Nokia And Bop Markets Essay

5786 words - 24 pages

Supplemental In-Depth Integrative Case

Nokia Targets the Base of the Pyramid
One of the most widely used clichés in the world of business is the so-called 80/20 rule. In the realm of sales, the rule is sometimes interpreted as “80 percent of our sales come from 20 percent of our customers.”1 One recent business theory that has challenged this rule is the so called BOP or Bottom of the Pyramid perspective, developed and popularized by C.K. Prahalad.2 It refers to the around 4 billion people at the bottom of the economic pyramid with a purchasing power of US$2,000 per year or less. Prahalad and colleagues have proposed that these low-income consumers represent great potential but require a ...view middle of the document...

1 billion of the world’s BOP population. The total BOP household ICT market in these four regions, including 3.96 billion people in all surveyed countries, is estimated to be $51.4 billion.5 But the ICT sector has been growing explosively in developing regions in the interval since countries were surveyed, with Internet services and especially mobile phone companies adding customers at rates that may well have doubled BOP sector spending since that time. Moreover, rapid market growth is expected to continue for some time:
2

In both Africa and India less than 15 percent of the population has mobile phones.6 Asia has the largest measured regional BOP market for ICT, $14.3 billion, reflecting the region’s significant BOP population of 1.49 billion. Its estimated total BOP market for ICT (including the Middle East) is $28.3 billion, including the spending of 2.9 billion people. Not far behind is Latin America’s measured BOP market, $11.2 billion, accounting for the ICT spending of 276 million people. The region’s estimated total BOP market is $13.4 billion (360 million people). In Eastern Europe the measured BOP market for ICT is $3.0 billion (148 million people); the estimated total market is $5.3 billion (254 million people). In Africa the measured BOP market is $2.0 billion (258 million people), and the estimated total BOP market $4.4 billion (486 million people). Though smallest, the African ICT market is the most rapidly growing one—and it has already generated very profitable companies and significant wealth.7 The BOP share of the total household ICT market in measured countries varies across regions. In Asia the BOP share is about half of the total market, 51 percent; in other regions it is smaller though still substantial: 36 percent in Eastern Europe, 28 percent in Africa, 26 percent in Latin America. Africa shows the greatest disparity between the BOP share of the population (95 percent) and the BOP share of ICT spending (28 percent)8. At the national level there are wide disparities in the BOP share of ICT spending. These disparities stem in part from regulatory differences affecting the pace at which mobile phone networks expand. They also reflect national differences in urban-rural demographics, since mobile networks start in urban areas and only then spread to rural areas.9 In Asia the extremes are represented by Pakistan and Bangladesh, where the BOP accounts for more than 89 percent of the ICT market, and Thailand, where the BOP population, though substantial, accounts for only 29 percent of the market. In Africa the extremes are Nigeria (98 percent) and Burundi (12 percent). In Eastern Europe the extremes are represented by Belarus and Kazakhstan (74 percent) and FYR Macedonia (21 percent). In Latin America and the Caribbean, only in Jamaica does the BOP account for more than half of total ICT household spending (71 percent); the other extreme is Colombia, where the BOP accounts for only 12 percent of ICT spending.10

...

Other Papers Like Nokia And Bop Markets

Nokia Essay

582 words - 3 pages 1. Who and what is Nokia, Introduction, what is the problem? Nokia was founded in Finland 1865, and have since then evolved to the company it is today. Nokia became market leader in mobile phones 1998, and held that position in 14 years, until 2012. They nearly five-folded their turnover between the years of 1996-2001! But in 2007 something happened, smartphones were introduced on the mobile phone markets, and Nokia being a market leader in the

Nokia Markets Essay

2647 words - 11 pages than each handset so they can show to several markets with one promotion set. 4. Product: - Nokia phones tend to contain all the latest tools and a lot of the consumers aspects such as text messaging and games. Now, phones are getting small enough to fit in your hand as regular. Most of the phones produced currently have accessories that consumers like buy with them: in-car chargers, carry cases, kits and hands free. Nokia a lot of profit

Vertu Case Study

983 words - 4 pages operating systems. Vertu was able to stay at arm’s length from Nokia’s decisions and that is what kept them alive as a company. In all honesty, Vertu is one of the reasons that Nokia has funding. Vertu’s sales helped to support this adventure that Nokia was undertaking. Here is where the choices come into play. Vertu has markets across the world in places such as Asia and Russia which could support the much needed over haul of Nokia. This

Mm Case Seminar

1193 words - 5 pages Case Seminar  Nokia  1. How do you think the marketing task for Nokia is different in developing markets (versus in developed countries)?  Nokia has conducted a customer-driven marketing strategy. They segment the market by income and they have divided their target group into developing markets and developed ones. They sell phones to over 150 countries and among them European countries contributes to 39 percent of its total net sales while

Business Administion

3704 words - 15 pages degradation. Currently these issues are acute in the Eastern provinces of Democratic Republic of Congo (DRC) in the extraction and trade of ores of tantalum, tin, tungsten and gold, which flow to world markets through the DRC and adjoining countries. Once refined, these metals are commonly used within electronic products and by many other industries. Nokia does not procure metals directly and only a fraction of the world’s minerals produce originates

Nokia - Rise and Fall

4545 words - 19 pages manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally – taking share from us in emerging markets. While competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of

Marketing Plan Audit For Nokia

6819 words - 28 pages segments traditionally controlled by Nokia; Asian own brands become influential within their “home” markets; Possible decrease of spending on smartphones and accessories around the world; Consumers get better access to the information and become more price sensitive; To better visualize the results of the analysis, there is the SWOT Matrix presented below. SWOT MATRIX FOR NOKIA Strength

Distribution Strategy Noika

4209 words - 17 pages Recommendations 17 Refrences 18 People Contacted 19 Terms and Abbreviations used  Nokia - Nokia India Pvt. Ltd.  RDSS – Redistribution Stockist Supplier  HCLI – HCL Infosystems  Dealers – Mobile phone retailers rajesh Introduction Integral part of 4P’s f marketing mix is ‘place’. Having a great product is useless till its made available to potential customers at right places and at right time. Considering a country like

Mediul de Marketing Nokia

4752 words - 20 pages compania a anuntat o crestere cu 85% a profitului net pentru trimestrul trei. Profitul net a crescut la valoarea de 1,56 miliarde euro de la 845 milioane euro cat era in aceeasi perioada. Vanzarile au crescut cu 28%, la 12,9 miliarde euro, Nokia vanzand 111,7 milioane de telefoane in trimestrul trei, in crestere cu 26% fata de aceeasi perioada a anului trecut. [pic] [pic] 10 major markets, net sales

Rise And Fall Of Nokia

6204 words - 25 pages time over. They had the resources and the people but strategically failed to do so. NOKIA has faced intense competition from mobile phone producers in emerging markets who can make fast, cheap handsets at the lower end of the mobile phone market. Many in NOKIA regret that the business had become too product-led rather than customer-led; a missed opportunity Poor leadership and complacency (bred from success in non smart-phones). The

Supply Chain

1788 words - 8 pages , Sweden's Ericsson and Finland's Nokia dominated the handset market in India. Over the years, the old order has changed. Asian players like Samsung and LG, European brands Philips and Siemens now compete with Motorola and Sony-Ericsson. However, Nokia has been able to race ahead of all other players to become the leading mobile handset maker across the world. In India its dominance is even more pronounced with a 70 per cent market share, compared to

Related Essays

Strategic Management Essay

408 words - 2 pages . Mostly high end devices have internet services, but Nokia’s promise to deliver these services to its all devices will attract a large user base, especially in the emerging markets of the world. Though it will not be easy for Nokia to take a large market share in a short time, but working on this strategy and taking full advantage of the differentiators, Nokia will have success.

Business Management Essay

1443 words - 6 pages Cable works formally merge to create nokia coperation. The move to mobile:1968-1991 The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile communications. As European telecommunications markets were deregulated and mobile networks became global, Nokia led the way with some iconic products... 1979: Mobira Oy, early phone maker Radio telephone company Mobira Oy begins life as a joint

Strategic Analysis Nokia

2481 words - 10 pages time”(2012). Nokia has been left behind because if its inability to quickly respond to innovative competitors, such as RIM with Blackberry and Apple with IPhone. Nokia’s rivals are not just in North America, but all around the world. Asian competitors threaten Nokia by taking control on the mass population with low costs. Researcher have said, Nokia has been experiencing “lower-margin, feature phone business in emerging markets from cheaper

Doc, Docx, Pdf, Essay

5326 words - 22 pages =14792698 24 25 8 Do No t Robert Andersson, executive vice president, Devices, Nokia, said, “In 2002, Nokia unveiled a strategy to lower the cost of owning and operating a mobile phone and to bring the benefits of mobile telephony to people in emerging markets. Today, we are expanding that vision by introducing a number of devices and services...”24 Exhibit X Nokia Life Tools Services Co 1.9 1 0.3 520 840 1300 py Cell Phone Penetration PC