Tuesday, December 14, 2010

Mktg plan of Nokia - Phase 2 (7)


The value chain was developed by M. E. Porter in 1980. It is a systematic approach to study the growth of competitive advantage. It consists of a chain of activities that create and build value. These factors ultimately contribute to the total value delivered by a firm.

The value chain of Nokia SIM cards consists of 5 steps before it is made available to the customers. The first step consists of platform provider. It deals with license to install mobile network. In India, this license is provided by TRAI (Telecom Regulatory Authority of India). The next step is R & D; Nokia has the necessary resources in order to diversify in to SIM cards market. Some of the resources required are finance, technology, human resource, infrastructure, etc. The next step in the value chain is content and services. In this, the companies R & D has to analyze the market and then decide the necessary content and service to provide with its SIM cards. The next step is manufacturing of SIM cards which is to be decided whether Nokia will use it resources or outsource it. The next step deals with distribution of SIM cards in the market which can be done in two ways: through franchises and through distributors. And at last the SIM cards will be available for the customers to make use of it and derive the value in comparison to its competitors.

Distribution Process
The distribution process of Nokia SIM cards is through two ways:

·               Franchise – Dealer – Customer: Nokia can sell it SIM cards to the franchise which will sell the SIM cards in the outlet and also through providing to dealers which will then make available to the customers.

·               Distributor – Dealer – Customer: Nokia can also use this distribution channel by providing the SIM cards to regional distributors which will sell directly to customers and also provide it to dealers who will ultimately sell to customers.

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