The policy created an enormous potential market for Nokia, who has been heavily involved in R&D activities in attempt to integrate GSM technology into handsets. Without doubt, the tapped into the lucrative opportunity and marched into the European GSM market with a market share of %. (Book: Insider) Nokia also tried to spread its wings to penetrate into the U.S. mobile phone market. The American phones, by that time, were dominated an entirely different wireless network called Code Division Multiple Access (CDMA). Nokia faced fierce competitions from Motorola, the leading player in America.
This had a massive effect on the Nokia and affected the company’s portfolio and sadly from here on in Nokia just had a string of problems. In 2008 Android was launched as a competitor the Nokia’s Symbian platform. All of Nokia’s competitors such as Samsung, LG and HTC all bought into android and that was the start of a land slide for Nokia’s sales. Through the next few years with the rise of iPhone nokia continued to decline and more and more jobs were been lost. Many saw the company hiring a non-finish CEO for the first time as a weakness as he couldn’t understand nokia as the brand that produced high quality phones.
Nokia’s success also derives from its broad strategic view of how to build a global brand and international consumer base. The company sells a wide range of products and services in all price ranges to different types of consumers all over the world. 2. What can Nokia do to gain market share in the United States and Europe where its presence is not as strong? I think they need to find a solution to develop also the Code Division Multiple Access (CDMA) because this is the wireless standard used in US.
Nike has been successful because of their new technology, innovation, and endorsements. Before Nike, competition between athletes and between sports was not at the high level it is now. When Nike started sponsoring athletes, athletes saw that as a reward that all of them had to get. Competition
NOKIA- OBJECTIVES,PROBLEM AND SOLUTION Nokia is a leading electronics company engaged in the fields of network infrastructure, location based technologies and other advanced technologies. With its headquesrters in Espoo, Finland Nokia has developed into a multinational company with its operations spanning across internaitonal borders. Nokia has three fields of expertise: Nokia Networks which form a part of their infrastructure business; HERE, which consists of the location intelligence business; and Nokia Technologies who’s main priority is to focus on technology development and activities related to intellectual property rights. The company’s focus has been on developing large scale telecommunications infrastructure, technology and licensing. It
In the last few decades, many companies like Nike faces a dilemma: remain a limited company that is able to serve only a small part of the world, or expand the operation to serve an ever-growing market that could even become worldwide? Nike choose the second one, but its growth wasn’t easy, they had to modify their business model, and this had serious consequences. In this paper, I’m going to analyze Nike growth and what were the consequences. Nike at the beginning The first company created in the U.S. 1961 was called Blue Ribbon Sports (BRS). The original business model, written by co-founder Knight in the early 1960s, was different from all other shoe company: he choose to start by outsourcing production to Japan, a country was production
Segmentation and targeting of Nokia: The market segmentation done by Nokia is very different as compare to the two brands mentioned above. Nokia has various smartphone categories that target a diverse audience. They have a variety of segments made on the basis of occupation, income, social class, lifestyles, end usage, age etc. All these segments are targeted differently with a specific category of phone and a unique marketing strategy for each. For example, the Nokia N-series is for the segment of students and teenagers.
A Familiar organization There are many familiar organizations that have successfully used globalization to expand markets and profitability. One of such organization is Nike Inc. Established in 1964 with the name ‘Blue Ribbon Sports’ (BRS) by Phil Knight and Bill Bowerman, the organization began as a distributor and importer of Japanese running shoes before embarking on a project to design its brand, which has become a household name in sportswear industry (O 'Reilly, 2014). Analyzing ways Nike Inc. has successfully used globalization to expand markets and profitability. There are various ways Nike Inc. has successfully used globalization to expand markets and profitability.
(Locke, R. 2002) Nike felt the positive impacts of their business strategy, expanding their footwear product range and market share dramatically through the 1980’s. Adding various other apparel to their product line beyond footwear to sports clothing and equipment, and of course growing financially from a modest company to a $10 Billion annual revenue global powerhouse. Nike also expanded their market beyond US borders to become a true global player. This exponential growth and massive success could not have been accomplished without the same business strategy that soon would leave the developed world in shock. The negative impacts began.
• It should add more features but maintain its price in order to compete Nokia Nokia uses Brand Life Cycle Model as its pricing strategy. This model sets different prices depending on the phases of product life cycle. Nokia manages to target all customer segments with wide range of price variations depending on customer’s position and needs. It initially sells products at a higher price to gain profit then after a period of time, reduces the price depending on their competitor’s price. This successful pricing strategy enables Nokia to gain competitive advantages in the market.