Nokia: Losing Ground in India
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Case Code: BSTR447 Case Length: 19 Pages Period: 1994 - 2013 Pub Date: 2014 Teaching Note: Not Available |
Price: Rs.500 Organization: Nokia Industry: Telecommunications Countries: India Themes: Globalization, Strategic Alliance, Growth Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In 2013, Finland-based Nokia Corporation (Nokia), which had been the leader in the Indian mobile market for over a decade, found itself dethroned by South Korea based Samsung. For the year ending March 2013, Samsung had a market share of 31.5% as against Nokia's 27.2 percent. It was not only in India that Nokia was facing problems; globally too, it had been dogged by troubles since 2007. In 2007, Nokia's net sales were € 51,058 million. The net sales fell from €38,659 million in 2011 to €30,176 million in 2012, a 22% decline.
Since 1994, Nokia had been operating in India through its subsidiary, Nokia India Pvt. Ltd., and had enjoyed being in the leading position for more than 14 years. It established its Research and Development (R&D) center in the country in 2001 and a manufacturing unit in 2005. With the major developments in the Indian telecom sector since the 1990s, it became easier for Nokia and other players to tap the Indian market more aggressively. However, it was Nokia who got the first mover advantage. The company localized its devices for the Indian market, coming out with handsets that could withstand dust and pollution; Indian ringtones; the user menu in the local languages; low cost devices; and devices that supported even nine local languages. Nokia phones with their sturdiness and longer battery life won loyal fans.
Over the years, however, the company failed to keep up with the changing consumer preferences and lagged behind the other players in launching dual-SIM phones and low-priced smartphones, thus losing ground in the market. Analysts said that one of the reasons for Nokia's failure could be its complacent attitude toward changing trends, inability to cope up with the changing environment, and sticking to its own operating system Symbian 9 even when the consumers across the world were showing a preference for Android 10 and iOS 11...
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