2.

Using CAGE Model Analysis:

The CAGE framework, developed by Pankaj Ghemawat, analyzes distance between countries based on
four dimensions: Cultural, Administrative, Geographic, and Economic. In the context of Nokia's response
to the iPhone, applying the CAGE model involves considering the differences between Finland (Nokia's
home country) and the United States (Apple's home country) that may have influenced Nokia's ability to
respond effectively.
 Cultural distance: Nokia could have conducted a thorough analysis of cultural differences
between Finland and the United States to better understand consumer preferences and behavior.
By gaining insights into American consumers' preferences for innovative technology and sleek
design, Nokia could have tailored their products and marketing strategies accordingly.
 Administrative distance: Nokia could have evaluated regulatory differences between Finland
and the United States that may have impacted their ability to compete. This includes
understanding patent laws, trade regulations, and other administrative barriers that could affect
product development and market entry.
 Geographic distance: While physical distance may not have directly influenced Nokia's NPD
process, understanding logistical challenges and distribution networks in the United States would
have been crucial for effectively launching and promoting their products in the American market.
 Economic distance: Nokia could have assessed economic differences between Finland and the
United States, including factors such as currency exchange rates, cost of labor, and consumer
purchasing power. By understanding these economic disparities, Nokia could have adjusted
pricing strategies and product offerings to remain competitive in the U.S. market.
By analyzing the CAGE dimensions, Nokia could have identified potential barriers and opportunities in
entering the U.S. market and adjusted their NPD process accordingly to respond more effectively to the
emergence of the iPhone.