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a study of nokia and decline in Mobile market, the effect of OS on sales, the shift from hardware to software in Mobile markets

a study of nokia and decline in Mobile market, the effect of OS on sales, the shift from hardware to software in Mobile markets

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  • 1. NOKIA By Ranjit Achary
  • 2. FACTS132,000 employees;120 countries,Sales in > 150 countries; global annual revenue of over €42billion and operating profit of €2 billion as of 2010It is the worlds largest manufacturer of mobile phones its global device market share was 23% in the second quarter2011.Every major market segment and protocol,including GSM, CDMA, and W-CDMA In the global smartphone rivalry, Nokia held the 3rd place in2Q2011, trailing behind Samsung and Apple
  • 3. TERMSPhonesOviNavteqSymbianMeegoMicrosoft WP7.5NFCBing
  • 4. Nokia & MicrosoftOn 11 February 2011, Nokia announced a partnershipwith Microsoft where all future Nokia smartphones will bepowered by the Windows Phone 7 (WP7) announced itwould replace Symbian and MeeGo with Windows Phone 7.Decline in the stock price by 11%July 2010, drop in profits by 40%, which turned into anoperating loss of EUR 487 million in Q2 2011 On 26 October 2011, Nokia unveiled its first WP7.5 poweredhandsets Lumia 710 and 800
  • 5. N & M contd… reduce spending on research and development, insteadrefocusing on customizing and enhancing the software linefor Windows Phone 7 Nokias "applications and content store" (Ovi) will beintegrated into the Windows Phone Marketplace, whileNokia Maps will be at the heart of Microsofts Bing andAdCenter.Microsoft will provide developer tools to Nokia, to replacethe Qt framework which will not be supported by WindowsPhone 7 devices
  • 6. OS WarsAndroidiOSWP
  • 7. OS Market Share
  • 8. http://www.gartner.com/it/page.jsp?id=1622614OS 2010 2011 2012 2015Symbian 111,577 89,930 32,666 661Market Share (%) 37.6 19.2 5.2 0.1Android 67,225 179,873 310,088 539,318Market Share (%) 22.7 38.5 49.2 48.8Research InMotion 47,452 62,600 79,335 122,864Market Share (%) 16.0 13.4 12.6 11.1iOS 46,598 90,560 118,848 189,924Market Share (%) 15.7 19.4 18.9 17.2Microsoft 12,378 26,346 68,156 215,998Market Share (%) 4.2 5.6 10.8 19.5Other OperatingSystems 11,417.4 18,392.3 21,383.7 36,133.9Market Share (%) 3.8 3.9 3.4 3.3Total Market 296,647 467,701 630,476 1,104,898
  • 9. CompetitionsSamsungAppleRIMLGHTCMotorola…..Sony Ericsson, HP, Dell…….
  • 10. Could DoSub BrandsNew BrandsRepositioning
  • 11. Sub brandsPrestige and name of the parent brandCredibility has to be ensuredRelations: endorser; co driver; driver/ descriptorProduct brand and company as a brandPalm Top, Tablet, different products
  • 12. “NO” New BrandpricequalityConfusingReturn’s worth the riskRetailers – distribution networks
  • 13. Repositioning Position - Everywhere Image – Common Phone Partners / Alliances -A. Design – Form, logos, colourB. Aesthetics – Body, screenC. Apps – Business and Functional AppsD. Hardware – Faster CPUs
  • 14. ConclusionTo increase market share and fight off competitionsfrom samsung, apple, htc & other smartphonemakers.Nokia needs to reinvent, reposition itself as a seriousOS, design and innovation developer as in it did withN97.
  • 15. THANK YOU