...Research Report Submitted To Sir Khalid Jamil Ansari Prepared By Babar Saeed (BM-25208) Bashir Ali (BM-25178) TABLE OF CONTENTS Acknowledgement 02 Executive Summary 03 Company Introduction 04 Company History) 05 a) First Mobile Phone 06 b) GSM Introduction 06 c) Strategic Change 07 Vision, Mission, Organization Direction 07 Environmental Analysis (Internal) 09 Environmental Analysis (External) 12 a) Pestle Analysis 12 b) Porter five forces Analysis 14 SWOT Analysis 18 Market/Competitor Analysis 19 Strategic Analysis 23 a) Corporate Strategy 25 b) Business Strategy 25 c) Operational Strategy 25 d) Supply Chain Strategy 26 e) Defensive Strategy 26 f) Competitive Strategy 26 Nokia Marketing Strategies Analysis 27 a) Segmentation by Geographically 27 b) Segmentation by Demographically 28 c) Segmentation by Consumer / Business 28 Marketing Mix Strategies 29 a) Product b) Price c) Place d) Promotion Key Strategic Issues Face Nokia 30 Nokia Leading Mobile Series 31 a) N Series 31 b) E Series 32 c) X Series 33 d) Asha Series 33 e) Lumia Series 34 References 35 ACKNOWLEDGEMENT One of the great pleasures of writing the report is acknowledging the efforts of our teacher and friends whose hard work, cooperation, friendship and understanding were crucial to the preparation of this report. First of all, we would like to acknowledge the efforts of Sir Khalid Jamil Ansari whose sincerity, loyalty, hard working and...
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... 3 3.0 Large scale organizational change 3 4.0 Body of analysis 3 4.1 Background to this change 3 4.2 Key pressures 4 4.2.1Environmental pressures 5 4.2.1.1 Market decline pressure 5 4.2.1.2 Hyper competition Pressures 6 4.2.1.3 Reputation and Credibility Pressures 6 4.2.2 Organizational pressure 7 4.3 Relevant management models 7 4.3.1 SWOT analysis 8 4.3.1.1 Strength and weakness 8 4.3.1.2 Opportunity and threats 8 4.3.2 Scenario Planning Model 9 4.4 Organizational change unfolded over time 10 4.5 Overall evaluation of the change 11 5.0 Conclusion 12 6.0 References 13 7.0 Appendices 13 Acronyms CEO: Chief Executive Officer Executive summary Mobile phone industry is changing fast. Some key players lost marketing share while some new and young companies gain marketing share. The process of buying mobile phone has changed recently. Because of development of technology...
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...in manufacturing mobile phones and the GSM technology, Nokia’s profitability has been on the decline in recent years. A reduction of market share in N. America of 35% in March 2008 to 8.1% in April 2010 highlights Nokia’s decline. This led its Board of Directors to replace its CEO with Stephen Elop. Find below a SWOT analysis description and summary document on Nokia. Strengths Nokia has a lot of strengths going in its favor. It is the worldwide leader in mobile phone sales and in 1987 introduced one of the world’s first handheld phones while being a key developer of GSM (Global System for Mobile Communications). GSM is used predominantly as the cellular phone protocol worldwide except in North America which uses CDMA (Code division multiple access). Nokia has an international research capability that creates specific phone models to certain regions. This increases their value of the mobile phones as the customers are given a product that is tailored to their specific needs. Apart from the Mobile Phone segment, Nokia also owns NAVTEQ, which is a provider of Geographic Information Systems and Global Positioning Systems (GPS), and a lot of other mobile phone technology providers. Nokia recently hired Stephen Elop as its CEO. This move is a positive one as Stephen Elop brings with him a diverse telecommunications career and also networking connections with Microsoft, where he was a senior executive. Weakness Nokia’s capital structure is comprised of 64% debt ($25B) to 36%...
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...manufacturing mobile phones and the GSM technology, Nokia’s profitability has been on the decline in recent years. A reduction of market share in N. America of 35% in March 2008 to 8.1% in April 2010 highlights Nokia’s decline. This led its Board of Directors to replace its CEO with Stephen Elop. Find below a SWOT analysis description and summary document on Nokia. Strengths Nokia has a lot of strengths going in its favor. It is the worldwide leader in mobile phone sales and in 1987 introduced one of the world’s first handheld phones while being a key developer of GSM (Global System for Mobile Communications). GSM is used predominantly as the cellular phone protocol worldwide except in North America which uses CDMA (Code division multiple access). Nokia has an international research capability that creates specific phone models to certain regions. This increases their value of the mobile phones as the customers are given a product that is tailored to their specific needs. Apart from the Mobile Phone segment, Nokia also owns NAVTEQ, which is a provider of Geographic Information Systems and Global Positioning Systems (GPS), and a lot of other mobile phone technology providers. Nokia recently hired Stephen Elop as its CEO. This move is a positive one as Stephen Elop brings with him a diverse telecommunications career and also networking connections with Microsoft, where he was a senior executive. Weakness Nokia’s capital structure is comprised of 64% debt ($25B) to...
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...Executive Summary This Marketing Plan Audit provides an analysis of the brand situation, current strategies and provides suggestions and implementation plan for Nokia Corporation. Nokia is a Finish manufacturer of mobile devices, which makes a full range of cellular phones for all major consumer segments worldwide, including Internet-enabled devices enable people to experience music, maps, media, messaging and games. Company has over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over 60 billion dollars and operating profit of 2.86 billion dollars as of 2010. Nokia is the world's largest manufacturer of mobile phones: its global device market share was 31% in the fourth quarter 2010, but dropped below 30% in the first quarter 2011. In June 2011, Nokia was overtaken by Apple, as the world's biggest smartphone maker by volume. For many years Nokia enjoyed an overwhelming domination on the market of personal mobile devices. The company managed to build the strong brand, easily recognizable style of it’s devices and consumer favorite. Due to serious mistakes in product and distribution strategy, as well as growing competition from companies like Apple, Samsung ,Motorola and others, Nokia started to experience serious problems with its sales, market share and consumer loyalty. Presented Audit defines Nokia’ current issue with the Brand positioning, that caused the diminishing of the brand popularity and lowered competitive...
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...Ltd (Suomen Kaapelitehdas Oy). Nokia's history starts in 1865 when mining engineer Fredrik Idestam established a groundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland, and started manufacturing paper. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere by the Nokianvirta river, which had better resources for hydropower production.In 1871, Idestam, with the help of his close friend statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding the Nokia Company, the name it is still known by today. The name of the town, Nokia, originated from the river which flowed through the town. The river itself, Nokianvirta, was named after the archaic Finnish word originally meaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. In modern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokinäätä ("soot marten"), meant sable. After sable was hunted to extinction in Finland, the word was applied to any dark-furred animal of the genus Martes, such as the pine marten, which are found in the area to this day. Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirement from the management of the company in...
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...emerging market Down structuring the company and operates more efficiently Cons: Smartphone market is rising rapidly Smartphone is replacing cell phone Nokia is still the leader in smartphone market by 2009 Alliance with OS provider Pros: Quick respond time Better compatibility, better performance Improved R&D Brand name Cons: Less control on the product Share revenue with alliance company Why Microsoft? 2007-2008 51%-40% for Nokia 68%-47% for Symbian Nokia's R&D team was not reliable anymore Nokia must return to the market with its new product ASAP to stop the decline Both sides need help to compete with Apple and RIM Complement each other (Hardware and Software) WP system has more experience than other reachable OS Problem statements What's Nokia's next move? Should they focus primarily on developed or on emerging markets? Or both? Threat of new entrants - high High technology requirement High start-up fund requirement Bargaining power of supplier - low Marketing leader Bargaining power of buyer - moderated sell to operator and retailer Threat of substitutes - no substitute no real substitute can replace mobile phone Rivalry among competing firms - high Core Competency Core-Competencies Valuable Rare Costly to Imitate Non-Substitutable Business Level Strategy: Unclear due to high variety of products. Resources Tangible Resources Physical Resources: devices, services, networks, and NAVTEQ. Intangible Resources ...
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...KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through following short liners in this regard: |1865: |A wood pulp mill was set up by a mining engineer named Fredrik Idestam at the Tammerkoski Rapids in south-western...
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...mobile computing on a screen the size of their thumb. While Apple was designing the iPhone and Nokia was selling half a billion phones each year, Google bought a company called Android and announced an Open Handset Alliance, a grouping of industry players who would come together to build an open source OS for smart phones. Nokia was invited to join but refused to demean itself. As a result, Nokia’s brand image is declining since 2008. In 2007, Nokia had a market capitalization of €110 billion; by May 2012 this had fallen to €14.8 billion. Nokia failed to build a marketplace that would have lured in users and application developers. But alike touch screens, it was not as if Nokia did not try. They tried multiple times and failed every time. Situation analysis The Nokia of today is a very different, much diminished company compared to the giant of the mid-2000s. If not a spent force, then certainly a much reduced one: smaller, less profitable, with fewer assets, and resources at its command — and dwindling cash reserves (net cash fell to €3.6 billion by the end of Nokia’s Q3 2012, down from €4.2 billion in its Q2). It doesn’t even own its own headquarters any more: earlier this month it agreed to...
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...Analysis of Competition in the Mobile Phone Markets of the United States and Europe International Business Master's thesis Mika Husso 2011 Department of Management and International Business Aalto University School of Economics AALTO UNIVERSITY SCHOOL OF ECONOMICS Department of Management and International business Master’s thesis ABSTRACT ANALYSIS OF COMPETITION IN THE MOBILE PHONE MARKETS OF THE UNITED STATES AND EUROPE Competition in an economic context is a widely studied phenomenon with a significant body of accumulated research and theory. However, competition in the mobile phone industry, despite its prevalence in public discussion, has received significantly less attention in academic research. Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone...
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...Analysis of Competition in the Mobile Phone Markets of the United States and Europe International Business Master's thesis Mika Husso 2011 Department of Management and International Business Aalto University School of Economics AALTO UNIVERSITY SCHOOL OF ECONOMICS Department of Management and International business Master’s thesis ABSTRACT ANALYSIS OF COMPETITION IN THE MOBILE PHONE MARKETS OF THE UNITED STATES AND EUROPE Competition in an economic context is a widely studied phenomenon with a significant body of accumulated research and theory. However, competition in the mobile phone industry, despite its prevalence in public discussion, has received significantly less attention in academic research. Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone...
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...that we think will be relevent to stakeholders. BRIEF HISTORY OF NOKIA Nokia is one of the world's biggest manufacturers of mobile phones. In the 2nd quarter of 2008, it was able to grab 80% share from the global market. It elevated Finland to being an even wealthier country accounting for 30% of it's GDP. Nevertheless, the success of Nokia started from its modest launching. Nokia was born in 1895 when Frederick Idestam built a pulp mill. Originally located in Tampere, a southwestern city in Finland, the company transferred to the town of Nokia so it could utilize the river of Nokianvirta. The company took its name from this river, which was used for the production of hydroelectric power. Nokia as we know it today begins in 1967 with the aquisition of the Finish Cable Works, a telegraph and telephone cables company. Nokia started producing lots of products ranging from newspapers, footwear, bicycles, car tires, televisions and communication cables t personal computers, aluminum capacitors and electricity generation equipment, etc. The decision to alter its operations to mobile communication gadgets started in the 60s. The 1960s saw Nokia creating military and marketable mobile radio communications. Together with Salora Oy, Nokia created the first VHF radio in 1964. From then on, these two companies combined their efforts and started creating mobile phones following the NMT network standard. Senator Mobira, their first car phone weighing 9.8 kg, was launched in 1982. The...
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...INTRODUCTION: The purpose of this report: Research the marketing theories and bring innovation into our marketing plan as a group. Most importantly is to work together as team, therefore we had decided that Nokia product (7210) would be the choice for our research. I. COMPONENTS OF MARKETING PLAN: Company Background: The enormous telecommunication giant Nokia was founded by Fredrik Idestam in 1865. In 1992, Nokia is focused on wireless and wired telecommunications business. In 2002 Nokia launches its first 3G phone (Nokia 6650). In 2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Network produce telecommunications network equipments, solutions and new internet services brand. Now Nokia had 112,262 employees in 120 countries, sales in more than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 39% in 2008. Nokia produces mobile phones for every major market segment and procedure, including GSM, CDMA, and W-CDMA. In the phone industry, Nokia are the world's best selling phone Nokia’s strengthened. It’s lead as the No. 1 wholesaler in the market during 2000 with shipments growing 66 percent over 1999. Some of the company's success was attributed to a strong second half in 2000 when 59 percent of sales happened. Table below which shows market share of Nokia: 1. Nokia (34.7%) ...
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...Analysis of Competition in the Mobile Phone Markets of the United States and Europe International Business Master's thesis Mika Husso 2011 Department of Management and International Business Aalto University School of Economics AALTO UNIVERSITY SCHOOL OF ECONOMICS Department of Management and International business Master’s thesis ABSTRACT ANALYSIS OF COMPETITION IN THE MOBILE PHONE MARKETS OF THE UNITED STATES AND EUROPE Competition in an economic context is a widely studied phenomenon with a significant body of accumulated research and theory. However, competition in the mobile phone industry, despite its prevalence in public discussion, has received significantly less attention in academic research. Within the international business (IB) context there are very few academic studies that seek to analyze and compare the different geographical mobile phone markets from the viewpoint of competition. This thesis examines competition in the mobile phone markets of the United States and Europe in light of interviews and secondary data covering years 2002 - 2011. The framework used for the analysis is founded on concepts drawn primarily from industrial organization (IO) economics, IB theory and microeconomics. The first part of the thesis gives an overview of the U.S. and European mobile phone markets and the second part focuses specifically on Nokia, its actions and performance on the U.S. market. The findings reveal that the U.S. and European mobile phone markets are fundamentally...
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...telephones for the army and emergency services. Since then, Nokia came a long way with launching the world’s first international cellular network and the first to allow international roaming in 1981. Nokia introducing the first car phone in 1982 and in 1991, Harri Holkeri- the Finish prime minister by then, makes the world’s first GSM phone call with Nokia handset. The strategic decision to invest in telecommunication has paid off and by 1998 Nokia is the world’s number one in mobile phones. Between 1996 and 2001, Nokia’s turnover increases almost fivefold from 6.5 billion Euro to 31 billion Euro. In 2005, Nokia sells its One billionth phone. In 2007 the company has 35% of the mobile network share market. ”As the new millennium dawns, everything changes. New technology enables the internet to go mobile, opening up a world of possibilities for mobile users. No longer are phones just for phone calls.” (Nokia, 2013a) Corporate planning & Vision Nokia’s mission is simple: Connecting People. Except the well-known mobile technology production, Nokia has more production lines like audiovisual signal/data processing and communications, multimedia equipment, satellite and cable receivers. In the early 1990s, Nokia makes a major shift in its activities and becoming a telecommunications focused company. Nokia had effectively decided that the future lies in telecommunications products, and strikes the global rather than simply the national market. Nokia starts expanding its...
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