To Study The Applicability of Hofer'S Matrix For Nokia Mobile Phones

Project
On
“TO STUDY THE APPLICABILITY OF HOFER’S MATRIX FOR

NOKIA MOBILE PHONES”
Submitted towards the partial fulfillment of
The degree of M.B.A. - M.B.L.
For the course of
STRATEGIC MANAGEMENT
Submitted by: Submitted to:
Anupam Sain Dr. Archi Mathur

MBA-MBL (3RD SEM) Asst. Professor &
Asst. Dean,
Roll no. – 192 Faculty of
Management,
NLU, Jodhpur NLU, Jodhpur
CONTENTS
SERIAL NUMBER CHAPTERS PAGE

NUMBE
R
EXECUTIVE SUMMARY 3
OBJECTIVES 4
RESEARCH METHODOLOGY 5
CHAPTER – 1 INTRODUCTION TO HOFER’S MATRIX 6-12
CHAPTER-2 INTRODUCTION: NOKIA MOBILE PHONES 13-14
CHAPTER-3 DATA TABULATION 15-28
CHAPTER-4 ANALYSIS 29-31
CHAPTER-5 CONCLUSION 32-40
CHAPTER-6 RECOMMENDATIONS 41
A. ANNEXURE 42-46
B. LIMITATION 47
C. BIBLIOGRAPHY. 48
EXECUTIVE SUMMARY
2 PAGE NATIONAL LAW UNIVERSITY

This work deals with applicability of Hofer’s matrix for Nokia mobile phones. First of all
objectives for the study decided. Then the research plan was made which included the research
methodology and universe of study.
Basic theory of Hofer’s matrix was studied and brief knowledge about Nokia was gathered. Then
questionnaire were made for the dealers of mobile phones and customers to gain more
information about market growth and competitive position of Nokia mobile phones. On these
gathered data, analysis was done and conclusion was made whether Nokia is having a strong or
weak competitive position in market or not, whether it is able to sustain in market as a market
leader or not, what is the strategic position of its product according to their stage in life cycle,
whether Hofer’s matrix is applicable on the Nokia mobile phones or not. Finally
recommendations were made for Nokia.
RESEARCH OBJECTIVES

1. To identify and analyze the relative competitive position of Nokia mobile phones.
2. To analyze the strategic position of Nokia mobile phones with respect to their stage of
evolution.
3. To ascertain the applicability of Hofer’s matrix for Nokia mobile phones.
RESEARCH METHODLOGY
My research methodology will be doctrinal as well as non-doctrinal in nature. The data will be
both primary as well as secondary. The survey will be conducted by the means of questionnaire
in which various questions on the topic will be posed. Information would be collected and data
would be tabulated, analysis and recommendation will be made.
CHAPTER 1

INTRODUCTION TO HOFER’S MATRIX
The principal purpose of analysis for strategic planning is to identify the major opportunities and
threats a business unit faces in the future and to identify the skills around which it can develop a
strategy to exploit the opportunities and negotiate around the threats. Hofer and Schendel felt that
the major weakness with the General Electric business screen was that it didn’t effectively depict
the positions of new businesses that are just starting to grow in new industries.
To understand matrix i.e. Product/Market Evolution Matrix, given by Charles W. Hofer and Dan
Schendel, it is necessary to understand the product life cycle.
Product Life Cycle-
A new product progresses through a sequence of stages from introduction to growth, maturity,
saturation, and decline. This sequence is known as Product Life Cycle (PLC) and is associated
with changes in marketing situation, thus impacting marketing strategy and the marketing mix.
These stages are having their own characteristics, like-

Introduction phase-
• Costs are high
• Slow sales volumes to start
• Little or no competition - competitive manufacturers watch for acceptance/segment growth
losses
• Demand has to be created
• Customers have to be prompted to try the product
• Makes no money at this stage
Growth phase-

• Costs reduced due to economies of scale
• Sales volume increases significantly
• Profitability begins to rise
• Public awareness increases
• Competition begins to increase with a few new players in establishing market
• Increased competition leads to price decreases
Maturity phase-
• Costs are lowered as a result of production volumes increasing and experience curve effects
• Sales volume peaks and market saturation is reached
• Increase in competitors entering the market
• Prices tend to drop due to the proliferation of competing products
• Brand differentiation and feature diversification is emphasized to maintain or increase market
share
• Industrial profits go down
Saturation and Decline phase-

• Costs become counter-optimal
• Sales volume decline or stabilize
• Prices, profitability diminish
• Profit becomes more a challenge of production/distribution efficiency than increased sales1
Various analytical tools are used in the analysis of business and its various dimensions to help the
organization to strategize. One such tool was developed by Boston Consulting Group to help corporations
with analyzing their business units or product lines. This is known as the BCG Matrix. This helped the
company allocate resources and is still used as an analytical tool in brand marketing, product
management, strategic management, and portfolio analysis. The dimensions it used were Industry Growth
Rate and Relative Market Share. There were certain weaknesses of the BCG Matrix and to help managers
overcome the problems associated with the BCG Matrix, another analytical tool was developed which is
known as the General Electric Business Screen. The GE Business Screen introduces a three by three
1
<en.wikipedia.org/wiki/Product_life_cycle_management> visited on 04 August, 2009

matrix, which now includes a medium category. It utilizes industry attractiveness as a more inclusive
measure than BCG's market growth and substitute’s competitive position for the original's market share.2
Hofer and Schendel felt that the major weakness with the General Electric business screen was
that it didn’t effectively depict the positions of new businesses that are just starting to grow in
new industries.
They suggested in 1975 that changes in basic competitive positions are easier to accomplish at
certain stages in the evolution of an industry than others. The Boston Consulting Group also
alluded to this with their assumption that market growth was related to life cycle and was used as
the one axis on their matrix.
The competitive position / market evolution matrix was developed in the late 1970’s by Charles
W. Hofer and Dan Schendel.
Strategic Emphasis
The matrix was developed as a result of the findings and research done during the previous ten
years that suggested that the magnitude and type of opportunities and threats that face a business
vary according to the stage of evolution of that industry as well as its competitive position within
that industry. The model concentrates on positioning existing SBU’s on the product-market
evolution matrix thereby establishing an ideal future portfolio.
Hofer-Schendel suggested that a strategy analysis is made up of four steps
1. The assessment of the current strategic position of the business
2. The identification of the major strategic opportunities and threats that the business will face
given its current strategic position
3. Identification of the principle resources and skills on which the business can build a
competitive strategy
4. Identification of major issues and gaps deriving from the current position and the threats and
opportunities identified in the future.
The matrix was developed to solve the first step in this approach.
The Approach3
Hofer-Schendel ascertain that four steps have to be undertaken to determine a basic strategic
position and this in turn determines the investment strategy of the business.
2
<www.cipher-sys.com/hoferschendel_matrix.html> visited on 04 August, 2009
3
<webbusinesslink.com/glossary/hofer’s-market-evolution-matrix/>visited on 10 August, 2009

The four steps are:
1. The short term financial condition and health of the company must be determined to assess
whether it is a feasible entity or likely to go bankrupt
2. The relative competitive position of the business must be ascertained because even if the
business is not about to become bankrupt, liquidation of the business may be one of the
strategic choices.
3. It is then necessary to determine the position of evolution of the market that the business
competes in. This will help decide whether the preferred strategy is share increasing, growth
or profit.
4. A plot is then made of the business’s basic strategic position.
Relative Competitive Position

The purpose of doing this is to develop a better measure of the long-term growth potential and
profit potential of the organisations businesses. This method is more comprehensive than a
simple assessment of the market share as used in the BCG matrix.
Research shows that market share is an indicator of profit potential but other factors also
influence this measurement such as relative product quality, adequacy of distribution, facilities
location, as well as proprietary and key account advantages.
Horizontal Axis
Another reason for using relative competitive position and not market share is that the success
factors of the organisation’s businesses vary from business to business and the organisation must
have a clear idea which of these factors has a dominant position in which of the businesses, to be
able to put forward a strategic plan that will be successful.
The relative competitive position is made up of two sets of variables, the technological and
economic characteristics of the industry involved.

Market Evolution
Different opportunities and threats face a business as the product/market segments in which it
competes, evolve over time. Many different authors have described the different market /product
stages in the life cycle. The stages of the life cycle vary from author to author. In the original
competitive position / market evolution matrix developed by Charles W. Hofer and Dan
Schendel, they described seven stages of the life cycle, each with certain characteristics by which
the position of the market can be identified.
Market Evolution
Major changes in basic competitive position occur in the stages of development, shakeout and
decline because in these stages the basic nature of competition changes. It is more difficult to
make changes to competitive position in the other stages of growth, maturation and saturation as
the bases for competition are usually well established.

Vertical Axis
The y-axis of the model is an assessment of the firm/product/service’s stage of market evolution.
Note that on this matrix axis that Shakeout is positioned below Development and before Growth
whereas in the traditional evolution, Growth occurs before Shakeout.
Plot Configuration
Identify Key Success Factors
The firm must assess its relative competitive position by identifying the key success factors.
These can be derived using the list of economic and technological factors listed in the previous
section.
It must be remembered that the purpose of the exercise is to identify the key factors/forces
affecting the firm’s competitive position and not to become bogged down in numbers. The most
important part of the process is to identify the most important key success factors in the industry
and the firm’s relative position with respect to them.
Most industries have a limited number of success factors that have a substantial impact on
competitive position and it is far better to get a good weighting distribution of five major factors
than to try to get a list of a lot of factors and the try to give them all a weighting.
Importance Weighting
Each factor is given an importance weighting. This rating should reflect the factor’s relative
impacts on overall profitability, market share, and other measures of competitive position of the
various firms in the industry involved.

This weighting exercise is difficult to do, as managers within a firm always tend to overestimate
or underestimate their relative strengths and weaknesses. It is a good idea to involve a
representative from each of the functional areas in a group workshop to assign the weightings to
the critical success factors. The total weightings of the sub-factors must add up to 100 (for
simplicity sake) and then normalised to add up to 1.00. (Divide each factor weighting by 100)
Model Use and Applicability

From the positioning on the matrix it can be seen that there are various generic strategies,
corresponding to the positions determined by the x and the y-axis. The suitability of the
strategies is therefore related to the stage of the product/market evolution of the industry in
which the firm competes and its competitive position in the industry
The six strategies devised by Hofer and Schendel are:
1. Share increasing strategies
2. Growth strategies
3. Profit strategies
4. Market concentration and asset reduction strategies
5. Turnaround strategies
6. Liquidation and divestiture strategies

CHAPTER 2
INTRODUCTION TO NOKIA MOBILE PHONES
History-
Nokia had its business interest in a lot of segments of the market like footwear, cables, paper
products, etc. However, it was in 1992 that Nokia decided to focus on its telecommunications
business. Jorma Ollila became the President and CEO of Nokia and focused the company on
telecommunications. In the year 1992 itself, Nokia launched it first GSM handset, the Nokia
1011.
In 1994, the Nokia 2100 was launched which was the first mobile to feature the Nokia Tune. In
the same year, world's first satellite call was done using one of Nokia's GSM handset on mobile
contracts.
In 1997, the Nokia 6110 became the first mobile to feature Nokia's classic Snake game. 1998
was the year when Nokia became the world leader in mobile phones. The year 1999, was very
significant as the Internet went mobile. Nokia launched the 7110, world's first WAP (Wireless
Application Protocol) handset. 2002 saw the launch of Nokia's first 3G (3 rd Generation) phone,
the Nokia 6650. Nokia launched the N-Gage in 2003. It helped in making the mobile gaming,
multi-player.
Another significant year in the history of Nokia was 2005. Nokia introduced the Nseries, the next
generation of multimedia devices. In the same year, Nokia sold its billionth phone.
Nokia continues to be the market leader. It is now a huge multi-national company with
manufacturing units all over the world. In the highly competitive world of mobile phones, Nokia
still has a lot of market presence and provides a lot of mobile contracts and will continue to do
the same for a long time to come.

Products4-
In Indian market Nokia mobile phones are present in the range from Rs. 1270 to Rs. 31000. In
which Nokia 1202 and Nokia 1203 being the cheapest and Nokia N97 being the most expensive.
All the models of Nokia are as follows-
Nokia N97 E72 6700classic 5800 Xpress music 3600 slide 1680 classic
N96 E71 6300 classic 5730 Xpress music 3120 1662

classic
N95 E66 6300 5630 Xpress music 1661
3110
N86 E63 6288 5310 Xpress music classic 1508/1508i
N79 7900PRISM 6220classic 5220 Xpress music 2700 1209
N73 music 7610 6210navigator 5200 classic 1203

edition
7500prism 6208classic 5130 Xpress music 2680 slide 1202
N75 2630
7210supernova 6080 5030
2626
2600
classic
2330
classic
2323
classic
Competitors-
Sony Ericsson, LG, Samsung, Motorola, Sagem, Spice, Blackberry, Apple, HTC, Fly, O2, PalmOne,
Asus, Reliance, Tata, Virgin Mobiles
CHAPTER 3
4
<www.nokia.co.in> visited on 15 August, 2009

DATA TABULATION
Retailer-10
Consumer- 10
To retailers-
Following were the questions asked and the abstract of answers given by the retailers.
Q. 1- Please provide the name of companies, whose mobile phones are being sold by you?
A. - Since the question was also asked to supervisor of Nokia Priority Center (exclusive show
room of Nokia mobiles), they were the only retailer dealing just with Nokia phones. Other
retailers were dealing with almost all the brands.
All category includes mobile phones of Nokia, LG, Sony Ericsson, Motorolla, Samsung, Spice,
Vodafone, Micro Max, Intex, Lemon, MTS, Reliance, and Tata.
Q. 2- What is the price range of Nokia mobile phones?

A. - The answer was uniform since a price range of Rs. 1270 to Rs. 31000 is available in India
but all the retailers were not interested in keeping all the mobile from top to bottom of price
range. The reason given is the locality and the purchasing power of customers. In some areas like
Mandore and Mahamandir customers are more likely to ask for mobile phones from a range of
Rs. 1270 to Rs. 18600, so the retailer were keeping only this price range. The purchasing
capacity of customers in Sardarpura and shastri nagar area is comparatively high so the retailers
there were keeping the whole range.

Q. 3- Is there any other mobile phone available in the same price range?
A. - Allmost all the companies are having mobile phones in this range but mainly Sony Ericsson
and Spice are available in exactly the same price.
Q. 4- Which price range of mobile phones is mostly desired by the customers?

A. - The answers were varying according to the purchasing capacity of customers. In
mahamandir and mandore reason mostly desired price range was Rs. 1300 to Rs. 5000 but in
Paota, Sardarpura and shastri nagar the mostly desired range was from Rs. 5000 to 10000.
Q. 5- Which mobile phones of Nokia are present in this price range?

A. -
Price range Models of Nokia
Rs. 1300 to Rs. 5000 Nokia 1202, 1203, 1209, 1650, 1661, 1662,
2626, 5030, 2323, 2600, 2630, 2700, 3110
Rs. 5000 to Rs. 10000 Nokia 7210, 5130, 6300, 6303, 5220, 7310,
5310, 7610
Q. 6- Which other mobile phones are available in the same range?

A. –
Price range Models of others
Rs. 1300 to Rs. 5000 LG GB100 Bullet, GB 106 Bullet, KP115
Bullet, GB110 Bullet, KG195, KP199
Dynamite, KP220, GB210
Sony J110i, J120i, J132, S302, R300, W350i
Samsung E1070, E1100, E1117, E1125,
E1210, B210, E1310, E1107, SGH-B310,
E1410, SGH-M150, M200, E251, M620, SGH-
J150
Spice S410, S400, S500, S535, S404, S530,
S540, S555, S5, S600, S640
Rs. 5000 to Rs. 10000 LG GM200, KM335
Sony F305, G502, W302i, W580i

Samsung J700, S3310, S3500, B2100, SGH-
L700, C5212, M3510, F270, D-780, S5233,
U800i
Spice S700, S800, S808, S8, D80, D88, S-7,
S920, S909, S900
Q. 7 & 8- How many customers visit your premise and mow many ask for Nokia mobile phones?
A. -
Q. 9- What are the strengths of Nokia mobile phones?

A. - following chart shows responses given by retailers-

Q. 10- What are the weaknesses of Nokia mobile phones?
A. -
Q. 11- Which Nokia phones are available in market right now? Please provide the time period
since they are available in the market.

A. - Following table shows the availability of Nokia mobile phones with the year since they have
been launched.
Year Models of Nokia
Since 2004 Nokia 2600, 3120, 7610
Since 2006 Nokia 5200, 6080, 6300classic, 6288, N96
Since 2007 Nokia 2626, 2630, 3110classic, 5310, 6208,
7500, 7900, N95
Since 2008 Nokia 1202, 1203, 1209, 1508, 1680, 2680,
3600slide, 5130, 5220, 5800, 6210, 6220,
6300i, 7210, E63, E66, E71, N79
Since 2009 Nokia 1661, 1662, 2323, 2330, 2700, 5030,
5730, 6700, E72, N97
Q. 12- Which are the mobile phones of other companies that are prevailing in the market along
with Nokia mobile phones since the same period?
A. - No mobile phone of any company is able to stand in market for such a long time. Only few
models like Sony W550i and LG Bullet 285 which are in market since 2005, Sony W200i which
is in market since 2007, Sony W350 and Spice S580 are available since 2008.
Q. 13- Which mobile phones are most sold in market?

A. - Nokia 3110 was undisputed best seller in market. Other models which are best sold in
market are Nokia 5130, 7210, E71.
Q. 14- Which mobile phone of Nokia is facing most completion in the market?
A. - The answer to the question was again undisputed. According to the dealers, Nokia 3110 is
facing most competition along with Nokia 5130, 7210 and E71.
Q. 15- May you provide approximate market shares of above mentioned product? (In their price
range)
A. –

Q. 15- Is there any specific company/ies which is giving Nokia very tough competition?
A. -
Q. 16- Reason for the above answer-

A. -
Competitors Reasons
Samsung Wide range, Dual SIM, CDMA mobiles,

Waterproof, shockproof, solar charger
Sony Good quality
Spice Low price
LG Additional functions and color features
Chinese mobiles Advanced technology at a cheap price
To customers-
Q. 1- Which mobile phone company do you trust the most?
A. –

Q. 2- Reason for the above answer-
A. –
Q. 3- Which mobile phone are you using right now?

A. –

Q. 4- Why did you purchase this mobile phone?
A. –
Q. 5- What is the average life of you mobile phone?

A. –

Q. 6- Which price range do you prefer while buying a mobile phone?
A. –
Q. 7- What are the options available in this price range?

A. – Most of the customers don’t think about the model they want to buy until they reach the
store. So they normally keep the company in mind while going to store or any specific add they
have seen recently.
Q. 8- Which company’s mobile phone you would never like to buy?

A. –
Q. 9- What is the reasons for above answer?

A. – The main reasons are as follows-
Company Reasons
Chinese mobiles Very low quality, not reliable
LG Battery don’t last long
Spice Poor quality
Samsung Battery problems
Q. 10- What are the feature you look for when going to purchase mobile phones?
A. –

Q. 11- Which company provides you the best satisfaction in providing above features?
A. –

Q. 12- If mobile phone, you are interested in, is temporarily unavailable in the market. Would
you like to postpone the purchase or buy the best available mobile phone?
A. –
Q. 13- What is the reason for above answer?

A. –
CHAPTER 4

DATA ANALYSIS
Analysis of questionnaire asked to Dealer-

Q. 1- Please provide the name of companies, whose mobile phones are being sold by you.
Q.2- What is the price range of Nokia mobile phones?
Q.3- Is there any other mobile phone available in this price range? (Please provide name)
Analysis- Most of the dealers are keeping mobile phones of all companies and give special
emphasis to the companies who are in the market from a long time and known to the customers.
This list includes companies like Nokia, Sony Ericsson, LG, Samsung, Motorolla and Spice,
which are necessarily kept with all the retailers except the exclusive outlets.
The models of Nokia are available in a wide range of price ranging from Rs. 1300 to Rs. 31000.
This price range satisfies the need of a wide range of customers ranging from lower-lower class
to upper-upper class. The models which are being kept by the dealers also depend upon the price
of model viz-a-viz surrounding class of locality.
Companies other than Nokia are not lagging behind in launching mobile phone models in the
same price range, since no one wants to lag behind in this competition and they want to give a
strong challenge to this market leader. This is why, there are mobile phones of almost all the
companies are available in this price range.
Q.4- Which price range of mobile phones is mostly desired by the customers?
Q.5- Which mobile phones of Nokia are present in this price range?
Q.6- Which other mobile phones are available in the same price range?
Analysis- The desirability of mobile phone handsets is directly related to class of person. People
from a lower income group mostly asks for handsets ranging from Rs. 1300 to 5000 (in which
the lower-lower class people generally ask from a range of Rs. 1300 to Rs. 2500).
All the companies providing the whole range of mobile phones according to the need of
customers and since the dealer situated in a particular reason will need mobile handset according
to the locality of that are, companies are designing their distribution channel in such a way that
the need of that particular area can be satisfied.
Q.7- How many customers visit your premise per month? (On an average)

Q. 8- How many customers ask for Nokia mobile phones? (Per month)
Q.9- What are the strengths of Nokia mobile phones?
Q.10- What are the weaknesses of Nokia mobile phones?
Analysis- Exact information about how much customers visit the premise per month was not
provided during the field work but dealers said that almost 75% of the customers reaching the
outlet are asking for Nokia phones.
This clearly shows that Nokia is the most desired mobile phone company in the market. The
dealer described certain strengths and weaknesses of the Nokia mobile phones. Strengths
includes brand name, quality of the product, trust on the company, easy handling of handset
(since Hindi language is also provided and the functions are comparatively simple than other
mobile phones), additional features, advanced technology and stylish looks of Nokia mobile
phones. On the other hand, there are some weaknesses also associated with the brand which are
no dual SIM facility is available in any of the Nokia phones, generally all the company provide
dummy mobile (demo) of their handsets so that customer can feel the looks and style of the
mobile phone but demos are not provided for Nokia mobile phones, lastly there is no CDMA
phone of Nokia is available even in the exclusive showroom of Nokia. Some dealer was having
the argument that Nokia does not have any weakness associated with it.
Q. 11- Which Nokia handsets are available in market right now? Please provide the time period
since then they are available in market.
Q.12- Which mobile phones of Nokia are facing highest competition in the market?
Q. 13- Which mobile phones of Nokia are most sold in the market?
Q. 14- May you provide approximate market shares of above mentioned product?
Q.15- Which are the mobile phones of other companies that are prevailing in the market along
with the Nokia mobile phones since the same time period?
Analysis- Around 48 handsets of Nokia are present in the market right now and they are ranging
from the handsets launched in 2004 to the latest one which are being launched in 2009. Apart
from Nokia mobile phones, very less number of mobile phones is able to sustain in the market
and other just came and go.
Few handsets of Nokia like 3110 (launched in 2007), 5130 (launched in 2008), 7210 (launched in
2008) and E71 (launched in 2008) are facing highest competition in the market because of their

popularity and this is worth noticeable that these are the handsets which are best seller in the
market.
Q.16- Is there any specific company/ies which is/are giving Nokia very tough competition?
Q.17- Reasons for the above answer-
Analysis- Retailers suggested name of few companies like Samsung, LG, Spice as the leading
competitors for Nokia and the emerging Chinese mobile phone market is also becoming
competitor for Nokia mobile phones. Main points where Nokia lagging behind is the wide range
of products provided by the competitors, absence of implementation of ultra-modern
technologies like dual SIM, waterproof and shock proof cell phones, solar charging facility and a
cheap price of competitors.
Dealers denied naming Sony as one of the main competitor because since the change of the CEO
of Sony, there is a speculation in the market that Sony and Ericsson will split and Sony will take
all its mobile phones away from the market.
Analysis of questionnaire asked to customers-
Q.1- Which mobile phone company do you trust the most?

Q.3- Which mobile phone are you using right now?
Q.4- Why did you purchase this mobile phone?
Analysis- Most of the customers shown their interest and trust on Nokia and stated that Nokia is
a big brand name and providing a premium quality. Few customers stated that other mobiles are
not having easily understandable functions, which are a unique and very good quality of Nokia
phones. Some customers stated that Nokia is available in stylish looks, that’s why they prefer to
purchase Nokia.
These statements clearly shows that the brand Nokia is deeply situated in the mind of customers
and trying hard to retain its position by providing very good quality products and keeps on
reviving its brand image by innovations but keeping the basic features and quality standard
intact.
Q.5- What is the average life cycle of your mobile phone?

Analysis- Most of the customers stated that they don’t keep a mobile handset with them for more
than 2 years since in the mean time various handsets of better technology are available. This is
worth noticeable point for mobile companies and this might be the reason why there is so much
competition in this market and every company is trying to lure customers by providing new
features and advanced technologies at regular interval of time. This response of customers can
also be used to understand the reason that why the life span of models of mobiles is so less.
Q. 6- Which price range do you prefer when buying a mobile phone?
Q.7- What are the options available in this price range?
Analysis- The preference of price range is directly related to the purchasing power of the
customer and the social class with which he/she is associated. Increasing income slab is clearly
visible in the responses of the customers, since the customers preferring mobile phones in the
price range of Rs. 5000 to Rs. 10000 is more than the customer base demanding mobile in price
range of Rs. 1300 to Rs. 5000.
When asked about the options available in the same price range, customers were not exactly
known to the models available and named the company whose mobile phones they would prefer.
Selection of mobile phone model will be decided after reaching the shop. But some customers
were attracted towards advertisements and readily given names of models whose advertisements
are being shown. So in this way it can be said that the brand name of company plays a very
important role in the sale of its product but on the other hand vigorous promotion of product
cannot be underestimated by the company.
Q.8- Which company’s mobile phones you would never like to buy?
Analysis- Customers are reluctant to buy any product of inferior quality or the products that are
having some technical deficiency like problems in hardware or software. Most of the customers
have denied buying Chinese mobiles since they are having very poor quality and no guarantee
attached so is any reliability even though they are the products with superior technologies. Other
brands which the customer was reluctant to buy are Spice, LG and Samsung because of poor
quality of batteries.

Q.10- What are the feature you look for when going to purchase mobile phones?
Q.11- Which company provides you the best satisfaction in providing these functions?
Q.12- If mobile phone, you are interested in, is temporarily unavailable in the market. Would you
like to postpone the purchase or buy the best available mobile phone?
Analysis- main features about which the customer is very much conscious are quality/reliability
of the product, multifunctional product, advanced technology and stylish looks. According to
customers Nokia is providing best satisfaction in these regards and they are having a high trust
on this brand. This is the reason why Nokia is a market leader in mobile phone industry.
Customers are ready to postpone their decision of buying mobile phone if the particular brand is
unavailable because of the trust on that particular brand which they want to buy.
CHAPTER-5

CONCLUSION
After studying these findings it can be concluded that market share of Nokia is much higher than
its competitors. Finally all the objectives can be justified in this part of project.
Objective 1- To identify and analyze the relative competitive position of Nokia mobile
phones.
Competitive position of any company depends upon many factors, which are as follows-
• Market share
• General image
• Breadth of product line
• Value added
• Relative product quality
• Advertising and promotional effectiveness
• Capacity and productivity
• Sales distribution effectiveness
Market share-
It is very much clear from the available facts that Nokia is having around 70% of the mobile
phone in India. The same thing is also clear from the field study that most of the current
customers as well potential customers are more than ready to buy the mobile phones of Nokia
mainly because of its brand name and product quality.
General Image-
The brand image of Nokia is deeply embedded in the mind of customers which is very much
clear from this study and Nokia is enjoying upon the well established brand image. This brand
image is very strong because of continuous maintenance of quality and reliability of the products
of Nokia.
Breadth of product line-

Nokia mobile phones are available in a wide range and available to the need of customers.
Customers can purchase a very basic mobile phone of Nokia (Nokia 1202) and on the other hand
a high-end swanky mobile phone in the form of Nokia N97 is also present. This kind of product
line gives Nokia an opportunity to tap a larger customer base in a country like India where a
wide range of social classes is present.
Value added services-

Nokia India has shaped its presence to divert the deal with the customers in case of value added
services rather than mere device supplier. Nokia intends to provide e-mail, music and other
services, numbering about 40. Nokia traced the Indian market as the second largest after China.
This is in consequence to its $210 million investment in Sriperumpudur near Chennai last year
and the company has benchmarked $75 million for this year which means almost half of the net
investment for this unit ($500 million).
Relative product quality-

Where some companies are focusing only upon the advancement of technology, Nokia has
maintained its product quality and achieved the status of other name of quality. It goes without
saying that customer satisfaction and product quality are really important to Nokia and they take
all quality and customer satisfaction-related issues seriously, which was clear when there was
battery related problems with Nokia and Nokia immediately responded by free replacement of
that particular class of battery and removing all the mobile phones, which were having that
battery, from the market.
Advertising and promotional effectiveness-

Nokia designed its advertisements in such a way that they are being recalled for a longer period
of time and embedded its mission “Connecting People” in everybody’s mind. Nokia has used all
means of advertisements and promotion through which it can reach masses and Nokia was quite
successful in this, since everybody remembers Nokia as “Everybody’s phone”.

Capacity and Productivity-
New high-end swanky phones of Nokia like Nokia N97, N86, N79, E72, E71, E66 and E63 etc
are proof of innovativeness and productivity of Nokia. They are able to give Nokia a competitive
edge in this world of technology and change.
Sales distribution effectiveness-

Channel of distribution of Nokia is very strong and this is the reason why Nokia has a reach
throughout India, even in small villages. This is one of the big advantage to Nokia over its
competitors.
Objective 2- To analyze the strategic position of Nokia mobile phones with respect to their
stage of evolution
To analyze strategic position of Nokia mobile phones, they can be divided in three groups
according to their price.
1. Below Rs. 5000- e.g. Nokia 3110 Classic
2. Above Rs. 5000 but below Rs. 10000- e.g. Nokia 7210SuperNova, Nokia 5130 Xpress music
3. Above Rs. 10000- e.g. Nokia E71
There are around 48 models available in the market right now. So the names mentioned in front
of each category are taken as specimen for studying the strategic position of Nokia mobile
phones.
1. Below Rs. 5000-

Nokia 3110 Classic is taken up as specimen for this category.
Price of this mobile phone is Rs. 4350 and according to the field study it is the best selling
mobile of Nokia in this price range.
It is available in the market since 2007.
Competition- It is facing competition from following mobile phones-
LG- KG195, KP199 Dynamite, KP220, GB210
Sony- S302, R300, W350i
Samsung- M200, E251, M620, SGH-J150
Spice- S530, S540, S555, S5, S600, S640

Stage in life cycle- Since its sales volumes are on peak and competition is very high, it is in
Maturity stage of life cycle.
Competitive position- Many company launched mobile phones to compete with Nokia 3110,
after seeing its success in the market. It is having a strong competitive position in the market.
2. Above Rs. 5000 but below Rs. 10000-

Nokia 7210SuperNova, Nokia 5130 Xpress music are the specimen for this range.
Price of Nokia 7210SuperNova, Nokia 5130 Xpress music are respectively Rs. 5169 and Rs.
5725 and are best selling mobiles in this price range.
Both are available in the market since 2008. Product features are
Competition- They are facing competition from following mobile phones-
LG- GB210, GM200
Sony- W350i
Samsung- SGH-J150, J700, S-3310
Spice- S800, S808
Stage in life cycle- Their sales is growing at a good pace and not very much competition is
present, they are in Growth phase of life cycle.
Competitive position- Some models of different companies are present to compete with these
cell phones but they are still enjoying the best selling position. They are having strong to average
competitive position in the market.
3. Above Rs. 10000-

Nokia E71 is the specimen in this category.
Price of E71 is Rs. 17891.
It is available in the market since 2008.
Competition- It is facing competition from following mobile phones-
LG- KC550, KT610
Sony- W760i, W705, W750
Samsung- TouchWiz- F480
Stage in life cycle- Sale is not very high and not a lot of competition, it is in Introductory phase
of life cycle.

Competitive position- Some models of other companies are present and trying to grab its
position. Its sales is not very high, it is having average competitive position in the market.
Objective 3- To ascertain the applicability of Hofer’s matrix for Nokia mobile phones
All above mentioned category are being plotted on the Hofer’s Matrix.
1. Below Rs. 5000- Nokia 3110Classic
Stage/Competitive Strong Average Weak

position
Introduction
Growth
Shake out Around 80% of market

share is with Nokia
3110, others include
all the competitors
Maturity
Decline
2. Above Rs. 5000 but below Rs. 10000- Nokia 7210 Supernova and Nokia 5130 Xpress music

position
Introduction
Competitive position is
between strong and
average. Both the
models have covered
Growth 70% of market share
Shake out
Maturity
Decline
3. Above Rs. 10000- Nokia E71

position
Introduction
E71 have
60% of
market
shares, size
Growth of market is
very small
since very
few products
available
Shake out
Maturity
Decline
In this way, we can say that Hofer’s can be applied to the Nokia mobile phones. And this can be
said that Nokia is having a strong competitive position in the market and more growth strategies
should be designed for Nokia, to keep its status at the level of market leader.
CHAPTER-6
RECOMMENDATIONS

Nokia is already market leader in the mobile phone industry and trying to maintain this same
position in future. Following recommendations can be made for Nokia, which may be helpful for
Nokia.
 Nokia can launch some new products with enhanced technologies like Dual SIM, CDMA
phones, waterproof and shockproof technology, solar charger etc.
 Nokia can provide demo mobile phones at the outlets, so that customers can touch and
feel it before purchasing.
 Nokia can launch some new products keeping in mind the young generation. To attract
young generation, it can launch some multifunctional mobile phone at a rate best suited to
the pockets of youngsters.
 Nokia can launch add campaign keeping in mind young generation, which may include
sports sponsorships in the colleges etc.

QUESTIONNAIRE
To dealer-
Q.1- Please provide the name of companies, whose mobile phones are being sold by
you.
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Q.2- What is the price range of Nokia mobile phones?
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Q.3- Is there any other mobile phone available in this price range? (Please provide
name)
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Q.4- Which price range of mobile phones is mostly desired by the customers?
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Q.5- Which mobile phones of Nokia are present in this price range?
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Q.6- Which other mobile phones are available in the same price range?
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Q.7- How many customers visit your premise per month? (On an average)
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Q. 8- How many customers ask for Nokia mobile phones? (Per month)
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Q.9- What are the strengths of Nokia mobile phones?
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Q.10- What are the weaknesses of Nokia mobile phones?
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Q. 11- Which Nokia handsets are available in market right now? Please provide the
time period since then they are available in market.
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Q.12- Which mobile phones of Nokia are facing highest competition in the market?
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Q. 13- Which mobile phones of Nokia are most sold in the market?

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Q. 14- May you provide approximate market shares of above mentioned product?
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Q.15- Which are the mobile phones of other companies that are prevailing in the
market along with the Nokia mobile phones since the same time period?
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Q.16- Is there any specific company/ies which is/are giving Nokia very tough
competition?
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To customers-
Q.1- Which mobile phone company do you trust the most?
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Q.3- Which mobile phone are you using right now?
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Q.4- Why did you purchase this mobile phone?
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Q.5- What is the average life cycle of your mobile phone?
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Q. 6- Which price range do you prefer when buying a mobile phone?

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Q.7- What are the options available in this price range?
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Q.8- Which company’s mobile phones you would never like to buy?
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Q.10- What are the feature you look for when going to purchase mobile phones?
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Q.11- Which company provides you the best satisfaction in providing these
functions?
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Q.12- If mobile phone, you are interested in, is temporarily unavailable in the
market. Would you like to postpone the purchase or buy the best available mobile
phone?
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LIMITATIONS
Universe of study was Jodhpur city only, so data and findings shown are concerned with and
limited to the market conditions of Jodhpur only and may not have similar results elsewhere.

BIBLIOGRAPHY
Books-
1. Thomas L. Weelen and J. David Hunger, “Strategic Management and Business Policy:
Entering 21st Century Global Society”, (Addison-werley Longson Inc., California, 6th
edition, 1998)
Websites-
1. en.wikipedia.org
2. www.cipher-sys.com
3. www.webbusinesslink.com
4. www.nokia.co.in

To Study The Applicability of Hofer'S Matrix For Nokia Mobile Phones

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“TO STUDY THE APPLICABILITY OF HOFER’S MATRIX FOR

The degree of M.B.A. - M.B.L.

For the course of

Submitted by: Submitted to:

Anupam Sain Dr. Archi Mathur

SERIAL NUMBER CHAPTERS PAGE

CHAPTER – 1 INTRODUCTION TO HOFER’S MATRIX 6-12

CHAPTER-2 INTRODUCTION: NOKIA MOBILE PHONES 13-14

CHAPTER-3 DATA TABULATION 15-28

CHAPTER-4 ANALYSIS 29-31

CHAPTER-5 CONCLUSION 32-40

2 PAGE NATIONAL LAW UNIVERSITY

3 PAGE NATIONAL LAW UNIVERSITY

3. To ascertain the applicability of Hofer’s matrix for Nokia mobile phones.

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These stages are having their own characteristics, like-

6 PAGE NATIONAL LAW UNIVERSITY

Saturation and Decline phase-

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Relative Competitive Position

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11 PAGE NATIONAL LAW UNIVERSITY

Model Use and Applicability

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13 PAGE NATIONAL LAW UNIVERSITY

N96 E71 6300 classic 5730 Xpress music 3120 1662

N79 7900PRISM 6220classic 5220 Xpress music 2700 1209

N73 music 7610 6210navigator 5200 classic 1203

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Q. 2- What is the price range of Nokia mobile phones?

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Q. 4- Which price range of mobile phones is mostly desired by the customers?

Q. 5- Which mobile phones of Nokia are present in this price range?

Q. 6- Which other mobile phones are available in the same range?

16 PAGE NATIONAL LAW UNIVERSITY

Q. 9- What are the strengths of Nokia mobile phones?

17 PAGE NATIONAL LAW UNIVERSITY

18 PAGE NATIONAL LAW UNIVERSITY

Q. 13- Which mobile phones are most sold in market?

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Q. 16- Reason for the above answer-

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Q. 3- Which mobile phone are you using right now?

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Q. 5- What is the average life of you mobile phone?

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Q. 7- What are the options available in this price range?

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Q. 8- Which company’s mobile phone you would never like to buy?

Q. 9- What is the reasons for above answer?

25 PAGE NATIONAL LAW UNIVERSITY

26 PAGE NATIONAL LAW UNIVERSITY

Q. 13- What is the reason for above answer?

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Analysis of questionnaire asked to Dealer-

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29 PAGE NATIONAL LAW UNIVERSITY

Analysis of questionnaire asked to customers-

Q.1- Which mobile phone company do you trust the most?