nokia - future ?

7/31/2019 Nokia - Future ?

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DOES IT

HAVE A

FUTURE

NOKIA


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Nokia is a Finnish multinational communications and

information technology corporation headquartered in

Keilaniemi, Espoo, Finland.

Principal Products are Mobile Device & IT Devices.

Nokia has around 122,000 employees across 120

countries, sales in more than 150 countries and annual

revenues of around 38 billion.

Nokia was the world's largest vendor of mobile phonesfrom 1998 to 2012.

Free-of-charge digital map information and navigation

services through its wholly owned subsidiary.


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Nokia offers a wide range of mobile devices with the

experience in music, video, imaging, gaming and a lot

more.

. It also provides the services for network operators.

Company offers its products in 150 countries.

Nokia has ajoint venture with Siemens, Nokia Siemens

Networks, which provides telecommunications

network equipment and services.

It is the World's 143rd-largest company measured by

2011 revenues according to the Fortune Global 500.


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In 1865, mining engineer Fredrik Idestam sets up his

first wood pulp mill at the Tammerkoski 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.

In 1898, Eduard Poln founds Finnish Rubber Works,

which later becomes Nokias rubber business, making

everything from galoshes to tyres.

Nokia rubber boots become a bona fide design

classic.


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In 1912, Arvid Wickstrm sets up Finnish CableWorks, the foundation of Nokias cable and

electronics business.

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 analyzer for use in nuclear power plants.

In 1963, it starts developing radio telephones forthe army and emergency services

Nokias first foot into telecommunications.


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1987, Nokia became the

third largest TV manufacturer in Europe.

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.

As the 1980s come into view, its an entirely new

industry that makes Nokia a household name

around the world.


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As of 2012 it is the Worlds second largest mobilephone maker by unit sales (after Samsung), with a

global market share of 22.5% in the first quarter.

Global mobile handset shipments (Q1) for 2012

COMPANY Units (millions) Market share

Samsung 93.5 25.4%

Nokia 82.7 22.5%

Apple 35.1 9.5%

Other 156.7 42.6%


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In 1999, Nokia were number one with 27% of the

market, Motorola at 17%, Ericsson

[ not yet formed with Sony ] came third at 11%,

Panasonic were 4th and Samsung were 5th at 6%.

Nokias peak was at 2008, rising to over 40% globalmarket share.

In comparison, 105 million less phones have been

sold in 2009 than in 2008, with Nokias numbers

reducing in Market share, Smartphone share and OSshare.


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Company Units (millions) Market share

Nokia 2.8 Billion 34%

Motorola 1.1 Billion 13%Samsung 1.0 Billion 12%

Sony Ericsson 600 million 7%

LG 500 million 6%

Other branded 1.8 Billion 22%

Unlicensed 500 million 6%

TOTAL sales (2000-2010) :- 8.3 Billion


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1992: Nokia decided to focus on its

telecommunications business

.Most important strategic decision in its history.

1992: Nokias first GSM handset [ Nokia 1011 ]

1994: Nokia Tune is launched [ Nokia 2100 ]

1994: Worlds first satellite call

[ Nokia GSM handset ]

1997: Gaming-snake [ Nokia 6110 ]

1992: Nokia launches 3G [ Nokia 6650 ]

1999: The Internet goes mobile

[ Nokia 7110-the worlds first WAP handset ]


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2005: The Nokia N-Series is born.

Nokia introduces the next generation of multimedia

devices.

2005: The billionth Nokia phone is sold

[ Nokia 1110 in Nigeria]

2006-2008:

Nokia, the 5th most valued brand

in the world


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Finnish Company turned itself into the worlds

leading mobile phone company in the 1990s.

So Nokia has already been through one

(successful) change programme, turning itself froman unfocused conglomerate into a focused mobile

phone producer.

Can it change again?

Global market leader in mobile phones

but not smart phones .

Still profitable, but revenues under pressure


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September 2010:

Appointed new CEO - Stephen Elop - to

drive strategic change.

Elop issued the famous

burning platform memo

bluntly explaining the serious strategic

challenges facing Nokia.

Elop outlined results of his strategic review on Feb 11

2011 Making it clear that Nokia had to undergo a

substantial programme of change.


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We fell behind, we missed big trends, and we lost

time. At that time, we thought we were making

the right decisions; but, with the benefit of

hindsight, we now find ourselves years behind.

There is intense heat coming from our

competitors, more rapidly than we ever expected.

Our competitors arent taking our market sharewith devices; they are taking our market share with

an entire ecosystem.


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Nokia had missed the major change in its market the

Smartphone revolution

Nokia had continued to focus on mobile phonedevices [hardware] rather than mobile phone

applications [software]

.Business had become too product-led rather than

customer-led; a missed opportunity

Poor leadership and complacency

[Bred from success in non smart-phones]

Lacking innovation and entrepreneurial spirit


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The product life cycle of Nokias products had

shortened dramatically as others

(Apple, Google Android) developed Smartphone

platforms and an associated ecosystem of apps.

The consumer transition from traditional mobile

phones to smart phones has been dramatic, and

caught Nokia off-guard.

Nokia has faced intense competition from mobilephone producers in emerging markets who can make

fast, cheap handsets at the lower end of the mobile

phone market.


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New leadership (internal causes of change):

An outsider arrives to shake up the way Nokia does

business!

Retrenchment (closing down Symbian) followed by

strategic partnership with Microsoft(another major internal cause of change)

Strategic decision-making / corporate planning:

Nokias decision-making had become ineffective - too

slow; inconsistent

Technology (Smartphone ecosystems) as a source of

change: consumers no longer buying a handset; they

are buying apps that run on phones


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Impact of competition from emerging markets: the

effect of faster, cheaper competitors

Globalization of markets: Nokias new objective ofsupply the next 1 billion mobile phone handsets

resulting from rapid demand growth in emerging

economies

Analyze Business and the competitive environment:Emergence of stronger, more successful competitors

(Apple, Samsung, RIM, Google, LG)


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It never jumped on the flip-phone bandwagon

It continued to ignore the U.S. market:

It failed to recognize the threat of the iPhone

It clung to Symbian too long

It chose the wrong next-generation platform to back


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February 2011, Nokia has had a

strategic partnership with Microsoft

Incorporate Microsoft's Windows Phone operating

system replacing Symbian.

With Microsoft to build a global mobile ecosystem

Leverage the expertise on hardware optimization,

software customization, language support and scale.

Eg Nokia Maps would combine Microsoft assets like

Bing and AdCenter

Nokia's application and content store would be

integrated into Microsoft Marketplace


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New leadership team, operational structure

Two distinct business units Smart Devices and Mobile

Phones

Under Smart Devices

- Symbian Smartphones - MeeGo Computers

-Strategic Business Operations

Manufacturing, IT and logistics headed by Niklas

Savander Etc..


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Nokia unveiled its first Windows Phone

handsets, the Lumia 710 and 800, in October

2011.

With OS Windows, Nokia have came up

with new features and technology to enhance

its market share.


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Better Hardware

Enterprise Ready

New Preloaded Apps

Background Multitasking

Focus on NFC

Lenses

Turn-by-turn navigation

User interface

Web browser


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Contacts

Multimedia

Games

Office suite

Multitasking

Updates

Advertising platform

Bluetooth

Sky Drive integration


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Focus on competitive operating system.

Efforts to capture us market.

Phones to satisfy the current customer need.

Ensure better promotion strategies.

Should come up with better technology.


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Growing and developing from time to

time.

Did not believe in product

customization.

Started with candy bar phone and

enjoyed the market share.

Blind towards the threat of competitors.

Lost the share price and market share.


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Focus on hardware rather than

software.

Stuck with Symbian.

Joint partnership with Microsoft to enter

smart phone arena.

Windows phone ecosystem.

Came up with Asha series and Nokia Lumiaphones

Future growth depends on Lumia and Asha

phones.


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nokia - future ?

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