Emerging Nokia?

Case Analysis
Section 2 Group 1
Abhilash Dutta FT172001
Abhishek Singh Rana
FT172002
Alok Pathak FT172009
Ankur Rao FT172016
Bhanu Prashast FT172024
Harshi Sodhani FT172031

Brief History
1871
Nokia was established by Fredrik Idestam as a pulp & paper mill
industry.
1977-2006
One third of Nokia employees and 10% of revenue were
allocated to R&D.
In 1981 acquired 51% stake in Finnish Government run telecom
company and renamed it as TeleNokia.
In 1982 installed Europe's first digital telephone system in
Sweden.
In 1992 revenue outside Europe accounted for 20% of total
revenue, by 2006, non European revenues accounted for 60% of
total revenue.
According to Inter brand, Nokia was the 5 th most valued brand
globally by 2000.
2006-Present

Section 2 Group 1

Evolution of Mobile
1st Generation
Industry
Early 1980s, government handed out the first mobile license to

incumbent fixed line operators, monopoly led to hefty monthly

and per minute fees.
Country Specific Standards, limiting the ability of operators and
manufacturers to broaden their market abroad.

2nd Generation
New Mobile Communication standards developed- GSM and
CDMA.
Global prominence of GSM standard benefitted Nokia.
By 1998, with Nokias strength in GSM, it became the global
industry leader.
3rd Generation
3G meant that data could be transmitted in addition to voice
Section 2 Group 1
calls.

Should Nokia focus on the

emerging markets, or
developed markets, or
both ?

Section 2 Group 1

Strategy in 2009
Rapid
technological
advancement
leading
competition.
Market was divided into three segments:

to

High End Competitors such as Apple, Motorola, RIM

Middle Samsung, Nokia, Blackberry

Low End Nokia, Samsung, ZTE

fierce

Nokia offered models at all price points, including low cost

models.
Nokias share in developing countries dropped drastically. It
was taken over by Apple.
Moved from a new product innovation strategy to customer
oriented innovations.
It appointed anthropologists to study the consumer buying
behaviours
Section 2 Group 1

SWOT Analysis
Strengths

Weakness

Symbian OS performance was

Brand Image
poor compared to iOS, Android and
Distribution
&
supply
chain
Blackberry.
network.
High end mobiles are not very
Established service center across
popular.
India
Low cost of production due to
improved logistics and efficient
supply chain.
Opportunity
Strong hold on GSM market.
Threat
Handset users has been growing Very competing market in low end
rapidly. Between 1990 to 2000 it
as well as high end models.
grew at annual rate of 52%.
Strong price pressure from global
Tap into high end mobile market.
competitors especially Chinese
and
Korean
companies
like
Develop App Stores to give better
Samsung.
services.
Tap into developed world like Strong presence of Apple in
developed markets.
North America.

Section 2 Group 1

Recommendations

Focus on emerging markets where it has strong market cap

and make partnerships with service provider to build strong
customer base(developing countries).

Invest in low/medium end market(developing countries).

Invest in services and economy of scale(developing countries)

Use Android as its operating system as it is the most popular

everywhere.

Provide more service in their handsets.

Continue to develop country specific models keeping in mind

the requirements of particular region.

Make inroads in American market through CDMA technology in

JV with service providers.
Section 2 Group 1

Section 2 Group 1