Nokia: Competing in the Global Mobile Phone Industry | |
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Report Code: COMP0003 Period: 1999-05 Industry: Mobile Phone Countries: Global Report Length: 18 Pages |
Year of Publication: 2005 Price: Electronic Format: Rs. 400 |
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SUMMARY In the late 1990s, Nokia overtook then leader Motorola to emerge as a behemoth in the global mobile phone industry. Nokia's dominance continued into the first few years of the 2000s, but it suddenly came under threat in 2003-2004, when smaller Asian vendors started making their presence felt with better products at lower prices. The company's problems also had internal causes and analysts said one of the reasons could be that it had become too complacent with its success and lost its agility in reading and responding to market signals. This note discusses the various problems Nokia faced in 2003-2004, including the company's tardiness in introducing the clamshell phones that had become very popular and its resistance to manufacturing operator specific handsets. It also discusses the efforts Nokia made to recover its market once it realized that its performance was slipping. The note concludes with an analysis of the challenges the company faced in the future and the various options ahead of it. |