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NOKIA

DOES IT HAVE A
FUTURE

Nokia is a Finnish multinational communications and information technology corporation headquartered in Keilaniemi, Espoo, Finland. Principal Products are Mobile Device & IT Devices. Nokia has around 122,000 employees across 120 countries, sales in more than 150 countries and annual revenues of around 38 billion. Nokia was the world's largest vendor of mobile phones from 1998 to 2012. Free-of-charge digital map information and navigation services through its wholly owned subsidiary.

Nokia offers a wide range of mobile devices with the experience in music, video, imaging, gaming and a lot more.
. It also provides the services for network operators. Company offers its products in 150 countries. Nokia has a joint venture with Siemens, Nokia Siemens Networks, which provides telecommunications network equipment and services. It is the World's 143rd-largest company measured by 2011 revenues according to the Fortune Global 500.

In 1865, mining engineer Fredrik Idestam sets up his first wood pulp mill at the Tammerkoski Rapids in south-western Finland. A few years later he opens a second mill on the banks of the Nokianvirta river, which inspires him to name his company Nokia Ab in 1871.

In 1898, Eduard Poln founds Finnish Rubber Works, which later becomes Nokias rubber business, making everything from galoshes to tyres.
Nokia rubber boots become a bona fide design classic.

In 1912, Arvid Wickstrm sets up Finnish Cable Works, the foundation of Nokias cable and electronics business.

1960s, Finnish Cable Works already working closely with Nokia Ab and Finnish Rubber Works starts branching out into electronics.
In 1962, it makes its first electronic device in-house: a pulse analyzer for use in nuclear power plants. In 1963, it starts developing radio telephones for the army and emergency services Nokias first foot into telecommunications.

1987, Nokia became the third largest TV manufacturer in Europe.


Having been jointly owned since 1922, Nokia Ab, Finnish Cable Works and Finnish Rubber Works officially merge in 1967. The new Nokia Corporation has five businesses: rubber, cable, forestry, electronics and power generation. As the 1980s come into view, its an entirely new industry that makes Nokia a household name around the world.

As of 2012 it is the Worlds second largest mobile phone maker by unit sales (after Samsung), with a global market share of 22.5% in the first quarter. Global mobile handset shipments (Q1) for 2012 COMPANY Samsung Nokia Apple Other Units (millions) 93.5 82.7 35.1 156.7 Market share 25.4% 22.5% 9.5% 42.6%

In 1999, Nokia were number one with 27% of the market, Motorola at 17%, Ericsson [ not yet formed with Sony ] came third at 11%, Panasonic were 4th and Samsung were 5th at 6%. Nokias peak was at 2008, rising to over 40% global market share. In comparison, 105 million less phones have been sold in 2009 than in 2008, with Nokias numbers reducing in Market share, Smartphone share and OS share.

Company Units (millions) Nokia 2.8 Billion Motorola 1.1 Billion Samsung 1.0 Billion Sony Ericsson 600 million LG 500 million Other branded 1.8 Billion Unlicensed 500 million TOTAL sales (2000-2010) :- 8.3 Billion

Market share 34% 13% 12% 7% 6% 22% 6%

1992: Nokia decided to focus on its telecommunications business .Most important strategic decision in its history. 1992: Nokias first GSM handset [ Nokia 1011 ]

1994: Nokia Tune is launched [ Nokia 2100 ]


1994: Worlds first satellite call [ Nokia GSM handset ]

1997: Gaming-snake [ Nokia 6110 ]


1992: Nokia launches 3G [ Nokia 6650 ] 1999: The Internet goes mobile [ Nokia 7110-the worlds first WAP handset ]

2005: The Nokia N-Series is born. Nokia introduces the next generation of multimedia devices. 2005: The billionth Nokia phone is sold [ Nokia 1110 in Nigeria]

2006-2008: Nokia, the 5th most valued brand in the world

Finnish Company turned itself into the worlds leading mobile phone company in the 1990s. So Nokia has already been through one (successful) change programme, turning itself from an unfocused conglomerate into a focused mobile phone producer.

Can it change again?


Global market leader in mobile phones but not smart phones . Still profitable, but revenues under pressure

September 2010:

Appointed new CEO - Stephen Elop - to drive strategic change.


Elop issued the famous burning platform memo bluntly explaining the serious strategic challenges facing Nokia.
Elop outlined results of his strategic review on Feb 11 2011 Making it clear that Nokia had to undergo a substantial programme of change.

We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind. There is intense heat coming from our competitors, more rapidly than we ever expected. Our competitors arent taking our market share with devices; they are taking our market share with an entire ecosystem.

Nokia had missed the major change in its market the Smartphone revolution Nokia had continued to focus on mobile phone devices [hardware] rather than mobile phone applications [software] .Business had become too product-led rather than customer-led; a missed opportunity

Poor leadership and complacency [Bred from success in non smart-phones]


Lacking innovation and entrepreneurial spirit

The product life cycle of Nokias products had shortened dramatically as others (Apple, Google Android) developed Smartphone platforms and an associated ecosystem of apps. The consumer transition from traditional mobile phones to smart phones has been dramatic, and caught Nokia off-guard. Nokia has faced intense competition from mobile phone producers in emerging markets who can make fast, cheap handsets at the lower end of the mobile phone market.

New leadership (internal causes of change): An outsider arrives to shake up the way Nokia does business! Retrenchment (closing down Symbian) followed by strategic partnership with Microsoft (another major internal cause of change) Strategic decision-making / corporate planning: Nokias decision-making had become ineffective - too slow; inconsistent Technology (Smartphone ecosystems) as a source of change: consumers no longer buying a handset; they are buying apps that run on phones

Impact of competition from emerging markets: the effect of faster, cheaper competitors Globalization of markets: Nokias new objective of supply the next 1 billion mobile phone handsets resulting from rapid demand growth in emerging economies Analyze Business and the competitive environment: Emergence of stronger, more successful competitors (Apple, Samsung, RIM, Google, LG)

It never jumped on the flip-phone bandwagon It continued to ignore the U.S. market: It failed to recognize the threat of the iPhone It clung to Symbian too long It chose the wrong next-generation platform to back

February 2011, Nokia has had a strategic partnership with Microsoft Incorporate Microsoft's Windows Phone operating system replacing Symbian. With Microsoft to build a global mobile ecosystem Leverage the expertise on hardware optimization, software customization, language support and scale. Eg Nokia Maps would combine Microsoft assets like Bing and AdCenter Nokia's application and content store would be integrated into Microsoft Marketplace

New leadership team, operational structure Two distinct business units Smart Devices and Mobile Phones Under Smart Devices - Symbian Smartphones - MeeGo Computers -Strategic Business Operations

Manufacturing, IT and logistics headed by Niklas Savander Etc..

Nokia unveiled its first Windows Phone handsets, the Lumia 710 and 800, in October 2011. With OS Windows, Nokia have came up with new features and technology to enhance its market share.

Better Hardware
Enterprise Ready New Preloaded Apps Background Multitasking Focus on NFC Lenses Turn-by-turn navigation

User interface
Web browser

Contacts
Multimedia Games Office suite Multitasking Updates Advertising platform

Bluetooth
Sky Drive integration

Focus on competitive operating system. Efforts to capture us market. Phones to satisfy the current customer need. Ensure better promotion strategies.

Should come up with better technology.

Growing and developing from time to time. Did not believe in product customization. Started with candy bar phone and enjoyed the market share. Blind towards the threat of competitors. Lost the share price and market share.

Focus on hardware rather than software. Stuck with Symbian. Joint partnership with Microsoft to enter smart phone arena. Windows phone ecosystem. Came up with Asha series and Nokia Lumia phones Future growth depends on Lumia and Asha phones.