Your assignment is to prepare and submit a paper on international business strategy: nokia on global market. Smartphone manufacturers are competing with each other in terms of implementing new technologies, gaining access to a new market, advertising exposure and many others. Few Smartphone is doing legal battle with each other in terms of feature and application counterfeiting (for example Samsung paid a huge amount to Apple after losing the legal battle of counterfeiting of design and application of iPhone). Some companies are using the Android operating system for their Smartphones while others are focusing on windows phone. Market saturation is higher for phones not acquired with the contract. Fixed costs associated with smartphone market are high due to the requirement of investing in the latest technologies. Hence it can be concluded that market rivalry is high. Global Smartphone market condition can be explained in the following manner. In the future, Nokia will face a specific threat from counterfeit products. Mobile manufacturers complemented by low resource capabilities tend to imitate features and design of Smartphone manufactured by reputed companies such as Nokia, Samsung, and Apple. Impact of such threat will increase in the future. Market players rely heavily on suppliers providing software and hardware integration. Influence of low cost Taiwanese suppliers is increasing in the mobile manufacturing industry. Foxconn is the Taiwanese supplier for Apple and HTC. Taiwanese suppliers supply HSPA or High-Speed Packet Access, evolution data optimizer and touch screen panels to mid and high-end Smartphone manufactures. Component source of Taiwanese Smartphone supply can be depicted by using the following diagram. Operating systems such as BlackBerry OS, Windows Phone, Android and iOS are essential gears for Smartphone manufacturers. Smartphone manufacturers are relying heavily on their technology partners such as Google and Microsoft. Hence it can be inferred that supplier power is high.
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