And that brings us to a most critical question – what ails Nokia? As Rajiv Kochar,
Telecom Analyst, Avista Advisory Associates states, “The problem with Nokia is that a lot of complacency has now crept in. The younger generation is not finding Nokia that attractive...” Yes, with increasing competition & the replacement ratio for handsets shooting up to 20- 25% during 2006 from 8-10% during 2003-04 (with nearly 8 million sets replaced during 2006), ‘innovative and radically new’ introductions are the need of the hour. Then there is the low-handset market, which Nokia thrived on (with its Nokia 1100, 1110 et al), which it is fast growing oblivious of as Rajiv Kochar believes, “Nokia is losing its focus on the entry-level segment while Motorola & LG are providing products at much lower prices.”
However, the Finnish giant’s recent launches
of seven new handsets in the lower range of Rs.1,700 to Rs.4,500 clearly show that it is now trying hard to gain back the lost ground to Motorola, who has made huge strides in the sub-Rs.2000 category, and many others who somehow make a dent in this space with low-priced product strategies, the most recent one being the Rs.777 handset launched by Reliance Communications. So considering the ultra-low 14.3% ‘mobile’ tele-density (as on March 31, 2007) and with vast untapped space, the giant has to be wary of its worst enemy – complacency. And that’s because the Indian market isn’t the ‘evergreen pasture’ it used to be.
Telecom Analyst, Avista Advisory Associates states, “The problem with Nokia is that a lot of complacency has now crept in. The younger generation is not finding Nokia that attractive...” Yes, with increasing competition & the replacement ratio for handsets shooting up to 20- 25% during 2006 from 8-10% during 2003-04 (with nearly 8 million sets replaced during 2006), ‘innovative and radically new’ introductions are the need of the hour. Then there is the low-handset market, which Nokia thrived on (with its Nokia 1100, 1110 et al), which it is fast growing oblivious of as Rajiv Kochar believes, “Nokia is losing its focus on the entry-level segment while Motorola & LG are providing products at much lower prices.”However, the Finnish giant’s recent launches
of seven new handsets in the lower range of Rs.1,700 to Rs.4,500 clearly show that it is now trying hard to gain back the lost ground to Motorola, who has made huge strides in the sub-Rs.2000 category, and many others who somehow make a dent in this space with low-priced product strategies, the most recent one being the Rs.777 handset launched by Reliance Communications. So considering the ultra-low 14.3% ‘mobile’ tele-density (as on March 31, 2007) and with vast untapped space, the giant has to be wary of its worst enemy – complacency. And that’s because the Indian market isn’t the ‘evergreen pasture’ it used to be.For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Read more:-
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