A Scrappy Contender in a Billion $ Oligopoly – the 4P’s – Nokia Lumia Smartphone with Windows Operating System

Product:

From its website, Nokia Lumia 920 is a sleek smartphone recently introduced internationally into a smart-phone market in a growth stage. It is powered by the Windows operating system, a potential third candidate into the oligopoly that is iOS and Android. It boasts a sleek 4.3” display, solid lightweight construction, was “built for better reception”, and features ‘Pureview Camera’ with HD video recording, video call capabilities and induction charging. Reviews on the Lumia 920 generally state it is a solid product.

Price:

Phone

3-year contract

No contract

iPhone 5

$179.00

$699.00

Samsung Galaxy S3

$79.99

$599.99

Song Xperia T

$99.99

$524.99

LG Optimus G

$129.99

$599.99

Motorola RAZR HD LTE

$99.99

$549.99

Lumia 920

$99.99

$549.99

Median

$99.99

$599.99

Mean

$117.79

$594.79

*data for Canada from Rogers

It is worth noting that the no contract option for Lumia is available from carriers only on a ‘month to month’ plan while the no contract price for iPhone or Galaxy are available from the corporate store fully unlocked.

Place:

The Nokia Lumia is only available through carriers in the USA, Canada and various European countries i.e. Germany where it is reportedly selling well. Compared with Apple iphone or Samsung Galaxy, its rivals, Nokia’s Lumia at launch has lower availability – exclusively through AT&T in USA and Rogers in Canada – while the iPhone or Galaxy are available through most major carriers in addition to being sold by manufacturer directly without contract. Interestingly, in Germany where sales are good, the Lumia is available through a wider range of carriers. In addition, Nokia has made Lumia contract version available on Amazon, utilizing it as a listing space. Apple & Samsung list on Amazon as well, but offer the unlocked version online.

Promotion:

The promotion of Lumia was embroiled in controversy when it was revealed that in filming a demonstration for its HD Video Capture technology, a major promotional point, Nokia used a full video recorder rather than the smartphone to capture the scene intended to have been shot by the smart-phone. Aside from this initial gaffe, the marketing in its early stages focused on presenting consumers the technical details of the phone which was worse in generating hype compared with marketing giant Apple’s approach of communicating simple benefits as opposed to technical details. The promotional strategy seems to have been changed as per the recent advertisement below.

Lumia 920 Ad

In conclusion, the success of Nokia now hinges on the success of Nokia Lumia. Will the Nokia Lumia satisfy the capricious demands of this burgeoning and diverse global smart-phone market? Will the Nokia Lumia introduce Windows OS as the third major OS ecosystem? It remains to be seen and has wide implications, for device makers, cellular carriers, software designers, and consumers alike.

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