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The Analyst Magazine:
Nokia's Strategic Dimensions
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The world's leading mobile phone maker and the vendor of telecom equipment, Nokia, lost its market share rapidly in early 2004. The erosion of its market share is a direct result of the aggressive product strategies of its rivals, Samsung and Motorola. Nokia was slow in responding to the growing demand for clamshell handsets. There were gaps in the mid-to-high-end range, aggressively catered by its rivals. However, the immense market popularity of clamshells was initially unexpected. Its slow response to its competitors in terms of advancement in technology is also attributed to its weak presence in Japan and Korea, where the sophisticated demand originates. To regain its lost market share, Nokia is strengthening its product portfolio with more clamshell designs. Nokia's strategy to capture the low-end market has been fruitful over the years.

Nokia's strategy to capture the low-end market has been fruitful over the years. However, the real margin comes from mid-to-high-end segments. Its strategy focusing more on the customer rather than on the operator, has also affected its market share and profitability. Focusing on the end-usercustomerenables to understand customers' needs and quicken market response time.

The slow market response for clamshell phones can be attributed to Nokia's position as the market leader, which has long been a trend-setter of the mobile phone industry. It has originally revolutionized the mobile communication tool into a fashion accessory. Unlike the other players, Nokia is not a market follower. Instead, it dictates and sets fashion trends with its own product designs and innovative marketing strategies.

 
 
 

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