The smartphone and the technology market is oligopoly which is controlled by a small numbers of firms. Nokia is one of a leader in the fields of network infrastructure, location-based technologies and advanced technologies. Facing the fierce competitors, Nokia tried to product differentiation and services differentiation to create customer value and connect closely to build the relationship with customers. For the product differentiation, Nokia has corporate with Microsoft company and provided window system as smartphone operating system.
As Nokia has three businesses: Business, HERE, and Technologies. It dividing the market into small segments with Mobile Broadband and Global ...view middle of the document...
1” HD display. Second, social factors also related to customer behaviour. Reference group affect the consumer whether buy or not ,as the consumer buy Nokia products because they want to recognize by the reference group( friends or co-worker). Besides, personal and psychological also influencing consumer behaviour, when the age and life cycle stage are different, Nokia target customers will be different. For the youth, they care about the design and the function of smart phone and they are more adopt to try new and expensive smartphones. For the preservers, functional product are not aims for the new technology. So Asha Products are fit for them, the price is lower that they can afford and have the basic function of the phone. Thus, environmental factors influence consumer behaviour and it related directly to Nokia's profit.
According to Nokia's annual report in 2013,the net sales in 2013 was EUR12,709 million compared to EUR15,400 million in 2012 ,17% of declined. Nokia has three major product which are mobile broadband, global services and NSN, that due to the negative growth.
First, the net sales of mobile broadband declined 12% to EUR 5,347 million in 2013,compared to EUR 6,043 million in 2012,because of the new 4G technology (FD-LTE and TD-LTE)replace the importance of core network sales (WCDMA & GSM) .The net sales was declined. Second, Global Services net sales declined 17% to EUR 5,753 million last year, compared to EUR 6,929 million in 2012 .Its declined related to the certain part of geographic area should exited as it was non-profitable. Japan is a case in point. Besides, HERE's net sales decreased 17% that only EUR 913 million in the previous year less than EUR 1103 million in 2012.The internal factors that lower recognition of deferred revenue and the external cause is due to the foreign currency fluctuations.
For the price of its major product, Lumia Products and Asha Products are the main mobile devices. Lumia Products mostly are smartphone with latest function ,its price between HK 2,000 to 3,000 dollar. Asha Products are core phone function with basic design. Its price around $1,000 dollar. Therefore, different price segment satisfied with any types of consumer needs.
For the gross margins, for continuing operations in 2013 was 42.1% compared to 36.1% in 2012.The increase...