Emerging Markets Woes (A): Nokia in India and China
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Case Code: BSTR425 Case Length: 23 Pages Period: 2008-2012 Pub Date: 2013 Teaching Note: Not Available |
Price: Rs.500 Organization: Nokia Corporation Industry: Mobile Telecommunication Equipment Countries: Global; China; India Themes: Competition, Turnaround Strategy, International Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
About Nokia
Nokia, the world's largest mobile phone manufacturer, had a leading brand presence globally and had expanded into many areas to support customer needs and the growth of the telecommunications industry. Along with mobile phone infrastructure and equipment for traditional voice telephony, ISDN, broadband access, professional mobile radio, voice over IP, wireless LAN, and a line of satellite receivers, Nokia manufactured mobile communication equipment for every major market, including GSM, CDMA, and WCDMA. By mid-2011, the company was engaged in the production of mobile devices and in converging internet and communications industries, with over 132,000 employees in 120 countries. The major contribution to its sales came from the European region.....
Nokia in India and China
In 1994, the Indian government opened up the country's telecom market to private enterprise. Recognizing India's potential market, several global telecom giants jumped into the fray. One among them was Finland-based Nokia, which made its entry into the country in 1994, and forged ahead of rivals to command the top spot in the market. Its market share in the GSM segment during the mid-2000s was as high as 70%. With its focus on distribution, investment in manufacturing, and brand-building and innovative product features, Nokia was able to take the lead in the Indian mobile phone market ahead of companies such as Ericsson, Motorola, Seimens, Sony, LG, and Samsung...
Emergence of Cheaper Handsets
The mobile phone industry in both India and China started on a common platform. The industry was completely dependent on the equipment made by foreign companies and all cell phones needed to be imported. Prior to 1999, the mobile phone markets in India and China were ruled by international brands like Motorola, Nokia, and Ericsson...
Nokia's Crumbling Market Share
In July 1995, Nokia made its entry into the Indian market with its cell phones, while it had entered China in the mid-1980s. It soon captured a huge chunk of the market share and became a leader in both the countries. While the company had a share of 35% in the Chinese market, its market share in India reached the highest at around 64% . Further, it went on to become India's Most Trusted Brand. In 2004, the company was ranked 71 in the India's Most Trusted Brands' Survey. It then moved up to 44th rank in 2006, 4th in 2007, and topped the list from 2008 till 2010. However, after three consecutive years at the numero uno position, Nokia slipped to number 5 in 2011...
Exhibits
Exhibit I: Global Telecom Indicators in 2011
Exhibit II: India's Wireless Subscriber Base and Teledensity (2000-2012)
Exhibit III: Indian Telecom Scenario as of June 30, 2012
Exhibit IV: Top 10 Countries by Mobile Phone Users
Exhibit V: Mobile Subscribers in China- October 2012
Exhibit VI: Nokia's 10 Major Market Sales (2007-2011)
Exhibit VII: Nokia Financial Data (2007-2011)
Exhibit VIII: Nokia Segments Net Sales (2007-2011)
Exhibit IX: Top 10 "Shanzhai" phones
Exhibit X: India's Most Trusted Brands
Exhibit XI: Top 10 Mobile Phone Players in India FY09-10 to FY11-12 (Revenue in Rs. Billion)
Exhibit XII: Sales Share of Top 10 Mobile Companies in China in 2011
Exhibit XIII: Top 10 Mobile Brands in China
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