Remember Wal-Mart!

“If anyone still doubts that low-income folks make good customers, they should talk to executives from Nokia. The Finnish company owes its 40% share of the global handset market in large part to residents of places like Calcutta, Lagos, and Shanghai, many of whom live on just a few dollars a day. Now, with the No. 3 player, Motorola, on the ropes, Nokia has an opportunity to extend that lead. But other rivals are eyeing the Finns' success and stepping up efforts to woo those same people...

“There's no shortage of contenders. Despite Nokia's intimidating position--it has 46% of the market in Asia and 66% in Africa, Mawston estimates--challengers sense an opening as poorer users trade up to better models with features such as digital cameras or music players. Sony Ericsson, for instance, on Jan. 24 launched two new phones in India, including one with speakers that doubles as an AM/FM radio. ‘If we're going to grow our share, we need to address [the low-end] market,’ says Howard Lewis, Sony Ericsson's chief of entry-level handsets.

“Nokia… goes into battle with formidable advantages. The company earned an industry-leading operating profit margin of 25% on handset sales in the fourth quarter of 2007. It is one of the most efficient manufacturers on the planet and has factories in or near all of the biggest markets. And Nokia invested more than $8 billion in research and development last year. That helped it offer models for every market segment, from top-of-the-line devices with GPS and high-resolution cameras to mass-market phones with menus in some 80 languages...

“Nokia also faces a challenge from Asian upstarts offering ultracheap phones. In India, Reliance Communications sells a model for $19, with no subsidies. And a $30 handset by China's ZTE is doing well in poorer Central European countries. Nokia, whose cheapest phones retail for as little as $32, doesn't plan to beat those rivals on price. Even poor customers are willing to pay a little more for a phone that can stand up to rugged conditions, the company insists. Still, managers admit they are keeping a close eye on the competition.”

(“Mad Dash For The Low End; Nokia leads in cell phones for the masses. But rivals are hoping to steal market share.” Jack Ewing, with Moon Ihlwan in Seoul and Nandini Lakshman in Mumbai. Business Week. February 18, 2008. pg. 30)

GO WHERE THEY AIN'T; understand value creation from the customer's vantage point; deliver just what is valued, and innovate toward the customer.

Don't squander yourself on innovation for technology's sake, nor on exceeding customer expectations. Dare to be unique!