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CONFIDENTIAL;OVERVIEW OF COMPETITOR ANALYSIS FRAMEWORK;KEY ISSUES TO PROBE - NOKIA;BACKGROUND INFORMATION;;STRATEGY;NOKIA POSITIONS ITSELF AS A LEADING PRODUCT AND SYSTEM SUPPLIER IN THE FAST GROWING MOBILE COMMUNICATION INDUSTRY;NOKIA HAS CAUGHT UP WITH MOTOROLA AS MARKET LEADERS IN MOBILE HANDSETS SINCE 1999;UNLIKE ITS COMPETITORS, NOKIA’S MARKET SHARE IS THE SAME AMONGST NEW AND REPURCHASE BUYERS;AMONG REPURCHASERS, NOKIA’S CHURN RATE IS HIGH, BUT AT PAR WITH MOTOROLA ;PRODUCT/MARKET;Nokia has a narrow product portfolio focusing on mobile communication products, and mobile handset is Nokia’s key product offering
Nokia offers consumer-oriented handsets with emphasis on designs and functions, targeting medium and low end customers. Its main customer segments are the young and fashionable
Nokia’s fashion phones are relatively strong in major cities and the south region; however Nokia is relatively weak in the fourth-tier cities
;;NOKIA EMPHASIZES ON CONSUMER-ORIENTED DESIGNS AND FUNCTIONS;;Tier 1; Source: Retail Audit, McKinsey analysis;VALUE CHAIN STRATEGY;Nokia is not regarded as a technology leader, as compared with Motorola; however, it spends a great amount of effort in understanding customer requirements and tailors its product to meet these requirements.
Nokia employs PTAC, CellStar, Beijing Telecommunication Equipment Factory, Bright Point, Express Fortune, and Tech Glory as the first-tier resellers to distribute handsets through authorized stores and counters. The distribution channels are relatively flat.
While its retail shops are growing rapidly to approximately 900 around the country, Nokia also develops exclusive specialist shops in order to provide “one-step” solutions to end users
Nokia implements a highly efficient customer service system with 250 service stations and mobile service stations for rural areas. It provides good pre- and after sales service
;NOKIA IS STRONG AT MARKETING, SALES AND SERVICE, BUT WEAK AT TECHNOLOGY;….on Nokia;NOKIA DISTRIB
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