A strategic analysis of NOKIA diversifying into the provision of community phone services

Nokia predicts that by 2008, 80% of mobile phone sales will come from New-Growth Markets. New-Growth Markets consist of high-income consumers capable of purchasing expensive handsets, and low-income consumers that have thus far been unable to afford cellular phones. This paper investigates the feasibility of Nokia creating Community Phone Services. A prospective business model involves rollout of services by Franchisees, following guidelines from the firm. This paper finds that the business potential in this market is massive, but challenging due to the different socio-economic classes in the region. This paper concludes that by focusing on a dual-strategy, where Nokia continues to create products for the high-income consumer while diversifying into the Community Phone Arena, it will be able to reap benefits from consumers who fall on both sides of the economic spectrum. Following this strategy will allow Nokia to defend its position as the world leader in the industry.