1. What have been the keys to Nokia’s global strength?
The key to Nokia’s global strength is its ability to know and understand its market. Nokia has a practical understanding of what consumers need, value, and can afford depending on their geographical location and demographics. By providing the right products, features, and price, the firm has successfully built long-term brand value all over the world. In emerging markets, Nokia offers durable, attractive, and affordable cell phones. For example, in Indian market, people have an average income therefore; they did not want to spend $600 for a cellphone. Instead of introducing a smartphone with thousands of applications, Nokia focused on the basic functions of cellphone and sold with cheaper price from $30. Furthermore, Nokia also makes it a point to involve the local consumers with offerings that appeal specifically to them. Nokia has done this by adding a music store (Nokia Music Store) on the cell phones. Nokia adds music to this store from around the world, as well as and most importantly artists from that local area. 2. What can Nokia do to gain market share in the United States and Europe where its presence is not as strong?
Facing to two strongest and biggest competitors as Apple and Samsung, Nokia has been losing their market share and loyal customers. There was an outstanding event that happened in just one month ago, Microsoft bought the cellphone department of Nokia. It meant people would never see Nokia as the Final brand name as before. There are some reasons explained for Nokia’s situation: first, they are lack of competitiveness in smartphone market. While Apple and Samsung continuously introduce new challenge smartphones to market, Nokia just focused on the durable and affordable phone. Obviously, the price of each IPhone is not cheaper but after three days selling IPhone 5, there is 9 million