The High-Quality Low-Price Strategy in Penetrating Emerging Market: A Case of Nokia’s Business Strategy in China

Emerging market demonstrates four constraints, namely wealth-related constraint, skill-related constraint, access-related constraint and time-related constraint. The distinguishing features of emerging market customers are their low per capita income, consequently, they expect to pay below average price on commercial products with good-enough quality and services. High-quality low-price commodity has thus become an important strategy of multinational corporations to penetrate emerging markets. This study focuses Nokia’s strategies in penetrating China’s mobile phone market. Strategies included integrating supply chain, local R&D, establishing marketing channel to small towns and villages and low-cost models. Nokia has successfully overcome the above four constraints.