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NOKIA’s Comeback: Rising from The Ashes

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NOKIA’s Comeback: Rising from The Ashes

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Reason for Success and Failure
Trade Cycle of Nokia
Comeback of Nokia
SWOT Analysis
Marketing Mix
Porter's Five Force Model
Comeback Strategies
Recommendations

Reason for Success and Failure
Trade Cycle of Nokia
Comeback of Nokia
SWOT Analysis
Marketing Mix
Porter's Five Force Model
Comeback Strategies
Recommendations

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NOKIA’s Comeback: Rising from The Ashes

  1. 1. NOKIA’s ComebackRising from The Ashes
  2. 2. W E L C O M E Group members Bijay Ghimere Lalita Shrestha Bikash Dahal Dilisha Shrestha
  3. 3. INTRODUCTION • Nokia today widely known as a multinational telecommunications, information technology and consumers electronics company was firstly establish as a paper mill company in 1865. • Within its history of 140 years it emerged itself as conglomerate business • During its regime it captured the world's greatest market share and earned huge profits. • Nokia's different mobile sets was able to place itself in such a way that it didn't need additional extra efforts in a market to get sold. • World popular Nokia came into declining stage when Android and IOS emerged and captured the market and Nokia's name was overshadowed. • But in 2016 after being acquired by hmd Global, a Finnish company establish by former employees of Nokia it bounced back .
  4. 4. REASONS FOR SUCCESS Monopol yMarket No competition as it was 1st phone manufacturing company Product Differentiati onDifferent varieties with different features Core Competen cyDurable battery back-up and hardware Mobile set’s sole purpose
  5. 5. REASONS FOR FAILURE Failure of Symbian OS Deal with Window s Collaboration with Windows Became Laggard In Smartphone market Market shares loss on both ends Stiff competition No Umbrella branding strategy which Apple and Android created.
  6. 6. TRADE CYCLE OF NOKIA MarketShare Time Period A Introducti on1967-1990 Introduced 1st telephone B Growth 1990-2001 Introduced 1st GSM phone Became largest phone seller C Maturity 2001-2012 On 2007, dominated total global market with 40% D Declining 2012-2016 Changed operating system into Windows Acquired by Microsoft E Recovery 2016 Onwards Purchased by HMD Global Captured 1% market share in 2017
  7. 7. COMEBACK OF NOKIA • HMD Global is currently the Finnish company that owns the Nokia brand or rather the license to build and sell Nokia-branded smartphones. • It acquired the same back in 2016 and it comprises of some excited Finns whose ideas have brought it the success in just a little over a year. • The smartphones are designed and manufactured in part by Foxconn, meaning that while the ideas come from the smartphones are still manufactured in China.
  8. 8. STRENGTH WEAKNESS OPPORTUN ITIES THREATS Strength • Brand value • Turned into android and has shut the door on bloat ware • Distribution network • User-friendly with advanced features • Converted feedback model to feed forward model • Identified and adapted customers need. Opportunities • Can produce featured phone and smart phone in parallel to retain brand image • Can improve eco-system. • Can take benefit of online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • In long term, its brand equity can help in migration of the users of featured phones to smart phones Weakness • Low sensitivity to industrial changes. • Not placing product in the market at the right time. • Low advertisement and promotion of new phones as compared to other competitors. Threats • Strong competition from other competitors will make it hard for Nokia to maintain and expand their market share • Low cost threats by China mobile companies • People perception towards Nokia as a failure • May fail to create differentiated product as compared to competitors SWOT ANALYSIS A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
  9. 9. STRENGTH WEAKNESS OPPORTUN ITIES THREATS SWOT ANALYSIS A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Strength • Brand value • Turned into android and has shut the door on bloat ware • Distribution network • User-friendly with advanced features • Converted feedback model to feed forward model • Identified and adapted customers need. Opportunities • Can produce featured phone and smart phone in parallel to retain brand image • Can improve eco-system. • Can take benefit of online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • In long term, its brand equity can help in migration of the users of featured phones to smart phones Weakness • Low sensitivity to industrial changes. • Not placing product in the market at the right time. • Low advertisement and promotion of new phones as compared to other competitors. Threats • Strong competition from other competitors will make it hard for Nokia to maintain and expand their market share • Low cost threats by China mobile companies • People perception towards Nokia as a failure • May fail to create differentiated product as compared to competitors
  10. 10. STRENGTH WEAKNESS OPPORTUN ITIES THREATS SWOT ANALYSIS A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Strength • Brand value • Turned into android and has shut the door on bloat ware • Distribution network • User-friendly with advanced features • Converted feedback model to feed forward model • Identified and adapted customers need. Opportunities • Can produce featured phone and smart phone in parallel to retain brand image • Can improve eco-system. • Can take benefit of online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • In long term, its brand equity can help in migration of the users of featured phones to smart phones Weakness • Low sensitivity to industrial changes. • Not placing product in the market at the right time. • Low advertisement and promotion of new phones as compared to other competitors. Threats • Strong competition from other competitors will make it hard for Nokia to maintain and expand their market share • Low cost threats by China mobile companies • People perception towards Nokia as a failure • May fail to create differentiated product as compared to competitors
  11. 11. STRENGTH WEAKNESS OPPORTUN ITIES THREATS SWOT ANALYSIS A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Strength • Brand value • Turned into android and has shut the door on bloat ware • Distribution network • User-friendly with advanced features • Converted feedback model to feed forward model • Identified and adapted customers need. Opportunities • Can produce featured phone and smart phone in parallel to retain brand image • Can improve eco-system. • Can take benefit of online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • In long term, its brand equity can help in migration of the users of featured phones to smart phones Weakness • Low sensitivity to industrial changes. • Not placing product in the market at the right time. • Low advertisement and promotion of new phones as compared to other competitors. Threats • Strong competition from other competitors will make it hard for Nokia to maintain and expand their market share • Low cost threats by China mobile companies • People perception towards Nokia as a failure • May fail to create differentiated product as compared to competitors
  12. 12. STRENGTH WEAKNESS OPPORTUN ITIES PRICING SWOT ANALYSIS A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Strength • Brand value • Turned into android and has shut the door on bloat ware • Distribution network • User-friendly with advanced features • Converted feedback model to feed forward model • Identified and adapted customers need. Opportunities • Can produce featured phone and smart phone in parallel to retain brand image • Can improve eco-system. • Can take benefit of online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • In long term, its brand equity can help in migration of the users of featured phones to smart phones Weakness • Low sensitivity to industrial changes. • Not placing product in the market at the right time. • Low advertisement and promotion of new phones as compared to other competitors. Threats • Strong competition from other competitors will make it hard for Nokia to maintain and expand their market share • Low cost threats by China mobile companies • People perception towards Nokia as a failure • May fail to create differentiated product as compared to competitors
  13. 13. MARKETING MIX Product • Based on strong design, craftsmanship, real life experience and pure android • Different variety of product with different design to suit all users. Promotion • Advertisement of product on official website, newspaper, magazine, television. • Relationship marketing Place • Collaborating both online and offline channel (online has 30% market coverage and offline has 450+ exclusive distributors covering 90,000+ stores) • Focusing on low end market (like China and India) Price • Price band difference ranging from € 76 (8100 aka banana phone) to € 799 (Nokia 8 Sirocco) to suit all class people. A set of marketing tools which the organization blends to achieve the marketing goal in a defined target market.
  14. 14. Competitiv e rivalry Threat of new entrants PORTERS FIVE FORCE MODEL Bargaining Power of buyer Threat of substitute product Bargainin g power of supplier A tool for analyzing competition of a business by understanding the competitiveness of business environment, and by identifying one's strategy's potential profitability.
  15. 15. COMEBACK STRATEGY (CS) CS 1 • Turned into Android • Android user occupy 85% of market • Converted feedback model to feed forward model CS 2 • Fused its core competency (i.e. hardware, durability, battery backup), software (i.e. untouched latest Android versions) and additional features (i.e. water resistant, Gorilla glass, GoPro camera, Bothie, etc) CS 3 • Targeted young customers and customers at different price level. • Product's price ranging from INR. 9000 - INR. 15000 (which comprises of 50- 60% market) 4 CS • Focused on different online and offline distribution channel strategy. 5 CS • Has taken objective of putting nostalgic factor not only for marketing but to migrate the user of feature phones to Nokia Smart phones
  16. 16. RECOMMENDATIONS Should focus on both smart phones and feature phones (which has around 2B users globally) 01 Should focus in maintaining good eco- system adapting umbrella strategy. 04 With higher number of substitutable product in market, it should focus on bringing distinctive features (Eg. Oppo as selfie camera) 02 Focus on bringing environmentally friendly policies in Memorandum of Association. 05 Should focus on aggressive and relationship marketing making its MKIS strongly effective 07 Should introduce different schemes like easy EMI schemes. 03 Should give higher margin to its distributors and make product more available and reachable to target customers 06
  17. 17. ANY QUERIES??
  18. 18. T H A N K YOU

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