microsoft word - summary of the case pdf
TRANSCRIPT
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Sum m ary o f t he case Nok ia i n
China
This case talks about how Nokia has developed their brand
in the country and became the leading company in China. In
china Nokia was facing the competition not only from
domestic player like TCL, Ningbo bird company etc but also
from foreign player like Motorola, Samsung, sony ericcsion.
In the year 1992 china market was not very attractive forinvestment. But till 2000 it has shown huge growth and
became the leading market for investment in mobile.
Nokia enters in china market as joint venture with domestic
company capital group to form Beijing Nokia mobile
manufacturing Ltd. It became the first company who was
manufacturing GSM mobile and equipment in large scale. It
established 50: 50 joint venture in 1995. Nokia had
launched its first mobile phone NMT 450 in 1986. It has
launched its first GSM mobile phone in 1991. In 1997 Nokia
entered in another joint venture with Fujian PTA to
strengthen its position in Chinese market.
Nokia expanded its market with one more joint venture with
ChonQing telecommunication bureau and ChonQing PTAC in
1998.In the same year its revenue was $2billion. It has
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invested $1billion in R&D. It was highest investment by any
company.
Nokia established an R& D centre in Hangzhou for 3G
technologies. It has also established Xing wang industrial
park in collaboration with Chinese government in Dec
2001.The park would be enable Nokia to Manufacture
handsets and other products with the collaboration with
other companies across the globe. It will help in strengthen
its position in china as well as in the world.
In 2001 Nokia has planned to manufacture CDMA phones in
china while its competitor were already involved in the same
business. In the same year Nokia has launched new cell
model 3350 which was designed in china. In this year Nokia
achieved the revenue $3.01 billion.
In 2002 Nokia has launched another handset model 3610. It
was for Chinese people only. In this year Nokia established
the joint venture with Digital china to sell the 9210c modelthrough its outlet. In this year the competition was very high
because domestic players have launched low price mobile
and some South Korean and Japanese were planning to
enter in to Chinese market.
In 2003 its market were declined. Then Nokia has improved
its distribution strategy, launched CDMA phones and planned
to consolidate its 4 joint venture in to single company. In2004 Nokia became themarket leader.