NOKIA AND THE CELLULAR PHONE INDUSTRY
The case is situated in the spring of 1994 when Nokia just finished a successful year with an increase of more than 70 % of the profits and forced to many of their competitors to shut down or sell out.
The phone industry was increasing with a presence on more than 90 countries with cellular services.
With the support of the Nordic governments of this area was the first to establish cellular services, with a penetration rate of up to 10% and other countries adapt these technology (like France, Spain and Austria among others). Take in consideration that Germany only had a 2.47% and USA 6% of penetration. The dominant producers were Ericsson (Sweden) a Nokia (Finland) that also produce Infrastructure for cellular services.
The expectation of the market growth were to move from 1993 with a 33 million of subscribers to the predictions in the year 2000 with a 100 to 170 millions of subscribers. But the great uncertainty was the price level, versatility of the product, ease to use and the service of the carriers.
– Assembling factories into countries of low-wage.
– Flow of communication (all employees involve in the process)
– Adapt to different standards
– Flexibility of the
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