International Management Essay

1103 Words5 Pages
1. Does it make sense for Nokia to be in both emerging and developed markets, or should it choose not to play in certain markets? Analyze the factors that Nokia should consider in order to make this decision. Main Problem of the case: Nokia’s strategy in emerging markets has been successful by having market shares of 60% and 40% respectively in India and China. But on the other hand the company’s position in developed markets has been falling behind. They recently withdrew their operation in China after 20 years and the revenues have been declined by 15% in Europe in the fourth quarter of 2009. Nokia is well known around the world for its mobile phone handset industry. From the 90’s till the present time the company leads the mobile phone market, even though they have fierce competition such as Apple and Samsung. This assignment will focus on the company’s environment, its current situation and will provide recommendations to address this problem. Industry Analysis of Nokia (Porter’s Diamond): Technological advancement in the mobile industry is changing at a rapid pace and there is much competition. In the 80’s there was the first generation of mobile phones and communication. The second generation of the mobile industry was in the 90’s by introducing new mobile communications, digital technologies and affordable phones. The third generation of the mobile industry was in 2000’s with the introduction of 3G networks. * Factor Conditions: In this case Nokia has different factors. The company became very successful in emerging markets like, India, China, Southeast Asia and Africa. By adapting its distribution channels they could sell directly to their customers. Once they entered in an emerging market they started opening manufacturing plants. For instance they had d a joint venture with a Chinese company Putian, opened a manufacturing plant

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