The Reasons Behind Nokia’s Decline In The Indian Market And Strategies For Regaining Its Market Share

Reasons for Nokia’s Decline in the Indian Market

Discuss about the Analysis Of Decline Of Sales Of Nokia’s Cellphones In India.

Nokia is one of the earliest entrants to enter the manufacture of telecommunication industry and were once one of the highest selling brands all over the world. However, due to the rapid evolution of technology and the introduction of other new brands into the market, the company has had a persistent decrease in its market share all over the world, inclusive of India. The fall in Nokia’s market share has greatly been linked to its rigidness/ conservativeness or else, its failure to adopt to the rapid changing technology that has characterized the 20^th century. Although the company is still one of the most reputable brand names, it has drastically reduced on the sales made per year. Looking at one of the main competitors that Nokia is facing in the industry include; Samsung mobile, techno mobiles, HTC, LG, black berry, iPhone and itel mobiles among many others (López, Ramos, & Torre, 2010, p.251)

An analysis of the Indian market indicated that there are several specific reasons as to why Nokia’s cell phones sales decline in in the Indian market irrespective of the reputation and trust that people had gained in it. One of the most crucial reasons is the slow adaptation to the current dynamic technology of smart phones. The invention of smartphones greatly diversified the customers experience as it served infinitely many functions. Different applications would be simply installed and thus implied that a customer would customize the phone to whatever interests them. In addition, the invention of touch screen enabled gadgets that so off the manual buttoned phones (Mutahi, & Busienei, 2015, p.700) This made the development of android operating systems to exceptionally stand out in the market and the companies that rapidly adopted to this technology gained a competitive advantage. Samsung and apple optimistically took these advantageous invention and innovation and this explains the reason for their large market share throughout the world. Nokia took a bit longer to diversify and adopt this this technology which made it to lag behind, giving other the opportunity to other big competitors in gain the market share.

Another potential cause identified as one of the reasons for the declines in sales of Nokia cell phones in India was also a poor marketing policy and innovation required for competitive marketing. It is understood that Nokia did not undertake a critical study of the market segment of India so as to exactly adjust to the social-economic and cultural needs of the market population. It is typically important to conduct a critical study a specific market segment to understand the behavior of customers in that particular area. In highly developed countries, consumers/ customers prefer high-end, luxurious or expensive products of high quality and yet it is contrary to less developed countries. The company therefore needed to analyze the type of output that would best fit India since it is still a developing country although it is developing at the fastest rate. This also acted as a blow to Nokia’s performance in the Indian market (Wirola, 2010)

Slow Adaptation to Technology

However, irrespective of the drawbacks that Nokia as a company has experienced in marketing their products in India, there is still substantial opportunity for the company to company to stiffly compete and regain/ widen its market share. This is only expected to be successful if and only if there is optimistic innovation and critical problem identification through critical market research and analysis. From this insight, the study will therefore be based on a critical evaluation of how Nokia can develop its business strategies and market segment study to enable it compete favorably and regain its’ market share in the Indian market (Singh, Motwani, & English, 2008)

Basing on the fact that Nokia had initially been one of the best and most recognized brand names in the telecommunication industry, there are precarious concerns of the reasons as to why it drastically fell in sales from all over the world and India in particular. This creates a basis of the quest for investigation so as to clear draw out/ point out the main issues that caused such phenomenon. In addition, there is need to find the possible in which in which this can be reversed/ overcame in order to have the prestigious and reputable company in the industry again (Kuhfeld, 2005).

As highlighted earlier, there has been a drastic fall in the amount of India cell phones sold in India and the world at large. It is however not certain, the reasons as to why the company tremendously lost its market share to other main competitors of the industry. There is simply anticipations that have been associated with the fall of the company reputation and market share. For this reason, the research study intends to clearly and evidently carryout empirically research to find out how Nokia developed its market within India and the world at large. In addition, having an insight of the structure 0of the Nokia Indian market will help to ascertain the reasons as to why or the possible causes of the fall of the market share (Lusk, & Shogren, 2007).

Furthermore, the study will also use the findings based on critical analysis and evaluation of the data collected to point out possible optimistic strategies that can be undertaken to help in the recapture of clients and generally improving on the company operations. With the aim of bieing more specific and streamlined towards a definite end point of the research, research questions were formed. This is intended to have a measurable outcome of the research study.

Poor Marketing Strategies

RQ 1; what marketing strategies did Nokia company use to enter the Indian market

RQ 2; what are the core reasons as to why Nokia company drastically lost much of its market share both within India and the world at large

RQ 3; in what ways can Nokia company revive back its initial market share and reputation

As a result of reviewing different research literatures reported by other authors, it is expected that the outcome of the review will be of high relevance for the reflection into the company’s weaknesses. Keeping in mind the fact that the study will encompass a comprehensive review of the market entry model undertaken by Nokia when entering the Indian market, the study will provide an insightful and possible weaknesses used for market entry which can further used as a reference point for making appropriate adjustments. Thus, will help in making positive goals for the improvement of performance of the company (Kaplan, & Maxwell, 2005, p.30).

Taking a critical analysis of the study topic, it is absolute that the findings of this study will further be helpful to other companies and business enterprises within the related context of business. Although the study is designed to investigate Nokia performance and market failure in particular, it is also expected that the outcome of the study will/ may be applicable to other companies.

From the academic context, there are currently very many academic practitioners who are studying related management and administrative business. The study output of this research will be of high relevance to them as it will help in establishing a practical understanding of the theoretical concepts that they have studied. In other words, the research findings will help the students have a practical reflection of their ongoing studies and in so doing, will help them to appropriately take up their career positions in the future

In addition, the study will compressively compare the study findings and relative models used by earlier authors in their research. This will therefore help in identifying the possible weaknesses and available research gaps. Thus it will provide a basis for further research studies to be conducted by other researcher researchers (Sievers, & Åkerlind, 2016)

Conceptual framework

Research indicates that Nokia was one of the unchallengeable leader in the production of mobile cell phones until recent when Samsung mobile entered the market in 2012. However, much as Samsung is seen as a final blow to the company, reports have also associated the fall of Nokia to the new marketing strategies developed by apple in 2007. By 2008, Nokia had started experiencing a fall in the market share as it was by then, facing competition from Apple. Later on, the invention of google operating system referred to as “the Android system” so the whole company dissociate as it would not meet the accelerating changes in technology. Critically analyzing this, it is absolute that the sources of threats and downfall of the famous Nokia mobile was as a result of the new entrants into the telecommunication industry. The new firms came with vigorous and persistent rise in technology which Nokia could not meet thus being driven out of market (Oshi, 2012)

Possible Strategies for Regaining Market Share

 Mohammad (2012) also holds the same view that the fall of Nokia is greatly linked to the invention and innovation of companies like Google, apple, and Samsung mobile. The attempt by Nokia to adopt a highly diversified cross industrial models helped it to maintain its operation throughout its time of existence. In 1992, Nokia had over 35 subsidiaries in 10 different industries and operating in over 120 countries worldwide. It is anticipated that the fall of the company was due to the change in business strategy of specializing in mobile cellphones which a compassed stiff competition.  

Tharamba (2018) stresses that Nokia underwent through three transformative sessions, that is to say from rubber, paper, cable and finally mobile phones and from mobile phones to mobile internet. This gives it over one hundred years of business from the time of its establishment in 1865. It is substantially paramount that the first two transformation was positive and played an important role in the development of Nokia and the work as whole. However, the company became unfortunate from the final transformative process of mobile cellphones. The company has not been able to launch exceptional gadgets that would favorably compete with the products manufactured by the new market entrants as high level technology was used. This is greatly linked to the company’s inability to initiate the invention of new technology and innovation of the existing ones (Balmer, 2005).

Onuzuruike (2009) analyzed the mobile internet behavior research on internet and from his findings, it was indicated that over 60% of Nokia mobile phone user by then were planning to buy smartphones, of which over 40% preferred the android operating system while approximately 25% were planning to buy IOS.

A research by Hussein, A., & Gadelius (2012) relates the downfall of nokia to the various threats that the company has suffered which included the 10,000 layoffs that occurred on 15^th of june 2012 and this lured the Nokia to sell the company mobile business to Microsoft in 3^rd 2013

From the preceding literature review, the subsequent hypothesis can be developed to help in further making the research study more specific and measurable

Hypothesis 1	H 0; Nokia used the right market entry model when entering the Indian market H 1; Nokia used a wrong market entry model in entering the Indian market
Hypothesis 2	H 0; Nokia products were more expensive as compared to the prices of the cellphones sold by the new market entrants H 1; Nokia cellphones were less expensive as compared to the cellphones of the new market entrants
Hypothesis 3	H 0; Nokia employed the best and latest technology in the manufacture of its cellphones as compared to its new entrants and competitors H 1;Nokia employed a poor and backward technology in the manufacture of its cellphones as compared to the its competitors and entrants
Hypothesis 4	H 0; Failure of Nokia company to rapidly integrate the smartphone technology caused a fall in the market share H 0; Failure of Nokia to rapidly and firstly integrate the smartphone technology did not affect its market share in any way
Hypothesis 5	H 0;Nokia can still regain its market share in india and the work if the appropriate criterion is used H; 2 Nokia can nolonger revive its market share as it was before even irrespective of the marketing criterion that may be used

The research study will make use of qualitative research method. In reference to the recommendations made by most researchers in the recent years, it has been empirically proven that qualitative research method provides the most appropriate, reliable and dependable results more especially for in the fields of management and business context. This is based on the fact that the research model provides a room for descriptive and subjective judgment based on the study findings. Although the study will capitapitalize on qualitative research approach, it is important to note that the use of basic quantitative methods for the measure, comparison and correlation of findings from different sources (Gummesson, 2005, p.320).

Research Questions

The research approach makes use of different research findings presented by earlier researchers with the aim of developing hypothetical/ tentative statements which are meant to be answered by the end of the research. In other words, the hypothetical statements have not empirically proved but rather just anticipated statements developed from the available literature related to the topic of study.

Population

To help in making the study findings more specific to the goals of study, the proposed data collection will focus in a specific population. This will mainly be large and reputable companies that have been in related business to quiet a longer period of time. For diversity, new entrants of the industry may also be added.

Sampling;

Systematic sampling absolutely stands out as the best for the prevalent research study. Since the researcher is aiming at getting information from a specific source, Nokia company India for instance, it is substantially important to be selective in the type of research participants selected. In particular, the study will chose sources with reliable information regarding the entry model used by Nokia and marketing segments employed by the company in India.

Variables and analysis techniques

Drawing back to the research objectives, it was intended to explain the core reasons as to why Nokia Company in India and the world at large has drastically declined in its sales. Therefore the variable of the study included a fall in the market share, technological adoption and marketing segment criteria undertaken by Nokia this therefore is related/ reflected in the research questions listed earlier.

The research study is organized in a logical way in that there are successive steps. This is as follows;

Chapter one proposes the research topic to be undertaken and this is in reference to the assignment

Chapter two gives a detailed information regarding the conceptual framework of the study as reflected from the literature reviews

Chapter three gives a detailed methodology used in the research execution. When conducting research study, a specific research study is chosen in compliance to the research aims and objectives

Chapter four entails a critical analysis, evaluation and reporting of the final research findings as analyzed from the sources. This phase involves subject and objective mind of the researcher to avoid biasness of the report.

Finlally, the final phase of the study will be developing implication of the research findings on a real world error. Furthermore, recommendations will be made at this phase based on the weaknesses, gaps, strengths and opportunities identified during the study and analysis.

Academic and Research Significance

For the research to be effectively conducted, there is need for efficient allocation of the funds.  The total available funds for research is $2500 and must therefore efficiently be allocated. This will be as follows

Project activity	Estimated amount to be spent $
Identification of the research problem	500
Purchasing of the research requirements	600
Conducting a literature review	700
Research analysis and reporting	600
Total estimated expenditure	2400

Task Mode	Task Name	Duration	Start	Finish	Predecessors
Auto Scheduled	the identification of reseach problem	5 days	Thu 7/19/18	Wed 7/25/18	2
Manually Scheduled	planning purchase of the requirement for reserch	6 days	Wed 7/11/18	Wed 7/18/18	3
Manually Scheduled	reviewing of important and related literature	15 days	Fri 7/27/18	Thu 8/16/18	4
Manually Scheduled	data collection process from various sources	10 days	Tue 8/7/18	Mon 8/20/18	5
Manually Scheduled	analyzing and evaluating the findings	7 days	Wed 8/15/18	Thu 8/23/18	6
Manually Scheduled	submission of the final report	3 days	Fri 8/10/18	Tue 8/14/18

 

References

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Hussein, A., & Gadelius, W. (2012). Value Creation or Value Destruction? An empirical study of Nordic firms acquiring targets within the BRIC countries.

Kaplan, B., & Maxwell, J. A. (2005). Qualitative research methods for evaluating computer information systems. In Evaluating the organizational impact of healthcare information systems (pp. 30-55). Springer, New York, NY.

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Onuzuruike, E. (2009). Telecom infrastructure sharing as a strategy for cost optimization and revenue generation: a case study of MTN Nigeria/Zain Nigeria collocation.

Oshi, T. (2012). Innovation performance, policy, and infrastructure: a comparison of Japan and the US (Doctoral dissertation, Massachusetts Institute of Technology).

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