Methodology and Growth Strategy of Nokia

Methodology

The entry of Nokia in the Chinese market, as established in the earlier parts of this paper, will inevitably encounter intense competition in the area of handheld personal communicators. Brands, both local and foreign, implement their respective strategies which vary from product differentiation to cost leadership. Drejer (2002) However, one must also take into account the fact that Nokia, being the forerunner in the telecommunications industry tend to have an advantage with its brand’s reputation and evident popularity. The earlier parts of this paper discussed the different strategies of the company in its entry and operation in China’s market. First of all, the company have to establish the marketing mix that they anticipate in China. (Fuller 1999) This way, they can maximise the returns of their investments with minimal loss. Along with this endeavour, ascertaining the environment of the market on which they intend to penetrate should fit their general marketing objectives. To ensure that the Nokia will find ways to adjust to the Chinese market, market research will be required. (Baines and Chansarkar 2002) Specific methods like market segmentation and addressing the behaviour of consumers particularly the target market of Nokia. Lastly, the company will also have to contend with its competitors. (Beal 2000) As maintained earlier, the competition is expected to be intense. Thus, a strategy fit for this market would be akin to product differentiation so as to deal with the subtle changes in the behaviour of the market. Seeing as the methods of entering the market has been specified, it is also important to highlight the need of the company to sustain development and ensure that growth will take place in their venture in the Chinese market.

Growth Strategy

Established in the earlier claims, Nokia is a well-known brand, possibly one of the most recognisable names in the mobile phone industry. However, the presence of competitors tends to pose a consistent threat to their overall market share. Thus, Nokia is not exempt in finding a way to leverage their assets and existing people to sustain a consistent trend of growth and development. The following highlights the proposed growth strategy of Nokia in China.  

Integration of Human, Technology and Process

Nokia realises that its three main assets lies with its people, its technology, and the processes that they possess. This basically points to the fact that Nokia is involved in an industry where companies have to deal with rapid growth rates. This means that they have to develop a means to promote business development by maximising the assets which they possess. In addition, the end-users of Nokia products are not the sole consumers of the company. Distributors, direct sellers and sales managers are also considered as a major contributor to the overall sales of Nokia. Thus, they should also be treated as customers. Development and growth is ensured provided that Nokia applies advanced processes like Customer Relationship Management (CRM) and other reinforcement implements. (Hayes 2006)

Placing Value in Sales

The modern consumer is wise; at least that’s what Nokia have to presuppose in order to make the most of the market. Nowadays, manipulative and scheming marketing techniques may not work as effectively as before. Nokia thus have to establish a means to add value on their product as perceived not only by their consumers but also by their overall stakeholders. Quite frankly, the items sold under the Nokia brand name do not come cheap. Hence, selling of their products should be based primarily on a value-based approach. (Fletcher and Smith 2004) Instead of letting the high price of the product linger in the minds of the consumer, the company have to deal with it by giving the public the idea that they are indeed getting their money’s worth. This only means that the company have to closely monitor their positioning and the delivery of business value in the Chinese market to establish a firm trend of growth.

Specifying Job Roles

Aside from focusing on the marketing side of the growth, Nokia have to deal with the internal environment. Basically this is done to ensure that the company itself is capable of accomplishing what is required of them by the market. Do the personnel have the skill required? Do the sales teams have the knowledge and the tools to address the concerns of the consumers? These are mere parts of a series of questions that need to be addressed in order to level out and integrate the systems of operations and sales of Nokia as well as to minimise the possibility of conflict within its operations. In doing so, the internal and the external environment of the company will be well-managed, hence ensuring growth.

 

References

Baines, P. and Chansarkar, B. (2002) Introducing Marketing Research. New York: Wiley. p18

Beal, R. (2000) “Competing Effectively: Environmental Scanning, Competitive Strategy, and Organizational Performance in Small Manufacturing Firms.” Journal of Small Business Management. 38(1), 27.

Fletcher, H. and Smith, D. (2004) “Managing for Value: Developing a Performance Measurement System Integrating Economic Value Added and the Balanced Scorecard in Strategic Planning.” Journal of Business Strategies. 21(1), 1.

Fuller, D. (1999) “Marketing Mix Design-for-Environment (Dfe): A Systems Approach.” Journal of Business Administration and Policy Analysis. p309.

Hayes, M. (2001) “Get Close to Your Clients: You Already Have CRM Capacity. Now Put It to Work.” Journal of Accountancy. 201(6), 49.

 

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