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NOKIA
“CONNECTING PEOPLE”

Competitive Strategy Case
                  22/OCT/2012
     By Sadat Faruque
•   Nokia's history started in 1865 when mining engineer Fredrik
    Idestam established a ground wood pulp mill on the banks of the
    Tammerkoski rapids in the town of Tampere, in southwestern
    Finland in the Russian Empire and started manufacturing paper.
•   In 1868, Idestam built a second mill near the town
    of Nokia.
•   In 1871, Idestam, with the help of his close friend
    Statesman Leo Mechelin, founded Nokia Company.
•   In 1902, Nokia added electricity generation to
    its business activities.
•   In 1960, First electronics department started,
    sowing the seeds of Nokia’s future in
    telecommunications.
The Move To Mobiles : (1968 – 1991)
As European telecommunications markets were deregulated, Mobile
networks became globe. Nokia led the way with some
iconic products.....
The Mobile era begins : 1981
Nordic Mobile Telephone (NMT), the first international mobile phone
network is build.

GSM – a new mobile standard opens up : 1991
Nokia equipment is used to make the World’s first GSM call. Thus the
Revolution of Mobile started …..
     SWOT Analysis - Nokia :
STRENGTH
•Brand name Nokia
•Leader in Manufacturing Mobile
•Market Leader
•Presence Worldwide

WEAKNESS
•Not good at software
•Performance of Symbian OS is poor
•Increasing dissatisfaction level with its higher end sets.
     SWOT Analysis - Nokia :
OPPORTUNITIES
•Huge loyal customer base
•Huge presence in developing countries
•Can use its infrastructure business (Nokia Siemens
 network) to reduce bargaining power of mobile operators

THREATS
•Rapidly changing industry
•Threat of entry from new players
•Strong Competitions
•   Till 2005, Nokia enjoyed almost 60% of the handset market and
    became the market leader due to …
    1) Innovation
    2) Customization
    3) Product Quality
    4) Extensive Distribution
•   But after 2005, New competitors like Sony Ericson, Blackberry,
    Samsung, HTC, Spice, Micromax were forcing Nokia to head
    downwards.
    Nokia’s low end segments were facing tough competition from
    homegrown players like Micromax, Spice, Karbonn, etc.
    Whereas, high end segments were facing tough competition
    from Samsung, Blackberry, Sony Ericson, etc.
HANDSET MARKET IN INDIA

In Indian mobile handsets market i.e. smart
phones or featured phones was expected to grow
all over 30% during 2012.

According research of Cyber Media (CMR) 2011 it
was found that mobile phones production was
found to be the highest i.e. 26.2%.
Nokia in India
•   Nokia was ranked as the ‘Most Trusted Brands’ in 2010.
•   Nokia established itself brand leader in the mobile devices market
    in India.
•   Nokia has a wide range of mobile phones ranging from Rs 1,499
    to Rs 45,000.
•   In 2003, Nokia launched the Nokia 1100, a first Made for India
    phone.
•   Nokia’s ‘Made for India’ phones introduced the Nokia 3210 with a
    Hindi menu.
    Market Share of Nokia
    • 2008: 56.2%
    • 2009: 54.1%
    • 2010: 49.3%
    • 2011(January-July): 39%
Market Share in Mobile Market
Samsung emerged as the biggest competitor to Nokia in the
handset market.

• It sell a large variety of mobile phone almost 50 handsets
  models of various price Worldwide.
• Invests heavily in R&D, Marketing, portfolio and people.
• Focuses on launching products matching India ‘taste and
  preferences’.
• Has tie-up with Hungama that gives customers
  access to over 150,000 songs.
• BlackBerry better known as a Corporate phone.
• It has increasingly targeting the young generation.
• It’s introducing lower range phone like Blackberry
  Curve
• HTC one of the largest
  manufacturers of devices
  based on Google's Android
  operating system.
• Its introduces innovative
  phones.
• It has a distinctive large
  clock numerals.
•Focuses emerging markets
  like India and China.
• HTC instead of competing
  continue with its strategy of

 producing high quality,
 high-end devices.
• The company makes its presence felt in the music,
  imaging, and Smartphone categories.
• It also focused on providing emotive series that
  catered to individuals who love indulgence and
  pampering.
• Sony Ericsson’s main flagship brand phones were its
  Android-based Xperia smartphones.
• It not only has high segment phones but also low
  segment phones.
• Micromax has become India’s third-largest GSM mobile
  phone vendor.
• It brings in low-cost smart phone’s category.
• Understands the changing priorities of the consumers.
• Provides unique facilities like dual sim, wireless FM,
  QWERTY phones at a reasonable price.
• Company’s ideology was reflected in its rooted belief in


  ‘Innovation’ and delivering ‘nothing short of the best.’
• Provides wide range of phones at affordable prices.
• G'Five, is a Chinese
  Brand.
• Focuses on mid end
  segment to tap the
  Growth in replacement
  market.
•Chinese vendors are focusing on the replacement
 market by launching costlier but feature rich phones.
FUTURE OUTLOOK

• Physical product with an emotional plane.
• 17 million people – Life Tools (2009).
• No.1 app store – Ovi store.
• Music store – largest online movie seller.
• Collaboration with Microsoft
Nokia

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Nokia

  • 1. NOKIA “CONNECTING PEOPLE” Competitive Strategy Case 22/OCT/2012 By Sadat Faruque
  • 2. Nokia's history started in 1865 when mining engineer Fredrik Idestam established a ground wood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland in the Russian Empire and started manufacturing paper. • In 1868, Idestam built a second mill near the town of Nokia. • In 1871, Idestam, with the help of his close friend Statesman Leo Mechelin, founded Nokia Company. • In 1902, Nokia added electricity generation to its business activities. • In 1960, First electronics department started, sowing the seeds of Nokia’s future in telecommunications.
  • 3. The Move To Mobiles : (1968 – 1991) As European telecommunications markets were deregulated, Mobile networks became globe. Nokia led the way with some iconic products..... The Mobile era begins : 1981 Nordic Mobile Telephone (NMT), the first international mobile phone network is build. GSM – a new mobile standard opens up : 1991 Nokia equipment is used to make the World’s first GSM call. Thus the Revolution of Mobile started …..
  • 4.    SWOT Analysis - Nokia : STRENGTH •Brand name Nokia •Leader in Manufacturing Mobile •Market Leader •Presence Worldwide WEAKNESS •Not good at software •Performance of Symbian OS is poor •Increasing dissatisfaction level with its higher end sets.
  • 5.    SWOT Analysis - Nokia : OPPORTUNITIES •Huge loyal customer base •Huge presence in developing countries •Can use its infrastructure business (Nokia Siemens network) to reduce bargaining power of mobile operators THREATS •Rapidly changing industry •Threat of entry from new players •Strong Competitions
  • 6. Till 2005, Nokia enjoyed almost 60% of the handset market and became the market leader due to … 1) Innovation 2) Customization 3) Product Quality 4) Extensive Distribution • But after 2005, New competitors like Sony Ericson, Blackberry, Samsung, HTC, Spice, Micromax were forcing Nokia to head downwards. Nokia’s low end segments were facing tough competition from homegrown players like Micromax, Spice, Karbonn, etc. Whereas, high end segments were facing tough competition from Samsung, Blackberry, Sony Ericson, etc.
  • 7.
  • 8. HANDSET MARKET IN INDIA In Indian mobile handsets market i.e. smart phones or featured phones was expected to grow all over 30% during 2012. According research of Cyber Media (CMR) 2011 it was found that mobile phones production was found to be the highest i.e. 26.2%.
  • 9. Nokia in India • Nokia was ranked as the ‘Most Trusted Brands’ in 2010. • Nokia established itself brand leader in the mobile devices market in India. • Nokia has a wide range of mobile phones ranging from Rs 1,499 to Rs 45,000. • In 2003, Nokia launched the Nokia 1100, a first Made for India phone. • Nokia’s ‘Made for India’ phones introduced the Nokia 3210 with a Hindi menu. Market Share of Nokia • 2008: 56.2% • 2009: 54.1% • 2010: 49.3% • 2011(January-July): 39%
  • 10. Market Share in Mobile Market
  • 11.
  • 12. Samsung emerged as the biggest competitor to Nokia in the handset market. • It sell a large variety of mobile phone almost 50 handsets models of various price Worldwide. • Invests heavily in R&D, Marketing, portfolio and people. • Focuses on launching products matching India ‘taste and preferences’. • Has tie-up with Hungama that gives customers access to over 150,000 songs.
  • 13. • BlackBerry better known as a Corporate phone. • It has increasingly targeting the young generation. • It’s introducing lower range phone like Blackberry Curve
  • 14. • HTC one of the largest manufacturers of devices based on Google's Android operating system. • Its introduces innovative phones. • It has a distinctive large clock numerals. •Focuses emerging markets like India and China. • HTC instead of competing continue with its strategy of producing high quality, high-end devices.
  • 15. • The company makes its presence felt in the music, imaging, and Smartphone categories. • It also focused on providing emotive series that catered to individuals who love indulgence and pampering. • Sony Ericsson’s main flagship brand phones were its Android-based Xperia smartphones. • It not only has high segment phones but also low segment phones.
  • 16. • Micromax has become India’s third-largest GSM mobile phone vendor. • It brings in low-cost smart phone’s category. • Understands the changing priorities of the consumers. • Provides unique facilities like dual sim, wireless FM, QWERTY phones at a reasonable price. • Company’s ideology was reflected in its rooted belief in ‘Innovation’ and delivering ‘nothing short of the best.’ • Provides wide range of phones at affordable prices.
  • 17. • G'Five, is a Chinese Brand. • Focuses on mid end segment to tap the Growth in replacement market.
  • 18. •Chinese vendors are focusing on the replacement market by launching costlier but feature rich phones.
  • 19. FUTURE OUTLOOK • Physical product with an emotional plane. • 17 million people – Life Tools (2009). • No.1 app store – Ovi store. • Music store – largest online movie seller. • Collaboration with Microsoft