...the largest company in mobile phone market, Nokia was once on the top in its category. From operating paper mill in Finland, Nokia transformed itself into a multinational telecommunication giant. By 1998, Nokia is the world leader in mobile phone.1 Sadly, what once a giant has now become an underdog fighting for survival due to the strategy erosion. The global market share held by Nokia smartphones was continuously declining from the 48.7 percent in the third quarter of 2007 to only 3.5 percent in the third quarter of 2012.2 Despite Nokia holds a solid value of its brand in terms of awareness through years of effort, Nokia is still struggling to revitalize its brand equity. The followings will focus specifically on understanding the rationales and outcomes of brand development decisions in order to justify those using marketing theories, and evaluating the importance of the role of marketing mix in Nokia. BRAND DEVELOPMENT DECISION Brand Strategy In latest primary brand strategy, Nokia takes on revitalizing strategy (Riezebos, 2003) by cooperating with Microsoft. Windows phone operating system is built into Nokia smart phone as an ingredient branding to generate a competitive advantage. This action intends to encourage customers’ awareness and replaces MEEGO, a former self-developed smart phone operating system, also to differentiate from others major OS in the market. Customer-Based Brand Equity Model - Salience Although Nokia mobile phone business has been acquired by...
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...Nokia This is an exciting role for one of the most exciting organisations in the world. Nokia is recognised as one of the world’s of the most loved, most valuable and most trusted brand Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia's technological and design innovations have made its brand one of the most recognized in the world. For more information, visit http://www.nokia.com/about-nokia. General Function Manage the internal and external communications function in Vietnam based in Ho Chi Minh. Co-ordinate and implement all communications activities in country. Reports directly to General Manager, Sales & Marketing, Head of Communications, APAC. Main Responsibility Areas Creates communications plan for the country, key messages, positioning materials, collaterals & media events and executes the plan. Advisor to Nokia Vietnam’s management in topics that have an impact on Nokia’s reputation Creates local materials for locally relevant media activities Localises and distributes international media releases, materials Support in Nokia’s key stakeholder relations (operators, customers, partners, developers, industry associations) Media Relations Develop and implement the full media relations strategy for Nokia...
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...Human Resources Management analysis: Nokia Research Paper July 3, 2013 I have chosen Nokia because of its activities in the past and uncertain future so that I can analyze the company from the viewpoint of human resource management and to understand if bad management was one of the causes that led Nokia to lose its position as a global leader in the mobile phone market. After I describe the current human resource management, the employee recruitment and selection as well as the talent management I will try to make recommendations on how human resources and talents could be used more effectively based on my research. Because I never worked in a large global company as I am currently developing my own companies in the field of finance and web development I cannot bring my own experience from the past. I will conduct, however, a thorough research to justify my point of view and the proposed changes. The Nokia Corporation is a Finnish communications and information technology corporation operating worldwide from its headquarters in Espoo, Finland. Nokia manufactures mobile telephones and other portable IT devices. Currently, Nokia is in a joint venture with German company Siemens, producing telecommunications devices under the Nokia Siemens brand. Nokia currently employs 102 000 people around the world and shows annual revenues around $30 billion. Despite the crisis of the past few years, which will be described later, Nokia is still the second largest mobile...
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...http://press.nokia.com/2013/01/24/nokia-corporation-q4-and-full-year-2012-interim-report Nokia Group YoY EURm 2012 2011 change Net sales 30 176 38 659 – 22% Cost of sales – 21 786 – 27 300 – 20% Gross profit 8 390 11 359 – 26% Research and development expenses – 4 782 – 5 584 – 14% Selling and marketing expenses – 3 205 – 3 769 – 15% Administrative and general expenses – 959 – 1 085 – 12% Other operating income and expenses – 1 747 – 1 994 – 12% Operating loss – 2 303 – 1 073 Sales and Profit Entire Nokia Group Nokia did not have a good sales performance in 2012. According to its 2012 financial report, the net sales of Nokia in 2012 was only 30176 EURm, 22% less than the net sales in 2011. The gross profit in 2012 was only 8390 EURm, 26% less than the gross profit in 2011. The decreased net sales and gross profit was believed to be negatively affected by the increasing momentum of competing smartphone platforms relative to Nokia’s Symbian smartphones in all regions. During the first half of 2012, net sales and profitability were adversely affected by its lack of affordable full touch devices which continued to be a growing part of the market. RESULTS BY SEGMENTS Smart Devices Smart Devices results summary YoY EURm 2012 2011 Change Net sales (EURm) ...
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...Strategic Management Apple & Nokia Case Analysis 1. Table of Contents 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE 2 2.0 QUESTION 1 3 2.1 Competitive analysis of Apple and Nokia – who is stronger? 3 2.1.1 Competitive Analysis 3 2.1.1.1 SWOT Analysis 5 1.1.1 Strengths of Apple 6 2.1.1.2 Value Chain Analysis 9 2.1.1.3 Resourced Base View Tool 11 3.0 QUESTION 2 14 3.1 PESTEL analysis tool 15 3.2 Porter’s Five Forces 17 3.3 The Implications for Strategic Development are; 21 4.0 QUESTION 3 21 4.1 Critical Analysis Lessons from Apple’s risky but profitable strategy 21 5.0 REFERENCE: 23 1.0 EXECUTIVE SUMMARY OF APPLE AND NOKIA CASE Apple chalked some initial success with its invention of the Macintosh (Mac) computer but with the introduction of the Windows 1.0 from its rival company (Microsoft), it was faced with a threat in the industry. Their earlier strategic decision of not cooperating with rivals in the industry was seen as a weakness which Microsoft capitalized on to make their software available to other computer manufacturers for a license fee. Apple, diversifying into a new market (mobile telephone industry) with the introduction of user friendly products sought industry cooperation when it came to the launch of subsequent products including the iPod and iPhone. This strategic decision was inspired by its past...
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...Height Institute of Management & Communication PGDM Batch 2 Term 6th Management Control System Activity – Project Report On Nokia Strategies Adopted By Nokia In Order To Achieve Its Goals Submitted to: Submitted by: Prof. Aniruddha Durafe Rajkamal Paroha Anshuman Singh Parihar INDEX * Introduction to Nokia * History of Nokia * Mission & Vision * Goals & Objective * Organizational Culture * Management Control System in Nokia * Nokia Product Mix * Strategy Formulation * Strategy Adopted by Nokia to achieve its goals * Strategy Goal Introduction to Nokia Nokia is a multinational corporation engaged in the manufacturing of mobile phones devices, in converging internet and communication industries, having about 132,000 employees working worldwide. The organization is the World’s largest mobile manufacturing company and is operational is 150 different countries having an approximate global annual sales revenue of € 42 billion and operating profit of € 2 billion in the preceding year 2010. The organization has a market share of about 28.9% as of the preceding year 2010 and is still the market leader in the world of mobile phones. Nokia Corporation has a history of 146 years and it wasn't the way it is today, it took Nokia decades to reach at this point. The first Nokia century began with Fredrik...
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...10 OPERATION MANAGEMENT DECISIONS Quality management Quality - „the heart of Nokia’s brand promise” In Nokia quality is the highest objective, not only being the characteristic of their products and services, but one of their most important essences. It is strictly linked with their pursue of continuous improvement, as they perceive it as exceeding customers’ expectation. Moreover as Nokia is one of the leading companies in the sector of telecommunications, high quality standards have to be maintained in every aspect of its operation. Nokia wants to achieve excellence in the following fields: • customer service and gaining customers loyalty (by taking care of the quality and reliability or their products and services) • product leadership (improvement, innovation) • operational modes - effective, efficient and ethical management Management As all operations influence the final quality of their performance ( products, services etc), quality is managed from the top - starting with the quality of management, through processes to the final product. As the consistency of all actions is crucial in managing the quality, special framework for management practices („Self-Regulating Management System”) has been developed. In Nokia, „everybody in the chain has a role to play in achieving quality”, thus all the employee in all lines and operational units have to take it personally. As the customer is the driving force in Nokia, so managing the quality is started with acquainted with customer...
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...Cotterall Phuong thao Nguyen (Minnie) Student ID: 301168758 Article: “Where Nokia Went Wrong?” Sept 3, 2013 marks the end of an era for Nokia as the world’s leading global cellphone provider. After years of dominance, Nokia has agreed to let Microsoft “substantially” purchase its devices and license patterns for $7.2 billion. While people are still busy weeping and speculating the meaning behind this “partnership”, let us not deny the two important factors that lead to today’s tragic news for Nokia- resistance to smartphone innovation and lack of marketing focus in innovation success. I. BACKGROUND Nokia is the multinational corporation originated from Finland, a leading provider in mobile devices, services and telecom contents. In today’s fast changing global market, it also offers Internet services, navigation services and digital mapping information. Nokia operates mainly in Europe and Asia and currently employed 130,050 people as of December 31, 2011 (MarketLine, 2012). Mission and Goals Nokia’s mission is legit: “Connecting People”. That is, to provide great connections worldwide through strong mobile products and services. The corporation’s culture is developed from four main core values: Ideas, Energy, Excitement and Opportunities - which inspire them to stay strong over the last 150 years of operating (TechoPro). Following the partnership with Microsoft this year, Nokia hopes to strengthen its financial situation and accumulate resources to focus more...
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...Nokia – The Success Enablers From the standpoint of innovation policy and supporting institutions the success of Nokia could be related to the Nordic decision to create the common standard Nordic Mobile Telephony (NMT). This provided Nokia with a common Nordic market of 20 million techno savvy customers before anywhere else in the world. And it provided a perfect platform for ‘infant industry development’ . When Nokia had grown sufficiently large on the back of this market it was blessed by the European Union’s decision to create a common European standard for mobile telephony – GSM. GSM grew in rapidly both in geographical scope and functions offered. Nokia was among the best positioned companies to take advantage of this the then world’s largest uniform market for mobile hand sets - Moreover, the US market didn’t manage to develop a common standard, which prevented US companies like Motorola from competing on par with Nokia globally. The Nokia Management understood that design and being user friendly was more important than being over-engineered and Nokia mobiles appealed to more age groups and customer segments than any of its competitors. It pursued the policy of design and adoption of common platform principle which provided for the growth in product portfolio by allowing economies of scale. It also enabled vigorous investment in R&D. Analog communication technology gradually gave way to digital technology , enabling operators to host new services and creating...
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...Struggling Nokia aims high with low-end phone Bargain-basement handset touted as cash spinner in battle to catch upmarket rivals Tuesday, 30 April, 2013, 5:32am * The Nokia 105 has been released in some Asian markets. As Nokia battles to catch Apple and Samsung Electronics in the market for smartphones costing US$500 or more, it's counting on a bare-bones handset that sells for just US$20 to give it an edge. Priced 97 per cent below the latest iPhone, the Nokia 105 features preloaded games, a colour screen, a radio, a speaking clock and a torch. The phone, Nokia's cheapest, has been available for a few weeks in India and Indonesia and will soon start selling in Europe. Even with its bargain-basement price, the 105 is critical to Nokia's entire handset business. Nokia reported on April 18 that it sold about 11 million fewer mobile phones in the first quarter than analysts had projected, with sales of basic phones plunging 21 per cent to 55.8 million units. A failure to revive the low-end business would leave Nokia without an important source of cash as it seeks to develop challengers to the iPhone and Samsung handsets that run Android. Falling sales of simpler phones were "definitely worrisome", said Mika Heikkinen, a fund manager at FIM Asset Management in Helsinki."They have to get this under control." Nokia chief executive Stephen Elop points to the 105 as a signal that the low-end business can recover after a difficult quarter. While demand for the iPhone...
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...2.1 Management issues: Nokia has been one of the best companies who have innovatively grown in the telecommunications industry for a while now but this era has seen to be slowly declining because of how the leader of ‘Nokia’ couldn’t cope up with the ever changing market and demand of consumers leading the shares of Nokia to decline. Nokia’s management wasn’t able to move with the changing of demand and invent new product ideas in the market where their competitors invented and reinvented and overthrew Nokia in just few years. The management didn’t take appropriate feedback from the consumer adjusting to their needs and suggestions. Nokia’s ‘Research and Development’ department is or rather has been inefficient, their jobs were to develop advanced ‘smartphones’ before their competitors. Nokia has been losing market shares and bankrupt due to poor management and a poor R&D team. “Nokia's approach to innovation will require radical changes. This company that achieved so much with its product design skills in the previous decade must develop an entirely new set of innovation skills in order to create, develop, and manage a platform” (Chesbrough, Nokia's real problem: The commodity trap 20122). 2.2 Human Resources Issue: The reason of decline of successful company like Nokia is purely caused by slow, inefficient and deterred people on the “bus”. They have repeatedly been unable to come up with new ideas or be able to enhance their technology in cell phones. The marketing team...
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...HOW TO IMPROVE NOKIA 'S MARKET SHARE IN HONG KONG Table Of Content 1.0 Executive Summary 2 Introduction 2.1 Company Background 2.2 Company Mission and Strategy 3 Project Objective 4 Analysis of the business environment 4.1 PEST Analysis 4.2 SWOT Analysis 5 Competitors Analysis 5.1 Marketing Mix Analysis 5.2 Strategic Group Map 5.3 Key Critical Success Factors (KSFs) 5.4 The Five Forces of Competition 6 Recommendation 7 Conclusion 8 Appendix 9 Reference Introduction Nokia is a communication and information technology corporation. Its principal product is mobile telephones and Smartphone. It also produces a wide range of technology products and services. Nokia is also the world second largest maker of the mobile phone, after Samsung in 2012. (BBC, 2012). Although Nokia was the world largest maker of mobile phones from 1998 to 2012, its share price has a significant drop in these years. The price has famed from a high of US$40 in 2007 to under US$3 in 2012. (Jon, C, O. 2012) ,due to the result of the growing use of Smartphone of other vendors, like Apple and adoption of Google’s Android operation system. As mentioned by Don, 104.8 millions Android-based smartphones and 26 millions Apple smartphone has been shipped, but only about 11 millions of smartphones with Symbian and Windows Phone, the main operation system of Nokia. From the performance of Nokia, there is a need of changes within the organization for them...
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...Nokia Case Study Introduction: The fundamental question in the field of strategic management is how organisations achieve and sustain competitive advantage (Teece, et al, 1997) and therefore attain above industry-average profit. However, since both the business environment and individual firms are dynamic systems, continuously in flux, it is a big challenge to achieve a fit between these two systems (de Wit B and Meyer R., 2004) and therefore get the competitive advantage. This essay will firstly assess and consider the balance of marketled and resource-based approaches from the academic point of view. These two approaches should be viewed as complementary (Prahalad and Hamel, 1990; Mintzberg et al, 1995; Greenley and Oktemgil, 1996). Following the discussion, the essay just analyzes Nokia’s strategies and empirically justified the reciprocal and complementary relationship between these two approaches. On the process of Nokia’s development, the company achieved success because it could balance these two approaches well. Once it failed to do so, the company immediately suffered the fall in 2004, lost market share and decreased the revenue. However, the company quickly recovered because it followed the market trends, and simultaneously its strong internal strengths neutralised the external threats. In addition, I will argue that Nokia can maintain its market share and its market leader position in the following years based on the good market opportunities in mobile phone industry...
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...Microsoft Acquired Nokia in Unipolar Operating System Market ARTICLE · SEPTEMBER 2014 DOI: 10.14807/ijmp.v5i3.166 CITATIONS READS 2 2,355 1 AUTHOR: Netra Pal Singh Management Development Institute Gurgaon 68 PUBLICATIONS 62 CITATIONS SEE PROFILE Available from: Netra Pal Singh Retrieved on: 12 February 2016 INDEPENDENT JOURNAL OF MANAGEMENT & PRODUCTION (IJM&P) http://www.ijmp.jor.br ISSN: 2236-269X v. 5, n. 3, June - September 2014. MICROSOFT ACQUIRED NOKIA IN UNIPOLAR OPERATING SYSTEM MARKET Netra Pal Singh Management Development Institute, India E-mail: knpsingh@mdi.ac.in Submission: 13/11/2013 Revision: 05/01/2014 Accept: 10/01/2014 ABSTRACT The recent big tickets include Microsoft acquiring part of Nokia for US$ 7.2 billion, Verizon buy 45% stake in Vodafone for US$130 billion, Google acquiring Motorola for 12.5 billion. These buyouts are analyzed and commented by experts of the industry. This research paper attempted to collate their view in the context of Microsoft and Nokia deal on six parameters. These parameters are (i) reasons for the downfall of the Nokia market share, (ii) general comments of the experts, (iii) similarities / dissimilarities of past and business models of the smartphone business, (iv) reasons for Microsoft to buy out Nokia, (vi) impact of buyout on Microsoft, Nokia, consumers and markets. In addition, paper discusses the existing theories of merger & acquisition in telecom sector in the past. Keyword: Smartphone, Microsoft, Nokia, HERE Maps...
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...affected the most, need to create plans to manage this unforeseen change in their different industry (Johnson 2008). This report aims to evaluate the situation Nokia is currently facing, follow by recommendation for Nokia to gain back their share in the telecommunications market. The key point that this report will focus would be, (1) the challenge in the telecommunications market, and how poor change management leads to Nokia’s downfall; (2) How to help Nokia gain back its market position by using Culture-Excellence approach and Organizational Learning, using of human resources practices to promote this culture and learning capability; (3) What are the potential resistance from Nokia workforce to this change and how should Nokia go about solving them. 2. The Challenge in the Telecommunication Market In today’s market, when an industry is encountered with tremendous changes, it is advised that the companies are to take fast and agile reactions to adapt to these changes. If not done so, these companies might be eliminated from the fierce competition. How well these companies react to these challenges will determine their survival and growth in their industry (Kotter 2008). Nokia was the market leader in the telecommunication market but have been fading in the booming smart phone market. According to the case study, Nokia sales have...
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