Nokia 's Competitive Advantages Of Nokia

1571 WordsMay 22, 20167 Pages
Introduction This paper will critically evaluate Nokia’s case about whether Nokia should focus mainly on emerging market or not in late 2010 (Mabud et al 2011). The structure of this paper is as follows. First, a brief summary of the Nokia case study. Second, this paper would analyse competition Nokia faced with applying Competitor Analysis Framework. Third, analyze Nokia’s competitive advantages of Nokia between 1995 and 2010. Last, four challenges of Nokia in one emerging market will be presented, followed by recommendation to improve its performance. Summary of Case Study Nokia, which possesses a long and glorious history in global mobile phone market, had a successful business in handsets industry until 2010. From 1977 to 2006, Nokia grew intensively with high profitability, became the fifth most valued brand globally by 2000. However, there were some competitions in mobile phone industry from companies like Apple, RIM and Samsung. Consequently, the managers of Nokia decided to transfer the company from engineering-centered system to consumer-centered model, emphasizing on providing a portfolio of handsets and services. When it comes to 2010, Nokia still had the largest market share but lower revenue from developed market and increasing revenue from emerging market. Given its fierce competition and gloomy prospect, executives of Nokia were considering whether to mainly develop emerging market only or try to compete in both. Competition Analysis Due to the fierce
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