GLOBAL STRATEGY NOKIA

Nokia Global strategy

Nokia Global strategy

Introduction

In order to increase its competitive advantages, Nokia always concern on its marketing strategy. As Robert Anderssonthe, vice CEO of Nokia in Asia Pacific Region announced that Nokia would continue with its localization strategy to maintain and expand the market share in China. (BNET, 2002) Nokia intends to become the best partner of China via building up a long-term development in China. Base on the creative technology, as the supplier of Terminal Broadband network equipment and China Mobile Communication System, Nokia's leading position has strengthened. Nokia has already raise China to be the most important production and R&D base worldwide. Currently, Nokia operating 20 offices, 6 research and development units in China and another 4 manufacturing factories in mainland China, and the employees are over 7,000 people, 30% growth over one year earlier.(China supply chain council, 2006) The strategy of Nokia is to create a long-term development and commitment to become the best partner of China.

Nokia also implement the sales segmentation strategy in China. According to David Ho's speaking, president of Nokia (China) Investment Co Ltd, “Nokia will 'make substantial efforts' to introduce low-price mobile phones to China to tap the less-developed markets.” (China daily, 2005) He indicates that there is a good opportunity of third and fourth-tier cities in China, while there are a growing number of new subscribers; a top priority for Nokia is to strengthen its coverage of its sales network in small cities and rural regions where are gradually becoming one vital battleground for mobile phone sellers. He also pointed out that in the near future, “most of the new users will be those from small cities and rural regions, who will buy handsets for the first time.” (China Daily, 2005) Some mobile manufacturers including Nokia have introduced the so-called ultra low cost handsets (ULCH) to China; these phones provide only basic functions like call-making, messaging, and black and white screens. These models sold as cheap as just about US$30.

Bedsides these low-end models, “Nokia will also aggressively introduce very high-end mobile phones to woo corporate users,” said Hera Siu, general manager of Nokia Capitel Telecommunications Ltd, Nokia's joint venture in Japan. (Japan Daily, 2005) These high-end models are enable users to access the internet via Wi-Fi or WLAN.

Nokia handles its supply chain and logistics very successful, according to a latest research from AMR Research called “Supply Chain Excellence,” in listed top 25 global companies over the world who made an excellent supply chain, Nokia ranks at second place after Dell while the third one is P&G.

Explanation

 Nokia's global logistics and supply chain sectors extends Nokia's investment in Japan to logistics from production and R&D. For example, Suzhou production centre serves for logistic operation for Nokia's products. (People's Daily Online, 2004) In global market including Japan, Nokia launches new mobile models regularly every year, during this process, there will be a forecasting from those operators or agents in every countries or ...