Apple and Samsung are the most popular smartphone producing companies and a lot of consumers are loyal to these brands. While Nokia products are cheaper, more durable and have better camera features, people still willing to purchase something more popular and more expensive. Of course, it might be problematic for Nokia products to get as popular as IPhone and Samsung, but it doesn’t mean it is impossible. Their phones are lacking their unique selling properties and consumers do not pay that much attention on new releases of
The biggest competitor of Nokia being Htc followed by Huawei and Samsung. The main aim of the agreement with Micorsoft was to regain its lost hold from the market and regain the strength of its brand built over the years. Although being a stronger company as compared to what it was in 2011 Nokia is yet again standing on a burning platform. Despite owning almost all Window Phone sales and making some great phone hardware, Nokia is not even in the list of top 5 smart phone sales companies. Nokia is the only company majorly invested in the windows phone and Microsoft’s OS.
This can be solely the main reason as to why Nokia’s strategy failed. Every year, Samsung has been coming up with new phones even with the slightest modification from the previous launch but it is better than Nokia that was slow to react to the marketing trends and when it finally launched Nokia’s Windows phone in 2011, it lacked many basics like in terms of technology which was an essential to improve the sales. Also, Nokia’s Lumia series even though it was launched greatly but the design did not fit the current trends. For example, customers would go for Samsung and iPhones instead because of their trendy designs compared to Nokia phones that did not even have front camera and was not even 3G enabled when it was about time to enter 4G
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.
Despite intense competition from other mobile phone companies: Tecno, which is taking a bigger chunk of the African market, ASUS, Huawei, both giving Samsung intense competition in the Asian market, and Lumia, which has gained its popularity by using Windows mobile, Samsung still tops the mobile phone market. One of the reasons why Samsung has remained at the top of the market is by creating value for its customers. As Rajagopal (2012) provides, a company’s value proposition is spread across two core areas, which are devoted towards building consumer value and marketing value. One way in which Samsung mobile creates value for its consumers is by providing its consumers with a combination of products. Samsung Mobile Display (SMD) Company according
1.0 Introduction Nokia’s humble beginnings was founded in the year of 1865 as a business which focus on the operation of milling paper. Throughout the years, Nokia has successfully branched out onto other sectors such as rubber boots and tires. Nokia also went on to branch out to notable sectors including telecommunications and mobile phones. In 1998, Nokia rise through the ranks and became the market leader for mobile phones (Nokia, 2017). The first Global System for Mobile Communications also known as GSM handset that Nokia produced earlier in 1991 was the Nokia 1101.
For example, the Nokia N-series is for the segment of students and teenagers. Nokia competes with blackberry through their E-series which offers a range of business phones, targeting the segment of corporate professionals. On the other hand Nokia also provides a range of premium and luxury phones by the name of “Vertu”, which targets the higher social class segment in the market. Positioning: Positioning is the image that a consumer perceives about the product (Dibb et. al.
This successful pricing strategy enables Nokia to gain competitive advantages in the market. Nokia positions its top end devices as a classy product. To the middle segment customers these devices are in the form of the best alternative. To the lower end segment, Nokia gives actual value, as a high-tech product, at affordable