The case of Nokia and Apple (Essay Sample)

How effective are the marketing structures used by telecommunications technology companies in introducing new products? The case of Nokia and Apple.
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ABSTRACT
The first-generation mobile handsets and networks were introduced in the early 1980s, and the mobile industry has now reached fourth-generation handsets and become an integral part of people's everyday lives. The smart-phone is the fastest-moving segment of the mobile phone industry and represents a convergence of two industries; mobile handset and computing. It started much earlier but became very prominent around 2007, especially when Apple Inc. introduced the ‘iPhone'. Nokia, one of the market leaders then, failed to pay attention to critical components like adaptation, culture, leadership, and sustainability. This allowed other companies to come up and eat into Nokia's large market share and overtake it in the industry.
The transformation of the mobile phone industry has led to intensive and aggressive competition amongst industry players. The increased focus on software development has lowered barriers to entry that were related to hardware expertise, and opened up the market to the entry of new players like Apple, Samsung and HTC. The rapid pace of technological development in the industry has forced companies to innovate and introduce new products fast. The companies have different marketing strategies for introducing new products into the market. This paper analyzes the marketing strategies of Nokia and Apple using both qualitative and quantitative research.
According to the findings of this paper, Apple entered the smartphone market by making things easy for its developers. By using all these existing development assets, Apple managed to keep the minimum technical investment required when starting out as low as possible. The iPhone was promoted as a development platform using the company's existing channels in the developer community. Apple products and offers are available to consumers through three distinct platforms: the Apple Store, Apple Online Store and Service Provider Outlet. The success of Apple's retail stores is because they give customers a direct experience of the company's brand products.
Nokia's decline in the U.S. market is the lack of operator cooperation. The U.K. market is dominated by carriers so they wield a lot of influence, and Nokia had a difficult relationship with the carriers (Schwartz, 2009). The use of Symbian technology has also been mentioned as a contributor to Nokia's problems in the mobile phone market (Woyke, 2010). The technology proved incompatible with touch-screen devices, which currently dominate the mobile market. In general, Nokia failed to accurately read the changing market trends and adapt accordingly. It lagged behind in R&D and allowed other players like Apple and Samsung to overtake it.
Keywords: mobile handset manufacturers, smartphone, markets, products, consumers
TABLE OF CONTENTS
ABSTRACT..................................................................................................................2
Table of Contents...........................................................................................................4
List of Figures.................................................................................................................6
List of Tables...................................................................................................................7
CHAPTER ONE...............................................................................................................8
INTRODUCTION............................................................................................................8
Background of the study.......................................................................................9
Research background............................................................................................9
Organizational background...................................................................................10
Rationale................................................................................................................18
Purpose of the research..........................................................................................18
Statement of the problem.......................................................................................18
Research questions..................................................................................................19
Research Objectives................................................................................................19
Significance of the study.........................................................................................19
Structure of the dissertation.....................................................................................19
Conclusion................................................................................................................20
CHAPTER TWO..................................................................................................................22
LITERATURE REVIEW.....................................................................................................22
Introduction...............................................................................................................22
Price of the product...................................................................................................23
Quality of the product.................................................................................................23
Key issues regarding quality control of the products:................................................24
Hiring fresh graduates and training them according to the job requirement..........24
Provide attractive compensation packages for all the employees......................24
Equal Employment Opportunity in "next" PLC..................................................25
The highest level of safety in the workplace.......................................................26
Staff Requirement .................................................................................................27
Loyalty of the customer.........................................................................................31
Conclusion.............................................................................................................32
CHAPTER THREE.............................................................................................................34
RESEARCH METHODOLOGY.........................................................................................34
Introduction.............................................................................................................34
Research philosophy...............................................................................................34
Research design.......................................................................................................34
Research approach.............................................................................................35
Quantitative research.............................................................................................35
Qualitative research..............................................................................................35
Research Method ...................................................................................................36
Research Strategy or onion................................................................................36
Data collection method .........................................................................................37
Secondary data.............................................................................................37
Primary data......................................................................................................37
Sample size and sample technique.........................................................................38
Data Analysis........................................................................................................38
CONCLUSIONS...............................................................................................................47
REFERENCES.........................................................................................................50
APPENDIX A .....................................................................................................................54
APPENDIX B ...................................................................................................................55
List of Figures
Figure 1: Share of mobile handset shipments.....................................................10
Figure 2: Global impact of Nokia's sales.............................................................12
Figure 3: World smartphone market share by company......................................16
Figure 4: Handset manufacturer market shares in Europe, 2005-2010..................18
Figure 5: Global mobile phones market by region in 2009....................................30
Figure 6: The mobile phone value system..............................................................30
List of Tables
Table 1: Global impact of Nokia's sales in millions of Euros.........................12
Table 2: iPhone net sales for 2010, 2011 and 2012..........................................16
Table 3: Apple distribution channels.................................................................46
Table 4: Apple promotion strategies..................................................................46
CHAPTER 1
INTRODUCTION
1.1 Introduction
T...