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This statistic shows the global smart phone market share held by Nokia each quarter from 2007 to 2013. In the third quarter of 2007, Nokia’s market share was 48.7 percent. By the third quarter of 2012 the company’s market share had slipped to just 3.5 percent. Nokia is a Finnish company head-quartered in Espoo, Finland. The company has a long history dating as far back as 1865 and first began developing what would later be modern mobile phone technology in the 1960s. The company has previously been a very strong competitor in the mobile phone and telecommunication market. While the company has struggled to maintain a significant share of the smart phone market, and has also recorded multiple losses in recent quarters, when it comes to feature phones, the company does maintain a relatively secure share of the market when compared to other vendors. The company also continues to perform well in the Asia-Pacific region as well as in the Middle East and Africa were they have previously recorded the greatest sales. Across the North American market however, the company has recorded very poor sales. Previously Nokia used the operating system Symbian for its smartphones. Until 2010, Symbian was, performing well in the global market but has since been overtaken by the very dominant Android system and also Apple’s iOS. As of February 2011, Nokia made the announcement that they would be switching to the Microsoft Windows OS. The company was hoping to be able to make a comeback in the smart phone market with the adoption of the Windows operating system. In 2012 however, sales saw another decrease when compared to the previous 2 years. The Windows mobile operating system did not prove to be popular and market share slipped further. Even after Nokia’s high-profile acquisition by Microsoft; the market share of the brand still remains at a dismal 3 percent. With reference to the above:(a) Explain any five uses of Product Life Cycle to a business enterprise like Nokia. (b) Explain the various steps taken by Nokia after 2010 to improve the brand image. (c) What are the promotional activities that can be undertaken to increase the market share of Nokia?

Answer»

(a) Uses of Product Life Cycle: 

1. When the product life cycle is known the firm can prepare an effective product plan. 

2. Management can take advance steps before the decline of the product. 

3. The maturity stage can be extended by finding new uses of the product. 

4. Technological innovations can be adopted to improve the quality, features and design of the product. 

5. Product life cycle points out the needs for significant and periodic adjustments in the marketing strategy or marketing mix of the firm. 

(b) Steps taken by Nokia: 

1. After 2010, Nokia switched to the Microsoft Windows OS from Symbian operating system. 

2. Nokia sell its acquisition to Microsoft to improve its brand image. 

(c) Nokia can adopt following promotional activities to increase its market share: 

1. Exchange Offers: Company can announce the exchange of an old mobile phone with a new mobile after payment of a specified amount. 

2. Price-off offers: Company can offers modern and new products at below the normal price. 

3. Prize Contests: Company can announce prize for dealers, salesman, customers, distributors under various activities.



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