This case discusses how Nokia launched a fight back to maintain its position in key emerging markets of China and India. In 2009, Nokia’s mobile phones had commanded a market share of 33% in China and around 60% in India. Nokia dominated the below US$50 priced phone segment in the emerging markets, which formed a major chunk of the market. However, with the entry of local manufacturers offering phones with more features and at a cheaper price range – Nokia began losing its hold on these markets. By 2012, its market share in China had shrunk to 15% and in India to 23% – but it still stood No.1 in terms of market share in the Indian market.
Nokia also faced stiff competition at the higher-end – the smartphone segment – in the developed countries. By early 2012, Nokia was displaced from its number one position (by Samsung) in the global market as well as in the emerging market of China. The slumping market share had become a major concern for the company and its CEO Stephen Elop (Elop) – in both developed and emerging economies. The company was more concerned about the emerging economies as it considered them to be its driver for future growth. The question before the management was how to arrest the erosion of its market share in these two key markets?
» How Nokia was trying to fend off competitors from emerging low cost rivals in India and China.
» Understand key issues and challenges for an MNC while operating in emerging markets.
» Study the turnaround efforts of Nokia and explore further steps that the company could take in turning around its fortunes in India and China.
Q.7).The Ford Motor Company is one of the largest automobile companies in the world, with a history of more than 100 years. The company has successfully negotiated through several troughs and crests in its checkered past. The case recounts some of the restructuring efforts made by the company in the 1990s and 2000s. It then discusses the ‘One Ford’ strategy in detail and provides information on how the strategy was implemented between 2006 and 2012. The case ends with a brief discussion on future prospects for the company?
» analyze the factors that led the company to devise the ‘One Ford’ strategy
» appreciate the efforts made by the company to realign its organization structure so as to match market reality and changing customer preferences
» critically analyze the implementation of the ‘One Ford’ strategy
» assess the future prospects of the company in light of the restructuring efforts
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