Why Nokia is Losing Market Share

Nokia is losing market share in India’s 30,000 crore-a-year mobile handset market. Recently IDC said Nokia’s share of the Indian handset market  plunged to 36.3% at the end of June from 54% at the end of 2009. At the same time IDC report showed that sprightly domestic handset makers led by Micromax, Spice, Karbon and Lava had capitalised on Nokia’s misfortunes, with their share of the market doubling to 33% during the last six months.

The numbers are particularly embarrassing for Nokia, which commanded a market share of more than 70% just two years ago. By contrast , homegrown handset makers had a meagre 0.9% share of the market in 2008.

The question is why it is happening.

According to the various articles on Business Magzines the growth of local mobile phones is almost entirely on the back of socalled dual-SIM phones (even triple-SIM ) which allowed thrifty consumers to have two numbers on a single device and effectively exploit plunging tariffs in a cut-throat mobile services market.

But I believe that Nokia is crushed between brand conscious consumers and aspiring youngs who look for value for money. The aspiring youngs and primitives are enticed by brands such as Micromax, Lava and Max mobiles with their value for money offerings and pushing Nokia to the corner.

Analyzed by World of 4Ps

Clearly Nokia has not been able to identify changing consumer preferences and is quickly running out of the options as local bands are coming out of better mobiles and nokia is losing market share.

With technological barriers are going and so the entry barriers its high time for Nokia to define its battle grounds


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