Question:
Discuss about the Marketing Strategies of Nokia.
The report focuses on the business activities and operations of Nokia. It is one of the largest companies in the mobile industry. In today’s era, the company is increasing its revenue and profit by using effective strategies in the international market. It explains the marketing mix strategies of Nokia. The marketing mix plays a significant role in order to overcome the competitors. It describes that how the firm uses SWOT analysis in the market.
Nokia Company is a finish multinational communication, consumer electronics and information Technology Corporation which was founded in 1865. It’s headquarter is located in Espoo, Uusimaa Finland. There are approx 101,000 employees employed in the company. In today’s era, the firm is expanding and flourishing its business in more than 100 countries. It is the 415 biggest companies in the world measured by the revenue. It is one of the biggest vendors of the mobile phones in the world (Nokia, 2016). The corporation is dealing with various products such as tablets, VR camera, and mobile phones. Nokia renders its products in various countries such as China, India, Latin America, Japan, Europe and North America. The current position of the company is strong and dynamic. It is the fifth most valuable brands in the world. It focuses on the corporate culture, market segmentation and research and development to increase and maximize the revenue and profit of the firm. In today’s era, Nokia is creating and enhancing more mobiles phones with different size and functions.
Mission statement is important and essential in Nokia to expand its business activities and operations in the international market. The mission statement includes the followings:
The vision of the company is to make a strong position in the world and to attract more customers in the market.
To gain the competitive advantages, core competencies and resources are important. The core competencies are the attributes which provide competitive benefits to Nokia. The company has several competencies but due to recent growth and success, the firm needs to monitor on the right and appropriate core competencies to beat the competitors in the world. The core competencies and resources include organizational culture, and research and development. The organizational culture is the effective tool to attract more customers in the international market. The value chain is also other source to run the business activities successful. The optimum utilization of resources can be done by maintaining core competencies within the organization. Along with this, innovative technologies are used by the firm to overcome the competitors (Gupta, 2013).
The microenvironment refers to the internal environment of the company which can influence the business activities adversely. The microenvironment can be controlled and managed by the firm. The internal environmental factors include customers, suppliers, the general public, distribution channels and competitors etc. These factors influence the performance and efficiency of Nokia. It can also affect the long-term success and growth of the firm. There is a close relationship between microenvironment and organization (Yam, 2016). These factors also help to build and develop a reciprocal relationship with customers in the international market. The microenvironment consists the followings.
Macro environment affects the profit and revenue of Nokia. Therefore, the company needs to analyze and evaluate the macro environment. It is also known as an external environment which encompasses the following factors such as political, economic, socio-cultural, technological, legal and environmental factors (Gürhan-Canli, Hayran & Sarial-Abi, 2016). These factors influence the operation and trading activities of the firm negatively. The two major categories of the external environment have been discussed below.
Political factors: These factors include rules and regulations related to the import, export, and production. The company needs to focus on the political factors to fulfill the needs and requirements of the customers in the global market.
Economic factors: The economic factors include interest rates, demand, taxes, exchange rates and buying the power of the customers. All these factors affect the growth and success of Nokia. The firm needs to focus on these factors to hit the competitors in the international market (Nachbaur, 2016).
Nokia uses marketing mix strategy to overcome the competitors and to accomplish the goals and objectives of the firm (Baker & Saren, 2016). It also includes segmentation, targeting and positioning strategy which has been discussed below.
Segmentation: Market segmentation is an effective and dynamic marketing strategy to divide the market into different groups. It helps to understand the needs, requirements, and desires of the customers in the global world (Wang, Hedman & Tuunainen, 2016). The segmentation is done on the basis of high-income group, medium income group, and low-income group. There are various types of segmentation which include demographic segmentation, psychographic segmentation, and behavioral segmentation (Doz & Wilson, 2017).
Targeting: After segmentation, Nokia evaluates and identifies various groups and decide how many and which segment to be served. Under targeting, penetration and pricing strategies are used by the company to reach with its target customers in the world.
Positioning: After segmentation and targeting strategies, marketers prepare positioning map to show the customers perceptions of their brands in the international market. All these strategies are used by the company to analyze and evaluate the strategies, plans, and policies of the competitors (Frattasi & Della Rosa, 2017). Apart from this, 4 Ps are also used by the organization to overcome on the rivalries in the market which have been discussed below (Colagrossi, 2017).
Product: The Company uses product strategy to differentiate its products from the competitors. It helps to increase the profit and revenue of the firm.
Price: Nokia uses price strategy to beat the competitors and to attain the long term goals in the global market. It sets the appropriate prices of the products to increase the sale of Nokia products.
Promotion: The promotion strategies are used by Nokia to attract the customers in the international market. It is the effective tool to reach with its target market.
Place: This strategy is used by the company to find and analyze a right place to sale the products in the world.
SWOT analysis is an effective and dynamic tool to evaluate and identify the strengths and weaknesses of the competitors in the market. The firm must analyze and identify the risks and challenges of the market to achieve the mission and vision of the firm (Bohlin & Inha, 2017). The SWOT analysis stands for strengths, weaknesses, opportunities, and threats which have been discussed below.
|
Strengths |
Weaknesses |
|
· Brand name is the biggest strength of Nokia. · The products are available in the market in all the prices ranges. · Nokia products are very easy to use. · The mobile products are provided by the company have a much higher resale value compared to the other companies. |
· After sale services are very poor. · Poor designed smart phones. · Some of the Nokia products are not for middle class and low class groups. |
|
Opportunities |
Threats |
|
· The company can expand and grow its market globally. · The demand of the Nokia smart phones are increasing. |
· High competition exists in the global market. · Iphone’s popularity and Samsung and other competitors affect the sale of the company. |
Conclusion
On the above discussion, it has been concluded that Nokia is one of the biggest brands in the world. The firm uses effective and dynamic strategies to overcome the competitors in the market. It uses marketing strategy and segmentation, targeting and positioning strategy to hit the rivalries in the world. Apart from this, SWOT analysis is done by the Nokia to analyze and evaluate the strengths and weaknesses of the competitors.
References
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Bohlin, S., & Inha, E. (2017). Book review: Tools and concepts for strategic decision making on Market Intelligence.
Colagrossi, A. (2017). Drafting Futures Integrating Futures Thinking and Marketing Strategy.
Doz, Y., & Wilson, K. (2017). Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones. Oxford University Press.
Frattasi, S., & Della Rosa, F. (2017). Mobile positioning and tracking: from conventional to cooperative techniques. John Wiley & Sons.
Gupta, R. K. (2013). Core competencies: Concepts and relevance. Prabandhan: Indian Journal of Management, 6(2), 48-54.
Gürhan-Canli, Z., Hayran, C., & Sarial-Abi, G. (2016). Customer-based brand equity in a technologically fast-paced, connected, and constrained environment. AMS review, 6(1-2), 23-32.
Nachbaur, A. (2016). Nokia Strategic Analysis. Evaluation of the decision to return to the mobile telephone market.
Nokia.com., (2016). About Nokia, viewed on 26 Nov 2017, https://www.nokia.com/en_int
Nokia.com., (2016). Nokia networks, viewed on 26 Nov 2017, < https://networks.nokia.com/about-us/our-markets>
Wang, J., Hedman, J., & Tuunainen, V. K. (2016). Path creation, path dependence and breaking away from the path: re-examining the case of Nokia. Journal of theoretical and applied electronic commerce research, 11(2), 16-27.
Yam, Y. (2016). The influence of macro and micro-environmental factors on the consumption of mobile phones and marketing strategies.
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