The Economic Times reports that Nokia gets bigger than Unilever in India to become the largest multinational operating in the fast growing economy. This is significant – displacing Lever, the iconic name in India for several decades. Look at it: Nokia has about 75% plus share of the GSM handset market in India – this is amazing. Am sure the Koreans would launch a major offensive against Nokia in the Indian market in the days to come. Nokia is approaching 30% market share in China, well ahead of the 10% controlled by No. 2 Motorola Inc. China & India are critical to Nokia for its future success.
Lets look at what Nokia did differently in the Indian market :
- “Indianized” 100% of Its R&D (Bangalore) and manufacturing (chennai)
- Its products (e.g., flashlight-embedded cell phone, dust cover, and slip-free grip) as well topline products
- Its local management
Outcomes include:
- Mega deal with the largest operator – Bharti Airtel
- Perceived as a national asset (voted No. 1 of top 20 Indian brands)
- 75% plus share of Indian GSM handset market
(4 million new subscribers every month buy Nokia handsets)
Nokia’s stupendous success in India is indeed a case study that other multinationals operating/entering India may like to study closely and draw lessons.
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