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Submitted by nitinmamodia on July 17, 2008
Category: Technology
Words: 1897 | Pages: 8
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Nokia in India
Introduction
Nokia, the global leader in mobile handsets had come a long way since it entered India in 1995.
From winning the CII Brand of the Year award in 2005 to being invited to Harvard to talk on
how the company had penetrated the Indian market, Nokia’s Indian operations had become a
global case study of sorts.
In brand surveys across Indian cities and demographics, Nokia topped the awareness list. More
than half of the 49 million mobile users in India carried a Nokia handset. Six out of every 10
people who bought a mobile phone in India picked up a Nokia. Many of them had made their
first ever-mobile call on a Nokia phone over a Nokia network. The 1100, the phone which was
'Made for India', had become Nokia's largest selling model globally.
Nokia had pursued a cost leadership strategy in India, looking for various ways to cut costs.
These included, setting up a manufacturing base for handsets in India, creating financing options
for cellphones and working with cellular operators to reduce airtime costs.
Nokia had also established a formidable distribution network that reached over 25,000 dealers, a
network that was about three times the size of Samsung's, six times that of Sony-Ericsson's and
one-fourth of Hindustan Lever’s (India’s largest fast moving consumer goods company). Nokia
had preferred to work with distributors associated with dealers of fast moving consumer goods
(FMCGs) and consumer durables. Many of Nokia’s regional distributors were former FMCG
middlemen who found the margins in the mobile phones business more attractive.
In the infrastructure business, Nokia Networks had become a key supplier to all five GSM
operators in the country; Bharti, BSNL, BPL, Hutchison, and IDEA. Nokia Networks worked
closely with operators to lower the total cost of ownership and usage for...
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