The Real Challenge

IIPM MANAGEMENT INSTITUTE

If Sharma and his team can transcend this dilemma, Nokia’s early success in India can endure as a legend and a lesson for others to emulate. If they get stuck with this positioning riddle, Nokia could be yet another example of how global leaders have failed to find the magic formula in India.

By any yardstick, Nokia is a smashing success in India. According to various market research reports, Nokia commands more than 60% of the handset market in the country. The nearest rivals, Sony Ericsson, LG, Samsung and Motorola barely manage a 10% market share as individual entities.

Yet, Nokia’s invincibility could be deceptive. For one, rivals like BenQ are rapidly emerging as aggressive price warriors. Moving up the value chain, new models from LG and Motorola are already giving Nokia a hard time.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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