Case study: Nokia


Nokia is believed to be the founder of cellular communication hence its strong position in the market place which can be attributed to its founding principles of being unique( 2010). As far as product performance is concerned in the marketplace, the aspect of branding is very important. Branding gives the product an identity in the same way that a name and face give identity to that person (Strydom, 2004). Branding is very important to the marketer than the physical features of the product itself because of the reason that in many cases, competing products are fairly similar in terms of physical features. The marketer therefore, must use something else to help consumers to differentiate the product from those competing with it. It can be seen that during the 1990s, Nokia mobile phones and appliances were the top products in the market therefore the corporation was leading in all corresponding areas of business across the globe.

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Advantages of Nokia’s market share 

The given case study for Nokia Corporation shows that the main advantage of Nokia’s market share is its uniqueness. Though research has shown that it is not enjoying the same market share as in the 1990s, the corporation still have chances of regaining its lost prestige. The main danger is that the growth of the market of competitors such as Siemens, Samsung and Motorola cannot be ignored. These make their products and marketing strategies better and convenient and they are also very competitive in terms of their lower pricing marketing strategies. The other threat to Nokia is that its rival competitors are responsive to the market demands and they can quickly tailor their products in such a way that would meet the ever changing technological developments taking place in the market. 

As noted already, the major threat to Nokia’s position with regards to market share includes the issue of pricing against the other competitors in the cellular industry. This aspect of pricing is a bit sensitive and tricky in that very high prices would scare away potential customers while under pricing can result in losses which is not the aim of being in business. The issue of pricing is always sensitive since it is responsible for shaping the behaviour of the consumers towards a particular product. 

Strategies for Nokia

Harness marketing communication Strategies 

Being a renowned cellular provider, Nokia can harness on marketing communication which is aimed at raising awareness about a product among the customers as well as creating loyalty among them. Theoretically, marketing communications can be defined as, “the process of presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within the market target and setting up channels to receive, interpret and act on messages from the market to modify present company messages and identify new communications opportunities,” (Lancaster and Reynolds, 1999). Thus, as both sender and receiver of market related messages, the company can influence customers to buy its brands as well as stay in touch with its market so that it can adjust to changing market trends. Marketing communication is one element that influences the consumers to buy certain products in response to the messages that would have been disseminated to them about certain products. Nokia should make use of that advantage in the market.

Market responsiveness

Another suggestion for Nokia is that it should try to be responsive to the market demands like the other rival competitors do. It should always strive to introduce something better in the event that the competitors have introduced something new as a way of ensuring that it is always on the edge of the cellular technology. In other words, Nokia should try to recognize the opportunities presented by new technological changes taking place as well as harnessing them so that it will remain a leading player in the cellular industry.

Refine marketing strategies

Another strategy is refining its marketing strategies. As a result of globalisation and communication technology advancement, it is now possible for organisations such as cellular providers to operate globally. However, this is not an easy feat since it requires concerted efforts to be better positioned to reach many people from different geographical areas across the globe. In the case study, it has been observed that Nokia is often found lagging behind changes in the market and this gap can be effectively bridged through the use of modern communication technology such as the internet. There is need to do market research about the needs of the consumers as well as grouping them into segments according to the income, geo-demographic factors as well as interests among others. Kotler (1999) suggests that it becomes easier for the marketer to reach the potential customers if they can be identified. 

Need for corporate social responsibility

Another strategy is attempting to be socially responsible always. “Social responsibility is the concept that maintains that businesses are part of the larger society in which they exist and are accountable to the society for their performance,” (Strydom, 2004). The needs of the customers should always take precedence if the organisation is to be able to realise its goals of making profits while at the same time creating mutual understanding with the people affected by its operations. Ethical considerations which are primarily concerned with making a distinction between something that is good and bad ought to be taken into consideration as far as corporate social responsibility is concerned.

Ethical marketing ought to be encompassed from the understanding that it is the duty of every organisation to know that they operate within different social set ups. Maintaining societal values of the people in which the organisation operates is always a good recipe for success. Against this background, there would be need for Nokia to ensure that it creates an environment where there is general understanding between the organisation and its stakeholders through incorporating their norms in its operations. In most cases, the success of any given product in the market place is determined by the way it is perceived by the customers. If it is seen in a bad image then the chances of success in the market will be limited.

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Strategies for Nokia’s competitors

On the other hand, Nokia’s competitors should always strive to take a leading role in new technological innovation as a way of trying to stay ahead in terms of product uniqueness and features. It can be difficult to easily follow if these competitors invest on product innovation that would be aimed at in designing products that are unique in the market. There may also be need to identify the operations of the other competitors and try to come up with strategies that are meant to counter their effectiveness.

In particular case, product diversification is another option that is available for other players in the cellular industry which will be competing with established entities like Nokia. There is need to find alternative ways of appealing to the needs of the customers where the products are designed in a unique manner from the other products available in the market. These players ought to maximise their competitiveness through launching other products which encompass all the features in one gadget such as music players, camera as well as video facilities. This means that if the other particular product badly performs in the market, then the other kind of cell phone model would fill the void created.

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  1. Case study essay: Nokia (N.D) 
  2. Kotler P. (1999).  Kotler on Marketing: How to create, win and dominate Markets. London. Free Press.
  3. Lancaster G. & Reynolds P. (1999). Introduction to Marketing: A step by step Guide to all the tools of Marketing.  Kogan Page.
  4. Strydom J. (2004). Marketing. 3rd Edition. Cape Town. Juta & Co Ltd. 
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