Nokia Connects: A Case study Alyssa Crowder Bus 302 Professor Day 4/27/10 What are the opportunities associated with being first into a major new country market? What are the risks? There are many benefits of being the first company to introduce your product on the market in a new country. One advantage would be gaining sales and popularity, by introducing your brand new product. But before they decide to launch their product in a new country, the company needs to research the target market, the country’s sales trends, the competition, what type of competition is in the surrounding area and the type of products they are selling.
After they need to make judgment calls, incorporate strategic business plans on how to attract the target market to their new product. This plan should also include strategies on how to effectively advertise your product. A way for a company to shine would be by introducing a brand new never seen before product. This would catch the customers’ attention and it shouldn’t be difficult attracting sales through popularity. By selling an attractive product, one that has good quality and a reasonable price, this new brand would be exciting and new to the customer.
Your company should never slack or stop inventing new ideas and never underestimate the competition because at any time they could come up with a brand new concept that can blow your sales away. Also, if your product is successful, business opportunities could be offered to you such as; people wanting to invest in your stock or company. Some risks you could take when you introduce your product in a foreign country would be failing or not as prospering as well as it would in the US.
The company needs to adapt to the countries needs, social lifestyle, customs, culture or manners. Also, the price for the item may be too high for the country’s economy and sales could be low due to the lack of demand of that product in that certain country. That is why it’s very important to research your prospective country because without so your business may be a failure. What are the threats associated with being late in entering a major new country market? When your business enters a country late with your product, you may have a few obstacles to get through.
One, the competition will be much harder. You are now competing against already established companies and it may be difficult establishing your name and reputation. Your sales may also be sluggish because of the competition. The threats would be the already established competition, including prices, features and styles of their product. It may also be tough to attract customers to your product because of the language and cultural barriers. What are the advantages to being late in entering a major new country market?
Although, you may have entered the country’s market late, this could also work to your advantage by giving you time to research the target market, demographics, tastes, spending habits, how much in demand is that product to that country and what location sells the most products. By doing research, it could give you a good idea on how to make your product sell better. If your product features exciting, amazing breakthrough technology or a brand new feature that has never been seen before, consumers will flock to your product.
If that company is already established in that country and is successful then you can expand your sales by adding another location. For example, India is among the world’s fastest-growing markets for mobile phones and their leading phone company is Nokia, (Opp papers) According to Robert Andersson, Senior Vice-president, Nokia Mobile Phones Asia Pacific, states, “We see a great potential for the continued growth of mobile telephony in India where mobile penetration is relatively low.
As the leading brand in mobile communications in India, Nokia will continue to deliver products which cater to the needs and preferences of Indian consumers. ” (icmrindia. com) How can a company help its product compete effectively in a growing market? A company can compete effectively in a growing market by always keeping up with trends, current times and adapting your product to the competition. Your image and product should constantly and consistently change; including offering different styles of your product.
For example, if a cell phone company features web surfing 2xs faster than your phone product, you should incorporate a phone that can surf 3xs faster. If the newest fad is polka dot cover gels then you should offer that design and more. Your company will have to come up with a breakthrough strategy in order to catch the attention of consumers. You can do this by a brand new line or a catchy look, something that will attract the target market, draw them away from the competition and buy your product. Another way to compete effectively with your product is to choose a location that would be prosperous.
Research the demographic area to find out what where the most sales occur, in rural areas? In the mall? For instance, 81 percent of the India’s mobile users are in urban areas (Strayer). Establishing a new cell phone company in this area would be prosperous. Also, adapting your company’s product to the needs and languages of the customers is beneficial. For example, Nokia introduced Chinese-specific phones in China which featured Chinese symbols and software. Other ways to compete effectively is to beat or keep up with the competitor’s prices by being reasonable or cheaper.
Your company should not make an item that has all the same features as your competitor but sell at a higher price. Your company should think of new features, new innovations, and offer high quality products. Introducing a flashy name for your product is effective because consumers are more attracted by names that describe features, for instance, the success of the MotoRazr and MotoSlvr phones by Motorola, indicates this. (merinews. com. ) To keep a competitive edge, a company may have to revamp their image, introduce new features, and incorporate new advertising techniques in order to keep up with the competition.
Sources Nokia’s Strategy In India. Retrieved April 27, 2010 from http://www. icmrindia. org/casestudies/catalogue/Business%20Strategy/BSTR174. htm Nokia- Marketing Strategy in India. (2010) Retrieved April 27, 2010 from http://www. oppapers. com/essays/Nokia-Marketing-Strategy-India/186561 Nokia’s marketing strategy: A need for change. Retrieved April 27, 2010 from http://www. merinews. com/article/nokias-marketing-strategy-a-need-for-change/124478. shtml Contemporary Management. (2009) The McGraw-Hill Companies, Inc. p 223