Product Life Cycle of Nokia Nseries Mobile Phones

Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our competitors ' products. After we establish our cost leadership position we will revisit our situation to decide whether sales and promotion budgets should be reduced or if we should continue to match our competitors. Our prices will be lower than average.

All products possess ‘life cycles.’ A product 's life cycle, abbreviated PLC, consists of a series of stages, beginning with its introduction to the market and ending with its decline and eventual withdrawal from the market.  As a product progresses through its life cycle, its sales and profitability change as it faces changing environmental pressures.   Knowledge of the product’s life cycle can provide valuable insights into ways the product can be managed to enhance sales and profitability.

However that in 2007 the market of Nokia Company started to decrease and the reasons for that is the new competitions like IPhone from Apple that introduced smartphones, along with Android by Google, and Samsung. Even though Nokia Company results for 2012 were pre much good by having 101982 workers across 120 countries along with sales in more than 150 countries, and the reports for revenue were around 30€ billion. Nokia was announced to be the second largest world for mobiles phone makers in terms of unit sales after Samsung, with having world wide market share 18.0%. However that Nokia Company for current days has 3.2% in smartphones and they lost 40% of their revenue in mobile phone in Q2 for 2013. Nokia was listed in fortune global 500 to be world’s 274 largest companies for 2013 from revenue sides. So Nokia Company has good products, services, and reputations. Knowing that their products are good and have nice services, yet comparing to others like Samsung and Apple they are weak because those provide an outstanding products and services which consist of smartphones. So Nokia want instead of providing a good services and products to become like their competition and provide an outstanding products and

Third, the effects of the product life cycle, which is “Four distinct but not wholly-predictable stages every product goes through from its introduction to withdrawal from the market: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue

So, that why I chose Nokia Company to do this research and solve the problems that company has. I have two objectives from this research. First, I want to solve the problem that Nokia Company have it in their technology. They should make a new technology for their produce to avoid any problem. The second objective is advancement again to the marketplace and to compete with other companies to be the first company in produce mobile phone like in past.

The Product Life Cycle theory was developed by the economist Raymond Vernon in 1966 and this theory is a widely used model in economics and marketing. According to Raymond Vernon, a product has a certain life cycle. It begins with its research and development stage and ends with its decline stage. The product life cycle consists of four stages which are introduction, growth, maturity and decline stages. Millions of products are produced and consumed every year around the globe and these products have a life cycle. Existing or long-established products will become less popular and also the demand for new, innovative products will increase rapidly after they are launched.

The cell phone industry is a competitive market and will increase continuously. The profitability of individual companies is driven mainly by their ability to develop new products, providing better service and making their products affordable for consumers. Profitability of companies is achieved also by taking advantage of product marketing, access to capital, and by inquiring the expertise to improve the cell phones.

Know-how of the competitor’s strengths in the market and innovative advertisement approach to capture the market.

Abstract: When it comes to marketing, one of the most important factors that come with it is promotion. Promotion is the key factor to making the public aware of your product/business. Promotion also takes a huge role in competition. If your competition has a great promotional plan, more people will be aware of their product than they will be of yours. Promotion has a huge effect on whether or not

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

Cellphones began as simple single purpose devices that had long-term user sustainability due to relatively infrequent large-scale technology changes. There was no incentive to purchase a new unit until the customers current unit had reached a point where it could no longer be repaired.

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

The smartphone industry changes quickly due to new products being introduced almost weekly. The industry is represented by fast developing technology and designs, short product life cycles, aggressive pricing, quick imitation of products, technological advancements, and highly price sensitive consumers. The rate of technological change has

In the market, a product’s sales and profits alter with time. The method demonstrates from high to low as well as low to high. The product life cycle phenomenon is like the same of human life, from birth, growth to maturity and ultimately to decline. Products just through analysis of marketing, research and improvement and then gets into the marketplace, its life cycle be considered the root. Products out of the marketplace indicates the ending of the life cycle of the products (Gorchels, 2000). There are basically four stages of product life cycle, such as introduction, growth, mature and

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product