CASE STUDY: NOKIA

Case Study: Nokia's Strong Position in the Marketplace

Nokia's Strong Position in the Marketplace

Background and objectives

Nokia is a foremost leader in global wireless communications. It presents equipment, responses and services for mesh operators and corporations. Nokia has a world market share of 35 per cent. Its foremost competitor is Motorola (USA) with a market share of 17.7 per cent. Number three in the market is the South-Korean constructor Samsung, followed by LG Electronics and the Japanese-Swedish collaboration Sony-Ericsson. The implication of lesser manufacturers elaborates to decline. Producers not belonging to the large-scale five have even conveyed out a down turn in profits (Jarvenpaa et al, 1998).

Nokia's Marketing Strategy

Nokia is a enterprise that has got its timing spectacularly right in the last 10 years, but the optimism it conveyed last December about prospects for the wireless telephone enterprise appears to have been one of its less flourishing calls.

The scary earnings attentive exhibitions that even Nokia, the world's premier constructor of wireless telephones, is not immune to what is going on round it, even though it is still looking mightier than numerous of its rivals. Nor can it inevitably anticipation probable market tendencies better than its competitors. Mobile telephone manufacturers are being strike by the financial slowdown that startled in the US but which is now dispersing to other constituents of the world, encompassing Europe. But they are more over being strike by clear proposals of market saturation, with replacement telephone sales not evolving as well as mostly hoped.

This entails the market natural environment has altered dramatically. Whereas last December Nokia was forecasting that 550m handsets would be swapped worldwide in 2001, it is now forecasting sales only humbly higher than last year's 405m. Some analysts anticipation sales will really be lesser than 405m. In any case, handsets makers' profits will nearly wholeheartedly be down from last year because of a fall in the products' signify considering prices. It is a very fast change for an enterprise that had nearly halted considering of itself as cyclical. In 1999 the enterprise magnified by 67 per cent, last year it magnified 42 per cent.

Nokia's market share relation to its competitors

Nokia has been taking full benefit of the adversities being expressed out by competitors for demonstration Ericsson of Sweden and Motorola of the US to raise its market share higher. It really has about 35 per cent of the worldwide handsets market - about three ...