TD1 STRATEGY

THE RISE AND FALL OF NOKIA

I.

introductory questions

2001 Nokia was the most important cell phone brand in the market
Good decision from Microsoft to layoff 7800 employees?
Yes bc Microsoft already had many employees working on the system, and the old
employees from Nokia may not be efficient and modern enough to change the
mentalities, they needed new people, more skilled. Need to outsource more so
that it can be cheapest, and then more competitive.
necessary bc they were loosing money
launch a new phone at 25$, good idea ?
- pb for brand image, bc competing both with high markets such as Apple,
and also with low cost companies like chinese ones. Be careful with
marketing not to diluate their brand image.
- Good for penetrating emerging markets, going back to basics, long life
battery.

II.

Debate

5 to argue,
very good structure, the most important first (prioritize)
conclude and be synthetical
posture, professional
GROUP 7
The success of MS will come from emerging markets
Laurane
Intro: Nokia owns less than 4% of the mobile market, so the alternative is clearly
to invest on non saturated markets such as the emerging countries.
300 millions of Nokia users in India: a proof that it works, and it not such a risky
project
Louise
- 30% of the sales of mobile phone are located in the EM, and it is forecasted
to be up to 57% in 2017 thus growing market
-

Africa is the second market on mobile phones worldwide. it is their only

way of communicating with the rest of the world. They are more
subscribers to mobile phones in Nigeria than in Italy ( which is the number
1 in Europe), 16 millions of users in 2000, and 600 millions in 2010

Simon
Why it will work?
- development of infrastructure for mobile phones, even in poor countries, it
is a top priority of government who invest a lot on that

the long lasting battery suits very well to emerging countries who cant
charge
very often
Thomas
- focus on access to social network as a top device, bc important for
emerging markets. Phone, messages, social network would be the only 3
devices, so not expensive. The low cost strategy is very appropriate for
that market
- Good brand image among that customers, for most of them there would be
their first mobile phone, they are not yet accustomed to more developed
OS ( Apple iOS or Android)
Guillaume
why it is the only sustainable alternative ?
- Nokia cant follow Samsung and Apple on the hardware and power race. It
is a way of differentiating from its competitors. Nokia has to take position
and clearly it wont be in the high cost mobile phones since the leadership
is already taken with flagships such as iPhone 6 / Samsung Galaxy S6 at
the moment.
To conclude : so it appears that focusing and developing
As Thomas said, for most them it will be their first mobile phone, and they
dont know anything about Android or iOS So it's a good way to settle on a
new market, a fresh, a virgin market to thrive. Notwithstanding the fact that
the profits made could be REINVESTED in the mobile branch in DEVELOP
COUNTRIES this time.