FROM NOKIA TO NO KIA

CONFIDENTIAL

Presented ByGroup 4
Ankita Kumari
Anshuman Pradhan
Arnab Aditya Sethi
Surabhi Bhate
Debi Prasad Behera
Satyapriya Ojha

ABOUT THE COMPANY

Nokia Corporation is a Finland based multinational company
Headquarter -- Keilaniemi, Espoo, city neighboring Finland's capital
Helsinki
Founder -- Fredrik Idestam in 1865
Nokia started as a pulp, rubber and cable manufacturer
Till 2010 Nokia enjoyed the top position in mobile handsets
In 2013 Microsoft acquired Nokias mobile device business

PRODUCTS

PRODUCT LIFE CYCLE OF NOKIA

Maturit
Nokia Symbian
y
& N- Series
Growth

Decline
Sales curve

Nokia E- series

Introduc
tion

The Concept Phones

Time

Till 2008

MARKET SHARE OF SMARTPHONE OSs

QUESTIONS TO BE ADDRESSED

Reasons for the major

strategic failure
Current Scenario and
the Road Ahead

Reasons for Major Strategic Failure

Current Scenario and the Road Ahead

INTERNAL ENVIRONMENT ANALYSIS

Market-led and Resource based approach
o The initial success of Nokia can be attributed to its ability to align the two
approaches-- market driven strategy and resource-based strategy
o Once it failed to maintain this, the company faced the downfall
Focusing on emergent markets: Global Reach
o Nokia was smart to focus on emerging market needs and developed
handsets keeping in mind the demand of the customers in these markets
o But soon it faded as new players entered the market.
Product Leadership
o Nokia always focused on hardware of mobile phones but ignored software
and applications

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

INTERNAL ENVIRONMENT ANALYSIS

Cost Leadership
o Durability was not a customer value any more
o Nokia continued competing on that cheap product and good quality
Corporate Structure and weak leadership
o weak leadership at the top like CEO Stephen Elop, Jorma Olliia during
the past few years has led to the downfall of Nokia as they failed to see
the future of the industry
Poor marketing Strategy
o lack in consistency in the marketing message
o unclear and weak customer value proposition

SWOT ANALYSIS
Strengths
1. Product leadership
2. Strong HR team
3. Product Innovation
4. Cost Leader

Weekness
1.Low marketing
Acumen
2.Complacency
3. Single Trick Pony

Opportunities
1. Strategic
Acquisitions
2. Divestiture
3. Focus on Software
4. Market
Development

Threats
1. Popularity of
Android
2. Cheaper Phones
in the market
3. Overwhelming
Apps and market
development in
other OS

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

EXTERNAL ENVIRONMENT ANALYSIS

Marketing Myopia
Causes of Failure
1. The company thought that its growth can be achieved by increasing the
numbers.
2. Nokia did not upgrade its products by keeping view of the changing lifestyle
of the consumers.
3. In the time when Smartphones were capturing the market, Due to lack of
innovation Nokia didnt have any products to compete with the competitors.
4. Nokia was enjoying its market share without considering its competitors

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

EXTERNAL ENVIRONMENT ANALYSIS

Porters five forces

Increasing numbers of companies

suppliers have options for their parts

Due to relaxation of FDI policies in

India many foreign mobiles companies
came to India like Samsung,Lava etc.

many options in the market so they

want products in lower prices
traditional mobile systems in which
Nokia was leader substituted by smart
phones

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

External Environment Analysis

Paradigm shift in consumer preference

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

EXTERNAL ENVIRONMENT ANALYSIS

Single product syndrome
o produced subtle variants of the same basic phone
o failed to differentiate its products from that of the other companies
o Nokia was stuck with its image of sturdy reliable phones
o lacked product diversification
o customers moved over to other smartphone from competitor companies
that had a wide variety of products having varied features
o late entry in smartphone market failed to capture market share

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

EXTERNAL ENVIRONMENT ANALYSIS

Business ecosystem perspective
o Nokia held 40 percentage of the global mobile market share
in 2008 was down to 26 percentage in mid-2011
o Nokia forgot to strike at all as the world shifted its gaze to
smartphones
o Companies must coevolve with other businesses and build
symbiotic relationships with its various stakeholders and
competitors Ex-Apple and Samsung

Reasons for Major Strategic

Failure

Current Scenario and the Road

Ahead

External Environment Analysis

ANSOFF MATRIX

bundled products
with different
telecom vendors

Opportunities in
third world countries

special function
phones and
smartphones like the
Lumia series

Android overcome
Window OS

THE PATH FORWARD AND RECOMMENDATIONS

Microsoft should utilize the core competency of Nokia and start
manufacturing devices
Microsoft should encourage and incentivise developers
worldwide to develop quality apps for the Windows marketplace
A separate division to be formed in Nokia to manufacture phones
running on Android.