...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT 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...
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...Microeconomics of Competitiveness: Firms, Clusters, and Economic Development Submission of Assignment Student : Mas Wigrantoro Roes Setiyadi NPM : 8605210299 Program : S3 – Ilmu Manajemen – Pasca FEUI Date of Submission : September 13, 2005 Case: Finland and Nokia Assignment: 1. How was Finland able to move from a sleepy economy to one of the most competitive nations in the world by the end of the 1990s? 2. How was Finland able to become a world-leading nation in mobile communications? Why did this cluster emerge rather than others? 3. Why did Nokia become the world leader in mobile handsets? 4. What are the critical challenges for the Finnish government in 2001? For participants in the Finnish mobile communications cluster? For Nokia? 5. Given telecom downturn, what should the government do next? What should the private sector do? Answers: 1. Competitiveness of the nation does not lie on the government but rather depends on the capacity of its industry to innovate and upgrade (Porter, 1998). It is believed with innovation and upgrade industry as aggregate of companies would lead to increasing level of productivity. Porter emphasizes the importance of productivity as the prime determinant of a nation’s long-term standard of living. In most situations, industry will need government involvement to play its roles as facilitator (Musgrave, 1989) or through making public policy (Grindle & Thomas, 1991). However, the less the government gets involved in...
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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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...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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...Unit Three Nokia Case Study Analysis Kaplan University School of Business and Management MT460-01 Management Policy and Strategy Dr. Carrie A. O’Hare March 18, 2013 Unit Three Nokia Case Study Analysis Introduction (Do not remove these headings,;) Nokia conducted an in-depth analyst of it Cell Phone Company. It was losing in the marketing department due to the success of the Android. Under new management, the company started on a new venture to adopt Microsoft’s new unproven Window phones. It was going to be the primary operational system for the company. The market reacted poorly, and the company share price took a 14 percent dive as according to the company fourth quarter earnings report (nokia.com). To improve on their down fall, Nokia have to be able to compete with the rest of the big cell companies. To do this, they must adopt an alternate smartphone mobile operating system to get Nokia back on the right track. Nokia needs to conduct a Strength, Weakness, Opportunity and Threat analysis to ensure that they continue to stay afloat. By improving on their existing cell phone company and expanding their old style then they will be able to hang with the other big companies. Synopsis (Background) of the Situation Nokia is a Finland base company that had the hand on the market until the new cells phones came into play. The new leader of the company is Stephen Elop, which came over from Microsoft, to improve the company. Elop compared Nokia to man standing...
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...Week 3 Strategy and Positioning Analysis Part 2 Joshelyn Wooten Kaelin A. Love-Smith Sophia Taylor Olando Hart MKT/421 July 19, 2016 Dr. Duane Scott * Describe how your marketing efforts and marketing mix will change with each phase in the product life cycle * Explain how the packaging you will use for your product or service will add value Marketing Strategies Used By Nokia Marketing Published: 23, March 2015 Nokia was founded by Fredrik Idestamin in 1865 as public limited company. Nokia is leading the cellular phone industry with around 38% of the market share, while Motorola, which is American based is having 12% of total market share. Nokia used to be a diversified conglomerate up till 1980 with business that includes pulp, rubber tire production, paper, telecommunication equipment, cable manufacturing, and consumer electronics. The geographic target market of Nokia was mainly limited to Scandinavia (70% market share) and US (33% market share) (123helpme, 2010). Nokia never enjoy a monopoly in any market including Finland and the company share is due to its competitive marketing strategy, state of the art product designing and manufacturing, pricing strategies and creative marketing campaigns. The company has constant record of launching new products that either have a low costs or cutting-edge technology. These two characteristics of the firm gives it competitive advantage and the company is still the most profitable company of the mobile-phone manufacturing...
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...------------------------------------------------- The Rise of Finland’s Nokia Case Study No. 4 By: Maria Cristina C. Caymo, PhD-M Student FACTS: The case deals with the rise of the Nokia Corporation, from the relatively small country Finland, to global leader in the mobile phone market. The original Nokia Company was founded in 1865 to produce paper from wood pulp. In 1967, three companies, Nokia, Finnish Rubber Works and Finnish Cable Works in Finland merged to form the Nokia Corporation. The new company operated in many sectors and produced a wide range of products including paper, tyres, Wellington boots, cables, televisions, computers, electrical generators, and chemicals. The case study focuses on how did this company became the world’s largest manufacturer of mobile phones with nearly 40% of global market share. The case study also attributes this achievement on how trade and investment patterns and Finnish and global policies promoting market openness and free trade have affected the innovation process in Finland’s (mobile) telecom equipment industry. The study illustrates how regulatory, trade and investment policy choices have helped – alongside other key policies – provide the right framework conditions for innovation in this country of 5.2 million people. In addition, it examines how the private sector, and more particularly Nokia, has taken advantage of those conditions to enhance its innovation capacity. ISSUE: In the 1980s, Nordic nations...
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...pursued by NOKIA,SAMSUNG and LG mobile phones. Abstract-In recent year,adoption of mobile phone devices dramatically increased so fast in india. Having a mobile phone,during 1990,in india considered as luxury. It was owned by rich class businessmen and officers. But reduction in service charges and cost of the handset made it ubiquituos throughout india. Now,Mobile phones have become a part of life of every indian people. It totally realized indian consumers’ hidden needs about to take care of business works and beloved ones. It unveiled other unsought needs likewise messaging,recreation,gaming,and surfing internet etc. due to the other benefits mobile phone s are no longer a device only to make a call but also for other stuffs. Nowadays mobile phones are purchased not only on the basis of its core benefit but also on the basis of its other multi featured facilities. Introduction-India has come in a close second in the sale of mobile phones in the year 2006.china has led the race of mobile sales being the heighest in the world. In India however,the GSM phones rule over the CDMA Handsets. Leading the categories are Nokia, SAMSUNG,LG,SONY Ericssion,MOTOROLA and blackberry. GSM handsets are more preferred over CDMA handsets because of its attribute of portability with every SIM cards. But only three major mobile phone manufacturing companies rule over Indian mobile phone device market named as NOKIA corporation,SAMSUNG electronics and LG GROUPS corporation. NOKIA,SAMSUNG and...
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...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 MARKETING PLAN PROJECT INTRODUCTION Nokia was founded in 1865 as a paper mill in Finland. It went on to establish it’s self as a renowned mobile phone manufacturer and one of the most powerful brands in the world. In 1992 Nokia shifted its focus to primarily telecommunications and appointed Jorma Ollila as its CEO. Six years later in 1998 Nokia had established it’s self as the world’s largest mobile phone manufacturer with a turnover of 31 billion. In 2006, Olli-Pekka Kallasvuo replaced Jorma Ollila as the CEO, but was not able to reverse the decline of Nokia’s market share especially in the high end segment. Competitors like Apple, Blackberry, HTC, Samsung, and phones using Google’s Android operating system captured market share from Nokia at an alarmingly increasing rate. By the end of 2010 Android was already the most widespread smart phone operating system in the world and Nokia’s market share in the smart phone segment had declined from 38 to 31 percent in one year (Sokala). In September 2010, the appointment of the Canadian Stephen Elop as the new CEO of Nokia aroused adversarial feelings among people since Elop became Nokia’s first CEO not to originate from Finland. Elop was hired to change the course of Nokia and to stop the declining trend in Nokia’s global market share especially in the smart phone segment. The first major decision was to start extensive cooperation with Microsoft in February 2011. VISION AND STRATEGY Nokia’s mission is simple: Connecting...
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...2015 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/ Abstract Nokia was a synonym for the mobile phone industry for a long time; however, when it came into the era of smart phones, the former leader was under an awkward situation. Nokia sold its mobile phone business to Microsoft on September 3, 2013. A company following Kodak with the legendary color failed in the impact of the new technology revolution. This was a typical case of the subversion of an industry; therefore, the author believed that it was necessary to analyze the process. This paper studied Nokia’s decline mainly from the three parts. First of all, looking back Nokia’s development process from the glory to the decline, it can be divided into three stages: the transition period, the peak period and the decline period, followed by analyzing the reasons of its decline from three parts: Nokia executives’ grasp for the market, the company’s business strategy and business cooperation, and finally analyzing its inspiration for modern enterprises from the marketing perspective. Keywords Nokia, Market Grasp, Operational Tactic, Cooperation 1. Introduction Nokia, the leader of mobile phone industry, was acquired by Microsoft in September 2013. Nokia’s mobile phone business would be owned...
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...Lesson 8, Samsung Analisys Igor Zapozdaev International American University BUS 590 Business StrategyIncredible Instructor December 17, 2014 I. Introduction and History……………………………….. 3 II. Samsung as the highest handset seller currently……. 4-6 III. Strengths, Weaknesses, Opportunities and Threats… 6-7 IV. Samsung Strategies……………………………………… 8 V. Conclusion & Recommendations..……………….……… 9 VII. Reference…………………………………………….. 9 I. Introduction and History. Samsung electronics is a company with its capital in Samsung Town Soul, South Korea. Samsung. Electronics unlike other electronic companies started it business operations on other products and not electronics. It started off as fish exporter vegetables and fruits exporter in China which was the business activity of the founder Byung-Chull Lee in 1938. Samsung expanded its activities again for the second time and also not in the electronics arena. It expanded to ship building, financial industry, chemicals and the media industries. This was in the years 1958 throughout to the 1970’s. In 1969, Samsung officially kicked off its business venture in the electronics industry. It called itself SAMSUNG Electronics. It first started off with its most famous product the Samsung TV, the mobile phones arena, computer components, radios, and other electronic devices like the Samsung fridges. This was their core business all through the 90’s to date. They have expanded their electronic base opening branches in...
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... both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers. | | Nokia's market share falls below 30 per cent Helsinki: Nokia Corp. reported better than expected first-quarter profits Thursday but its global market share dropped to below 30 per cent for the first time in over a decade as the world's top cellphone maker continued to lose ground to rivals. The Finnish company's net profit in January through March fell euro5 million to euro 344 million ($499 million) from a year earlier. Revenue grew 9 per cent to euro 10.40 billion. The company's share price climbed several per cent as markets had anticipated a greater fall in profits and lower sales, but closed almost unchanged at euro 5.96 ($8.65) on the Helsinki Stock Exchange. The Finnish company has faced stiff competition in recent years in the high-end sector, particularly from Apple Inc.'s iPhone, Android-based handsets and Research in Motion's Blackberry. Nokia sold 24 million smartphones in the period, 13 per cent more than in 2010, but its market share for the devices plunged to 24 per cent from 39 per cent a year earlier, according to Strategy Analytics market research. The company's overall global market share also fell - to 29 per cent, its lowest level since the late 1990s. A year ago its total market share was 33 per cent and 31 per cent in the previous quarter....
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...1. Problem Even though Nokia’s strategy in emerging markets has been successful –making the company the market leader in India and China with market shares of 60% and 40% respectively– the company’s position in the developed markets has been deteriorating. Nokia used to lead the mobile phone market in North America and Europe in the 90s and early 2000’s and now the company is losing share mainly to Apple, Samsung and RIM. At the end of 2009 market share in the US dropped from 33% in 2002 to 10%; in Europe revenue declined by 15% in 4Q2009 and it was pulled out of Japan. The question that rises is if Nokia should continue to operate in both developing and developed markets or select one over the other and what strategies the company should pursue for those alternatives. This report will analyze Nokia’s environment and its current internal situation and will provide an actionable recommendation plan to address this problem. 2. The External Environment Industry Analysis-Porter’s Model of Five Competitive Forces The mobile phone industry is a fast changing industry due to technological advancements and fierce competition. The first generation of mobile phones appeared in the 80’s, the second generation in the 90’s with the introduction of digital technologies and cheaper phones and lastly the third generation emerged in 2000’s with the introduction of 3G networks. a) Intensity of Rivalry Among Competitors This competitive force is high. There is an intense competition: 1)...
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... Company- Nokia Background of the study: Pricing Techniques: are the methods adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products. Different pricing methods place varying degree of emphasis on selection, estimation, and evaluation of costs, comparative analysis, and market situation. It takes into view factors such as a firm's overall marketing objectives, consumer demand, product attributes, competitors' pricing, and market and economic trends. The term pricing technique is also called cost plus because it attempts to secure the firm against a loss by imbedding marginal and fixed costs into the price consumers pay. The term plus refers to markup, which may ensure some strictly positive profit. If, the firm sets markup = 0, the firm breaks even because the price equals the average total cost. Objective of the study: The objective of the study is to see the different pricing strategies used by Nokia for its different products. Nokia started by making paper – the original communications technology Nokia was founded in 1865 by Fredrik Idestam in Finland as a paper manufacturing company. In 1920, Finnish Rubber Works became a part of the company, and later on in 1922, Finnish Cable Works joined them. All the three companies were merged in 1967 to form the Nokia Group. In the late 1970s, Nokia started taking...
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