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Nokia - Market Targeting & Strategic Positioning

Posted by Anonymous on 250 Points
Hi there,

I am undertaking an assignment for the Nokia Group. I have answered several questions for the assignment, but I am stuck on this one!

- What market targeting and strategic positioning strategies should Nokia Corp adopt?

This question referring to a case study that was written back in 2001.

Stephen Baker “Commentary” Business Week, February 12, 2001, 38.

I tried to find this case study on-line to provide a link, but I could not find it – sorry!

To set the scene, this case study is happening during the time when WAP was a failure, 3G was said to be the next big thing, and Redmond unveiled prototypes of its first Internet phone.

Any ideas or direction that you can provide would me fantastic!

Thanks so much!

  • Posted by Peter (henna gaijin) on Accepted
    I found the following link which seems to match to the author and date you mention, but it is about wireless spectrum use in Europe, not about Nokia in particular. http://www.businessweek.com/2001/01_07/b3719155.htm

    Is this the commentary?
  • Posted by Peter (henna gaijin) on Member
    Interesting article choices by your professor.

    You have the advantage of being able to see what has happened to Nokia since then. I would advise trying to see what has happened since then and think of what mistakes they made. In particular, look at how companies like LG and Samsung have competed with them since then by providing 'branded' phones for the cellular providers. Also look at how the growth has been in markets like China.
  • Posted by Mushfique Manzoor on Accepted
    Hi Lucy

    the following businessweek article of August 11 this year will help you to see what has happened since 2001.

    http://www.businessweek.com/technology/content/aug2004/tc20040811_4909_tc02...

    in a nut shell the Nokia was caught off-guard by asian manufacturers like SAMSUNG and LG who are churning our svay, sleek and thats-what-i-was-thinking type sets for the consumers who are willing to switch their mobile sets at the drop of a hat.

    in 2001, Nokia chairman was confident about Nokia's ability to understand consumer choice. BUt NOkia missed the bus when SAMSUNG and LG launched Clamshell sets, which were a big hit around the world, especially in asia, the fastest growing mobile maket. it took 3 years for NOkia and early 2004 they have their first CLamshell sets in the market. BUt by the time market has been captured and thanks to that SAMSUNG today is the worlds #2 mobile maker (after Nokia, who has seen its Gloabt mbile set market share dwindle from 35% to 30% and stagnating while entire market grew by 15% annually) and closing in the gap with Nokia. 3 or 4 years back none could have imagined that a home appliance maker SAMSUNG could overtake biggies like Motorola, Siemens, Sony Ericksson and be the #2.

    hope this helps. If i get more info i will get back.

    cheers!!
  • Posted by Carl Crawford on Accepted
    hi lucy,

    try these past links:

    http://www.marketingprofs.com/ea/qst_question.asp?qstID=1338

    http://www.marketingprofs.com/ea/qst_question.asp?qstID=2754

    i also have a nice article, but i will have to scan it in to my computer. if you would like it just send me an email. (click my name)

    Carl Crawford
  • Posted by jose04 on Accepted
    Hello Lucylyle

    As Mushfique says, Asia is the fastest growing market and Nokia is left today with the scenario that competitors like Samsung has captured a large market share. Since they have the technology to bounce back, the customer will always look for value for money and respect any provider who delivers exactly that.

    Nokia's key strategy is to hold the technology leadership it always had, with a difference that it can be more sensitive to the lower purchasing power of the growing and developing countries market.

    Nokia should differentiate itself from the past, by becoming more customer friendly to the asian market and should project itself more aggressively to the low end, mass market with its low end (but with hi-quality) products. Over time, as its quality and after sales services and guarantees will gain respect from the middleclass, it could, in the long run make its margins in the replacement of the current crop of mobiles, and thereby get back its lost market share.

    THe key strategy is to maintain its leadership with reasonably quality driven, low end products for the mass market. This will be its wise investment for its future.

    Hope these thoughts help!!

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