Nokia's Strategy in India

            
 
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Case Details:

Case Code : BSTR174
Case Length : 19 Pages
Period : 1998-2005
Organization : Nokia India
Pub Date : 2005
Teaching Note : Available
Countries : India
Industry : Telecom

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Bouncing Back

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.

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The division's Indian operations concentrated on promoting the concept of high-end telephones in smaller towns while going in for higher volumes in larger cities. The marketing division of the company concentrated on making distributors in small towns sell high-end products. Though, the distributors were skeptical to start with, by the end of 2004, the process was streamlined and the results started to show...

The Future Prospects

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...

Exhibits

Exhibit I: Nokia's Product Range in India
Exhibit II: Advertisement Campaign for Nokia India

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