Nokia CorporationEssay Preview: Nokia CorporationReport this essayBusiness OverviewNokia Corporation is a multinational corporation that engaged in communication devices and mobile phones production. The organization operates in 150 different countries with roughly worldwide annual sales of 42 billion and profits of 2 billion in 2010. Nokia was first established in 1865 as a groundwood pulp mill in Finland. The founders, mining engineer Fredrik Idestam and statesman Leo Mechelin transformed Nokia into a share company in 1871.
Nokia started its involvement in telecommunication industry with Nokia DX 200, an electronic digital switch in 1970s. Then, Nokia had a strategic alliance with Salora which allowed the production of its first automatic cellular phones system in 1981. Next, Nokia successfully came out with the first car phone which was Mobira Senator. As it grew, Nokia involved itself into the production of Global System for Mobile Communication, personal computers and computer devices such as CRT and TFT LCD. It also had collaboration with Symbian for its N-Series phone. According to Phone Arena Statistic, Nokia used to be the worlds leading mobile telephones manufacturer.
The organizations mission is to create a linkage between people and to get them connected with each other as Nokias tagline is Connecting People. Nokias vision is “Voice Goes Mobile. If it can go mobile – it will”. Through its goals and objectives, Nokia tries to build great communication products, help people eliminate the gap between what matters most to them, allow more lifes opportunities and capture sales volume. Unfortunately, Nokia was among the latest mobile phone companies who created the 3G, which hold a higher risk of being displaced by competitors such as Samsung, Apple and LG. Since the demand for smart phones is soaring, Nokia has many rooms for improvements to regain its leadership status in the mobile communication industry.
This is a full page summary of Nokia’s roadmap to share our business with the world, and I’ll share more as we read the paper.
The Future of Mobile Connected People | Nokia Group
Nokia Group is a global leader in digital voice with more than 60 million devices currently and with plans for 4G wireless by the end of 2017. With its mobile and voice technologies in hands, Nokia Group is positioned to become the next mobile operator. With mobile connectivity on track, Nokia is committed to connecting people, and to having an opportunity for customers to pay for access to devices with lower cost. And now, by taking steps to secure the right technology and a vision, we can achieve the goal of giving the world a smarter, connected future. We are building. We are building mobile.
Mobile users are growing at a more than 20-fold faster pace across the globe. More than 2.9 billion of them are now connected by phone (including 1.1 billion via mobile devices and more than 40 million as a share of new users); around 7 million of them in Africa and the Middle East, more than 11 million worldwide. To make it even better mobile connectivity will make driving more mobile cars, trucks, buses and other mobility devices possible. The success of mobile connectivity is a key factor in the success of smartphone and tablet companies.
As part of our roadmap the world will unlock an innovative and long-lasting mobile future. The Future is Now (I-3) or I-6, the Smartphone 2.0, the First Mobile Connected People Mobile Services (Mobile Plus or M-3), the Future of Mobile Networks (M-5), the Future of Innovation (I-6) or the Future of Smartphones (I-7). Both have been proposed as a mobile platform for the future as well as a new and transformative mobile technology. We also want new and innovative approaches to business, technology, research – and communication to be integrated into it to address the challenges of mobile connectivity. Therefore, while mobile technologies provide innovative ways to connect people, one which is more important is that their mobile data and data speeds are kept to the minimum, without giving them the right opportunity to use it. For this reason we are committed to creating an advanced and connected ecosystem to meet these challenges.
In addition to the next 10 years, the mobile infrastructure will also be required, including improved network design and technology. These are four of our objectives that are to facilitate the development of a mobile future: •
· We must have flexible and highly automated network capabilities that meet the needs of every smartphone user; • We must also have flexible and highly automated network infrastructure that facilitates the development of advanced mobile technologies. Mobile networks are increasingly connected and can be used to support more apps and services on the platform than ever before and with better communication and connectivity. • We must create a mobile transport network that will provide the
Nevertheless, Nokia believes in providing everyones needs as a mobile manufacturing industry. Nokia consistently studies its surroundings to understand the needs and wants of its customers. Since Nokia has various types of products, Nokia has unique target market settings. As illustration, Nokia 7210 is designed for young adults of 15-27 years old, Nokia Lumia 920 which is yet to be released is mainly targeting youth smart phone users, whereas Nokia 5530 Pink is meant to attract female customers.
Marketing Mix StrategiesProduct StrategyProduct quality is an important determinant for the customers for choosing a brand that helps in the development of brand reputation. Quality belongs to the product perspective of a brands identity whereas perceived quality is how a brands quality is seen by consumers. It is one of the key dimensions in Aakers brand equity model. A higher price is a sign of high quality to the consumers. Perceived quality is a source of consumer satisfaction it makes them to repurchase the product which leads to loyalty.
Nokia provides various designs of product such as Flip sets, Flat sets, Slide sets, and Sets with rotating camera. Not just that, Nokia has released Lumia, its smart phone series to satisfy the growing population of users that prefer smart phones. Although Nokia smart phone market is not a total success compares to other brands such as Samsung or Apple, but Nokia still able to gain market share of 22.5% because of its quality and brand personality. Each set of Nokia series has its own unique features. For example, Nokias Lumia smart phone was a product which Nokia incorporate with Microsoft through a strategic alliance. Other than smart phone, Nokia main products which are Symbians and Ovi platform design.
Since 1994, Nokia has been offering over 200 kinds of phone models. It introduced a wide range of product to the market as compared to its competitor, Apple Inc. Nokia believes that introducing a wide variety of products in a short period will cover various price segments while maintaining lower development cost. Nokia also improves its efficiency in development and manufacture of products within each series. Without any big efforts, Nokia changes its competition from a single market to global level.
Price StrategyPrice influences the brand choice in seeking the lowest price to avoid financial risk or seeking the higher price to gain product quality (Macdonald & Sharp 2000). For some consumers, the price is vital particularly when they are purchasing everyday products. Consumers may choose a brand just because it has the lowest price, while other consumers may choose a brand just because it has the highest perceived price inferring that it is of high quality. Price is also affected by cost of the production, demand of the customer and market competition.
Based on Nokias products, it emphasizes on its aesthetic phone design, personalize user interface and its unique software features in each series. Nokia phone has common design across standards despite of its numerous series of phone. Both of its features lead to the strong brand image creation. This brand image will enable it to set prices that are based on more on customer value rather than on production cost.
Moreover, Nokia also uses price skimming strategy. Price skimming is a strategy that marketers set a relatively high price for a product or service at first, then lowers the price over time. It is also known as temporary price discrimination. It allows the firm to recover its sunk cost quickly before competition steps in and lowers the market price.
Nokia pricing is mainly competitor based. It usually tries to set its product lower as compared to its competitor. However, Nokia does not lower its price to the lowest because consumers will not mind to pay a little more for the extra features and technology. Nokia also focused on offering suitable product for suitable market segmentations. For example, low cost phone for lower income class which will only cost approximately RM 100.
Promotion StrategyPromotion is the communication link between companies and customers. Companies use an assortment of ways to communicate effectively with customers about their products, services and ideas. They may promote directly through salespeople or indirectly through advertisements and sale promotions. Nokia uses AIDA concept which stands for Attention, Interest, Desire and Action. This concept states that a company must attract the attention of the customers, raise the customers interest, create customer desires towards products and lead customers to take action to purchase the products.
Nokia grabs customers attention by advertising through television, sign boards, bill boards,
