Nokia's Strategy in India

Nokia was quick to learn from its mistakes and adopted strategies to regain its lost market share. Globally, during the first quarter of 2005, the company's sales reached 7.4 billion euros, with the company selling 54 million phones during the period. In India, Nokia continued its leadership in GSM with a market share of 74% in March 2005. Nokia also surpassed Samsung in color mobiles in the GSM segment, recording a share of 55% in the same month (Refer Table VIII for share of major mobile phone brands in the GSM segment and their market shares).

Nokia reorganized itself at the global level in 2004. At this point, a multimedia division was formed.

According to industry analysts, by 2010, the mobile phones industry in India will be driven by voice, multimedia and mobile services for organizations. The teledensity in India was estimated to increase to 18.2% by March 2009, with mobile subscription rising to 148.77 million by that time. In many instances, the cell phone has become the only basic telephone link of a household/enterprise in India, rather than a landline phone. It was turning out to be more economical and efficient than fixed line telephones. So, there was great scope for further expansion with reduction in the cost of ownership...