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Limited access to computers led to mobile phone Acquisition of Navteq Corp. for navigation
growth purposes
Pre-paid model more prevalent because of no credit 3 distinct platforms for different price
requirement points
Concept of reverse bundling in emerging
markets 55% revenue from low-end markets
Market Market
Markets Markets
Leaders Leaders
Criteria Developed Markets Emerging Market
Disposable Income High Low
Mobile Penetration High Low
Tie ups with service Forward Bundling Reverse Bundling
providers
Payment Plans Mostly Post-paid Mostly Pre-paid
Buying Pattern Mostly replacement Mostly new handsets
Nokias Market Share Low High
Strategy followed for Emerging Markets
High market share in
basic phones market
hence incremental cash
flows
Low manufacturing cost
due to mass production
Standardized parts and
postponement of
customization to the
later stage
Price sensitive market
Focus on low cost &
specialized innovations
like dust resistant
keypad, FM, flashlight
etc
Loyal customer base to
sustain the basic phones
market
NOKIA in Emerging Market
Product tailored to Low Priced Phones
local conditions Redesigned logistics
NOKIA 1616 & production process
New Product Service for price reduction
relevant to the Very less price as
market compared to
Life tools developed markets
Nokia Money
Strategy
Transnational
Pressure for cost reductions