Competitive Strategies Case Study

Nokia vs. Motorola (A): Fight for Market Share – Flight of Margins?

OR

Abstract:

In a short span of time the mobile handset industry has seen phenomenal growth and a paradigm shift. The success parameters have changed and the incumbent handset makers have to adjust to still be in the reckoning. The growth rate is however forecast to slow down and there is fierce battle among the players to gain a bigger market share, even if that means sacrificing profit margins.

Nokia, the market leader has seen its market share fall due to lack of foresight. Through product innovation, Motorola wants to reclaim the top position it lost to Nokia. Asian handset makers too want and are becoming stronger. Quickest adjustment to market needs is all that matters. Meticulously surveying the industry, this case discusses the much-needed strategies.

Pedagogical Objectives:

• To understand the trends and the critical success factors in the global mobile handset industry, and how did this change their strategies
• To understand the concept of value chain
• To do the scenario analysis for the mobile handset industry
• To analyse the standing of Nokia vis-à-vis Motorola.

Keywords : Trends in the Global Mobile Handset Industry; Critical Success Factors in Mobile Handset Industry; Basis for Industry Segmentation; Value Chain Analysis; Total Product Concept; Core Competency & Competitive Advantage Case Study; VRIO framework; Relevance of concept of market share; market share vs. profitability; Nokia vs. Motorola; telecom operators; Samsung; LG Electronics; Sony Ericsson

Contents : 
Global Mobile Terminal Market Share
Mobile Phone Penetration
Example of Segmentation Nokia's Style/Function Matrix
Simplified Technology Roadmap
The Value Chain is Deconstructing