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Being an early mover, it easily acquired human resource, other facilities and information at reasonable prices due to absence of competition
Chinese Ministry of Posts and Teleco-mmunications promoted wireless networks instead of landlines
Nokia’s entry through joint ventures helped it improve its competitive position and procure a share in the local market
Nokia’s Joint Ventures in China Provision of a full range of services, manufacture and supply of products for fixed networks 1998 Partners ChongQing Telecom. Bureau, ChongQing PTAC ChongQing Nokia Telecom. Co. Ltd. Main activities in the field of GSM technical services, primarily network planning and optimization 1997 Partner Fujian PTA Fujian Nokia Mobile Telecomm. Ltd. Prod. of GSM digital cellular systems and mobile phones 1995 Partner Beijing Capitel Co., Ltd. Beijing Capitel Nokia Mobile Telecom. Co., Ltd. For Year Partner Name
Nokia’s Joint Ventures in China (cont.) Software Develop. Platform technology development related to Nokia’s 3G networks 2001 Zhejiang Provincial Govt. of China Hangzhou R&D center Development manufacturing and marketing of digital multimedia terminals 1999 Partners CITIC Technology Co. Ltd. And the Academy of Broadcasting Science Nokia Citic Digital Technology Co. (Beijing) Ltd. For Year Partner Name
Management of Nokia made an analysis of the company’s position in the market and came up with the view that, “its core reference design portfolio needs to be updated to allow greater product flexibility that will divert share losses over the long-term .”
Nokia should come up with various strategies to arrest its falling market share in China
Renounced the earlier manufacturer-general agent-regional distributor-second tier distributor-retailer-consumer distribution model and opted to distribute its products directly to large distributors and to retail outlets
Increased the no. of distribution outlets to reach 48000 by year 2006
Personalized the shopping experience by opening stand alone flagship store in shanghai where personal attention and guidance was given to customers which helped them select the products
Launched another website NCool in December 2007 which targeted the young, urban, educated Chinese and intended to promote the N-series mobile phones
Nokia also sponsored “Project 95-Explore China with Nokia N-series”, a 20000 kilo-meter road trip across the country which aimed to show the targeted audience, the multimedia capabilities of Nokia N-series
Although Nokia has emerged as the Market Leader but if it wants to sustain this position, it has to continuously monitor its business environment which is dynamic in nature and has to bring in additional features and market specific software in its products and for this it may have to incur additional costs to make these specific models.
The biggest challenge for Nokia is to maintain customer loyalty and long customer relationships in this highly competitive mobile phone market