Nokia Strategy Analysis Essay
Nokia Strategy Analysis
1.Does Nokia have a truly global strategy, rather than just a series of regional strategies? Explain.
Yes, it does have a global strategy. The global strategy of Nokia is the foundation of all the regional strategies and that is based on overall consumer needs. They found out the main consumer needs is focused on selling products (phones) as lowest price all over the world with its simple, easy and basic models. Also beside that Nokia has series of regional strategies that use most advanced technologies in terms of Camera, music and nanotechnology which is the future feature of the phones in e flexible shape and the last not the least is focusing on the business communications to compete with other companies in the industry and keep its position as the market leader. Therefore they placed their strategy in 3 facets: 1. growing the number of people using Nokia, 2. transforming the devices people use. 3. buidling new businesses.
2.Consider the different global marketing environments discussed in the text. How do these environments differ in developing versus developed countries?
•Developing countries: African, Asian, Latin American countries and Middles East region have the highest sale volumes in a way that the half of the world population have cell phones and one of the three hold a Nokia phone, as China and India are among the countries with highest number of population and also got the highest number of sales, as an example 70 mil phones were sold in China in 2007 that is 38% more than the previous year’s sales. Basically the high demand for this product in these regions is for simplicity and user friendly system that the Nokia has along with its cheap price, as most of the people in these regions have very low income and in some place the mobile is shared by ½ dozen of people who even cannot read or write ( mostly in Africa). In these regions (African-Asia) the main aim is connecting one person to another, could be a simple greeting phone call, or a simple test message. It does not matter if it’s colorful or black and white, or if it has a camera or Social group connection such as Facebook, Twiter or so on. The simple lifestyle will remain the same in the usage of the phone as the phone will not stop the normal people gathering and family meetings while in the Developed countries it varys.
•Developed countries: Europe consists of 39% of Nokia’s net Sale. It was not explained in the text what is the attraction of the European towards Nokia, but I assume it is based on the different features that each phone has that is different from another phone and also the user friendly technology that is used can be another reason as other competitors’ phones are a bit difficult to get used to. The U.S. only consists of 5% of the Nokia’s sale and the reason could be the people’s attraction is towards the most advanced technology smart phone that includes all the required and needy application in one slim size and light weighted smart phone and this is why most Americans seek competitors phone like, Iphone, Samsung, LG, Sony and Motorella and Black Berry phones. In terms of environment U.S is the place of business and fast communication, no double in this place the level of education is very high and simple phones are not the demand of the smart and highly educated individuals, they look for most advanced technology and the simplicity is not their main aim. They try to save time for meeting, gathering by a simple video call, or chat or so on which is the lifestyle of the people of the developed countries.
3.Discuss Nokia’s global strategy in terms of the five global product and communications strategies. Nokia, tries to get highest number of Nokia users not only through the low cost and simple mobiles that are mostly sold in the developing countries, it is also trying to grow in the niche markets that other competitors are focusing on such as the touch screen phones that were first introduced by Apple’s, and music focus products such as i-pod, in camera is competing with other phones and Canon as having more sales than Canons, and the business communication phones with advanced technology phones. The high amount of investment in R&D and expanding the range of products are all part of Nokia’s strategy in order to stay in the market and keep its position as the market leader for a very long period. I personally admire Nokia’s strategy as it is this keeps the Nokia brand name always speeded around for all the segments needs which is the main global aim of the Nokia meeting what the consumer want.
4.Can competitors easily replicate Nokia’s global strategy? Why or Why not?
I don’t think so. As other companies are only focusing on their specific niche and investing in other niche needs high investment and it’s already taken by Nokia, and the only way is possible if there will be high investment in these companies to compete with Nokia. As most of the competing companies are not only Phone producers, they are producing a other electronic devices as well and their profit is gained from the whole range of their electronic devices that they sell and focusing only in one different targets of one single product (Mobile phone for low income individuals) would not be very beneficial for them to invest is. (Such as Samsung; Smart TV, mobile phones, Washing Machine, ….) But in future (about 20-50 years from now) I think as we go further the old technologies will be cheaper and cheaper, in a way that there will be less demand for these low cost mobile phones as most probably these will be available for free or maybe they will not be used at all as there are new products or devices that will be introduced that will replace the Mobile phone the same for other electronic devices who knows…?
5.Will Nokia’s planned expansion into other products and services work? Explain.
In my opinion it won’t. As I have read in many places that Nokia had released a Laptop and its sales was not successful. I think Nokia is knows as a Mobile Phone producer and has to focus more on that market only. As if it produces other electronic devices, Nokia’s customer will lose their focus on the Nokia as the leader in the Mobile phone devices. Nokia if is trying to expand, its better to use the sample production as laptop, tablet for very limited period, as limited period only and study the market demand. If it was successful (which it was not in the first place) can expand its products slowly in the business-communicating devices only.