the operating systems that offer new advanced technology especially on software development, web browsing and exciting experience for the Smartphone users.

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