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STRATEGIC MANAGEMENT
EXECUTIVE SUMMARY 3
OBJECTIVES 4
RESEARCH METHODOLOGY 5
CHAPTER-6 RECOMMENDATIONS 41
A. ANNEXURE 42-46
B. LIMITATION 47
C. BIBLIOGRAPHY. 48
EXECUTIVE SUMMARY
RESEARCH OBJECTIVES
2. To analyze the strategic position of Nokia mobile phones with respect to their stage of
evolution.
RESEARCH METHODLOGY
4 PAGE NATIONAL LAW UNIVERSITY
My research methodology will be doctrinal as well as non-doctrinal in nature. The data will be
both primary as well as secondary. The survey will be conducted by the means of questionnaire
in which various questions on the topic will be posed. Information would be collected and data
would be tabulated, analysis and recommendation will be made.
CHAPTER 1
The principal purpose of analysis for strategic planning is to identify the major opportunities and
threats a business unit faces in the future and to identify the skills around which it can develop a
strategy to exploit the opportunities and negotiate around the threats. Hofer and Schendel felt that
the major weakness with the General Electric business screen was that it didn’t effectively depict
the positions of new businesses that are just starting to grow in new industries.
To understand matrix i.e. Product/Market Evolution Matrix, given by Charles W. Hofer and Dan
Schendel, it is necessary to understand the product life cycle.
Product Life Cycle-
A new product progresses through a sequence of stages from introduction to growth, maturity,
saturation, and decline. This sequence is known as Product Life Cycle (PLC) and is associated
with changes in marketing situation, thus impacting marketing strategy and the marketing mix.
Various analytical tools are used in the analysis of business and its various dimensions to help the
organization to strategize. One such tool was developed by Boston Consulting Group to help corporations
with analyzing their business units or product lines. This is known as the BCG Matrix. This helped the
company allocate resources and is still used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis. The dimensions it used were Industry Growth
Rate and Relative Market Share. There were certain weaknesses of the BCG Matrix and to help managers
overcome the problems associated with the BCG Matrix, another analytical tool was developed which is
known as the General Electric Business Screen. The GE Business Screen introduces a three by three
1
<en.wikipedia.org/wiki/Product_life_cycle_management> visited on 04 August, 2009
The Approach3
Hofer-Schendel ascertain that four steps have to be undertaken to determine a basic strategic
position and this in turn determines the investment strategy of the business.
2
<www.cipher-sys.com/hoferschendel_matrix.html> visited on 04 August, 2009
3
<webbusinesslink.com/glossary/hofer’s-market-evolution-matrix/>visited on 10 August, 2009
Horizontal Axis
Another reason for using relative competitive position and not market share is that the success
factors of the organisation’s businesses vary from business to business and the organisation must
have a clear idea which of these factors has a dominant position in which of the businesses, to be
able to put forward a strategic plan that will be successful.
The relative competitive position is made up of two sets of variables, the technological and
economic characteristics of the industry involved.
Market Evolution
Major changes in basic competitive position occur in the stages of development, shakeout and
decline because in these stages the basic nature of competition changes. It is more difficult to
make changes to competitive position in the other stages of growth, maturation and saturation as
the bases for competition are usually well established.
Plot Configuration
Identify Key Success Factors
The firm must assess its relative competitive position by identifying the key success factors.
These can be derived using the list of economic and technological factors listed in the previous
section.
It must be remembered that the purpose of the exercise is to identify the key factors/forces
affecting the firm’s competitive position and not to become bogged down in numbers. The most
important part of the process is to identify the most important key success factors in the industry
and the firm’s relative position with respect to them.
Most industries have a limited number of success factors that have a substantial impact on
competitive position and it is far better to get a good weighting distribution of five major factors
than to try to get a list of a lot of factors and the try to give them all a weighting.
Importance Weighting
Each factor is given an importance weighting. This rating should reflect the factor’s relative
impacts on overall profitability, market share, and other measures of competitive position of the
various firms in the industry involved.
History-
Nokia had its business interest in a lot of segments of the market like footwear, cables, paper
products, etc. However, it was in 1992 that Nokia decided to focus on its telecommunications
business. Jorma Ollila became the President and CEO of Nokia and focused the company on
telecommunications. In the year 1992 itself, Nokia launched it first GSM handset, the Nokia
1011.
In 1994, the Nokia 2100 was launched which was the first mobile to feature the Nokia Tune. In
the same year, world's first satellite call was done using one of Nokia's GSM handset on mobile
contracts.
In 1997, the Nokia 6110 became the first mobile to feature Nokia's classic Snake game. 1998
was the year when Nokia became the world leader in mobile phones. The year 1999, was very
significant as the Internet went mobile. Nokia launched the 7110, world's first WAP (Wireless
Application Protocol) handset. 2002 saw the launch of Nokia's first 3G (3 rd Generation) phone,
the Nokia 6650. Nokia launched the N-Gage in 2003. It helped in making the mobile gaming,
multi-player.
Another significant year in the history of Nokia was 2005. Nokia introduced the Nseries, the next
generation of multimedia devices. In the same year, Nokia sold its billionth phone.
Nokia continues to be the market leader. It is now a huge multi-national company with
manufacturing units all over the world. In the highly competitive world of mobile phones, Nokia
still has a lot of market presence and provides a lot of mobile contracts and will continue to do
the same for a long time to come.
Nokia N97 E72 6700classic 5800 Xpress music 3600 slide 1680 classic
2600
classic
2330
classic
2323
classic
Competitors-
Sony Ericsson, LG, Samsung, Motorola, Sagem, Spice, Blackberry, Apple, HTC, Fly, O2, PalmOne,
Asus, Reliance, Tata, Virgin Mobiles
CHAPTER 3
4
<www.nokia.co.in> visited on 15 August, 2009
Q. 1- Please provide the name of companies, whose mobile phones are being sold by you?
A. - Since the question was also asked to supervisor of Nokia Priority Center (exclusive show
room of Nokia mobiles), they were the only retailer dealing just with Nokia phones. Other
retailers were dealing with almost all the brands.
All category includes mobile phones of Nokia, LG, Sony Ericsson, Motorolla, Samsung, Spice,
Vodafone, Micro Max, Intex, Lemon, MTS, Reliance, and Tata.
Q. 7 & 8- How many customers visit your premise and mow many ask for Nokia mobile phones?
A. -
Q. 11- Which Nokia phones are available in market right now? Please provide the time period
since they are available in the market.
Q. 12- Which are the mobile phones of other companies that are prevailing in the market along
with Nokia mobile phones since the same period?
A. - No mobile phone of any company is able to stand in market for such a long time. Only few
models like Sony W550i and LG Bullet 285 which are in market since 2005, Sony W200i which
is in market since 2007, Sony W350 and Spice S580 are available since 2008.
Q. 14- Which mobile phone of Nokia is facing most completion in the market?
A. - The answer to the question was again undisputed. According to the dealers, Nokia 3110 is
facing most competition along with Nokia 5130, 7210 and E71.
Q. 15- May you provide approximate market shares of above mentioned product? (In their price
range)
A. –
To customers-
Q. 1- Which mobile phone company do you trust the most?
A. –
Q. 10- What are the feature you look for when going to purchase mobile phones?
A. –
CHAPTER 4
Q.4- Which price range of mobile phones is mostly desired by the customers?
Q.5- Which mobile phones of Nokia are present in this price range?
Q.6- Which other mobile phones are available in the same price range?
Analysis- The desirability of mobile phone handsets is directly related to class of person. People
from a lower income group mostly asks for handsets ranging from Rs. 1300 to 5000 (in which
the lower-lower class people generally ask from a range of Rs. 1300 to Rs. 2500).
All the companies providing the whole range of mobile phones according to the need of
customers and since the dealer situated in a particular reason will need mobile handset according
to the locality of that are, companies are designing their distribution channel in such a way that
the need of that particular area can be satisfied.
Q.7- How many customers visit your premise per month? (On an average)
Q. 11- Which Nokia handsets are available in market right now? Please provide the time period
since then they are available in market.
Q.12- Which mobile phones of Nokia are facing highest competition in the market?
Q. 13- Which mobile phones of Nokia are most sold in the market?
Q. 14- May you provide approximate market shares of above mentioned product?
Q.15- Which are the mobile phones of other companies that are prevailing in the market along
with the Nokia mobile phones since the same time period?
Analysis- Around 48 handsets of Nokia are present in the market right now and they are ranging
from the handsets launched in 2004 to the latest one which are being launched in 2009. Apart
from Nokia mobile phones, very less number of mobile phones is able to sustain in the market
and other just came and go.
Few handsets of Nokia like 3110 (launched in 2007), 5130 (launched in 2008), 7210 (launched in
2008) and E71 (launched in 2008) are facing highest competition in the market because of their
Analysis- The preference of price range is directly related to the purchasing power of the
customer and the social class with which he/she is associated. Increasing income slab is clearly
visible in the responses of the customers, since the customers preferring mobile phones in the
price range of Rs. 5000 to Rs. 10000 is more than the customer base demanding mobile in price
range of Rs. 1300 to Rs. 5000.
When asked about the options available in the same price range, customers were not exactly
known to the models available and named the company whose mobile phones they would prefer.
Selection of mobile phone model will be decided after reaching the shop. But some customers
were attracted towards advertisements and readily given names of models whose advertisements
are being shown. So in this way it can be said that the brand name of company plays a very
important role in the sale of its product but on the other hand vigorous promotion of product
cannot be underestimated by the company.
Q.8- Which company’s mobile phones you would never like to buy?
Q.9- Reasons for the above answer-
Analysis- Customers are reluctant to buy any product of inferior quality or the products that are
having some technical deficiency like problems in hardware or software. Most of the customers
have denied buying Chinese mobiles since they are having very poor quality and no guarantee
attached so is any reliability even though they are the products with superior technologies. Other
brands which the customer was reluctant to buy are Spice, LG and Samsung because of poor
quality of batteries.
CHAPTER-5
Objective 1- To identify and analyze the relative competitive position of Nokia mobile
phones.
Competitive position of any company depends upon many factors, which are as follows-
• Market share
• General image
• Breadth of product line
• Value added
• Relative product quality
• Advertising and promotional effectiveness
• Capacity and productivity
Market share-
It is very much clear from the available facts that Nokia is having around 70% of the mobile
phone in India. The same thing is also clear from the field study that most of the current
customers as well potential customers are more than ready to buy the mobile phones of Nokia
mainly because of its brand name and product quality.
General Image-
The brand image of Nokia is deeply embedded in the mind of customers which is very much
clear from this study and Nokia is enjoying upon the well established brand image. This brand
image is very strong because of continuous maintenance of quality and reliability of the products
of Nokia.
Objective 2- To analyze the strategic position of Nokia mobile phones with respect to their
stage of evolution
To analyze strategic position of Nokia mobile phones, they can be divided in three groups
according to their price.
1. Below Rs. 5000- e.g. Nokia 3110 Classic
2. Above Rs. 5000 but below Rs. 10000- e.g. Nokia 7210SuperNova, Nokia 5130 Xpress music
3. Above Rs. 10000- e.g. Nokia E71
There are around 48 models available in the market right now. So the names mentioned in front
of each category are taken as specimen for studying the strategic position of Nokia mobile
phones.
Objective 3- To ascertain the applicability of Hofer’s matrix for Nokia mobile phones
All above mentioned category are being plotted on the Hofer’s Matrix.
1. Below Rs. 5000- Nokia 3110Classic
Growth
Maturity
Decline
2. Above Rs. 5000 but below Rs. 10000- Nokia 7210 Supernova and Nokia 5130 Xpress music
Shake out
Maturity
Decline
Maturity
Decline
In this way, we can say that Hofer’s can be applied to the Nokia mobile phones. And this can be
said that Nokia is having a strong competitive position in the market and more growth strategies
should be designed for Nokia, to keep its status at the level of market leader.
CHAPTER-6
RECOMMENDATIONS
Nokia can launch some new products with enhanced technologies like Dual SIM, CDMA
phones, waterproof and shockproof technology, solar charger etc.
Nokia can provide demo mobile phones at the outlets, so that customers can touch and
feel it before purchasing.
Nokia can launch some new products keeping in mind the young generation. To attract
young generation, it can launch some multifunctional mobile phone at a rate best suited to
the pockets of youngsters.
Nokia can launch add campaign keeping in mind young generation, which may include
sports sponsorships in the colleges etc.
Q.1- Please provide the name of companies, whose mobile phones are being sold by
you.
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Q.3- Is there any other mobile phone available in this price range? (Please provide
name)
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Q.4- Which price range of mobile phones is mostly desired by the customers?
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Q.5- Which mobile phones of Nokia are present in this price range?
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Q.6- Which other mobile phones are available in the same price range?
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Q.7- How many customers visit your premise per month? (On an average)
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Q. 8- How many customers ask for Nokia mobile phones? (Per month)
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Q. 11- Which Nokia handsets are available in market right now? Please provide the
time period since then they are available in market.
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Q.12- Which mobile phones of Nokia are facing highest competition in the market?
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Q. 13- Which mobile phones of Nokia are most sold in the market?
Q. 14- May you provide approximate market shares of above mentioned product?
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Q.15- Which are the mobile phones of other companies that are prevailing in the
market along with the Nokia mobile phones since the same time period?
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Q.16- Is there any specific company/ies which is/are giving Nokia very tough
competition?
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To customers-
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Q.8- Which company’s mobile phones you would never like to buy?
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Q.10- What are the feature you look for when going to purchase mobile phones?
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Q.11- Which company provides you the best satisfaction in providing these
functions?
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Q.12- If mobile phone, you are interested in, is temporarily unavailable in the
market. Would you like to postpone the purchase or buy the best available mobile
phone?
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Universe of study was Jodhpur city only, so data and findings shown are concerned with and
limited to the market conditions of Jodhpur only and may not have similar results elsewhere.
1. Thomas L. Weelen and J. David Hunger, “Strategic Management and Business Policy:
Entering 21st Century Global Society”, (Addison-werley Longson Inc., California, 6th
edition, 1998)
Websites-
1. en.wikipedia.org
2. www.cipher-sys.com
3. www.webbusinesslink.com
4. www.nokia.co.in