Mobile Phone and Nokia Business Essay

Submitted By YajieGuo1
Words: 1426
Pages: 6

Nowadays , global business has become a world issue. It has a similar meaning to globalization. Global business trends to shift towards more integrated and interdependent world economy, in addition, global business has two features, including the globalization of markets and the globalization of production(Hill, 2009). At the same time, global business faces some challenges in the current environment. This project will discuss two challenges about global business in the current environment. These are low market share and brand crisis. This project will use the global company Nokia as a case study to examine these two challenges.

As a global business, Nokia has a low market share in different areas in the current environment. Previously, compared with other phones, Nokia shared the biggest market rate in the mobile industry. For example, according to Dewenter (2007), Nokia occupied 34% in mobile market share. Not only it has a good appearance, but also it has a useful system. Therefore, it is more popular all over the world. Every young person preferred to buy a Nokia phone. But now, as Iphone, Samsung and HTC are produced in the world. Nokia has some strong competitors. On the other hand, its market is carved up by other mobile phones. For example, Lin (2010) stated that there are over 150,000 third-party applications officially available for the iPhone and iPod Touch on the App Store, with over 3 billion total downloads. Its economic benefit generally reduce in latest time. In the high-end product market, Iphone relies on its fashionable appearance and a google system attracts plenty of customers. According to Carillo (2010), Apple's Iphone application is a important tool for peoples' daily life, the potential Iphone app are various, it allows download content before visiting places, eliminates interface issues and google maps are available for use. In the medium-end product market, Samsung and HTC are famous for their android systems. Nokia's operating system is windows 7. Compared to other mobiles, Nokia's many softwares have limitations. Therefore, Nokia has lost plenty of customers in this area. In the low-end product, counterfeit mobile (no brand phone) are used widely in China. it has a similar system and appearance with Nokia. On the other hand, it is cheaper than Nokia. Obviously, Nokia's business has lost in this area again. Nokia has almost lost all these markets. As a big global business, Nokia should make some strategies to solve these problems. Steinbock (2010) states that Nokia should focus on customers' needs. Next, Nokia should communicate openly, to learn other phones' advantages. Finally, Nokia should innovate and share development with other mobile companies, to reflect how trust, respect honesty and openness from the workplace. As a consequence, Nokia should find the appropriate position in the three products market and research a proper operating system for costumers.

Nokia business has been affected by the brand crisis in several aspects in the current environment. Brand crisis means well-advertised claims of unsubstantiated or false brand proposal can do serious damage to brands (Dawar, 2009). Firstly, many Nokia companies face bankruptcy in the world. For example, in Indian, Nokia company even cannot paid for worker's salary. It had just invested heavily in a new businesses when the economy went into a serious recession (Ali-Yrkko, 2001). However, it is not successful. Now, Nokia has lost customer's trust worldwide. For example, the Nokia detrude lumia phone has uses wp7 system. but its design of product is lower than the business standard and has no light-spot on it. There is no special function on it. Many customers show a disappointment attitude for it. Nokia's brand influence is not as strong as before. As a result , Nokia lost much money for researching its new product. Next, because of financial worries, Nokia has to depend on reducing the job cut to keep promotion. It plans to slash…