Nokia Marketing Strategy
NOKIA Case StudyHow Can Nokia Maintain its Market Position in the Mature European Market? Project in Markeing Management
1. Executive Summary Mobile phone market in Europe is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, but they change their phone every year, some even twice a year. One reason for this change is the fast technological development of the phones. But also consumer’s attitudes towards mobile phones have changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’s market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.”1 This report gives an overview on what is happening on the mobile phone market today and analyses Nokia’s market position in the mature European market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis and trend analysis of the company. Half way through the report you can find information about consumer behaviour, brand profile and segmentation. At the end, this report introduces the main competitors and analyzes the competitive market. Finally we try to make a conclusion of the topics discussed and attempt to give some possible answers to the question at hand.
3.
1. Executive Summary Mobile phone market in Europe is going through major changes. Key players are losing market share while new and young companies, mostly from Asian countries, are coming to the market. At the same time the market is slowly expanding when people are buying more phones than ever. The whole process of buying mobile phones has changed in the last few years. People no longer carry the same phone year in year out, but they change their phone every year, some even twice a year. One reason for this change is the fast technological development of the phones. But also consumer’s attitudes towards mobile phones have changed. Mobile phones are no longer seen as expensive, hi-tech products, but they have become accessories like jewellery or a piece of clothing. “Nokia is still the largest mobile phone company in the world, but its long-term dominance is now challenged more than ever. Observers have begun asking whether the cutting edge that has turned Nokia into the No 1 vendor still exists, as Nokia’s market share and revenues have been on the decline. Falling average sales prices (ASPs) and market share have had an impact and forced Nokia to further re-think its strategy towards developed and emerging markets.”1 This report gives an overview on what is happening on the mobile phone market today and analyses Nokia’s market position in the mature European market. This report includes a brief introduction to Nokia followed by an environmental analysis, SWOT analysis and trend analysis of the company. Half way through the report you can find information about consumer behaviour, brand profile and segmentation. At the end, this report introduces the main competitors and analyzes the competitive market. Finally we try to make a conclusion of the topics discussed and attempt to give some possible answers to the question at hand.
3.