Nokia's Strategy in India

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Case Details:

Case Code : BSTR174
Case Length : 19 Pages
Period : 1998-2005
Organization : Nokia India
Pub Date : 2005
Teaching Note : Available
Countries : India
Industry : Telecom

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Nokia - Made in India Contd...

One, that its strategies - including ones like developing a phone specifically for India - are respected. But, more importantly, Nokia's win is also an endorsement of the importance of the ubiquitous cell phone as a durable in today's world. After all, unlike its competitors, most of which offer a slew of durables, Nokia is mostly a cell phone company."7

In 2005, Nokia was recognized as the 'Brand of the Year'by the Confederation of Indian Industry, India's apex industry association. The company was chosen for this award because of its high brand recall, well established distribution channels and being 'most preferred' by the consumers.

Enamored of Nokia's success in the Indian market, Harvard University had invited Nokia India to talk on 'How Nokia cracked open the Indian market?'

The Indian Mobile Phones Industry

The mobile phones industry made a slow start in India in 1995. Several private players who had entered the industry in 1995 exited in the next few years due to the unfriendly telecom policies of the Indian government, high licensing fees and absence of a proper telecom regulatory body. The growth in the subscriber base of mobile phones remained sluggish initially, reaching the 1 million milestone in 1998. In 1999, the Government of India announced a new telecom policy. This policy planned to provide telephones on demand by 2002.

Among other things, the policy allowed unrestricted private entry into almost all mobile service sectors. The government allowed cellular mobile service providers to share infrastructure with other operators. It also allowed existing operators to migrate from fixed license fee to one-time entry fee with revenue sharing. This policy helped many private operators to break even faster. By 2001, the demand for mobile services was growing well. The private companies concentrated on providing basic telephone services to consumers. The number of mobile phones crossed five million by 2001 and doubled to 10 million in 2002...

Excerpts >>

Case Studies | Case Study in Business Strategy

7] DN Mukerjea and Rajeev Dubey, "The Changing Face of Respect,", November 08, 2004.


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