MALAYSIAS CHOICE OF MOBILES NOKIA VS.

. SAMSUNG Nowadays, not only that Nokia and Samsung are competing with each other to be better in mobile phones industry, but also other brands of mobile phones in the market such as Sony Ericsson, Motorola and HTC. Nokia is the leading company that owns the majority market share in mobile phones industry, followed by Samsung and others in 2009. This scenario was seen in 2009, will it has yet to be seen that the same status quo to be maintained in the future? Nokia's history starts in year 1865, it is a company that manufacture paper. Until year 1960, Nokia starts its journey into mobile industry. In year 1992, Nokia made the strategic decision to divest its non-core operations and focus on telecommunication. The company's 2100 series phone was an incredible success as many people had deep love for it. Nokia focuses on the mobile phone industry and achieve good results and reputation. On the other hands, Samsung, a small export business in Taegu, Korea has grown to become one of the worlds leading electronics companies. The Samsungs beginning starts on March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea, with 30,000 won. In the 1970s, Samsung invested in the heavy, chemical, and petrochemical industries as a strategic foundation for its future growth. Samsung diversified and expanded its core technology business globally during 1970s and manufacture mobile phone in early 1980s. Samsung dedicates to make world-class products, provide total customer satisfaction. Given these points, Nokia starts mobile business earlier than Samsung for 10years. Nokias mission is connecting people by enabling consumers to easily connect and communicate using their favorite internet communities. Nokias vision is to let all

people experience the full power of being connected everywhere, anytime (NokiaVision and strategy, n.d.). It makes the life becomes more flexible. Have in common, for Samsung, its mission and vision for the new decade are Inspire the World, Create the Future. Samsungs three key strengths: New technology, Innovative Products, and Creative Solutions, reflect into its new vision of Samsung Electronics (Vision, 2010). As for the types of products, Nokia manufactures its own mobile phones and its product line is only in mobile phones and other mobile phones accessories where as Samsung manufactures and provides consumer electronic products like TV, refrigerator, air conditioner, MP3 player, printer, camera, mobile phone and more (Vision, 2010). Furthermore, for the name of Nokia is a name of a town where the founder of Nokia, Idestam built a mill near it and was named in 1871 when the manufacture paper company had transformed into a share company. Meanwhile, the meaning of the word Samsung () is three starts or tristar in Korean hanja. The three represents big, many and powerful, and the stars mean eternity. In addition, Nokias tag line is connecting people which Nokia wants consumers can easily connect and communicate with each and another. In the same manner, the tag-lines that Samsung used before were Samsung DIGITall: Everyones invited in 1990. And now, new spunky tagline, Next is What? which is being used in all of Samsung Mobile communication material. Current business development Nokias business is in manufacturing and retailing for mobile phones. It produces the mobile phones by using the companys technology. After manufacturing, the product will be distributed and ready to be sold in the market regardless to other retailers or its own Nokia stores. Unlike Samsung, Samsungs business initially was focused on trade export. Then after a decade, it has its own manufacture and sales

operations, now has evolved to become the modern global corporation. Until currently, Samsung has different component business such as semiconductor, LCD panel, telecommunication and storage (Business, 2010). While, Samsung has advantage of diversified products compared to Nokia only capitalized its resources in mobile phone industry by positioning itself to produce durable and user-friendly products. Business strategy is aggregate strategies of a firm where firm formulates and incorporates in order to achieve sustainable competitive advantages and long-term success. Nokia and Samsung compete in using very different strategies where Nokia stress on creating solution with strong focus on social location while Samsung focus in gathering brightest talent for better innovative products. Nokias strategy is to create various types of outstanding devices, with geographic advantage. It couples the devices with smart services, integrated via an intuitive and seamless user experience. On the other hand, strategy business of Samsung is to follow a simple business philosophy: to devote our talent and technology to create superior products and services that contribute to a better global society. As result of those products from memory chips that store vital knowledge and memories to mobile phones that connect people. Samsung also has a rigorous code of conduct (Samsung values): People, Excellence, Change, Integrity, Co-prosperity, that guides every decision they make. For the term of investor relation, is a strategic management responsibility that enable effective two-way communication by integrates finance, communicate, marketing and securities law compliance between a company, the financial community, and other constituencies, which help company to achieve fair valuation. Performances of a company show the capacity to earn profit, which will attract

investors to invest and pump the company funds and capital inflow. Performances for first quarter 2010, Nokia had sold 110million units of mobile phones which were 35% of the market share whereas Samsung had sold 64million units of mobile phones which were 20% of the market share. From these strong market shares result, Nokia is better able to attract more investor for what they had done compared to Samsung. For the matter of facts that Nokia and Samsung make a great public relations as they make contribution to save the environment by providing eco-friendly products. Nokia adopts environmental strategy which aims to minimize the environmental impact of its products throughout the operations, beginning with the extraction of raw materials and ending with recycling, treatment of waste, and recovery of used materials(Nokia Why recycle?- , 2010 ). Nokia achieves this by better product design, close control of the production process, and greater material reuse (Nokia Recycling, n.d.). Comparatively, Samsungs Planet First is a commitment and mindset that mean to consider its impact on environment at the first place while Samsung is working and developing its innovative products as Samsung believes it has the responsibility to do business in a way that enriches earth planets (Environment Citizenship, n.d.). Furthermore, Nokias employees are giving practices to meet recognized internationals standards. Nokia Company also provides safety and healthy working conditions for the employees and promotes wellbeing at work. Similarly, as part of Samsungs employees, will be given training to develop their talent and enrich their career path. These show both company are responsible and caring to society irrespective of environment or worker.

Marketing strategies For Marketing strategies are the 4Ps: product, price, place and promotion. Although both Nokia and Samsung are using the same marketing mix strategies but Nokia emphasis in promoting affordable prices product whereas Samsung focuses in producing high-tech products for consumer wants. For choice to be chosen among mobile phones, each brand and each series within it has its own unique and combine specification. Such as for Nokias N-series, within this series kind of mobile phones would have specification that focus on high technology standard; E-series that better for business user as include basic function with addition of office edition of applications. However for Samsungs mobile products, they categorize them into 6 types: style, infotainment, multimedia, connected, business, and essential (Mobile Phone | Samsung, 2010). These different types of Samsung mobile products are to target on different types of consumers. For example, business category which is work perfectly with those businessmen as it has essential style design, office application that allow business on the run in mobile. On the other hands, essential category is to target on consumer that can get basic multimedia functionality mobile phone that is affordable. Secondly, for the price of a mobile phone depends on its own series and specifications. Nokias pricing strategy which imposes different price range that affordable for different series of products to meet different consumer needs. Example, for consumer want for entertainment and high tech of functions, can go for N-series such as N8 with 3.5 touch screen, 12mp camera and Dolby speaker and cost only RM1899. Consumer like business user can go for E-series, such as E72 which have functionalities like Window Mobile OS, Microsoft office suit allow them to manage

their document and only cost range of RM1350. In the other hands, for Samsung, examples for categories of Infotainment is the new released mobile phone, Galaxy ST-i9000 with latest OS (1GHz Android 2.1), 5mp camera and new technology of 4.0 Super Amoled touch screen display and cost RM2599. Whereas for Business mobile choices, Samsung OmniaPro B7320 would be the best as it have Window Mobile 6.1 Standard OS, included Microsoft Office Suite, capture picture with its 3.2 megapixel camera and also WiFi, QWERTY keypad and team manager function and cost only RM1299 (Shopping Guide, 2010). Customers can choose either brand of the mobile phones based on their specifications, preferences and prices they wanted to pay. Thirdly, for place that both Nokia and Samsungs mobile phones can be bought, mainly consumer can get it at most of the mobile phones stall. Consumer can also find the mobile phones at Nokia Store and Samsung Electronics Stores, telecommunication centre or even purchase it through Nokia and Samsung official website. In facts for the distribution channel, Nokia and Samsung have share the same ways for selling their mobile phones. Lastly for promotion, Nokia makes lots of promotions to let people know about their brand. Nokia tries to know what the customers need and try to satisfy their needs. Sometimes, the Nokia will offer cash allowance to allow the customers buy the mobile phone at cheaper price. On the other hand, promotion for Samsung mobile phones mainly depends on the store that consumers buy the phone as Samsung sells them to the mobile phone retailer. Samsung also will do promotion from time to time and consumer can know it from the news & events from Samsung website. Example, Samsung Jet smarter than smartphone which hold on 17 Jul 2009 31Dec2009

(Promotions - News & Events, 2010). Likewise, both Nokia and Samsung do promotion by promoting their products through few channels such as advertising, personal selling, sale promotion, road shows and public relations. Additionally, Nokia and Samsung are using same types of advertising methods to promote the brand and products. They makes advertisements through TV, Sign boards, Bill boards, Radio and Newspaper, Broachers, Posters Dummies and display stands. Nokia and Samsung also sponsor some events like sport competition is also one of the advertising methods. Nowadays, internet is vital to all people around the world, so Nokia and Samsung are also making advertisements through internet. Conclusion Not only Nokia, but Samsung also face the same threat from those new competitors such as the new mobile phones from Google and Acer. Challenges and crises that Nokia faces are product shares was decline in this few years because they are new competitors enter in this industry. Besides that, Apple company launches iPhone4 gave the most impact to the Nokias mobile. The iPhone4 has the most applications and it become many mobile users favor. Moreover, other competitors (Samsung, LG, Apple) had quickly and successfully built brand name, these bring great impact to Nokia. However, for Samsung, in order to be leading company in mobile industry, it must preeminent above its rivals such as Nokia, the larger network distribution and selling mobile phone in the world. Nokia is backed with high quality and professional team and Nokias products being user friendly and have wide range of products for all class. Overtake Nokia and be the top company in mobile phone industry will be a big challenge for Samsung mobile.

In order to achieve objectives and resolve crises, Nokia and Samsung must be carefully in their decision making for the recent development and future plan. Nokia and Samsung both are facing Apple, Android and emerging threats from new smart phone platforms like Windows Phone 7, so in order to make the product be competitive in the market, they must upgrade their products level (Gartners Says Worldwide Mobile Phone Sales Grew,2010). Recent development for Nokia, it decides to boost the application development. This action is to ensure that applications will continue to be compatible with future evolutions of Symbian. Meanwhile for the recent development of Samsung is the official launch of Theme support services in Samsung Mobile Innovator on 13th Oct, 2010. Besides that, Samsung Mobile Innovator also terminates the support for Symbian (Samsung Mobile Innovator, 2010). Samsung also develop online store-Samsung Apps website, where consumer can download musics, games or applications for free or a price. Furthermore, Nokias future plans will still focus on the research and development of mobile phone. The company future outcomes are not smart phones, not converged devices, but devices that intended to replace both PCs and mobile phones. On the other hand, Samsungs mobile future plan is to focus in developing its own OS for mobile phone which is Samsung Bada (Bada Development, 2010). As for they focus in developing in its own Bada OS and Samsung apps, its showing Samsung will make itself independent from others. In contrast, Nokia stress in provide full-on mobile computers in future while Samsung focus in provide better mobile, OS and variety of applications in future. In conclusion, Nokia has more variety mobile phones as compared to Samsung, it gains advantages in marketing the products to greater area of consumer market to meet their needs. Besides that, Nokia still dominate the mobile phones

market as its products sales were at top in first quarter 2010 which is 35% of the market share. Nokias leading position in mobile phone industry may not last long, as if Nokia loosen for a minutes, other companies might overtake its position.

References
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Appendices

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