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Product Line Management Analysis


     By : Swapnil Deole, Marie Putri
            December 2011
What is Nokia?
Nokia is About Connecting People
 It is the world's largest manufacturer of mobile
 phones.

  Offers much more: mobile devices and solutions
  for imaging, games, multimedia, mobile network
  operators and business.

Headquarter : Espoo, Finland
What is Nokia?
• Market share as 23% in the second quarter
  2011

• Over 132,000 employees in 120 countries,
  sales in more than 150 countries

• Around 220 different phones (till 2011)
Source : http://darlamack.blogs.com
List of Nokia Product Family
Nokia 1000 series – Ultrabasic series
Nokia 2000 series – Basic series
Nokia 3000 series – Expression series
Nokia 5000 series – Active series
Nokia 6000 series – Classic Business series
Nokia 7000 series – Fashion and Experimental series
Nokia 8000 series – Premium series
Nokia 9000 series – Communicator series (discontinued)
List of Nokia Product Family
Nokia C series - affordable series (optimized for social
  networking and sharing)

Nokia Eseries - enterprise-class series (business-
  optimized smartphones)

Nokia Nseries - advanced smartphone series (with
  advanced multimedia and connectivity features)

Nokia Xseries – for young audience (focused on music
  and entertainment)
Product Line Strategy
Starting since 1994, Nokia :
• created global platform, GSM 900 platforms
  (2110, 8110 and 6110)
  – GSM 900 and 1800, primarily in Europe and Asia
  – 1900 MHz and TDMA 800, primarily in US and
    South America
  – PDC (Personal Digital Cellular), primarily in Japan
Product Line Strategy
• Introduces lots of product in a short time

• Emphasizes aesthetic design, user interface
  and software features

• Use common designs across standards

• Concise Architecture-documents
Product Line Strategy




Source : J. Funk. Global Competition Between and Within Standards: The Case of Mobile Phones.
Advantages
• Effectively covers various price segments while
  maintaining lower development cost

• Improves efficiency to further development and
  manufacturing of products within each series

• Changes the competition from a single market to
  global level

• Creates a strong brand image, enables it to set prices
  that are based more on customer value than on cost
Excellent, but not enough
Problems
• Nokia products are not reaching intended
  customers, a clear mismatch between the
  product and its customer
• Variability needs in software are constantly
  increasing because
  – variability moves from mechanics and hardware to
    software
  – design decisions are delayed as long as economically
    feasible
• ‘Here is a phone. Do you want it?’
Problems
• Victims of success: broadening scope of product
  families
   – Convergence leads to broader set of products
   – Success leads to unrelated products to be included in the
     family
• Too many products
   – The wide product portfolio results in customers being
     thinly scattered across each product line
• Buyers bargaining power is high
   – More choice of products with very limited differentiation
   – Elastic demand, buyers can delay buying new models
Solutions
• Focus on increasing the user satisfaction index

• Release less products but hit bulls eye

• Learn to know better about customer’s
  evolving tastes, needs and requirements
• Hierarchical Software Product Family

• Composition-Oriented Approach
Hierarchical Software Product Family
Hierarchical Software Product Family -
               Example
Composition-Oriented Approach
References
• Bosch, Jan. Software Product Families at Nokia. Nokia
  Research Center, 2005.
• Funk, Jeffrey. Global Competition Between and Within
  Standards: The Case of Mobile Phones. London, Palgrave,
  U.K., 2001.
• Funk, Jeffrey. The Product Life Cycle Theory and Product
  Line Management: The Case of Mobile Phones. 2004.
• http://www.janbosch.com/QoSA-Keynote0606.pdf
• http://en.wikipedia.org/
• http://www.slideshare.net/merragun/nokia-strategy-
  3763661
• http://www.nytimes.com/2009/10/19/technology/compani
  es/19nokia.html
Thank you

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Nokia product line management analysis - presentation

  • 1. Product Line Management Analysis By : Swapnil Deole, Marie Putri December 2011
  • 2. What is Nokia? Nokia is About Connecting People It is the world's largest manufacturer of mobile phones. Offers much more: mobile devices and solutions for imaging, games, multimedia, mobile network operators and business. Headquarter : Espoo, Finland
  • 3. What is Nokia? • Market share as 23% in the second quarter 2011 • Over 132,000 employees in 120 countries, sales in more than 150 countries • Around 220 different phones (till 2011)
  • 5. List of Nokia Product Family Nokia 1000 series – Ultrabasic series Nokia 2000 series – Basic series Nokia 3000 series – Expression series Nokia 5000 series – Active series Nokia 6000 series – Classic Business series Nokia 7000 series – Fashion and Experimental series Nokia 8000 series – Premium series Nokia 9000 series – Communicator series (discontinued)
  • 6. List of Nokia Product Family Nokia C series - affordable series (optimized for social networking and sharing) Nokia Eseries - enterprise-class series (business- optimized smartphones) Nokia Nseries - advanced smartphone series (with advanced multimedia and connectivity features) Nokia Xseries – for young audience (focused on music and entertainment)
  • 7. Product Line Strategy Starting since 1994, Nokia : • created global platform, GSM 900 platforms (2110, 8110 and 6110) – GSM 900 and 1800, primarily in Europe and Asia – 1900 MHz and TDMA 800, primarily in US and South America – PDC (Personal Digital Cellular), primarily in Japan
  • 8. Product Line Strategy • Introduces lots of product in a short time • Emphasizes aesthetic design, user interface and software features • Use common designs across standards • Concise Architecture-documents
  • 9. Product Line Strategy Source : J. Funk. Global Competition Between and Within Standards: The Case of Mobile Phones.
  • 10. Advantages • Effectively covers various price segments while maintaining lower development cost • Improves efficiency to further development and manufacturing of products within each series • Changes the competition from a single market to global level • Creates a strong brand image, enables it to set prices that are based more on customer value than on cost
  • 12. Problems • Nokia products are not reaching intended customers, a clear mismatch between the product and its customer • Variability needs in software are constantly increasing because – variability moves from mechanics and hardware to software – design decisions are delayed as long as economically feasible • ‘Here is a phone. Do you want it?’
  • 13. Problems • Victims of success: broadening scope of product families – Convergence leads to broader set of products – Success leads to unrelated products to be included in the family • Too many products – The wide product portfolio results in customers being thinly scattered across each product line • Buyers bargaining power is high – More choice of products with very limited differentiation – Elastic demand, buyers can delay buying new models
  • 14. Solutions • Focus on increasing the user satisfaction index • Release less products but hit bulls eye • Learn to know better about customer’s evolving tastes, needs and requirements • Hierarchical Software Product Family • Composition-Oriented Approach
  • 16. Hierarchical Software Product Family - Example
  • 18. References • Bosch, Jan. Software Product Families at Nokia. Nokia Research Center, 2005. • Funk, Jeffrey. Global Competition Between and Within Standards: The Case of Mobile Phones. London, Palgrave, U.K., 2001. • Funk, Jeffrey. The Product Life Cycle Theory and Product Line Management: The Case of Mobile Phones. 2004. • http://www.janbosch.com/QoSA-Keynote0606.pdf • http://en.wikipedia.org/ • http://www.slideshare.net/merragun/nokia-strategy- 3763661 • http://www.nytimes.com/2009/10/19/technology/compani es/19nokia.html

Hinweis der Redaktion

  1. 1) The use of a product line gave Nokia the opportunity to increase their production of new mobile phone models from 5-10 to around 30 4) Effective communication of architectural properties can be achieved only with concise documentation. It is very hard to find inconsistencies in a document of more than 500 pages. Nokia strives to describe Architecture in a way that provides concise document that directly address the wanted characteristics.
  2. Ex # 1: - Nokia fails to offer design that fits the tastes of American consumers, like flip phones and touch screens Ex # 2: - Nokia fails to provide solutions to the problems of consumers regarding the use of their Internet connection features.
  3. Too many products: Problems • Decreasing complete commonality • Increasing partial commonality • Over-engineered architecture