Report on Nokia Company

1. Faculty of Social Science
Department of Business Administration
Marketing Management, MBAD-503
Instructor: Proff. Bülent Mengüç
Presentation on How to save Nokia Company from a failure.
Std ID: 20140901011
Murat Bigvava

2. The present work illustrates the powered force that has driven through out decades a
huge company Nokia to be a leader in telecommunication technology but for some
reasons of today’s environment, it’s observed the fall of the company. The
consequences of achievements in the past could not control present situation of Nokia
Company. Thereby, the aim of the present work is to focus on barriers and problems
that have led to the present situation and future risk to become a failure company or
disappearance of the brand name.

3.  Nokia is a Finnish multinational company produces telecommunication
equipment for mobile, fixed, broadband and IP networks, the developer of
the cartographical system HERE, service, the former producer of
smartphones and mobile phones.
 As of the beginning of 2013 in the company the few less than 100 thousand
employees work, at the end of the 2000 year employees reached 132
thousand people. Production of the company sells in more than 150
countries of the world. From 2000 to 2011 It occupied the largest market
share of mobile phones, as in 2012 —second place from shares of 19% (after
Samsung 22%). In 2011- 2012 Nokia started cooperating actively with the
American giant Microsoft.
 The headquarters of the company is in Espoo, the satellite town of Helsinki.

4. For 2013 year, net sales of three continuing businesses generated
approximately EUR 13 billion and operating profit is EUR 0.5 billion.
Following the closing of the Microsoft transaction, Nokia has announced for its
new 3 business area:
 Networks
 Here
 Technologies
The changes of the environment of Nokia Corporation of being acquitted by
Microsoft giant player in world technology scene has indicated significantly the
strengthening position in the market, supporting target of returning to being an
investment into a grade company.
In April 29, 2014 Nokia outlined their next steps and looks into the future with s
complex of New Business Mission:
• The appointment of Rajeev Suri as a president and CEO
• A vision to be a leader in technologies important in a connected world
• A strategy to build a strong platform on Nokia’s three businesses- networks,
location and technologies
• Plans for Euro 5 billion program to optimize capital structure, including
Nokia’s board annual meetings with proposal for the future actions
• A new governance structure and the appointment of a new leadership team

5. By results of SWOT
strengths: the wide experience of work, is the world leader in the field of mobile
communication technologies, very wide range of models of phones, success of the OVI
brand, aspiration to technological and design experiments, quality - as fundamental a
Nokia brand element;
weaknesses: loss of a share in the market of smartphones in the II quarter 2011, support
only of one operating system within one company, refusal of own development in the
field of operating systems, decrease in revenue, decrease in possibility of Nokia to
provide fast innovative development, decrease in capitalization in a year honor for 20%;
opportunities: preservation and strengthening of a position of the leader in the world
market, application of the latest technologies and introduction of the advanced scientific
achievements, possibility of increase in part of a sales market, cut in expenditure of
corporation, active protection of intellectual property and ensuring inflow of license
assignments from other companies;
threats: the crisis phenomena in world economy; increase in the competition; illegal use
of the license Nokia and copyright infringement; danger of weakening of the Nokia
brand; reorganization of corporation; growth of expenses; growth of the currency risks
connected with changes of exchange rates; growth of interest rates for the credits; the
risks connected with transition to a new operating system.

6. Marketing Mix
Product
Nokia’s products vary a lot because the company has a number of series of Smartphone
such as Nokia Lumia, Nokia Asha, as well as feature phone series. Product design also
varies, the company has touch screen products, classic button phones, as well as slide
sets. Nokia’s products have some great features that vary from product to product. Nokia
is known for great quality of its devices, and often services accomplishment addition.
Price
The prices of the smartphone series vary between 334$ and 1087$. There is high price
variability of the products, so that the prices meet every social class needs.
Promotion
Nokia makes use of advertising on television, newspapers, radio and billboards. There is
no information on any current or near past promotional campaigns.
Place
Nokia is getting its products to the market trough distributors. It mainly sells its
smartphones and feature phones trough Mobile operators and retailers, which is
common for the industry. The company does not own shops in most of Europe,
exception make UK.
According to the marketing mix analysis for Nokia, the company mainly focuses on
product component of the marketing mix. Nokia offers great variety of product at a
different price levels. Given the variability in products and series, at this point it is hard
to understand the strategic choices of the company.

7. Overview of Nokia’s competitors
Logically the finding of Nokia Lumia rivals in competition with
Samsung(Android) and Iphone(IOS), I find these two companies the most
important, because Samsung and Apple are the market leaders in Europe. I will
focus on the market leaders, because Nokia according to the mission and vision
statement analysis wants to regain its leadership position. If Nokia wants to
achieve the leadership position it has to deal with this two companies. Even Mr
Elop was frustrated by their success according to an interview for BBC (“Nokia at
crisis“ 2011).

8. • Threat of appearance of new competitors
• The competition of goods (services and substitutes)
• Risk level from buyers for Nokia Corporation
• Risk from suppliers supplement -accessories and other materials for
production low as the Nokia Corporation is the leading global manufacturer
in branch of mobile communication technologies. Nokia very strictly follows
the strategy in a choice of suppliers. Usually passes not less than 1-2 years
before the company makes out the long-term contract with the supplier.
During this period the company checks quality of the delivered components,
service and competitiveness of the partner company.
• Competition level for
The risk to become a failure is huge still besides its implantation of windows
operating systems into Nokia phones if to look from perspective as a brand, it
can lose the brand name easily by using windows system continuingly.

9. • Huge on-going analytical basement for creating features of needs and wants
of customers
• Approaches and explorations of new technologies and ideas
• Investments talent creativity practices and training at the company
• Investigating the potential customers and buyers in the market to catch the
desired needs and wants
• Motivate employees by the first brand that have created mobile phone and
regain the leadership positions in the market
• Compare competitions successful products and create something between
that will be above competitors’ products towards forward-looking way at
reasonable price to shake and shock the market
• Cut the production of varies of products, leave the most successful ones
• HERE and Networks systems are leaders in their spheres so they don’t
demand so innovativeness and investments comparing to mobile phones
failureness.

10. Thank you for your Attention!
Any Questions???