Nokia and its Growth Strategy in China

The Chinese mobile devices market has grown tremendously since the 90s. Nokia has been trying to establish a strong presence in the Chinese market since mid 80s. Nokia has made significant investments in research and manufacturing facilities. In the Chinese market, Nokia faces stiff competition from global players like Motorola, Samsung and also from domestic players like TCL and Ningbo Bird. The domestic local players have increased their market share to almost 50% (in 2003).

In 1994, China had 1.5 million subscribers across the country. Also in 1994, China transitioned from an analogue network towards a digital Global System for Mobile communications (GSM, originally Group Special Mobile) system. In 1998, Motorola, Nokia and Ericsson had 83% market share. Also in this year, Kejian introduced its (first local mobile brand) GSM mobile phone.

Keywords: Nokia in China, Domestic and foreign cell phone players in China, Nokia entry strategy in China, Chinese mobile phone market

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