Nokia’s skyrocket speed to extreme growth and market dominance is attributed to the proficient leadership of it’s former CEO. Undoubtedly, Nokia has gone a long way up the ladder of success and perhaps it will continue to dominate the emergent world markets in the future. But the assurance is low as diversity seems to divide focus on the priority of the company. At present, its line of products may be interrelated to one another and its R&.D continue blazing trails in the industry as Nokia still enjoy dominance. Its products now include all-in-one mobile phones, with camera, music, and even games. With the upward improvements and constant industrialization of other countries worldwide, specifically in Asia, much is still left to be desired. Nokia’s dominance might one day be threatened. No one knows. It all remains to be seen. The company needed to restructure and have a place for the different segments and organized the company into four main segments: electronics. cables and machinery. paper, power, and chemicals. and rubber and flooring. It was also granted from the Finnish government an allowance to have greater foreign ownership, and this allowed Nokia to expand into the global empire it is today. It continued to make innovative new products, especially in telecommunications and introduced a mobile phone that included phone, data, Internet, email, and fax services. The latest joint venture that Nokia will be entering is to join its network equipment business with Siemens Company.
Nokia is doing very well worldwide but is behind Motorola in the US market. Nokia products are sold through carriers like Cingular and T-mobile and that makes them vulnerable. However, Nokia sales totaled $54,247,951, 453 in 2006 so they are still doing very well overall. Their phones are sold all over the world and they are a presence in developing markets such as Africa and India. Nokia is currently very focused on India as the country is seeing a big increase in mobile phone usage and they are expecting to have India become their second largest consumer by the year 2010. They appeal to consumers of all price ranges from basic mass-market phones, to mid-market color and camera phones, and to the high-end exclusive phones.
The economy does not seem to have much of an effect on cell phone sales because it is becoming more of a necessity to have a mobile phone than a luxury. However, they may be a small drop in sales for the lower-end consumer with the increasing cost of living and gas prices. Phones are getting more advanced and Nokia even has mini tablet computers to help you get work done on the go and the majority of people will still need to replace phones when their old ones get broken. It is cheaper today to get a cell phone than to have a landline and you can be reached anywhere you are.
At present, Nokia remains to be the leading cell phone manufacturer in the world however, it has lost ground in the United States. Currently, it holds a secondary position in the U.S. market tailing behind Motorola which owns the 32% of the market (Motorola doubles Nokia in US market share in 2006). This shares reduction has Nokia changing its views on the cell phone and is moving to design new and better cell phones to compete with the popularity of Motorola lines of phones. They are still a big contender as Nokia pushes new high-end lines of phones but also increasing their strategy by introducing cheaper phone in to the low-end market.
The net sales for Nokia in 2006 grew 20% and totaled 54,247,951,452.80 (converted from Euro at current rate of 1.32090) (Quarterly and annual information.2007b). This has allowed Nokia to increase its sales from 32% to 35%. In a separate report independent from Nokia, a group called Strategy Analytics researched that Nokia’s market share was 33% in the global market, which is the highest of all the mobile phone companies. Its closest competition was Motorola, trailing behind at 20%. Nokia has the money and clout to continue having a successful