Tuesday, December 14, 2010

Mktg plan of Nokia - Phase 2 (5)

·         Cost Leadership: A company who tries to gain competitive advantage by pricing its product lower than competitors can achieve strategic growth through cost leadership. In case of Nokia, the price of the SIM cards should be kept low to target broad market and achieve cost leadership. They can thus achieve competitive advantage among customers over its competitors.

·     Differentiation: It refers to an organization offering its product or service that differentiates from its competitors to gain competitive advantage. In order to differentiate its product a company has to incur higher cost in its R & D. Nokia can differentiate its SIM cards by offering customize service plans to its customers which they can select as per their usage.

·     Focus: The firm which focuses on a particular market tries to use niche marketing to gain competitive advantage. It is done through targeting its product offering to narrow market. Nokia can use this strategy to gain competitive advantage over its competitors by targeting its SIM cards particularly in rural market which is still untap to a certain market. It may also involve a high cost but they can use their cell phone market geographical reach to target that market.

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