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Question 1 Strengths: Nokia, 142 years of history, has a very strong brand name which brings customers’ attention when new product launchs. It is famous for its reliability, good quality and long battery life compared to other competitors. Also, Nokia has relatively strong finances, above $1.4 billion USD to support his research and development department to creat innovative new product. For example, Nokia is seeking a US patent for tattoos that vibrate to let people know when they have calls on
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    Question 1 Strengths: Nokia, 142 years of history, has a very strong brand name which brings customers ’ attention when new product launchs. It is famous for its reliability, good quality andlong battery life compared to other competitors. Also, Nokia has relatively strongfinances, above $1.4 billion USD to support his research and developmentdepartment to creat innovative new product. For example, Nokia is seeking a USpatent for tattoos that vibrate to let people know when they have calls on theirmobile phones and a vibration on the image will be on a user’s skin. As one of  theglobal market leaders in mass-market mobile phones, Nokia allied with Microsoft,the computer software giant to creat their new product -- Lumia 900 smartphone,will launch in April, which sells for only $100 with a 2-year contract compared to Apple’s cheapest iphone 4S - $799. Besides, Nokia has established a globaldistribution channel. It can be sold on plans through telcos Optus, Telstra, Vodafoneand all major retailers and be sold at special shop with good customer service tokeep strong customer relation. Weakness: Now Nokia is facing a very tough situation  – lower sales, lower market share, andlower share price. For Nokia products, it is lack of creativity and not user-friendlycompared to Apple. Some products are more complex and tough, losing customersand not successfully getting market shares. Unlike apple (with half a million apps foriphone), Nokia has poor software (windows phone apps has 65,000 applications),making many of its recent smartphones to bring plagued. On the other side, poor    marketing strategy, especially the price issue, is the biggest weakness. Although itsprice is relatively lower than Apple, the lower class of customers still cannotpurchase the product. If Nokia changes the strategy to cost leadership, it must targetthese customers to expand market share. Opportunity: With global economic development and more choice for customers, Nokia canattract more customers and grow new market by ranging different price for differentpeople, innovating new features to products and promoting new products. Becausepeople focus more on design and style, Nokia will be able to its increase marketshare. With rapid growth of telecommunication market, phone and notebook arewidely used, which is an opportunity to help Nokia increase sales and market share.Moreover, with development of technology and rapid update of software, Nokia candesign more new products and improve existing product. Now Nokia is working to develop tablet computer to complete with Apple’s iPad and work together with Microsoft. Maybe nokiapad will exist someday. Threat: There are many threats for Nokia maintaining in its market leader position. Thebiggest is that so many competitors exist. The companies, like Motorola, SonyEriksson, Cingular (U.S), have cheap and wide range models. Because globaleconomic is going down, customer may prefer cheaper product from thesecompanies, causing sales to decline for Nokia. On the other side, a competitor likeApple with good reputation and high level technology will be more successful to    increase market share because of its unique features or software. For example,angry bird or tom cat are popular for people and these unique software can be usedonly for apple and apps of android. Question 2 Recently, Nokia has announced its new strategy in the Smartphone segment  – costleadership along with expanding distribution channels and investment in applicationcampus. There is no doubt that this global market leader in mass-market mobilephones has really missed out the expanding Smartphone market. Facing the loss of sales, market share and customer preferences in the market, Nokia is now fightingback in alliance with Microsoft hoping to get a big stake in the mobile phone market.At the moment, the external environment is certainly not favouring Nokia. Most of the market shares are captured by Apple using its iOS, followed by Samsung using Google’s Android platform. Nokia will have a hard time to take away the market share of these two giant using a minority platform - Windows platform. Windowsphone (phone that uses windows platform) only has 65,000 applications (Apps inshort) compared to half a million Apps for Android or apple phone. Additionally, only37% of the developers are interested in making Apps for Windows, compared to 89%in iPhone and 79% in Android phone. What make it worse is that some of the majorApps developers like Outfit7  –   developer of the ‘talking Tom cat’ and Joby –  developer of a camera Apps will cease to develop Apps for Windows phone.The key for Nokia to claw back the Smartphone market dominated by Apple andSamsung is breaking out of the vicious cycles of Apps: customers are turning away    from Nokia for a lack of Apps; Apps developers are keeping out because of the lowsale.In response to that, Nokia adopts the following strategies. Cost leadership to increase market share  Nokia is launching a new Smartphone  – Lumia 900 in 8 April 2012. The new NokiaWindows phone is only $99.99 with a 2 years contract. Terry Myerson, the Microsoftvice president, said the new markets and lower-priced phone would increase thesales potential for Nokia Lumia by at least 60 per cent. Although the profit margin isa lot lower than those of iPhone, this affordable Lumia900 will certainly assist Nokiain establishing a firm foothold in the Smartphone market. Expanding sales Network  Alo ng with the introduction of Lumia 900, Nokia’s alliance Microsoft has opened local-language online stores that would sell Lumia phones, applications and servicesin 28 countries, including China. An increase in distribution channel and a drop inprice will normally leads to an increase in sales, which hopefully will attract moredevelopers to develop Apps for Windows phone. New Apps campus  $22.8 million will be invested by Nokia and Microsoft into a new mobile applicationdevelopment program, App Campus, at Helsinki's Aalto University. The purpose of this new program is to provide support, training and funding for Apps developers tocreate more unique Apps for Windows phone.The first two strategies are aiming at expanding market share, increasing sales andthe result of that will boost the number of Windows Apps available in the market. If 
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