Nokia's Strategy in India
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Case Details:
Case Code : BSTR174 Case Length : 19 Pages Period : 1998-2005 Organization : Nokia India Pub Date : 2005 Teaching Note : Available Countries : India Industry : Telecom
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Nokia - Made in India Contd...
One, that its strategies - including ones like developing a phone specifically
for India - are respected. But, more importantly, Nokia's win is also an
endorsement of the importance of the ubiquitous cell phone as a durable in
today's world. After all, unlike its competitors, most of which offer a slew of
durables, Nokia is mostly a cell phone company."7
In 2005, Nokia was recognized as the 'Brand of the Year'by the Confederation of
Indian Industry, India's apex industry association. The company was chosen for
this award because of its high brand recall, well established distribution
channels and being 'most preferred' by the consumers.
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Enamored of Nokia's success in the Indian market, Harvard
University had invited Nokia India to talk on 'How Nokia cracked open the Indian
market?'
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The Indian Mobile Phones Industry
The mobile phones industry made a slow start in India in 1995. Several
private players who had entered the industry in 1995 exited in the
next few years due to the unfriendly telecom policies of the Indian
government, high licensing fees and absence of a proper telecom
regulatory body. The growth in the subscriber base of mobile phones
remained sluggish initially, reaching the 1 million milestone in
1998. In 1999, the Government of India announced a new telecom
policy. This policy planned to provide telephones on demand by 2002. |
Among other things, the policy allowed unrestricted private
entry into almost all mobile service sectors. The government allowed cellular
mobile service providers to share infrastructure with other operators. It also
allowed existing operators to migrate from fixed license fee to one-time entry
fee with revenue sharing. This policy helped many private operators to break
even faster. By 2001, the demand for mobile services was growing well. The
private companies concentrated on providing basic telephone services to
consumers. The number of mobile phones crossed five million by 2001 and doubled
to 10 million in 2002...
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