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Monika rises to the challenge of the changing mobile phones market. Fenland’s best known company has long been a global leader in the mobile phones market. Perhaps improbably, from Its beginnings as a paper mill In 1865, this innumerable company whose culture and management remain rooted In Finnish values, has become one of the most resilient, globalizes Mines In an era dominated by globalization of markets. Indeed, the company attributes its staying power In markets largely to Finnish values of courage and tenacity.
But it will take more than perseverance to maintain market leadership in today’s mobile phone markets. Stagnation in the handset market generally, in which Monika has long been dominant, has presented a mammoth challenge, and it has encountered stiff challenges in the smartened market, which is the only subsection that saw healthy growth in 2009. In smartness, Monika has fallen behind in technology, its Simian operating system now showing its age. However, the fight-back has long been a Monika specialist.
In the sass, it was caught unprepared as new ‘clamshell’ handsets were launched by rivals, but soon recovered market leadership with new products. Its ability to respond rested in large part on Its ability to exploit economies of scale and Its efficient supply chains, which can but It has excelled In the planning and logistic necessary to maintain efficient operations. Its design teams have contributed hugely to the company’s success, designing phones for all possible types of customer worldwide.
But it must stretch beyond its core strengths in handset design and production to meet the challenges in the smartened market, in which, because the devices are computerize, software and services are becoming crucial. Apple’s phone and the Blackberry, made by Research in Motion, which are dominant in the American market, have shown impressive growth. Monika was late in launching mobile phone with touchstones technology, and its Simian software needed upgrading. Also entering the market strongly has been Google, whose Android operating system Is used in phones by ETC of Taiwan.
Monika has responded with new smartness and Improvements to Simian. It has also launched services such as Comes with Music, a dealt-music service, and Vi store to offer services. But they hardly compete with Apple’s tunes or its phenomenally successful App store. Monika faces an uphill task in building greater expertise in software and services. In these areas, operators are influential, as they sell packages of phones and services directly to customers, which compete with Ionians own services. Monika has risked losing its way as it attempts to compete in all markets and all product categories.
It launched a Booklet mint-computer in 2009, recognizing the convergence between computing and mobile phones. The following year, Apple launched Its pad, a tablet’ positioned between the smartened and laptop. Monika has long targeted not Just rich countries, but emerging markets. In India, It offers Monika Money, a mobile payments system. Another service aimed at developing entries Is Its Life Tools, which provides agricultural Information (such as prices and weather), and educational large-hearted position in emerging markets.
Its main challenge is likely to be linking hardware and innovative services which outshine its younger, agile competitors. Questions 1 . What are Ionians strengths in global mobile phone markets? 2. What have been Ionians competitive weaknesses in the past? 3. What competitive threats to Monika are likely to be the most damaging to its global position? Adapted from: The Global Business Environment: Meeting the Challenges,J. Morrison, 2011, p. 73-74, 3rd Edition.