Value Creation Paper Points
The three issues facing Nokia:
1) What is the firm’s product strategy, are they providing superior products to a specific group of customers or is their goal to high volume of units to engage all types of customers? * With the recent announcement that Windows 8 software is not compatible with Nokia products, several analysts have argued that Nokia is not pursuing superior product strategy even though Nokia is marketing themselves as the company that will provid internet to the next billion people * How does Nokia provide internet to the next billion when their product’s software is out of date or incompatible with upcoming changes. * How does Nokia ensure that their current customers don’t switch brands because their products don’t support upgrades or other technological advancements. * Latest product offering – Lumia is being offered at lower price point but the company insists it is a superior product to Apple iphone or Samsung Galaxy * customers may have a different point of view, leading to a gap between how the company feels about the product and how customers view the product * current volume of sales is low for the emerging smart-phone market * The company has not defined that its customers are: * Are they high end individuals willing spend a premium on products or services or spend on is low costs products that provide the basic mobile software necessities * What are the customer characteristics * are they middle class people from the suburbs or are they rural people who use the phone as a necessity. * having an universal strategy that appeals to all customers may not engage customers
2) How is Nokia going to compete in aggressive industry where Apple and Samsung have captured large portions of the global market and have better brand recognition? * Since Nokia is no longer the leader, they don’t have the ability to set price and instead must follow or adjust to price changes by
1) What is the firm’s product strategy, are they providing superior products to a specific group of customers or is their goal to high volume of units to engage all types of customers? * With the recent announcement that Windows 8 software is not compatible with Nokia products, several analysts have argued that Nokia is not pursuing superior product strategy even though Nokia is marketing themselves as the company that will provid internet to the next billion people * How does Nokia provide internet to the next billion when their product’s software is out of date or incompatible with upcoming changes. * How does Nokia ensure that their current customers don’t switch brands because their products don’t support upgrades or other technological advancements. * Latest product offering – Lumia is being offered at lower price point but the company insists it is a superior product to Apple iphone or Samsung Galaxy * customers may have a different point of view, leading to a gap between how the company feels about the product and how customers view the product * current volume of sales is low for the emerging smart-phone market * The company has not defined that its customers are: * Are they high end individuals willing spend a premium on products or services or spend on is low costs products that provide the basic mobile software necessities * What are the customer characteristics * are they middle class people from the suburbs or are they rural people who use the phone as a necessity. * having an universal strategy that appeals to all customers may not engage customers
2) How is Nokia going to compete in aggressive industry where Apple and Samsung have captured large portions of the global market and have better brand recognition? * Since Nokia is no longer the leader, they don’t have the ability to set price and instead must follow or adjust to price changes by