The Future of Nokia Case Discussion

The Future of Nokia Case Discussion This case discusses the challenges faced by Nokia in the global handset market as it looks to regain epochal market share it has been losing since the new millennium. Once the worldwide leader in the global handset industry, Nokia now must go back new ways to reinvent itself and its products. Between 1995 and 1999, sales for Nokia tripled man profits nearly did the same. In 1998 they sold over 40 million bring forwards, making Nokia the number one mobile phone company in the world. Nokia was successful due to its ability to rich person large outdo production, within its own factories, lay offing them to achieve economies of scale and high profit margins. However, in 2000, the market matured and the other major players in the industry (Motorola, Sony Ericsson, Siemens AG, Samsung) have been gaining market share ever since. Due to increased pressures from consumers for each manufacturing business to offer the latest in technology and features, an industry shorten of outsourcing to low apostrophize manufacturers and Nokias hesitance to embrace a Clamshell style phone, Nokia has gone from 35% market share in 2001 to just 28.9% in 2004 (Appendix 1).

whatever decision going forward would have to abide to current Nokia principles as outlined in their Nokia Way program, including speed and tractability in decision making and expanding mobile communication. With these in mind, Nokia potful redefine themselves over the course of the undermentioned decade if it chooses its next endeavors wisely. In the short term, Nokia can begin outsourcing to low cost factories in China, allowing Nokia to re-achieve economies of scale. They can ill afford to fall far behind their competition with respect to production costs. This will allow lowering prices of their products to meet the commodization of cell phones and allow for increased R&D expenditures. As well, they can also grow implementing a Trade Back Program, where customers could take back a used Nokia phone with... If you want to get a liberal essay, order it on our website: Ordercustompaper.com

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