They have managed to befriend the local dealers and are offering them greater margins, a proposition that players like Nokia have missed out on. So does that imply the end of Nokia’s rule? Some ground it has lost, but even today has a market share of 54.1% (IDC report for 2009) – that is some dominance! Going forward, Nokia is gearing up to fight back, evidence of the same being the new launches in the lower-price range. To prevent further erosion in the feature-rich phones category, the company has launched three QWERTY pad handsets – Nokia C3, Nokia C6 & Nokia E5 – that are attractively priced between Rs.5,317 to Rs.13,000. There is also the Nokia X2, a music phone with a 5MP camera, which is being offered at a price of Rs.5,000. justifying the launches, Anssi Vanjoki, Executive VP, Nokia says, “There are reactive elements in the new launches, but this is more of a strategic move. We have always looked to offer a full range of products and services to our consumers and are continuing with that.”

Call it a defensive shot or a forward ball to bowl out the threat from new entrants, Nokia is a seasoned veteran, who has been through much more in the Indian market and worldwide. It still enjoys a reputation of an aspirational brand that offers reliable products and as long as it can keep its hands off product recalls, it will continue to hold the sceptre over the isle known as the Indian mobile market.

Surbhi Chawla

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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