Nokia's Business Strategy in India

Nokia has played a new role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network. Nokia started its India operations in 1995, and currently operates out of offices in New Delhi, Mumbai, Kolkata,Jaipur,Lucknow,Chennai, Bangalore, Pune and Ahmedabad. The Indian operations involve of the handsets business; R&D facilities in Bangalore and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.

Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally. strategy trade :- Nokia has recognized itself as the market and brand leader in the mobile devices market in India. The company has built a various product selection to meet the needs of different consumer segments and therefore offers devices from corner to corner five categories ie. Entry, Live, Connect, Explore and Achieve.

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These include products that supply to first time subscribers to advanced business devices and high performance multimedia devices for imaging, music and gaming. Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Today, Nokia has one of the largest distribution network with presence across 1,30,000 outlets. In addition, the company also has Nokia Priority Dealers across the country and Nokia ‘Concept stores’ in Bangalore, Delhi, Jaipur, Hyderabad, Chandigarh, Ludhiana, Chennai, Indore and Mumbai to provide customers a complete mobile experience.

Services business By launching of Ovi, the company’s Internet services brand name, Nokia is renewing itself to be at the forefront of the convergence of internet and mobility. From being a product centric company, Nokia is now focusing to become solutions centric. The strategic shift is built on Nokia’s bid to retain consumers and empower Nokia device owners to realise the full potential of the Internet. Nokia will build a suite of Internet based services like Nokia Maps, the Nokia Music Store and Nokia N-Gage around its Ovi brand. Infrastructure business

Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Its operations in India include Sales ;amp; Marketing, Research ;amp; Development, Manufacturing and Global Networks Solutions Centre. Headquartered in Gurgaon, Nokia Siemens Networks has 47 offices and presence in over 170 locations across the country. R ;amp; D centers

Nokia has three Research ;amp; Development centers in India, based in Bangalore and Mumbai. These R;amp;D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity. The Center in Bangalore, the biggest R;amp;D site in the country comprises S60 Software Organization, Common Technologies, Next Generation now called Maemo Software, Productization and Software ;amp; Services. Design Studio Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art, Design and Technology.

The first of its kind, the design studio will give Nokia designers and India’s talented youth the opportunity to work together on new design ideas for India and the global markets. Manufacturing in India Nokia has set up its mobile device manufacturing facility in Chennai, India to meet the burgeoning demand for mobile devices in the country. The manufacturing facility is operational with an investment of USD 210 million and currently employs 8000 people. Nokia has recently announced fresh investments to the tune of US $ 75 million towards its manufacturing plant in Sriperumbudur, Chennai for the year 2008. Read More Some firsts for Nokia in India 1995 – First mobile phone call made in India on a Nokia phone on a Nokia network 1998 – Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 2000 – First phone with Hindi menu (Nokia 3210) 2002 – First Camera phone (Nokia 7650) 2003 – First Made for India phone, Nokia 1100 2004 – Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones 2004 – First Wi-fi Phone- Nokia Communicator (N9500) 2005 – Local UI in additional local language 2006 – Nokia manufacturing plant in Chennai 2007 – First vernacular news portal

Some Achievements for Nokia * Ranked No 1 Most Trusted Brand Survey by Brand Equity, 2008 * Ranked the No 1. MNC in India by Businessworld, India’s leading business weekly, 2006 * Ranked as the No. 1 telecommunications equipment vendor in the country by Voice ;amp; Data for five consecutive years –2008, 2007, 2006,2005 and 2004 * Ranked as the 9th most powerful brand by Millward Brown’s BrandZ 2008 * Ranked world’s 4th most valuable brand by Interbrand, 2007 * Ranked Asia’s most trusted brand by the Media-Synovate, 2006

Imperitives for Continued Growth • Promote international standards by harmonizing spectrum allocation with ITU • Incentive for shared infrastructure, specially to promote rural growth • Reduce customs duty on imported telecommunication and related equipment for implementing ‘affordable services’. Review The proposed countervailing duty 16. 32% on cellular mobile phones w. e. f. 1 Jan, 2007 and similar taxations on mobile phone spare parts/accessories to prevent increase in price of mobile phones, Have a consistent policy for duty on all components imported into India for use in producing mobile phones within Special Economic Zone (SEZ) or in a DTA and spare parts imported into India for servicing of phones • Flexibility in labor law • Enhance physical infrastructure Nokia India – Telecom SEZ Nokia Telecom SEZ • 210 acres in Sri Perumbudur • 9 key suppliers will be housed within the SEZ by end of 2007 • The Nokia Telecom Park strengthens Nokia’s delivery capabilities and customer satisfaction Business park infra and services need to meet global standards • Requires 24/7 custom clearance • Nokia has been the engine of the investment train in Chennai’s manufacturing corridor About the company Nokia Corporation (NYSE: NOK) is one of the world’s largest telecommunications equipment manufacturers. It has since established a leading brand presence in many local markets, and business has expanded considerably in all areas to support customer needs and the growth of the telecommunications industry.

Nokia also produces mobile phone infrastructure and other telecommunications equipment for applications such as traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN and a line of satellite receivers. Nokia provides mobile communication equipment for every major market and protocol, including GSM, CDMA, and WCDMA SWOT Analysis of the Company: Nokia Strengths: Nokia has largest network of distribution and selling as compared to other mobile phone company in the world.

It is backed with the high quality and professional team in the HRD Dept. The financial aspect is very strong in case of Nokia as it has many more profitable business. The product being user friendly and have all the accessories one want that is why is in great demand making it No-1 selling mobile phones in the world. Wide range of products for all class. The re-sell value of Nokia phones are high compared to other company’s product. Weakness: Nokia has many strengths and some weakness. Some of the eakness includes the price of the product offered by the company. Some of the products are not user friendly. Not concern about the lower class f the society people. Not targeting promotion toward them. The price of the product is the main issue. The service centers in India are very few and scare. So after sales service is not good. Opportunity: Nokia has ample of opportunity to expand its business. With the wide range in products, features and different price range for different people, it has an advantage over the competitors around.

With the opportunity like ‘Telecom penetration in India’ being at the peak time, Nokia has an opportunity to increase its sales as well as the market share. As the standard of living in India has increased the purchasing power of the people as increased as well, so Nokia has to target right customer at right time to gain the most out of the situation. Threats: Nokia has many threats to tackle to maintain its position as market leader. The threats like emerging of other mobile companies in the market.

The companies like Motorola, Sony Eriksson, Cingular (U. S) etc. these companies have come to the stand of tough competition with Nokia in the field of Mobile Phones. Threats can be like providing cheap phones, new features, new style and type, good after sales service etc. So, Nokia has to keep in mind the growing competition around. Nokia has to make strategies to tackle problems in the present and the near future. The growing demand of WLL network can cause drop in sales for Nokia, as Nokia provides many less CDMA phones to the customer.

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