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Case Title:

Nokia : Surging Ahead In China

Publication Year : 2006

Authors: Supriyo Bose, Kumar Satyaki Ray

Industry: Telecommunications

Region:China

Case Code: GRS0146K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
By 2005, Nokia Corporation (Nokia) was the leading mobile phone manufacturer in China with 31% market share. China was anticipated to emerge as the single largest market for the company, with an estimated mobile subscriber base of 630 million by 2010. In its efforts to surge ahead of its competitors, Nokia offered inexpensive phones for the mass markets without compromising on the quality. It also restructured its sales force and reorganised its distribution channels to reach the low-end customers in the rural markets.

The case, while providing an overview of the mobile industry in China, discusses the strategic moves of Nokia to emerge as the undisputed leader in the country

Pedagogical Objectives:

  • To understand the localisation strategy as applied by Nokia in China
  • To discuss the initiatives taken by Nokia to tap the low-end market segment and exploit the huge growth potential in China
  • To understand the mobile phone industry in China
  • To discuss the viability and the potential risks involved in the introduction of mobile phones for the masses and the consequent brand dilution.

Keywords : Nokia; China; Telecommunications equipment manufacturer; Mobile phone industry; Multimedia; Motorola; Clamshell phones; Nokia connect market expansion tool kit; Jorma Ollila; Colin Giles; Distribution channel; N-series; Global system for mobile phone communications (GSM); Growth Strategies Case Study; Competitive pricing; Localisation strategy

Contents : 
Introduction
Nokia – Connecting People
Mobile Phone Industry In China
Nokia’s Strategy In China
Nokia’s Market Share In China In 2005
China’s Communications Equipment Market Value
Mobile Subscriber Base Overtaking Fixed-Line Subscribers
Nokia’s Distribution Chain In China

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