At present the market share of Nokia in India is about 62% followed by Samsung . Nokia is at present losing the price war against companies like fly where in they are selling the mobile set with connection for just Rs.800. whereas Nokia’s starting model is priced at Rs.1500.
Nokia is losing out in the most attractive market in the Indian context the rural market.
Nokia has for long dominated the handsets segment and this is probably among the few industry segments where the market leader has had such a huge market share.
Even as companies work on their distribution, they are also bringing handset manufacture closer home. Nokia recently had a high profile launch of its manufacturing facility in Tamil Nadu.
LG, which also has a manufacturing facility in Pune, claims that setting up a local manufacturing unit has more benefits those economies of scale or savings on logistics - product modification, for instance. Two just-launched LG phones have a cricket game, based on customer feedback on the popularity of the sport here.
"We wouldn't have been able to meet market requirements if the product were being made elsewhere," points out H S Bhatia, product group head, GSM mobiles, LG.
So Nokia may not have any added advantage as all the mobile manufacturers have set up the plants in India.
Even though the market is growing I feel that with the entry of Apple Iphone in the market which is expected to cost around Rs.20000 in the next 3 months, will affect the sale of Nokia N and E series.
With the competition growing from the duplicate markets (China phones) Nokia will still lose its sales in the future. Nokia N 95 which costs Rs.25000 in the open market, N985 a duplicate from China costs only Rs.5000
Nokia should come up with marketing strategies to combat this rise in competitors.
Nokia’s main advantage is it brand in India and then the user friendly features which should emphasized in the low end products and the innovation in the high end products.
Nokia being a big player should be able to target the new entrants in this industry like fly and virgin mobile. Virgin mobile can take away the market share from Nokia because of their innovative strategies.
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