Saturday, September 17, 2005

Management keeps Nokia competitive

Interesting news coming from South Korea – LG Economic Research Institute, in a recent report, argued that organizational system is the key to win on the highly competitive super-cheap mobile phone market. Actual products, while still important, would however be secondary in importance. They argue that economies of scale and platform thinking that fits to every market will lead to the victory.

Asian companies took the world with their speed. They were able to introduce new product features to markets as Western competitors still had similar products on their design tables. Speed doesn’t cut it anymore. People still value the brand of a product so marketing remains important aspect. Another and perhaps more important feature is the scale management. Nokia is very used to work with very large production runs with their mobile phone models. This is an experience that Nokia’s Asian competitors still have to gain. For now it seems like the mass market is still in Nokia’s pocket.


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