Market Analysis of Nokia Corporation

solutions and services for communications networks through Nokia Siemens Networks. opportunity. Nokia strengthened its position in the telecommunications and consumer electronics markets through the acquisitions of Mobira. the year 1898 witnessed the foundation of Finnish Rubber Works Ltd.Introduction In present years. In July 2008. History The roots of Nokia go back to the year 1865 with the establishment of a forest industry enterprise in Nokia. environmental policies and technologies development. television. Multimedia. BACKGROUND OF THE COMAPNY NOKIA COMPANY BACKGROUND Company Information Nokia Corporation (Nokia) is player in mobile industry. Nokia completed the transfer of its Adaptation Software Research and Development (R&D) operations to Sasken Communication Technologies Limited. weakness. Enterprise Solutions and Networks. . 2007. From January 1. Nokia completed the acquisition of Trolltech ASA. as well as the French consumer electronics company Oceanic. the mobile Internet has attracted numerous media attention. games. the ownership of these three companies shifted into the hands of just a few owners. We know need to consider why it is important to creative new products of mobile market. and in 1967 the three companies were merged to form the Nokia Corporation. 2004 through March 31. in addition to various Corporate Functions. Salora. threat. to know more about Nokia¶s vision and action in the future. At the beginning of the 1980s. business mobility and more. Focus on Nokia¶s strength. In June 2008. Nokia Corporation completed the acquisition of NAVTEQ Corporation. what does consumers need. Nokia acquired the consumer electronics operations and part of the component business of the German Standard Electric Lorenz. and in 1912 Finnish Cable Works began operations. and Plazes. In 1987. Nokia had four business groups: Mobile Phones. supported and serviced by two horizontal groups: Customer and Market Operations and Technology Platforms. Televa and Luxor of Sweden. Nokia also purchased the Swiss cable machinery company Maillefer. In this report. a privately owned start-up company. In June 2008. Finland by mining engineer Fredrik Idestam. In 1987. Elsewhere. and what kinds of social activities change affected Nokia change its main starching. Nokia also provides equipment. imaging. Gradually. it is important to find some information from Nokia¶s background and to analysis Nokia¶s further decisions in the future. video. navigation. The Company makes a range of mobile devices with services and software that enable people to experience music.

The company has built a diverse product portfolio to meet the needs of different consumer segments and therefore offers devices across five categories ie. Kolkata. Live. Currently Nokia has 1000 people working on various R&D projects. well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20. R & D centers Nokia has three Research & Development centers in India. Its operations in India include Sales & Marketing. the Bangalore R&D centre is the largest Nokia site in India. these centres do play a pivotal role in assimilating local flavors from the market and act as a conduit for information to the global product development teams. Nokia is now focusing to become solutions centric.000 service professionals worldwide. Headquartered in Gurgaon.Nokia has played a pioneering role in the growth of cellular technology in India. Over the years.Lucknow. Services business With the global launch of Ovi. The software platform group works on development of parts of the base services for the platform. Devices business Nokia has established itself as the market and brand leader in the mobile devices market in India. The Indian operations comprise of the handsets business. and presently operates out of offices in New Delhi. Pune and Ahmedabad. Chennai. Nokia will build a suite of Internet based services like Nokia Maps. Indore and Mumbai to provide customers a complete mobile experience.Jaipur. Manufacturing and Global Networks Solutions Centre. Of the three. India holds the distinction of being the second largest market for the company globally. These R&D hubs are staffed by engineers who are working on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity. made on a Nokia mobile phone over a Nokia-deployed network. These include products that cater to first time subscribers to advanced business devices and high performance multimedia devices for imaging.000 outlets. Over the years it has played a pivotal role in the development of new applications. In addition. Explore and Achieve. a manufacturing plant in Chennai and a Design Studio in Bangalore. Nokia is renewing itself to be at the forefront of the convergence of internet and mobility. Delhi. R&D facilities in Bangalore and Mumbai. starting with the first-ever cellular call a decade ago. Today. Infrastructure business Nokia Siemens Networks is a leading global enabler of communications services. the company also has Nokia Priority Dealers across the country and Nokia µConcept stores¶ in Bangalore. Nokia has one of the largest distribution network with presence across 1. From being a product centric company. Hyderabad. The company provides a complete.Chennai. based in Bangalore and Mumbai. music and gaming. the Nokia Music Store and Nokia N-Gage around its Ovi brand. the company's Internet services brand name. Connect. Ludhiana. While all the three centers are an integral part of Nokia¶s global R&D infrastructure and therefore work on global projects. the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). user interfaces and test tools. It was established in 2001 with the acquisition of Amber Networks. The strategic shift is built on Nokia¶s bid to retain consumers and empower Nokia device owners to realise the full potential of the Internet. Mumbai. Chandigarh. software platforms and chipsets for high-end Nokia mobile devices. application frameworks. On . Jaipur. Entry. Nokia has been working closely with operators in India to increase the geographical coverage and lower the total cost of ownership for consumers. Nokia Siemens Networks has 47 offices and presence in over 170 locations across the country. Nokia started its India operations in 1995. Today. Research & Development. Bangalore.30.

integration and verification. An example is S60 Webservices and Webvideo programs have qualified to the semi ± finals in the Product Excellence Category of the Nokia Quality Award 2008. while delivering key technology programs to improve S60 competitiveness. Nokia started its operations with 550 employees in January 2006 and today boasts of 8000 employees. Factory Highlights y The factory construction from ground breaking to manufacturing of the first product took 5 months y Started with 550 people in January 2006. speech and video codec design and integration. Manufacturing in India Nokia Manufacturing Plant. To achieve this. Currently the factory exports to 50+ countries in South East Asia. Devices R&D. There is a strong intent to make it a growth site for Nokia through development of knowledge. the centre has been driving operational excellence and innovation in hardware. . Nokia's manufacturing facility in India reiterates its commitment to the fast growing Indian telecommunications market. Design and Technology. lowest cost. The vision of the centre is to be the most R&D centre globally by driving operational excellence and innovation in hardware. resource and infrastructure building.87 acres. software and internet services and today has to its credit several great accomplishments. hardware design. There have been other key initiatives which have contributed significantly to the overall development of products and services. the design studio will give Nokia designers and India¶s talented youth the opportunity to work together on new design ideas for India and the global markets. just in time delivery and a challenging and joyful work environment. world class responsiveness. The first of its kind. flexibility. One of the focus areas of the Center is to increase the S60 invention flow through intense training and focus. Going forward the Bangalore R&D centre will continue to drive operational excellence and focus on several innovative initiatives. Australia and New Zealand. The mission of the R&D centre is to become an innovation hub by leading the internet revolution and making its operating platform the preferred choice. Middle East. the centre encourages and fosters an environment that encourages people to be connected to social networks. Design Studio Nokia has set up its first Design Studio in Bangalore in partnership with Srishti School of Art. other than catering to the demands of the domestic market. protocol software design and integration. At a broader perspective. Chennai is Nokia's tenth mobile device production facility globally and has been created in line with Nokia's global philosophy of developing world class manufacturing systems that enable best-in-class quality. software and internet services with great sense of pride. S&S operations and other enabling functions. The Nokia India manufacturing facility located in Sriperumbudur. The facility today houses over 1200 employees across all teams namely S60. sharing of best practices and spawning of new ideas with both internal and external customers. and grown to 8000 people Spread over an area of 210. 70 percent of whom are women.Sriperumbudur. Africa.the chipset side the work done in India is mainly in the area of ASIC design. It will continue to build and foster an ecosystem of Architects and Product Managers. Chennai As the global leader in mobile communications. Nokia is committed towards developing its manufacturing infrastructure and establishing a global sourcing network.

The Park will strengthen Nokia's delivery capabilities with added efficiencies and flexibility. Perlos. Of these. These include Salcomp. Foxconn. With Nokia as the key enabler. the Telecom Park is expected to attract about 8 global and domestic component suppliers and service providers and create more than 30.210. Laird and Wintek. but created an extremely bullish atmosphere in the Sriperumbudur manufacturing corridor.7 km in length Area of main building: 30. Nokia has been the engine of the investment train in Chennai's manufacturing corridor. The quality management and safety systems at the Nokia manufacturing facility in Chennai are world class.One Million man hours without Lost Time Injury The Nokia Telecom Park also has made significant progress with 7 suppliers already signed up.87 acres External fencing around Nokia Telecom Industry Park . Nokia lays special emphasis on the well being of its employees and the Chennai manufacturing site has a highly motivating work environment that is designed to sustain a large & diverse talent pool. This Nokia Telecom Park will ensure that the Nokia India Chennai factory has a consistent supply of lowest total cost material and services from reliable. Nokia will continue to play a key and leading role in the development of this region. Nokia Telecom Park Chennai was selected as the location for the Nokia Telecom Industry Park due to the availability of skilled labor. The mission of the Nokia Telecom Industry Park is to create a network of co-located and co-dependent partners that operate at world class standards and manufacture high quality products. collaborative sources of global and local suppliers. Developing the Nokia Telecom Industry Park in Chennai into a world class high-tech industrial zone is an important part of Nokia's global manufacturing and R&D network strategy. . full compliance to applicable national and international laws and respect for human rights in the spirit of internationally recognized international labour standards in the ILO conventions. Jabil. direct employment and services opportunities that are sure to come in response to the rising headcounts. the United Nations' Universal Declaration of Human Rights and the Convention on Rights of the Child.748 m2 Total amount of structural steel used in factory construction 2500 t Total Capacity of under ground water sump at factory 450 m3 Project Safety target achieved . Since the launch.The Chennai facility has been built keeping in mind Nokia's commitment to employee safety and in compliance with environmental standards. support from the state government and the presence of good logistics connections. Salcomp and Perlos.87 acres of land in the Telecom Industry Park provides Nokia with the benefits of a pollution free environment. Nokia's employee practices are committed to ethical conduct. in-house customs clearance. The 210.. Nokia Telecom Industry Park Construction update and facts y y y y y y Size . the Nokia facility and the Telecom Park have not only met the targets set at the beginning. The Telecom Industry Park not only underlines Nokia's successful cooperation with the Indian government but also represents a unique and optimized business model that will provide growth opportunities for all parties in the value chain. Many electronics manufacturing companies have announced plans to come to the city since Nokia's establishment. Aspocomp. The total impact of the Nokia SEZ can be measured only by an assessment of the actual potential realized ± encompassing construction. 2 suppliers have already started shipping to Nokia Chennai viz.5.000 jobs when it is in full operation. and uninterrupted power supply.

2006 PEST Analysis 1.First Camera phone (Nokia 7650) 2003 . 2006 y Ranked as the No.and technology-based economy that is highly specialized. a modern knowledge. The success of Nokia has obtaine the resources from Finnish policies which assist Nokia to advance its products. 2007.1 Political It is important of a company to acquire resources from government. and science and technology policy.Nokia Communicator (N9500) 2005 ± Local UI in additional local language 2006 ± Nokia manufacturing plant in Chennai 2007 ± First vernacular news portal Some Achievements for Nokia y Ranked No 1 Most Trusted Brand Survey by Brand Equity. Nokia 1100 2004 . 1 telecommunications equipment vendor in the country by Voice & Data for five consecutive years ±2008. 2007 y Ranked Asia¶s most trusted brand by the Media-Synovate. Hindi SMS on a wide range of Nokia phones 2004 . To operate efficiently.First phone with Hindi menu (Nokia 3210) 2002 . MNC in India by Businessworld.Saral Mobile Sandesh.3. India¶s leading business weekly.First Made for India phone. internationalized and undergoing rapid structural change requires active support from the public sector.Saare Jahaan Se Acchha. first Indian ringtone in a Nokia 5110 2000 . 2006.2005 and 2004 y Ranked as the 9th most powerful brand by Millward Brown¶s BrandZ 2008 y Ranked world¶s 4th most valuable brand by Interbrand.First Wi-fi Phone.Some firsts for Nokia in India 1995 ± First mobile phone call made in India on a Nokia phone on a Nokia network 1998 . As Zheng (2001) has observed: The Finnish policies are the most important factors of Nokia. such as economic policy. 2008 y Ranked the No 1. In its widest sense .

General macroeconomic stability. 1996). and changed its functions from single market and overall products to global market and focusing mobile phone market. Both policies ursued by Finnish government and Parliament are crucial for the development bothe of the Finnish Economy and of national information society.3.2 Economic According to the fact that Russian Federation was collapsed in early 1990s and it assaulted with Finnish economics (OECD. As the result of this. stable currency conditions and the international competitiveness of the tax system form the foundation for the growth of business an improvement in employment. one important future challenge of Nokia is to estblished its policy to follow up the environmental policy and science and technology policy of the Finnish Government. low interest rates. 2001) According to the changes in 1990s. even though to combine these two products together. Nokia also face with the problem. 1. the global market trends to connect PC and mobile phone. Nokia also changs its functions to mobile phone market.3. such as computers. Finnish government best facilitate the efficient functioning of the economy by directing its resources to the reduction of market failures. monitors and TV sets. not only Finnish Government but also international companies.industrial policy and science and technology (S&T) policy comprise all those measures by which the public sector shapes the operating environment for business and thus fosters public welfare. 1. As Zheng (2001) has report: . people trend to microcomputers and Nokia try to match the tendency to produce its main products. On the other hand. such as Nokia. have play very important roles to develop their information society and national technology strength.(Merriden. Nowadays. The state must also pursure an industrial and economic policy that provides a stable macroeconomic environment for enterprises.3 Society and Technology In the 1980s.

2 Research analysis 2. In case of Nokia. [Nokia] must be used to find solution which help to implement environmental objectives as well as the objectives of innovation policy in a balanced way. it has numerous opportunities to be able to enlarge their market share. National and European reforms arising from environmental objectives influence the perequisites from innovation. In contrast. In the same way. whereas weakness point has only one where it was inevitable for high pricehigh quality. Nokia still have threat. there is much strength where it was success in its company. the business does not have to correct all its weaknesses. The Finnish government offers goods facilities for taking this opportunity. which mean a challenge posed by an unfavorable trend or development that may lead into the absence of defensive marketing action. It can not be separate between Nokia s successful of advance its product and Finnish Government s policies. In case of Nokia.Substainable development and environmental protection have various effects on the operation of the innovation system. both of Nokia and Finnish Government are the winner in the international market. 1996) To sum up. Conversely. and Finnish Government has establish its position of technology development.1 SWOT Analysis Strength and weakness analysis can be defined as internal factor in order to show how well they are performing inside the company at a moment. the opportunity can be classified because of their attractiveness. Clearly. The markets for environmental products are expected to grow rapidly in the near future.(Science and Technology policy council of Finland. they do have to research and develop their company continuously in order to achieve the goal. Innovation also creates new opportunities for promoting sustaainable development. to diminish in sales and . the main reason of Nokia has success to advance its products are the policies and technology development of Finnish Government. Nokia has obtain the success of mobile phone market. however it should retain its strength as long as they can. The key success requirement for operating in the target market is basically depended on the external factor (opportunity).

Motorola. Nokia have to create more strength and opportunity. Comparing data with Ericsson.. This is the reason of why Nokia can be entrust around the whole world. In the meantime. 2002). it illustrates that other brands have narrow shape of product lines (not more than 5 models per brands). ISO. (see appendices). Samsung. then it needs to correct its weakness and threat as well. Nokia still produces the products with high quality and continuously improve to the particular market. it can be determined that Nokia has the highest number of product line compared to its competitors (more than 10 models) accordingly.  Product warrantee worldwide .  High product quality Nokia concerns about product quality. Consequently.gross profit. it covered every class of people from (low to high class). 2. viz.1 Strength  Global marketing (product) Nokia is the global product so it is undoubted true that its products should be at least passed worldwide qualification. Sony.1. which is the most important factor to satisfy customers needs. siemens and other companies.  Fashionable product (serve new trend ) The rise in number of users by 700 million in a little over three years will be driven by a huge rise in the number of young style conscious users (Nokia. Nokia adds more values by superior quality or differentiated features to the market.  Wide range of product Based on the contemporary data (see appendices). That is the reason why they have to serve for young people who use their mobile for text messaging rather than phone call.

Likewise. In this report it can be conclude that Nokia still have a weak point as higher price than the competitors. they can use Nokia service worldwide wherever Nokia centers are.1. the business has steadily recovered during this period so that there are so many retail stores where it grew up continuously in London. every stores have not missed the opportunity to choose Nokia as their product line. such as. Nokia has an opportunity to convince the prospects to buy Nokia in those plenty of stores around the town. it can be established that Nokia has highest price in every type of its products. Of course.1. And. 2.3 Opportunity  Product launch continuously In this report it has determined that Nokia uses Total Quality Management (TQM) which mentions more about training worker program. and makes the higher product quality. However the key to success of Nokia will be services that are relevant with flexible changing capabilities.No matter where Nokia s customers are. in opportunity aspect. the link.(Nokia. all the customers can be guaranteed that any damaged or loss of Mobile phone will be service through those retail shops. if they got a problem from Nokia s mobile phone.2 Weakness  High price After compared the price between Nokia and others.  Users Availability Nowadays. All employees are well-trained and motivated consecutively afterward production processes also developed as well. which is spread around London in every street. In addition. Phone4U and Carphonewarehouse. These can ensure customers who worried about service system. Especially mobile phone retail stores. of course. as Merriden (2001) claims that Nokia established Research and Development department (R&D) where develops its product line into modern modification as well quality as the existing products. Consequently. 2002) . (See appendices) 2.

As a result of this. 2001) 2. anywhere and. it has a well reputation about computer programs for many years.4 Threats  Obsolete about PC tools if compare with new comers who have more specialize on PC tools Due to fierce competition in mobile phone amarket nowadays caused new technology compatible with PC computer such as. Especially. time is specific in rush hours. which is directly relevant to personal needs. then every people are more concerned about business.(Merriden. So it may attract those businessmen and teenagers who are interested in the new software market. As a result of this. SonyEricsson which specialize on PC computer now. 2001)  New Software Market Referring to the amount of data traffic in mobile networks is growing at a tremendous rate. the innovative are fully provided to customer s Nokia. mobile phone has already become a necessary device for every ultimate user nowadays. Certainly. And both Nokia and Ericsson have forecasted that number of global mobile phone subscribers would increase from the current 300 million to a billion by 2003. of course. And nowadays Nokia has already added value through MMS for Messaging and E-mail. businesses are involving among the downturn session. it can access anytime.(Merriden. 2002)  Joint Venture In Technology It is be known that. mobile phone has become a popular device for everybody in the world now. In recent years. Definitely. People around the world are using new mobile services. Nokia has a considerable opportunity for enlarge their market size into PC user who prefers mobile phone compatible with PC device as well. Nokia has already joint with Hewlett Packard (HP) Company.(Nokia. especially for businessmen who really need everything in advance during specific time because time is money for them. Sony applied their computer   ecessary Product For People Now . Java for download any applications and HTML especially for content search.1.

 Systems of Environmental Management . Therefore. 2002)  Environmental Design Design for Environment means to consider the environmental system into the development of all products.1 Environment policy Nokia s slogan is Technology is connecting with people . and recycle practices. People want to use mobile anywhere and want to connect Internet.2. processes and services. supply for network management. It involves design processes that minimize material and consume with energy while maximizing the prospective for reuse and recycling. This has became an important part of Nokia s corporate culture. 2.system into mobile phone as well as PC computer on hand at the same time. Indeed. including environmental design. The process for a Nokia supplier included environmental assessment. which is explained that Nokia respecte humen s needs. Nokia had guarantee to improve in environmental issues and had been published in 1994.  Supply for Network Management Nokia set of environmental requirements for its suppliers strictly. Nokia is dedicating to follow environment policy. nowadays people are interested in advance of computer as similar as mobile phone market.2 Environment Policy and Technology Development in The Future 2. therefore to own or to corporate with a Internet Network Service company is the chance to join into the new PC market. systems of environmental management. Nokia has four dimensions of environment policy. It is importat that most companines has move on the PC connected and try to bread into the PC market. Because of this reason.(Nokia. Furthermore.

Nokia has numerous technologies which can satisfied those end-users need. Nokia also provided customers to choose the features and service that they personally want and need. Nokia always improve their product line through Research and development process. (Research and Development also included in technology development) . but sometime. M2M. Research (see appendices) and development can ensure that it stays ahead of the existing products. beside this Nokia also has multimedia compatible improvement with mobile at the same time. SYNCML. Symbian. Nokia has promote its products but does not promote its environment policies. such as. Wireless LAN and Java. Although. Nokia has produce new products to the mobile market. such as. Indeed. Indeed.2 Technologies Development In The Future Generally. which is to reduce energy consumption and improve waste management. but while customers change different type of mobile phones. Bluetooth. Nokia develops recycled batteries. Nokia do not only mention on product. In addition. but they improve their service process to provide the most appropriate service to those customers efficiently. the batteries can be used. Nokia has practice the environmental issues and reduced costs. It means Nokia does not develop only their product line. it is debatable whether the environment policies of Nokia work. 2001) And Nokia employed more than 17. such as batteries. which seen to be shortening life cycles of product. such as energy returns and materials back to circulation. Actually.With ISO 14001 and certified environmental management system (EMS). these products have different functions and different components. Moreover. there is a conflict between the environment policies and promotion activies of Nokia.2. the suppliers of Nokia have been also required to follow the same rules. Nokia wants to promote new products and the same systems of componets but the promotion activities do not work to reduce the wast of natural resources. 2.(Marriden.000 people in R&D department over fourteen countries worldwide.  Recycled Practices Nokia claimed that it has operated recycled practices. GPRS and WAP Service. Nokia has not only improved its production processes but also enhanced employee trainings. According to these environmental policies.

. connecting with Internet. Moreover. like Nokia 9210. Although. and interacting with PC software. has responsibilities to change its promotion and development plans. In addition. However. sometimes the batteries cannot be used. (Nokia. 2002) However. Microsoft Excel. For example. Nokia can not improve its technology to attach with new PC age. This report has argued about the kind of technology consumer need. Crainer (1995) said. Finally. Nokia does not promote these kinds of product deeply and widely. 2001) Nokia has already joint with Hewlett Packard (HP) Corporation Company. a comparation between Nokia and Sony in terms of technological development is that Nokia has less abilities to develop high technologcial mobile phones which combine with PDA or computer than Sony. comparing with other brands mobile phones. Sony also has combine with Erisson to produce mobile phones. Nokia has been successful at brand stretching from a paper manufacturer to supply mobile phones and network service. Nokia 9210 and Nokia 9110 consist of Microsoft Word. Nokia is more expensive than its competitors. Nokia. building business through elasticity may cause risks to disperse the power of a brand. Nokia has a considerable opportunity for enlarging its market size into PC users who prefers mobile phone compatible with PC devic. based on the limited technological resources. or Nokia 9110. For instance. and building consumers loyties. For example. such as colour screen.3 Conclusion It may be argued that brand extention following the stretching path may be too absurd. Nokia has established some types of mobile phones that are similar with handhold PC. of course. For example. and to influence consumers loyalties. There is a conflict between the environment policies and promotion activies. It seems that Nokia can not successfully join into the new market. How to promote the future of phones? (BBC. These kinds of mobile phone have diversified functions. but while customers change different type of mobile phones. Nokia develops recycled batteries. and to improve its technological development. but it seems does not be operated well. and Microsoft Power Point and other PC softwares. In fact. the environment policy is also one of the most important business strategies for Nokia. As a result of this. Nokia is successful in saling new products.

which is going to change and obsolete in the next few days. so it was a good chance for Nokia to compete with the new competitors who specialize at computer. In this report it recommens Nokia to take this emerge opportunity to come over those competitors. On the other hand. Nokia mobile company is too strong for Sony and other new comers to Compete with it. Nobody in the real world is willing to buy the product. in this report it recommens Nokia to launch the product timely. Nokia has already become a partner of Hewlett Packard i. However.plan (specific time table) in order to inform and ensure the end-users who need to buy a really new model. Samsung and other companies. and it can be easily observe their wide range of product which may be too often to change its model within one series e.g.4 Recommendation Nokia Company can be classified as market leader hereunder mobile phone market. . it is not the good way for Nokia to achieve a long term goals. Nokia 3210 until now Nokia 3350. HP where they specialize at computer tools. it still looks quite similar as the old model which has just launched in the short period before.. Due to this factor. Despite the rapid change in one series. and Nokia should have product life. such as Sony. Because of this problem. These can be helping Nokia in the aspect of customer s satisfaction and give the chance to the users to select.e. because Nokia & HP are strong enough to be the market leader as well as it was doing now. Nokia has highest price range compares with all brands. Reasonable price is the best way for Nokia to gain both profitable and customer s satisfaction. we can just recommend Nokia that if price is floated unreasonably to the endusers.

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