Promotional Strategies Of Nokia Essay

Posted by / 06-Feb-2021 00:49

Two approaches that explains how strategies are formed are classical approach holds that when wise leaders are equipped with vital information as well as other necessary resources they will come up with a successful strategy; evolutionary approach states that the methods adopted by managers do not matter, those that will be the best in this competitive world are the only guaranteed survivors.The argument is that the market and not the managers that determine the prevailing strategies in a particular environment, in short, the approach is simply referred to as “survival for the fittest”(Samer, 2009).In addition to this, the research evaluates Nokia strategic choices as well as explaining the implications of the current choices, finally, the work selects one strategy that is deemed to propel the company to greater height if pursued, and this is justified.According to Ansoff, (1985) organizations strive to move towards a certain position which relates to the company and its environment in a way that will ensure it continues to succeed and secured from all kinds of surprises, for this reason, Nokia is not an exception.These competitors developed affordable products that almost substituted the company’s products and services.This thus made Nokia use huge funds in developing and popularizing their products and services and at the same time change the pricing policy.

Innovation especially in communication has helped Nokia popularize their products and service.As at 2009/2010 financial year, (Oktemgil & Greenley, 1996) Nokia employed 129,746 employees in 120 countries, it sales its product in over 150 countries in the entire globe having a total revenue of £41 billion, asset of £35.74 billion, operating income of £1.2 billion, net income of £891 million and a total equity of £14.8 billion.Main competitors of Nokia Company are Erickson LM Tel Co., Motorola Inc, LG, Samsung EL.The rise of information society has necessitated importance of telecommunication, in leisure as well as workplace.It is worth noting that the younger especially the x generation are aware of mobile phone handsets choice and technological advancement in the same yearning for better and quality communication products and services, this puts Nokia at an advantage.

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It is rational for the company to seriously evaluate the benefits and costs of adopting an innovation since adopting it is not always a bed of roses as it can backfire and cause very serious setback to the business.