...Nokia's Bad Call on Smartphones Frank Nuovo, the former chief designer at Nokia Corp. NOK1V.HE +4.30% , gave presentations more than a decade ago to wireless carriers and investors that divined the future of the mobile Internet. More than seven years before Apple Inc. AAPL +1.43% rolled out the iPhone, the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad. Former Nokia designer Frank Nuovo says the company had prototypes that anticipated the iPhone. Dan Krauss for The Wall Street Journal "Oh my God," Mr. Nuovo says as he clicks through his old slides. "We had it completely nailed." Consumers never saw either device. The gadgets were casualties of a corporate culture that lavished funds on research but squandered opportunities to bring the innovations it produced to market. Nokia led the wireless revolution in the 1990s and set its sights on ushering the world into the era of smartphones. Now that the smartphone era has arrived, the company is racing to roll out competitive products as its stock price collapses and thousands of employees lose their jobs. This year, Nokia ended a 14-year-run as the world's largest maker of mobile phones, as rival Samsung Electronics Co...
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...Nokia's Bad Call on Smartphones - WSJ.com http://online.wsj.com/article/SB1000142405270230438800457... Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com See a sample reprint in PDF format. Order a reprint of this article now TECHNOLOGY July 18, 2012, 10:31 p.m. ET Nokia's Bad Call on Smartphones By ANTON TROIANOVSKI and SVEN GRUNDBERG In an interview with The Wall Street Journal, Nokia CEO Stephen Elop talks about innovation, management, and guiding the embattled company through a difficult transition. Frank Nuovo, the former chief designer at Nokia Corp., gave presentations more than a decade ago to wireless carriers and investors that divined the future of the mobile Internet. More than seven years before Apple Inc. rolled out the iPhone, the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad. "Oh my God," Mr. Nuovo says as he clicks through his old slides. "We had it completely nailed." Consumers never saw either device. The gadgets were casualties of a corporate...
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...was Nokia claimed that it is too expensive to make an iPhone, and consumers won’t really go after this expensive market (Troianovski & Grundberg, 2012). Nokia was wrong. And now, Nokia is working very hard trying to rebrand itself with its latest smartphones to consumers by using social marketing. In 2011, Nokia created Nokia Gift Machine with the incentive that attendees might win a reward ranging from chocolates to actual Nokia smartphones. The attendees simply just need to check in via Foursquare on the machine. I thought that this was a very innovative promotion idea to target audiences and market its products. Consumers are giving incentive with the rewards and also curious of what the machine can do, in the meantime, they learn its products as well. That was a huge success. Nokia also created a landing page, Switch Hub, for its current users that allows them to post contents with Nokia’s Lumia phones. Word of mouth is what Nokia is trying to do. People believe friends’ reviews and other recommendations, and then more people will browse the products page and Nokia can gain potential customers (Dupre, 2013). It seems to have worked. All of these hardworking efforts are taking effect, during the fourth quarter of 2012; Nokia’s operation profit was higher than expected and it stimulated the...
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...acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” 1 Nokia shifting from a “Leader” to a “Challenger” – Marketing Strategy of Nokia Lumia 1020 1. Executive summary Nokia was one of the most recognized and well-loved brands in the world. It was trampled and nearly destroyed by the disruptive innovation of Apple’s iPhone and the massive success of Android OS in the smartphone sector. Nokia holds many of the key technologies for mobile devices, but lacked the foresight and leadership to seize the massive opportunity in the shift from feature phones to smartphones. (Patric, 2013) In order to regain its lost market share and return to the leadership position, Nokia created series smartphone called Nokia Lumia. In June of 2013, Nokia launched its flagship Lumia 1020 – the best shot at making a real impact in smartphone, according to Nokia. However the smartphone market becomes super competitive than ever before. Especially in China, the world’s largest smartphone market, Nokia is facing increased competition from both international and domestic rivals. In this essay, I will...
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...PROJECT TEAM MWMBERS Abdullah Maashi Xiaomeng Guo Fang Zou Jian Zhao PROJECT SUMITTED TO Dr. Bartlomiej Hanus Abstract Nokia is an over 100 year-old communications and technology corporation. It was the word leading mobile handset manufacturer. It evolved gradually from being it pulp paper manufacturer in the 19th century to electronics manufacturer in 1980s to a mobile phones’ in produces 1990s. By the late 2000s the rivalry among the competitors became very strong and the Nokia position as a market leader in mobile devices was threatened by competition lower-cost smartphones producers. It was supposed to make the right decision because it has the longest experience in the field, but it did not. Nokia started to do very well in the 1990s and this is due to the smart CEO Vuorilehto who was appointed to take this position in December 1988. This leader mad the most important decision in the Nokia’s history when he decided to focus selectively and strategically on fewer acquisitions which are the Mobile phones, Nokia Bate, Cables & Machinery, Basic Industries, and Consumer Electronics. In this leader period the net income continue to increase until it reached 675.7 million in 1994 after it was (56.5) million in 1989. Then he stepped down and appointed Jorma Ollila to hold CEO position and the success continued year after year and in 1998 Nokia become the world’s leading mobile phone manufacturer with 23% and 163 million units sold which is better than Motorola’s 20%...
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...technologies. The Multimedia segment offers mobile devices and applications with multimedia connectivity over GSM, 3G/WCDMA, WLAM etc. Role of Strategy: Every company on a small level with very low risk or a multinational company with much more to lose than just money on the line have to have a strategy to make its name in the world with other companies in mind. Strategy is as important in an organisation like walking for a human. Behind every successful organisation there is a strategy. “It may be hard for an egg to turn into a bird: it would be a jolly sight harder for it to learn to fly while remaining an egg. We are like eggs at present. And you cannot go on indefinitely being just an ordinary, decent egg. We must be hatched or go bad.” The idea from above statement says in strategy you cannot just attempt something that you have to or will do just like that you need to take small and control in sometimes brave steps to...
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...Nokia: Nokia Corporation is a multinational communications and information technology corporation (originally a paper production plant) that is headquartered in Espoo, Finland. Its principal products are mobile telephones and portable IT devices. It also offers Internet services including applications, games, music, media and messaging, and free-of-charge digital map information and navigation services through its wholly owned subsidiary Navteq. Nokia owns a company named Nokia Solutions and Networks, which provides telecommunications network equipment and services. As of 2012, Nokia employs 101,982 people across 120 countries, conducts sales in more than 150 countries, and reports annual revenues of around €30 billion. By 2012, it was the world's second-largest mobile phone maker in terms of unit sales (after Samsung), with a global market share of 18.0% in the fourth quarter of that year. Now, Nokia only have 3 per cent market share in smart phones. They lost 40 per cent of their revenue in mobile phones in Q2 2013. Nokia is a public limited-liability company listed on the Helsinki Stock Exchange and New York Stock Exchange. It is the world's 274th-largest company measured by 2013 revenues according to the Fortune Global 500. Nokia was the world's largest vendor of mobile phones from 1998 to 2012. However, over the past five years its market share declined as a result of the growing use of touch screen smart phones from other vendors—principally the iPhone, by Apple, and...
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...MGT401 Term Paper on Submitted To: Submitted By: Mohammad Rezzaur Razzak Kamrijjaman Department Coordinator ID-12304076 BBS sec-01 Date of Submission – 15.12.14 Letter of Transmittal 15th December, 2014 Mohammad Rezaur Razzak Associate Professor BRAC Business School BRAC University Mohakhali, Dhaka. Subject: Submission of report on “Nokia Corporation” Dear Sir, With due respect, I am submitting my report on the above mentioned title for the fulfillment of the requirements of my Strategic Management (MGT401) course. I took this report as an opportunity to reflect my learning of the techniques and skills of this three months long course. I realize that my report may not be flawless; there might be some mistakes which were not noticed by me due to my inadequate professional knowledge. By collecting information for this report I also learned something very superfluous in practical. I look forward to make the optimal use of the knowledge that I gained from this course. I would like to gratitude you for giving me such a great opportunity to prove my ability in making a quality report. If any mistakes remain I heartily apologize for those. I hope you will take my mistakes with due consideration. Thanks. Sincerely yours, Kamrujjaman ID: 12304076 BRAC Business School BRAC University Acknowledgement ...
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...Aleixo Maria Osório | Pedro Castro STRATEGIC MANAGEMENT SMARTPHONES Professor Francesco Castellaneta FIND INSIDE Table of Contents I. INTRODUCTION 2 o II. Mission, Vision, Core Values 2 INDUSTRY ANALYSIS 3 o o o o Pest analysis 3 Porter’s Five Forces of Competition Framework 4 Market Segmentation 5 Key success factors 8 III. COMPETITVE ADVANTAGE ANALYSIS 9 o o o Emergence of Competitive Advantage 9 Porter’s Value Chain 12 Porter’s Generic Strategies 15 IV. CORPORATE STRATEGY 16 o o o The scope of the firm 16 Vertical and Horizontal Diversification 20 Managing the corporate portfolio 23 V. GLOBAL STRATEGY AND THE MULTINATIONAL CORPORATIONS 25 o o o o o Patterns of internationalization 25 Analyzing competitive advantage in an international context 25 International Location of Production 27 Global integration vs. National differentiation 27 Strategy and organization within the multinational corporation 28 VI. VII. VIII. CONCLUSION 28 APPENDIX 29 BIBLIOGRAPHY 30 I. Introduction COMPANY PROFILE Nokia is a Multinational communications and information technology Corporation, with headquarters in Finland. Even though, their product portfolio is quite diverse, their main products are mobile phones and IT devices. Nokia occupied the leadership position in the mobile phones’ industry for more than a decade; however in 2011 this position was lost. The introduction of the smartphones in the market, the scandal related with Stephen Elop’s memo...
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...Stratagem National Focus Can Samsung keep its edge in smartphones? The South Korean player enjoys a clear lead over its Finnish rival in the smartphone sweepstakes currently but there are quite a few curveballs to come in the hyperactive mobile phone market before a clear winner can emerge. Onkar Pandey keeping the flag flying high B.D. Park, Managing Director, Samsung India, leads an established brand, which is the leader in the smartphone segment. But his real test will be to manage the brand in face of a resurgent Nokia, besides facing off competition from the likes of Sony U 3 revenues of top mobile players Samsung’s revenue rose more than Nokia’s rank 201112 119.25 78.91 19.78 14.60 13.27 9.23 7.90 7.80 7.50 6.70 201011 129.29 57.20 22.89 19.50 10.04 4.50 9.20 18.34 6.26 13.26 Change market (%) share (%) -8 38 -14 -25 32 105 -14 -57 20 -49 -5 38.2 25.3 6.3 4.7 4.3 Nokia Samsung Micromax BlackBerry Karbonn HTC Spice LG Huawei G’Five TOTAL 2.5 2.5 2.4 2.1 100 312.15 330.31 Source: CyberMedia Research (Revenue in Rs Billion) ntil as recently as 2008, Nokia had an invincible lock on the mobile phone market in India. The Finnish giant was by far the strongest Richmond in the field, controlling a humongous 75% of the Indian mobile handset market by volume. But over the next couple of years, even as the handset market was going through a watershed technological change and churn, Nokia made the mistake of taking its eyes off the emerging market...
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...KHANNA MARY FUREY RAKEEN MABUD Emerging Nokia? It was December of 2009 and D. Shivakumar, the Managing Director of Nokia India was catching up over coffee with Colin Giles, his counterpart in the China office, and Chris Braam, who was in charge of operations in the Middle East and Africa. The gathering was somewhat celebratory in nature: Giles had recently been promoted to global head of sales. Before Giles left his Greater China market role, his colleagues wanted to get his thoughts on Nokia’s future in the region. The three men had no doubt that Nokia’s strategy in emerging markets had been successful: Nokia was the market leader in India and China, with market shares of 60% and 40%, respectively.1 The company also had made inroads into Africa and South America. However, Nokia had lost ground in the developed world: the company only sold one in 10 handsets in the U.S. (compared to one in three in 2002),2 and it had recently pulled out of Japan after 20 years of operations. Nokia’s revenues in Europe declined by 15% in the fourth quarter of 2009.3 However, Nokia was famous for its ability to reinvent itself. From its beginnings as a paper mill turned rubber manufacturer turned electronics company, and finally, as the world’s largest producer of mobile phones, Nokia possessed an unmatched ability to face obstacles head on and come out on top. Said former CEO Jorma Ollila, “Finns live in a cold climate. We have to be adaptable to survive."4 But what now? Should Nokia...
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...Introduction to bench marketing If a company is to be successful, it needs to evaluate its performance in a consistent manner. In order to do so, businesses need to set standards for themselves, and measure their processes and performance against recognized, industry leaders or against best practices from other industries, which operate in a similar environment. This is commonly referred to as benchmarking, in management parlance. The benchmarking process is relatively uncomplicated. Some knowledge and a practical dent is all that is needed to make such a process, a success. Therefore, for the benefit of corporate executives, students and the interested general populace; the key steps in the benchmarking process are highlighted below. A Step-by-Step Approach to Benchmarking Following are the steps involved in benchmarking process: (1) Planning: Prior to engaging in benchmarking, it is imperative that corporate stakeholders identify the activities that need to be benchmarked. For instance, the processes that merit such consideration would generally be core activities that have the potential to give the business in question, a competitive edge. Such processes would generally command a high cost, volume or value. For the optimal results of benchmarking to be reaped, the inputs and outputs need to be re-defined; the activities chosen should be measurable and thereby easily comparable, and thus the benchmarking metrics needs to be arrived at. Prior to engaging in the...
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...Group 5 Table of Contents 1. Consumer Analysis 1.1 Consumer Insights 1.2 Inferences 2. Company Analysis 3. Competitor Analysis 4. Channel 5. Context References Marketing Management Report Deliverable 2 3 3 7 9 11 12 13 15 Category : Smartphones Market: India Submitted By Ganesh R Preethi Venkataraman Sarat Bose Rajendra Mohan Talele Mahavir Prasad Kumawat S. Madhuvanthi Table of Contents Content 1. Consumer Analysis 1.1 Consumer Insights 1.2 Inferences 2. Company Analysis 3. Competitor Analysis 4. Channel 5. Context 6. References 7. Annexure Page No. 3 3 7 9 11 13 14 15 16 I. Consumer Analysis A sample of 8 consumers was taken for an exploratory research, the objective of which was to identify needs, desired attributes, relative importance of attributes and how different competitors are rated on the attributes. The consumers were chosen in the following manner: • 4 existing smart phone users (1 Nokia, 1 Samsung, 2 Micromax) • 1 intending buyer of smart phone • 3 switchers – 2 from Nokia to Samsung; 1 from HTC to Nokia 1.1 Consumer Insights Consumers, belonging to the age group of 21 – 25 years, who were students from an urban background, were chosen. The following details the research done amongst this sample population. Consumer 1 (Existing Samsung User) Age 21 years Student Occupation Urban User Category Samsung Galaxy S Current Model of Phone Nokia Xpress (Feature Phone) Switched from? Touch Screen, Android, Applications, Need Processor Touch Screen, Android...
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...2010. Stephen Elop as the former head of Microsoft’s Business Division3 (MBD), was brought in to fix the numerous problems faced by the world’s leading mobile phone company, Nokia. His task for entering Nokia is an exertive job because he is expected to reverse not only Nokia’s eroding market share in the high-end smartphone industry segment but also its sharp dropping profits. The Finland-based Nokia had a presence in over 160 countries as of 2010. Although it was the world’s largest mobile phone maker in the first quarter of 2010, Nokia had been losing market share consistently in the high-end mobile phone market. Due to its profit margins have a dropping figure that caused by the company threats, year 2010 has been considered as a tough year for Nokia. On the end of second quarter of Nokia, the company received a substantial drop in profits. According to the analysts, the company’s problems started since 2007 when smartphone portfolio created by competitors and catch an enormous attention on the market. The company loses its customers in the high-end mobile phone market and failed to establish its presence in the world's largest smartphone market, United State as the company failed to create striking smartphone constitutes to catch the eyes of customers among the competitors. To improve the company situation, Nokia decided to overhaul its management and therefore brought in Stephen Elop, a former Microsoft executive. This would be an immense change for Nokia as the company...
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...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. How apt that Nokia begins by making paper – one of the most influential communications technologies in history. The galoshes revolution OK, so it’s not exactly a revolution. But in 1898, Eduard Polón founds Finnish Rubber Works, which later becomes Nokia’s rubber business, making everything from galoshes to tyres. Nokia rubber boots become a bona fide design classic, still on sale to this day – though we no longer make them. Electronics go boom In 1912, Arvid Wickström sets up Finnish Cable Works, the foundation of Nokia’s cable and electronics business. By the 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 analyser for use in nuclear power plants. In 1963, it starts developing radio telephones for the army and emergency services – Nokia’s first foray into telecommunications. In time, the company’s MikroMikko becomes the best known computer brand in Finland. And by 1987, Nokia is the third largest TV manufacturer in Europe. Three become one 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...
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