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... products over the past 10 years. This is felt an important commodity in today's highly technical mobile communications market. SUPPLIERS Industry relies heavily on the development and performance of electronic components for a variety of technological products. Many manufacturers have the expertise and experience to produce the components for the mobile phones. The bargaining power of suppliers is not strong however it is common that the company will have preferred manufacturers through previous projects and reputation.
The industry is an important and rewarding industry for the component manufacturers due to the popularity of the final product (mobile phones). As a large number of phones will be produced this enables high value contracts for the supply of reliable components. Further to component suppliers are the tariff operators the phone will eventually operate in conjunction with. At present there are five major tariff operators expected to support the 3 G mobile phone. Although it is necessary to continue good relationships these companies do not have strong bargaining power. Their future 3 G business somewhat relies on supporting mobile phones the public desire, as Nokia 3 G will be the first launched tariff operators are not expected to be in a strong bargaining position.
SUBSTITUTES Landline The use of a landline is cheaper and in some cases clearer and BT have a begun to provide more public telephones specialising in cheap rate local calls to other landlines. Maybe a change in calling trends could be created however no additional threat to the trend of owning a mobile phone is expected from this development. Email With access to a mailing service Email is efficient and in common use. However this does not have the same convenience as a mobile phone. In addition the 3 G mobile phone will enable mobile internet connection whereas an installed terminal has to be used at present Overall the trend for owning a mobile phone is not going to be affected by the outlined substitutes. It is possible the usage of these phones could be affected however this will not prevent purchases of the product.
BUYERS The buyer population is strong and mobile phones are a desired commodity. As the attitude has moved towards owning mobile phones a high proportion of the UK population now own a mobile phone, it is understood 70 % of adult population own or use a mobile phone. Therefore there are few new people to come into the market place. With these factors the buyers have a lot of choice when purchasing a mobile phone that most suits their needs and taste. Any new mobile phone has severe competition from the market place.
INDUSTRY COMPETITORS Nokia's competitors are companies which are relatively equivalent in size, experience, financial backing and mostly with good reputations. These companies siemens, KKKK. are also expected to be launching 3 G mobile phones towards the end of 2003 and during 2004 creating intense rivalry in the market place. As the mobile phone market is close to reaching saturation point industry growth has slowed considerably.
The 3 G mobile phone is a specialist and top of the range device; however this is still an addition to the mobile phone market. All of these points build a strong rivalry within the market place. Objectives and Issues Nokia's business objective is to strengthen the position of leading systems and products provider. The strategic intent, as the trusted brand, is to create personalized communication technology that enables people to shape their own mobile world. Technological innovation allows people to access Internet applications, devices and services instantly, irrespective of time and place. Achieving interoperability of network environments, terminals and mobile services is a key part of Nokia's objective.
Nokia must capitalize on the leadership role by continuing to target and enter segments of the communications market that will experience rapid growth or grow faster than the industry as a whole. By expanding into these segments during the initial stages of the development process, Nokia has been established as one of the world's leading players in wireless communications and significantly influenced the way in which voice and other services have been transferred to a wireless, mobile environment. As demand for wireless access to an increasing range of services accelerates, plans to lead the development and commercialisation of the higher capacity networks and systems are required to make wireless content more accessible and rewarding to the end user. In the process, Nokia plan to offer their customers unprecedented choice, speed and value. Nokia has a history of contributing to the development of new technologies, products and systems for mobile communications.
To achieve Nokia's business objective, strategy focuses on being the preferred provider of solutions for mobile communications; creating personalized communication technology; driving open mobile architecture enabling a non-fragmented global mobile services market; strengthening and leveraging Nokia, the trusted brand; and expanding the business and market position on a global basis. Nokia's aim is to gain the position of preferred provider of products and solutions for mobile communications by providing leading communications networks that enable end-to-end service delivery for both cellular and broadband networks. This includes the development of leading high-capacity cellular networks, platforms and user applications for the mobile Internet, end-to-end broadband access solutions and Professional Mobile Radio systems. Nokia must build on the core competencies in various key areas, including design and product innovations, brand development, and effective demand / supply network management, to bring new product concepts and associated services to market. And to strengthen the leadership position by using the understanding of user needs and the ability to meet and exceed user expectations to provide user-friendly, highly functional personalized products and solutions. Nokia continue to employ open standards in technology in order to promote open competition and interoperability.
The key commitment is to create a global and open mobile software and services market, and aim to do this by achieving strong partnering with customers, suppliers and industry participants, and solid focus on end-to-end solutions in all the development activities. By driving open mobile architecture, the aim is to ensure the introduction of new, interoperable mobile Internet access and visual content downloading services worldwide, utilizing the GSM/GPRS evolution and coming 3 G mobile communications networks adopting WCDMA technology. This is expected to boost innovation from independent software producers as well as provide consumers with a wide and varied selection of competitive, yet interoperable products and services. Strengthening the Brand According to a variety of consumer surveys, the Nokia brand is associated with well-designed, high quality and technologically advanced products and customer services that are also user-friendly. Considerable investments in establishing the Nokia name as the leading brand in mobile communication intends to sustain and enhance the Nokia brand through aggressive advertising, sponsorship and other marketing activities in all of the principal markets. Nokia believe that the leading market position provides significant opportunities to better understand and respond to the usage patterns of end users, and thus enhance the Nokia brand.
Expanding Our Business For more than a decade, Nokia have actively expanded the business globally, and as a result, the network systems, equipment and wireless terminals produced are sold throughout the world. Benefits from strong economies of scale throughout the organization are apparent. The Nokia strategy is to continue the focused pursuit of global business opportunities by cultivating a strong local presence in all growing markets and pursuing partnering and acquisition opportunities in order to obtain complementary technologies and market positions. One of Nokia's top priorities is to continue to strengthen their leading market position in a profitable way, believing that further market share gains are key to expanding their customer base and growing their future business potential.
The leading position also enhances the positive effects of economies of scale, which should strengthen the competitive position in the next generation of mobile communications. Marketing Strategy Introduction As the 3 rd generation of mobile phones made by Nokia is relatively uncharted territory, the marketing strategies adopted by Nokia could "make" or "break" the product. It is essential that all areas of the marketing mix are researched and discussed thoroughly. Each element (Product, Place, Price & Promotion) shall be discussed separately & then brought together & implemented in the action programme section. Product The product in hand i. e. 3 G Mobile phones are not as yet available for sale.
Therefore, the most important factor at the concept/ R& D phase of the product's life cycle is to get the marketing research correct. It is essential that Nokia find out what is important to the customer s that will utilise this 3 rd generation technology. Using questionnaires such as the one shown in the index will give Nokia a helpful insi...
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