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Nokia

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Nokia

  1. 1. Nokia CEO’s Dilemma<br />Hitesh Malhotra<br />
  2. 2. Nokia Losing Market Share<br /><ul><li>Nokia plans to build a new global mobile ecosystem; Windows Phone would serve as Nokia's platform.
  3. 3. Nokia stock was down 4.1 percent at 6.715 euros by 1429 GMT on a flurry of analyst downgrades
  4. 4. Nokia estimated market share shrunk to 31 percent in the fourth quarter of last year
  5. 5. Nokia has a long product development cycle.
  6. 6. Nokia has renewed an approach to capture volume and value growth to connect “the next billion” to the Internet in developing growth markets
  7. 7. Nokia has focused investments in next-generation disruptive technologies; Meegoand Nokia Research Center
  8. 8. Nokia has a new leadership team and organizational structure with a clear focus on speed, results and accountability
  9. 9. Focused competitors taking market share with: </li></ul> -An entire ecosystem<br /> -Several price ranges<br /> -Production/Innovation<br /><ul><li>The new version of Windows Phone OS is still under construction.
  10. 10. Microsoft’s share of the U.S. smartphone platform market dipped 1.7 percent between October 2010 and January 2011, from 9.7 percent to 8.0 percent</li></ul> Situation<br />Complication<br />Key Issue<br /><ul><li>Can Nokia keep its leading position in the market?</li></li></ul><li>Issues Analysis <br />Can Nokia keep its leading position in the market?<br />2<br />3<br />1<br />Will Nokia benefit from partnership with Microsoft?<br />Can Nokia’s Windows Phone dominate the smart phone market?<br />Can Nokia benefit from reorganizing its corporate structure?<br />3.2<br />3.1<br />2.1<br />1.2<br />2.2<br />1.1<br />1.2<br />2.1<br />3.1<br />Can Nokia’s partnership with Microsoft increase revenue and market share?<br />Will Microsoft help Nokia regain trust in its investors?<br />Is outsourcing operating system cheaper than developing in-house<br />Is Windows Phone going to create an ecosystem (as its rivals)?<br />Could Nokia apply the new structure successfully?<br />Can the Windows platform compete with the already established OS?<br />
  11. 11. Work Plan<br />Length of the project<br />
  12. 12. Issues Analysis<br />Nokia can regain its leading position in the market<br />1.Nokia will benefit from the partnership with Microsoft.<br />2.Nokia will benefit from reorganizing its corporate structure.<br />3.Nokia’s WP7 can dominate the smart phone market. <br />
  13. 13. Issues Analysis<br />1. Nokia will benefit from its partnership with Microsoft<br />1.1 Nokia’s partnership with Microsoft will increase revenue and market share<br />1.2 Microsoft will help Nokia regain trust in its investors<br />
  14. 14. 1. Nokia will benefit from the partnership with Microsoft<br />1.1 Nokia’s partnership with Microsoft will increase revenue and market share<br />
  15. 15. 1. Nokia will benefit from the partnership with Microsoft<br />1.2 Microsoft will help Nokia regain trust in its investors<br />
  16. 16. 2. Can Nokia benefit from reorganizing its corporate structure<br />2.1 Outsourcing operating system is cheaper than developing in-house.<br />2.2 Nokia can apply the new structure successfully<br />
  17. 17. 2. Can Nokia benefit from reorganizing its corporate structure?<br />2.1 Outsourcing operating system is cheaper than developing in-house<br />
  18. 18. 2. Can Nokia benefit from reorganizing its corporate structure?<br />2.1 Outsourcing operating system is cheaper than developing in-house<br /><ul><li>Cost of acquiring WP7 for one handset= $6.99
  19. 19. Cost for converting 461 million = $6.99X 461 = $3.2 billion which is less than Nokia’s R&D expenditure of $3.9 Billion in 2010</li></li></ul><li>2. Nokia can benefit from reorganizing its corporate structure<br />2.2 Nokia can apply the new structure successfully<br /><ul><li>Its cheaper to execute outsourcing than to develop
  20. 20. Existing Symbian users are looking for WP7 features
  21. 21. Nokia can capture additional market share of WP7 users.</li></li></ul><li>3. Nokia’s WP7 will dominate the smart phone market<br />3.1 Windows Phone is going to create an ecosystem (as its rivals)<br />3.2 The Windows platform can compete with the already established OS<br />
  22. 22. 3. Nokia’s WP7 can dominate the smart phone market<br />3.1 WP7 is going to create an ecosystem (as its rivals)<br />
  23. 23. 3. Nokia’s WP7 can dominate the smart phone market<br />3.1 WP7 is going to create an ecosystem (as its rivals)<br />Can the Windows platform compete with the already established OS<br />
  24. 24. 3. Nokia’s WP7 can dominate the smart phone market<br />3.2 The Windows platform can compete with the already established OS<br />
  25. 25. Summary<br />Nokia can regain its leading position in the market<br />1.Nokia will benefit from the partnership with Microsoft.<br />2.Nokia will benefit from reorganizing its corporate structure.<br />3.Nokia’s WP7 can dominate the smart phone market. <br />

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