nokia product line management analysis - presentation
TRANSCRIPT
Product Line Management Analysis
By : Swapnil Deole, Marie PutriDecember 2011
What is Nokia?
Nokia is About Connecting PeopleIt is the world's largest manufacturer of mobile phones.
Offers much more: mobile devices and solutions for imaging, games, multimedia, mobile network operators and business.
Headquarter : Espoo, Finland
What is Nokia?
• Market share as 23% in the second quarter 2011
• Over 132,000 employees in 120 countries, sales in more than 150 countries
• Around 220 different phones (till 2011)
Source : http://darlamack.blogs.com
List of Nokia Product Family
Nokia 1000 series – Ultrabasic series
Nokia 2000 series – Basic series
Nokia 3000 series – Expression series
Nokia 5000 series – Active series
Nokia 6000 series – Classic Business series
Nokia 7000 series – Fashion and Experimental series
Nokia 8000 series – Premium series
Nokia 9000 series – Communicator series (discontinued)
List of Nokia Product Family
Nokia C series - affordable series (optimized for social
networking and sharing)
Nokia Eseries - enterprise-class series (business-
optimized smartphones)
Nokia Nseries - advanced smartphone series (with
advanced multimedia and connectivity features)
Nokia Xseries – for young audience (focused on music
and entertainment)
Product Line Strategy
Starting since 1994, Nokia :• created global platform, GSM 900 platforms
(2110, 8110 and 6110) – GSM 900 and 1800, primarily in Europe and Asia– 1900 MHz and TDMA 800, primarily in US and
South America– PDC (Personal Digital Cellular), primarily in Japan
Product Line Strategy
• Introduces lots of product in a short time
• Emphasizes aesthetic design, user interface and software features
• Use common designs across standards
• Concise Architecture-documents
Product Line Strategy
Source : J. Funk. Global Competition Between and Within Standards: The Case of Mobile Phones.
Advantages
• Effectively covers various price segments while maintaining lower development cost
• Improves efficiency to further development and manufacturing of products within each series
• Changes the competition from a single market to global level
• Creates a strong brand image, enables it to set prices that are based more on customer value than on cost
Excellent, but not enough
Problems
• Nokia products are not reaching intended customers, a clear mismatch between the product and its customer
• Variability needs in software are constantly increasing because– variability moves from mechanics and hardware to
software– design decisions are delayed as long as economically
feasible• ‘Here is a phone. Do you want it?’
Problems
• Victims of success: broadening scope of product families– Convergence leads to broader set of products– Success leads to unrelated products to be included in the
family• Too many products– The wide product portfolio results in customers being
thinly scattered across each product line• Buyers bargaining power is high– More choice of products with very limited differentiation– Elastic demand, buyers can delay buying new models
Solutions
• Focus on increasing the user satisfaction index
• Release less products but hit bulls eye
• Learn to know better about customer’s evolving tastes, needs and requirements
• Hierarchical Software Product Family
• Composition-Oriented Approach
Hierarchical Software Product Family
Hierarchical Software Product Family - Example
Composition-Oriented Approach
References• Bosch, Jan. Software Product Families at Nokia. Nokia
Research Center, 2005.• Funk, Jeffrey. Global Competition Between and Within
Standards: The Case of Mobile Phones. London, Palgrave, U.K., 2001.
• Funk, Jeffrey. The Product Life Cycle Theory and Product Line Management: The Case of Mobile Phones. 2004.
• http://www.janbosch.com/QoSA-Keynote0606.pdf• http://en.wikipedia.org/• http://www.slideshare.net/merragun/nokia-strategy-
3763661• http://www.nytimes.com/2009/10/19/technology/
companies/19nokia.html
Thank you