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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 769 |
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With the production of 650 million phones in 2004 (200 million of which were produced by Nokia), mobile manufacturers need to have an extremely lean manufacturing systems. With 60 billion components going through Nokia’s supply chain, one can expect the best logistics compared to that of a company like Dell...
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Having economies of scale cuts down the costs extremely when it comes to small components in phones. By maintaining these mechanisms internally Nokia has definitely shown its power in the market.
Switching costs differ in the mobile phone market depending on the geographic location. In the continental Europe it is easy for consumers to switch providers...
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