Verified Document

Marketing Problem Nokia Marketing Problem: Lack Of Essay

Marketing Problem Nokia Marketing problem: Lack of product innovation

Current marketing environment of Nokia

Marketing Problem Nokia

Nokia Corporation is a Finnish company that manufactures mobile phones, mobile computers, and networks. The company also provides services such as maps and navigation, music, media and software solutions for mobile phones. From late 1990s to late 2000s, Nokia remained the highest mobile selling company of the world. This however has changed recently and many other companies have effectively reduced the market share of Nokia. There are many causes of this decrease in global mobile sales share of Nokia however; one marketing issue has caused this downward journey more than others. The company reported having negative € 2.3 billion of operating income in FY 2012 whereas net income of the company was also reduced to -€ 3.1 billion in 2012 (Nokia Annual Report, 2012). Although Nokia was the first company to have launched Smartphone Nokia 7710, the company's dominant position has also been significantly compromised in this market segment as well. Currently the company is manufacturing Nokia Smartphone with Microsoft Windows as default operating system (OS). The likes of Apple and Samsung have reduced the appeal of Nokia Smartphone. In traditional mobile phones industry, indigenous Chinese brands have significantly reduced Nokia's market share globally. Net sales, operating profit, net cash from operating activities, Smartphone net...

In section II, detailed description of Nokia's main issue in planning and executing its marketing strategy will be presented. Part III of this paper will analyze current marketing environment of Nokia along with description of current trends, competitors and major stakeholders. SWOT analysis will also be presented in the same section followed by conclusion and recommendations.
II- Marketing problem: Lack of product innovation

Whilst there are many marketing issues that have caused such sharp reduction in Nokia's product sales and profitability, 'lack of product innovation' in single most imminent factor that has compromised market share and leadership position of Nokia. Nokia was the first one to launch Smartphone Nokia 7710 and remained a market leader for long. But with the introduction of Apple's iPhone and Samsung Galaxy, the net sales of Nokia Smartphone and other mobile headsets has decreased manifold. In FY 2012, Nokia reported having got its net sales of Mobile handsets and Smart Devices decreased by 32% and 52% respectively (Gassee, 2012). With lack of any real product innovation, Nokia has got its average selling price (ASP) of its handheld mobile sets decrease by more than 18% in 2012. Huawei and ZTE are two of the cheaper Chinese alternatives of Nokia Smartphone in market. The lack of differentiation in Smartphone category is also indicated by the fact that Nokia relies on Microsoft for providing her with…

Sources used in this document:
References

Ewing, A., Moritz, S. & McMahon, M. (2013). Nokia Unveils Lumia Phone with Camera to Revive Demand. Bloomberg Businessweek. Retrieved from: [http://www.businessweek.com/news/2013-07-11/nokia-to-sell-phone-with-high-resolution-camera-to-revive-demand]

Gassee, J.L. (2012, April). Nokia: Three Problems for deposed king of Mobile Phones. The Guardian. Retrieved from: [http://www.guardian.co.uk/technology/2012/apr/23/monday-note-nokia]

Nokia Annual Report. (2012). Enabling a Mobile World. Nokia Siemens Networks. Retrieved from: [http://i.nokia.com/blob/view/-/2268488/data/3/-/NSN-form-2013.pdf]
Cite this Document:
Copy Bibliography Citation

Related Documents

Google's Marketing Strategies Google, Inc. Was a
Words: 2274 Length: 7 Document Type: Essay

Google's Marketing Strategies Google, Inc. was a company founded by two Stanford University computer science graduates that initially sought to order and catalog all of the information available on the internet through their search engine. This simple engine with the clean interface would become the premier internet search engine in a relatively short amount of time, surpassing the offerings of Microsoft, Yahoo and many others. The web search engine would become

Global Marketing and Management
Words: 4276 Length: 13 Document Type: Book Report

Global Marketing Strategies and Management Techniques of Apple Inc. The central objective of this report is to perform an environmental analysis of a country in which our selected company shall aim to establish a market for its products and services. The company chosen for the purposes of this report is Apple Inc. The country selected for the analysis is The People's Republic of China. The aim of this report is to

SLP: Apples' Products and Brands
Words: 1611 Length: 5 Document Type: Case Study

Marketing Research: Products and Brands In previous years, Apple Inc. has progressed from being an abstract participant in the computer market to a major player in the technology market. Through courageous advancement, they have developed items that have totally changed the technology market. As a result, their brand recognition has increased significantly, and they have added remarkably to their legion of dedicated supporters. The Apple Company is about design, their electronic

Apple IPhone Company in the Achievement of
Words: 5247 Length: 15 Document Type: Essay

Apple iPhone Company) In the achievement of competitive advantages, desired financial resources, and satisfaction of the consumers and employees, business entities need to focus on enhancing effectiveness and efficiency of their marketing strategy. This is because of the role and importance of marketing strategy in the achievement of market share while addressing the needs and preferences of the consumers. There are various marketing strategies adopted and implemented by unique organization

Management Principles Mittal Used a
Words: 1326 Length: 4 Document Type: Case Study

There are other potential challenges as well. For example, if the foreign partner does not uphold its end of the bargain. For example, Bharti takes on a foreign partner to gain managerial controls and technology transfer, but one or more of those elements fails to materialize. The result could be that the venture fails, or that Bharti is forced to take extra steps to shore up the venture. 3. With respect

Internet and Global Finance Strategies
Words: 5161 Length: 20 Document Type: Research Paper

Internet and Global Finance Strategies Within the present competitive business environment, firms are continuously looking for various strategies to be ahead of their competitors and achieve competitive market advantages. Many firms have identified that internet technology is a powerful tool to enhance competitive market advantages. The traditional organizations have identified that internet is a powerful tool to deliver value to customer and presently, the internet technology has enabled firms to coordinate

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now