CHAPTER 4. ANALYSIS OF NOKIA¡¯S STRATEGY

Nokia Group comprises two business groups: Nokia Networks and Nokia Mobile Phones. In addition, Nokia includes a separate Nokia Venture Organization and the corporate research unit, Nokia Research Center. By adding mobility to the Internet, Nokia is endeavoring to offer new opportunities for companies and has been dedicated to further enriching the daily lives of the people. At the end of 2000, Nokia with employees more than 60,000 people worldwide had production lines in 10 countries on three continents, research and development institutions in 15 countries on four continents, and sales to over 130 countries with a global network of distribution, sales, customer services and other operational units (The Korea Times, 2001).

Furthermore, Nokia has also made a lot of progress in its brand awareness all around the world. This has made the 6th most valuable brand in the world with brand value of 29.97 billion dollars (see Table 4-1).

Table 4-1: The Global Brand Scoreboard of Mobile Phone Manufacturers.⁶

According to Gartner (Ananova, 2002), Nokia worldwide market share grew to 35.9 percent in the third quarter of 2002. That is because Nokia broke through the 50 percent market share in the Western European market, as well as the larger Europe, Middle East and Africa regional markets.

However, North America and Europe are nearing saturation levels while the Asia-Pacific market volume is the highest of the three geographic regions, surpassing both Europe and the Americas in 2002 (The Nation, 2002b). Asia-Pacific region is set to remain the driver of growth for Nokia in order to ensure continued growth and maintain the number one position in global mobile phone market. In addition, Nokia is facing a lot of challenges in present day environment. In 1990¡¯s Nokia rode on the GSM technology and made a fortune out of it but presently GSM is a comparative disadvantage with the onset of 3G mobile phones. Therefore, Nokia is threatened by the emerging of CDMA and other compatible systems supported 3G. Although Nokia is working on W-CDMA, a wireless standard which is compatible with 3G phones, it has not manufactured a full-fledged 3G generation device yet.

The history of Nokia in Korea extends back to 1984 when Nokia TMC Company was established to manufacture mobile phones in Masan. Today, Nokia TMC with more than 800 employees is the largest mobile phone manufacturing site in Korea and one of Nokia's largest manufacturing centers globally. At Nokia's Seoul office, about 140 staff works at Nokia Mobile Phones, Nokia Networks, Nokia Internet Communications and Nokia R&D. However, Nokia currently have only mobile phone business in practice, and network equipment business is under pitching for WCDMA.

For mobile phone commerce in Korean market, Nokia started its business once in early 1990¡¯s, but Nokia failed and had to retreat from this market. Due to technological differences, Nokia sophisticated in GSM market has stayed away from the Korean market. However, Nokia decided to reenter Korea¡¯s telecommunication equipment market in 2000 after it spent much more R&D cost to develop CDMA handsets. This is because Korea is high potential and sizable market with the rapidly growth of CDMA technology. Nokia aimed to set up Korea as a new foothold in Asia and safeguard its selfpride as the world¡¯s largest handset manufacturer.

For Nokia¡¯s reentry, Nokia signed agreement with Telson Electronics in June 2000. Telson specializes in the manufacture of wireless terminals, such as pagers and CDMA handsets that are sold both in South Korea and overseas (e-Business World, 2000). Under the terms of the agreement, Telson has to manufacture CDMA handsets according to designs provided by Nokia. Initially, the localized handsets were sold exclusively in South Korea, but the partnership may in the future also be extended to other markets.

Though Nokia had succeeded in penetrating the GSM market around the world, the task was not easy in Korea. I will analyze which element of marketing mix made Nokia fail to attract Korean consumer.

Nokia Korea adopts no segmentation in Korean market. According to the e-mail interview with Kim, Ji Won, Marketing Manager of Nokia Korea, Nokia thought that market segmentation doesn¡¯t work for Nokia Korea now. Therefore, Nokia Korea has no segment of products category by targeting mass market. However, Marketing Manager mentioned that segmentation would be deployed when market is ready for Nokia. For market positioning strategy, Nokia Korea positions itself as a premium quality by utilizing its global brand image. Nokia¡¯s product started with a high quality and will be improved over time in order to achieve its objectives.

Nokia has done market research for a long time and carefully set the 4Ps strategy based on the market research. Since Korean market is such a unique market as I mentioned in Chapter 3, Nokia gives a special attention to its marketing strategy. I will analyze how Nokia Korea operates each element of its marketing mix (product, price, place and promotion) in terms of standardization versus localization.

4.2.2.1 Product

Nokia intends to provide a wide of products with different designs and different features to meet the needs of different consumers groups around the world. But in Korea only for mass market, Nokia has sold three foldertype items, Nokia 8887, 8877 and 8587, through SKT and KTF, and one bartype item, Nokia 8277, through LGT.

Nokia 8887, 8877 and 8587 were designed and sold specially for only Korean market under the partnership with Telson Electronics. The phones were designed by Nokia¡¯s chief designer and Telson supported with its CDMA expertise. Nokia tried to put all the Korean preferences in its new products reflecting the premium image of the product. As I mentioned in Chapter 3, Korean market has unique needs.fashionable design and innovative features. Nokia handsets are available in rich glossy metallic colors and are designed with white-blue backlighting keypad, polyphonic ringing tones and Nokia¡¯s distinctive UI with high-resolution display (Multilanguage supported Korean/English). All Nokia¡¯s mobile phones are very light, small and stylish slim with folder-type design, meeting the trendsetting needs of Korean consumers. Besides, the phone also support different operators¡¯ browsers for quick internet access and downloads (Nokia, 2001).

Nokia believed that its handsets are able to capture Korean consumers. But, it could not attract Korean consumers by those customizing mobile phones as it did. In fact, Korean market is very advance.color display, polyphonic ringing tones, camera, and high-speed internet connection.and high brand loyalty. Nokia 8887 and 8877 without this new trend launched in 2001 failed in Korean market. Thus, in 2002 Nokia launched 8587 based on 1x technology with minor changes.higher technology, dual LCD, color display and polyphonic ringtone download, in order to gain market share. Also, Nokia 8277 with bar-type design is sold in Korea. According to Marketing Manager, it was only design base and developed by Nokia R & D in Korea. This was Nokia¡¯s first try with Nokia CDMA chipset, while all folder-type handsets in Korea are Qualcom CDMA chip set base.

4.2.2.2 Price

In Korean market, the final price of mobile phone depends on mobile phone operators. According to Nokia Korea¡¯s Marketing Manager, since the price is up to the operator, Nokia cannot control on price erosion in market even Nokia wants the premium price as its high quality and global brand image. Consequently, Nokia Korea is not sure to the exact price of its products. The price set by operator is depending on market situation.

It is true that operators decide the final price of the product. However, basically, mobile phone producers develop specific pricing strategy and they offer to operators some ranges of the price. For example, Samsung, LG and Motorola pursue premium pricing strategy. They produce a high-quality product and charge a highest price, whereas Hyundai and Hanwha use economy pricing strategy; producing a good quality product but charging a low price.

4.2.2.3 Place

In Korea, Nokia¡¯s channel of distribution is basically operator driven. Nokia has no own distribution channels. To distribute handsets nationwide, Nokia currently supplies Nokia 8887, 8877 and 8587 to the largest nation¡¯s mobile phone operator named SKT (011/017) and the second large operator named KTF (016/018). Moreover, Nokia has sold regional bar-type model, Nokia 8277, through LGT (019), the third large mobile phone operator. However, Nokia Korea is going to use all different operators plus some key accounts soon, according to marketing manger.

4.2.2.4 Promotion

As Nokia handsets introduced in Korea are only specifically developed for Korean market, Nokia Korea localizes the marketing activities upon local market and product situation. According to Marketing Manager of Nokia Korea, Nokia uses pull strategy rather than push strategy. In addition, Nokia Korea has created advertising and promotion on its way. Developing process is shared and backed up by regional marketing team.

Besides, Nokia Korea emphasizes on after-sales and customer care through Nokia Care, a concept that has been well established in the Asia Pacific markets to deliver quality service and enable consumers to get the best out of Nokia products. Nokia Care offers consumers ultimate convenience and accessibility to Nokia customer service through Nokia Care Line, Nokia Care Centers (NCC), and a wide network of Nokia Authorised Service Centers (NASC). Thus, Korean consumers are served by the same standard service.

In term of online marketing, its headquarter has CRG (Customer Relation Group), which manages online marketing activities globally. Nokia Korea also localized Nokia¡¯s website (www.nokia.co.kr) in order to get closer and make Korean consumers feel familiar with Nokia.

In summary, Nokia pursued mostly localized approach in Korean market. To match Korean conditions and satisfy Korean consumers, product, price and distribution were localized completely, while promotion was slightly localized.

To match the conditions in Korean market as I mentioned above, Nokia could not develop any price and distribution as it did in other countries. According to five international product and promotion strategies, Nokia developed product invention strategy in Korean market. Since Nokia produced new three models with folder-type design, Nokia 8887, 8877 and 8587, and one model with bar-type design for only Korean market. Based on the innovation handsets introduced in Korea only, advertising and promotion campaigns were developed by local marketing team of Nokia Korea and local agencies. However, Nokia uses the standardized Nokia Care concept whole Asia-Pacific including Korea.

I would like to employ SWOT analysis of Nokia Korea based on the above information. SWOT analysis is useful for identifying internal strengths and weaknesses of Nokia Korea, and the external opportunities and threats it faces in Korean market.

4.2.3.1 Strengths

Nokia Korea¡¯s strengths can be a great foothold for doing its business in Korea. The first strength is Nokia¡¯s global brand image as Nokia is the largest global mobile phone company with 35.9 percent in the third quarter of 2002. Since Korean consumers have strong brand loyalty. Nokia can take this advantage to attract Korean consumers by informing its global reputation.

Another strength of Nokia is its supreme technology, which is the result of the intense R&D activity. Nokia has focused not only on the quality phones but also on the design under concept of personal technology. In the first entry of CDMA phone, Nokia customized the elegant handsets based on cutting-edge technology were designed specially for only Korean market.

In addition, expert local partner, Telson Electronics, strengthens Nokia in Korean market. Telson is specialized in manufacturing of wireless terminals, such as pagers and CDMA handsets that are sold both in South Korea and overseas, according to information from the company¡¯s Website. Hence, Nokia is not alone in Korean CDMA market. The partnership with Telson gives Nokia the impetus to provide the Korean market with the most competition.

4.2.3.2 Weaknesses

The first weakness of Nokia is that Nokia has weak brand building in Korean consumer¡¯s mindsets. All Korean mobile phone users have been familiar with Korean firms¡¯ brand such as ¡°Anycall¡± of Samsung and ¡°Cyon¡± of LG. Korean firms have exerted to position their brands with fashionable and technological which fit to Korean consumers¡¯ s taste. Therefore, Nokia has to work hard on brand building to overcome the local market players.

The second is that Nokia Korea does not have a variety of products. In Korea, Nokia launched only two items, Nokia 8887 and 8877, in 2000 and one item, Nokia 8587in 2002. Compared with domestic mobile phone, the local firms have product line with various designs and price ranges. Korean consumers can choose the favorite local mobile phone among various alternatives.

The third one is that Nokia has a difficult in localizing its global products in Korean market. Nokia history showed us that Nokia had ever launched its global products in Korean market in 1990¡¯s. However, its products and design did not fit for Korean consumer¡¯ s taste. One factor is that Korea is characterized as high-context, polychronic and homophilous culture (Kotabe & Helsen, 2001). Thus, Nokia has to understand and localize its product to cater consumer needs.

4.2.3.3 Opportunities

Most of all, the explosive growth of global CDMA market gives a great chance to expand business globally. By launching CDMA products in Korea, the second largest CDMA market in the world behind US market, Nokia can learn and practice CDMA technology in Korea before it enters to new foreign markets. Moreover, Korea is the third biggest mobile phone market in the Asia-Pacific region after Japan and China, and one of the most developed mobile communication market in the world. Hence, Korea is important market in Asia-Pacific as the leading source of growth because of market saturation in North America and Europe.

Another opportunity stems from short replacement cycle that is Korean mobile phone users buy a new phone within short time. Since Korean market is all about fad, it implies the short product life cycle. Therefore, this is the opportunity to launch the new product in Korean market.

Furthermore, as WTO agreement on basic telecommunications started to take effect in 1998, business environment in Korea was changed. Korean government began to deregulate the telecommunications industry to prepare for market opening and to comply with the scheduled agreement. This changing is the good opportunity for new entrants that they can easily enter and be successful with the least obstacles possible in Korean market.

4.2.3.4 Threats

Firstly, cutthroat competition in the Korean mobile phone market is key barrier for new rivals. Since Korean mobile phone market growth rate skyrocketed, this led the new competitors into the market. However, local companies, Samsung and LG, dominated Korean market with over 70 percent, and the challenge from Motorola and Pantech & Curitel have developed aggressive marketing strategies to maintain their position. Therefore, Nokia, the new entrant should not overlook these severe competitors.

Secondly, Korean mobile phone users are very unique. As mentioned above, Korea is a very advanced mobile communications market both in terms of technology development and the market trend. Foreign mobile phone companies have to design its products to best match end-user requirements.

The final threat is the subsidy prohibition of Korean government recently. Reflecting the absence of handset subsidies, the sales volume was down especially in black-and-white models as the price of handsets increase. Ban on handset subsidies is aimed at blocking carriers from engaging in excessive marketing activities, but such measures have increased the price of mainstream color-screen handsets too much. Without subsidy, Korea users have to pay about 400,000 won to have mainstream color-screen mobile handsets armed with the latest cdma2000 1x technology.

Thai consumers have been familiar with Nokia brand for about 10 years. Nokia experienced the strongest position in GSM market worldwide including Thailand by its global leading brand image, advanced technology, strong product design and unrivalled distribution channel with 250 outlets nationwide. Moreover, Nokia set up five more customer-care Nokia Professional Centers outside Bangkok in 2002 (The Nation, 2002a).

The objective of Nokia Thailand is not to maintain its market share, but it is to strengthen its market share leadership (The Nation, 2002b). Nokia Thailand has focused on three key strategies. These strategies are promoting its strong product portfolio, enhancing brand preference, and giving more importance to retail and customer care.

Furthermore, Nokia Thailand collaborated with several global partners and local companies to strengthen its position in Thai market. Key partner is AIS (Advanced Info Service), the largest mobile phone operator in Thailand. In addition to handsets, from November 2002, Nokia delivers GSM network equipment and maintenance service to AIS, including Nokia UltraSite Base Stations that well support EDGE, HSCSD, GPRS and WCDMA technology (Nokia, 2001).

For segmentation, as the lifestyle of Thai consumers is totally different, Nokia strongly focuses on five product segments.basic phones for the budget-conscious, fashion phones with trendy designs and many features, premium phones for high-end users, entertainment phones aimed at consumers who enjoy games and advanced features online such as music downloading, and imaging phones (Lueng-uThai, 2002).

By a range of product segments, Nokia targets from the low to high end market. However, main target is low market as in Thailand low market is accounted for over 50 percent (AIS, 2002). Moreover, Nokia positions itself as premium handset by utilizing its global brand image and strong brand awareness.

Currently, Nokia Thailand is the strongest mobile phone supplier in Thai market with the strongest mobile phone business and network equipment business. From this part, I will analyze the marketing strategy of Nokia Thailand based on the dilemma of standardization and localization.

4.3.2.1 Product

In Thai mobile phone market, the success of Nokia depended largely on diversifying its products to suit the different lifestyles of Thai users such as sport, fashion and entertainment and to cover all market segments.

Currently, the available Nokia¡¯s handsets in Thailand are Nokia 3310, 3330, 3350, 5110, 5510, 6210, 6250, 8210, 8250, 8310, 8850 and 9210 (AIS, 2002). All of them are bar-type design, which best match to Thai consumers¡¯ preference. They are different feature and different key options in each model by advanced technology and applications. Nokia uses the straight extension strategy in Thai market as it launched global standardized handsets without any change. However, all Nokia¡¯s handsets worldwide were not introduced in Thai market. Nokia Thailand decided to launch only attractive mobile phones for Thai consumers. As Nokia Thailand sophisticates in GSM market, it understands Thai consumers and give them much more interesting.

4.3.2.2 Price

Like Korea, the final price of mobile phone depends on the operators. Thus, Nokia Thailand could not set standardized price by itself. Since Nokia Thailand has supplied its handsets to big three operators and authorised dealers, consumers may find the same products with different prices depending on the operators and dealers. The price of Nokia handsets is from about 5,000baht⁷ to 27,000baht depending on models (AIS, 2002). However, Nokia¡¯s handsets sold through AIS, the biggest operator, are most expensive than handsets sold through the other operators and authorised dealers, in comparison of the same model.

As the most of Thai mobile phone users are price-sensitive buyers, active strategy of operators is low price strategy. Hence, operators often launch the new cheaper handsets to penetrate market in the early stage of that product life cycle.

4.3.2.3 Place

In Thailand, Nokia has no own channel of distribution. Like Nokia Korea, Nokia Thailand sold its handsets to big three operators.AIS, DTAC and TA Orange.in order to distribute its handsets through nationwide outlets of these operators. In addition, Nokia Thailand is the first supplier who deals with two leading handset retailers as authorised dealers, Jay Mart and BlissTel. Nokia not only supplies its handsets to these retailers, but also supports retailers in terms of outlet decoration, staff training and marketing activities. Dealt with big operators and authorised dealers make distribution of Nokia Thailand stronger than other competitors.

Due to the problem of grey market in Thai mobile phone market, these retailers are the key solution of Nokia. Nokia had planned to educate and encourage its end-users to know the long-term values and benefits in buying Nokia handsets from authorized dealers. The company has stressed that buying Nokia handsets from authorised channels gives the customer access to its original warranty service through Nokia National Authorised Service Centers.

4.3.2.4 Promotion

Nokia Thailand pursues mostly global standardized promotion strategy. However, it localizes the promotion campaigns in Thai market according to the communication adaptation strategy. Nokia uses global advertising campaigns with varying the language and presenters to comply with local regulations and Thai consumers¡¯ preferences. Sometimes, Nokia head office allows local marketing team to create country-specific advertising.

Like Nokia Korea, Nokia Thailand emphasizes on after-sales and customer care through operator¡¯s outlets and retailers shops nationwide. In addition, Nokia care, the same concept across region, was established in Thailand as well.

In term of sales promotion, Nokia mostly developed sales campaign with operators. For example, Nokia jointed with DTAC and Daimler Chrysler to kick off the ¡°lucky draw for a Benz¡± sales campaign to stimulate market growth. The campaign, which ended on October 31, 2001, offered new CClass Benzes and 500 Nokia handsets worth altogether Bt24.9-million to the luckiest buyers. The buyer could buy any model of Nokia to enter the lucky draw. There was one draw in August, one next month and three in October. By this campaign, Nokia hoped to sell 150,000 handsets during the threemonth- long campaign in 2001 (The Nation, 2001a). Another sales campaign is ¡°Nokia Road Show¡± to promote the download ringtone, logo and game in the shopping area and Game contest.

In addition, Nokia focuses on societal marketing for enhancing brand leadership. Nokia Thailand is doing its part to help the environment by launching its ¡°Take Back¡± handset-recycling campaign. Since the number of unused mobile phones has increased rapidly due to their shorter product life cycle and higher demand, the average life span is only two years and soon it will be 18 months. This campaign is from the parent company¡¯s environmental-awareness concept, which was introduced late 2001 in some of Nokia¡¯s 13 markets in Asia-Pacific (The Nation, 2001b).

Also, Nokia has formed Club Nokia to allow users to download such contents as ring tones, games and graphics. Club Nokia was localized into Thai language to aim at creating customer relationship management and enhancing its brand image.

Summarily, in Thailand, Nokia developed highly standardized approach. Product was completely standardized and promotion was mostly standardized, while price and distribution were localized totally.

Nokia utilized its strong brand awareness to appeal Thai customers by standardized handsets with bar-type design, which is Thai consumers¡¯ unique taste. All handsets sold in Thailand were the same global product without any change. To enhance global brand image, Nokia developed a combination of standardization and localization. As the most of Nokia sold worldwide are GSM handsets, Nokia utilized its global promotion campaign to reinforce its brand name with minor changes.

Like Nokia Korea, price is depending on mobile phone operators. Hence, Nokia Thailand has to comply with this market situation by localized approach. In addition, Nokia has strongest distribution channel deal with the biggest Thai operator and the others as well. By the local channel of distribution, Nokia can distribute its handsets to customers countrywide with high service and warranty.

Table 4-2: Comparison of Marketing Strategy between Nokia Korea and Nokia Thailand⁸

Based on the data I found, I will identify internal strengths and weaknesses, and external opportunities and threats it faces in Thailand.

4.3.3.1 Strengths

The first strength of Nokia Thailand is that its brand awareness is higher than other competitors. This is because Thai customers have been familiar with Nokia brands. Moreover, Nokia is the strongest mobile phone supplier in Thailand with strongest mobile phone business and network equipment business. As a result, Thai mobile phone consumers believe all products and other service named Nokia.

The second strength is sophistication in GSM market. Nokia experienced from the other GSM markets to develop the proper marketing strategy for Thai mobile phone users. For example, Thai mobile phone users prefer the bar-type design rather than folder-type. Therefore, Nokia launched only bar-type handsets in Thai market with advanced technologies and applications, while Samsung failed to appeal Thai consumers by folder-type handsets.

Another strength is Thai input software in all Nokia handsets. By the popularity of SMS and language barrier of Thai young people, Nokia launched Thai input mobile phone to capture target market before the other competitors in the market. In addition, all Nokia handsets launched in Thailand are various Asian language interfaces.

Furthermore, strong distribution strengthens Nokia in Thai market. Currently, Nokia is a supplier with the biggest mobile phone operator, AIS. As in Thailand operator is key factor to conduct mobile business, Nokia has to deals with the other operators as well.

4.3.3.2 Weaknesses

The first weakness is low experience in CDMA system. The transition from 2G phones to the 3G phones poses a challenge for Nokia as 3G phones would be based on CDMA market. Since CDMA system will be launched in Thailand in 2003. This is the new opportunity to gain new customers. But misguided marketing strategy in Korea shows that Nokia has no experience in CDMA market. In addition, Nokia cannot produce CDMA handsets by itself. This would be the weakness of Nokia when CDMA boom in Thailand.

Another weakness of Nokia is that Nokia¡¯s net sales are dropping year-on-year. Nokia¡¯s share prices were shaken in second quarter of 2002. According to The Nation (2002b), Nokia expected net sales in the second quarter to drop 2 to 6 percent year-on-year compared to earlier forecasts of 2 to 7 percent growth. The one reason is that GSM market is declining, while CDMA market is growing. Thus, Nokia is developing own CDMA handsets and CDMA network currently.

Finally, in Thailand Nokia handsets are more expensive than others compared with the same segment. As the price of handsets depends on the operators, they sell Nokia handsets at higher price for making profits because Thai consumers believe in Nokia brand. They are willing to buy any Nokia handsets.

4.3.3.3 Opportunities

Firstly, Thai mobile phone market is rapid market growth. Thai mobile phone industry keeps growing in both new subscribers and replacement market as I mentioned in chapter 3. In addition, the market is at the early stage of the adoption. Market demand is getting bigger. Therefore, this is the new opportunity for existing mobile phone producers and the new rivals to launch the new handsets.

Secondly, the increasing of SMS (Short Messaging Service) in Thai market is the result of Thai input software emerging. SMS became the most popular service among young people after Thai-input software was launched. This trend leads to increase in SMS traffic and a surge in revenue for both operators and handset suppliers.

Finally, impact of IMEI code removal stimulated market growth. As local operators unlocked their network access codes in early 2002, consumers were allowed to use any handsets as long as they bought any operator¡¯s SIM card. The obvious impact of the IMEI code removal was that the prices of handsets in the grey market are slightly lower than those sold by authorized dealers. Accordingly, this changing is very challenging as it benefited the overall market by making market competition more active.

4.3.3.4 Threats

The first barrier is grey market pressure. The grey market has flourished after most local cell-phone operators unlocked the International Mobile Equipment Identity (IMEI) from their handsets and allowed other SIM cards to be used. The moves mean consumers can use any imported handsets to sign up with their networks. And operators can import the cheaper handsets to sell in Thai market. Currently, China, Singapore and Hong Kong are the biggest suppliers of grey-market handsets in Thailand. The prices of handsets in the grey market are lower than those sold by authorized dealers. Accordingly, the operators¡¯ decision could lead to a rise in grey-market handset imports and sales of little-known, low-cost brands.

The second is that fierce competition in Thai mobile phone market. As the doubled growth of Thai mobile phone subscribers, Thailand is becoming a battlefield for mobile phone manufacturers. There are a number of competitors in Thai mobile phone industry. They tried to gain market share by conducting aggressive marketing activities to capture its customers.

In addition, mobile phone market is the pressure from PDA (Personal Digital Assistant) manufacturers. Currently, mobile phone manufacturers are also feeling pressure from personal digital assistant (PDA) manufacturers that have built wireless connections into their devices. While the PDA is not yet in wide circulation, they may serve to stimulate take-up of high-speed services such as GPRS and 3G, because their larger color screens are better suited for multimedia viewing and delivery. The mobile phone users would switch to PDA followed by this trend.