St.

Louis College VALENZUELA

formerly Philippine College of Technological Resources
#005 Maysan Road, Valenzuela City, Metro Manila, Philippines 1440
Tel. Nos. 292-0481; 292-3170; 292-6854; 292-3121
Telefax: 292-3137  E-Mail: slcv@vasia.com  www.slcv.edu.ph

Product Management
Preliminary Exam
Name:__________________________

I. Research Analysis (30 pts.)

The Rise and Fall of the Giant (NOKIA)

https://www.helsinkitimes.fi/business/16809-whatever-happened-to-nokia-the-rise-and-decline-of-a-
giant.html

There was a time where Nokia phones were the dominant force in the world of mobile
communication. Today, however, these devices make up only a small fraction of the total
numbers sold. Still standing as one of the biggest influences on mobile tech, we want to
take a brief look at what made Nokia great, and what led to their eventual decline. Take
time to research this story through the link provided and analyze deeper what was the
biggest problem that Nokia faced and brought them in a huge decline of their product
sales.

Question:
 St. Louis College VALENZUELA
formerly Philippine College of Technological Resources
#005 Maysan Road, Valenzuela City, Metro Manila, Philippines 1440
Tel. Nos. 292-0481; 292-3170; 292-6854; 292-3121
Telefax: 292-3137  E-Mail: slcv@vasia.com  www.slcv.edu.ph

a. What do you think was the biggest problem of Nokia? (10 pts)

Nokia failed because of its own activities

1. In the year 2007, when Google introduced the Android operating system
then Nokia replied “We didn’t take this as a threat, we are with a real
phone, real phone operating system.” Nokia should not ignore its
competitors.
2. Nokia didn’t show any interest in the Android operating system and didn’t
take the advantage of this.
3. Nokia rather than focused on consumer needs and innovation, it was
focusing on how it would gain again all the market shares, which they had
lost.
4. Should invest in research and development and should innovate something
interesting for the customers.
5. Nokia didn’t want to challenge itself, Nokia had the perception that mobile
phone is only for talking and texting, but they didn’t consider people are
using mobile phone for emails, finding restaurants, markets, social media,
bookings and all.
6. No doubt they developed a smartphone in the end, when a large market
had shifted to android, at that time also that developed windows phone was
not performing well and not supporting all the applications like Pinterest,
Instagram, Uber, etc

b. Based on our discussion about the importance of New Products in the success
of a business do you think Nokia really wants to stay on what products they
have or are they afraid of evolving in the fast pace world of technology? Why
established your answers with concrete facts? (20 pts)
 St. Louis College VALENZUELA
formerly Philippine College of Technological Resources
#005 Maysan Road, Valenzuela City, Metro Manila, Philippines 1440
Tel. Nos. 292-0481; 292-3170; 292-6854; 292-3121
Telefax: 292-3137  E-Mail: slcv@vasia.com  www.slcv.edu.ph

II. Essay (50 pts.)

1. What are the categories of New Products? Explain each briefly (15 pts)

New products are important every era to sustain growth, increase earnings, and replace
obsolete details. Concentrate on new products, processes for developing new products,
and how new products spread among consumers or business users, locally, nationally, and
globally. It’s true Being first on the demand has many advantages Increased deals through
longer trades life, The earlier the product reaches the demand, relative to the competition,
the longer its life can be. Also, faster than companies can bring products to request that
satisfy new or changing customer needs, the greater the opportunity to capitalize on those
products for end lift and to increase brand recognition. And lastly, it creates more
opportunities for components and commodities other than private label companies around
the world.

2. Explain what was meant by Steve Jobs with his statement on New Product which
states that, “You can’t just ask customers what they want and then try to give that
to them. By that time you get it built, they’ll want something new.” (10 pts)

Unless the customer has the humility, ability, and know-how to identify their root problem
and then uncover the most desirable solution by understanding all of the possibilities
available. Customers or users do know what they want once they’ve seen it, but can’t
always observe, articulate, or imagine the most desirable solution before it exists. That is
why most customers are delighted when first introduced to a new product that satisfies
their needs/wants for example back to how jaw-droppingly desirable that first iPod was.
It’s better than they could’ve ever imagined.
 St. Louis College VALENZUELA
formerly Philippine College of Technological Resources
#005 Maysan Road, Valenzuela City, Metro Manila, Philippines 1440
Tel. Nos. 292-0481; 292-3170; 292-6854; 292-3121
Telefax: 292-3137  E-Mail: slcv@vasia.com  www.slcv.edu.ph

3. State and discuss briefly about the basic mew product process. (10 pts)

Idea Generation - The systematic seek for new - product ( original ) ideas. an organization
typically generates hundreds, even thousands, of the latest ideas to search out some good
ones. Idea generation is sometimes conducted through Internal and External idea sources
and Crowd-sourcing. Idea Screening - the primary idea reducing stage. It helps spot good
ideas and drop poor ones as soon as possible. Concept and Development Testing - After
selecting from the screened pool, the concept must then be developed into a product
concept wherein an in-depth version of the thought is stated in meaningful consumer
terms. Marketing Strategy Development - the following step is to style an initial marketing
strategy for introducing the merchandise to the market. Business Analysis - Once
management has selected its product and marketing strategy, it'll evaluate the business
attractiveness of the proposal. This step involves a review of sales, costs, and profit
projections.

4. Explain about Opportunity Identification: Greenfield Markets

Once McDonald’s had taken up the best locations for traditional fast-food
restaurants, it continued its U.S. expansion by placing stores inside Wal-Marts, in
sports arenas, and elsewhere. Starbucks Coffee complemented coffee-shop sales by
selling its coffee beans and ice creams in supermarkets. What was the opportunity that
McDonalds and Starbucks identified that mutually benefitted the two well known
company? (15 pts)

Starbucks' strategy has been customer-oriented even from the beginning. They
placed the customer at the center of their entire activity, offering a high level of value
 St. Louis College VALENZUELA
formerly Philippine College of Technological Resources
#005 Maysan Road, Valenzuela City, Metro Manila, Philippines 1440
Tel. Nos. 292-0481; 292-3170; 292-6854; 292-3121
Telefax: 292-3137  E-Mail: slcv@vasia.com  www.slcv.edu.ph

and satisfaction. McDonald’s began with a different strategy. First, it centered its
decisions and actions on product-oriented strategies, focusing on offering variety.
However, nowadays, Mcdonalds' is attempting to become a more customer-orientated
company. Its success was questioned and it became obvious that its marketing
strategy must be changed, the market has evolved and the companies today have to
adapt to keep the consumer. Therefore, just like Starbucks, McDonald’s has been
trying to adopt a customer-oriented strategy

it seems that McDonald’s and Starbucks are competing for the same customer
base. However, if you’re looking for good coffee, one doesn’t think McDonald’s. Great
coffee and especially specialty coffee has become well known with the Starbucks
brand. With their healthy alternatives to McDonald’s food and their same convenience,
it’s almost like comparing apples to oranges: we’re talking about two different items for
the customer. McDonald's and Starbucks both offer International customers
comfortable architecture that fits into their culture and food and drink offerings with
flavors they’re accustomed to. When it comes to coffee, however, Starbucks is the
leader. McDonald’s leads the fast food industry and research supports that both are
fine.