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Strategic Analysis of
Nokia’s Smartphone Market
        Corporate Policy
    and Strategic Management
             Group A
Content
Content
1. Smartphone – Introduction
Content
1. Smartphone – Introduction
2. Nokia – Description of company
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Content
1. Smartphone – Introduction
2. Nokia – Description of company
3. Why Nokia, why smartphones?
4. Industry Analysis...
Smartphone - Introduction
Smartphone - Introduction




No industry standard definition of a smartphone
Smartphone - Introduction

Mobile phone offering advanced capabilities…
Smartphone - Introduction



   PC-like
functionality
Smartphone - Introduction




  a phone that runs complete operating
system software providing a standardized
 interface a...
Smartphone - Introduction



A phone with
  advanced
  features
Smartphone - Introduction
Nokia
Description of
Company
Nokia – Description of company

   Nokia envisions a world where
     connecting people to what
   matters empowers them t...
Nokia – Description of company
Nokia – Description of company
  Manufacturer of mobile devices
Nokia – Description of company
  Manufacturer of mobile devices
  Leader in converging Internet and
  communication indu...
Nokia – Description of company
  Manufacturer of mobile devices
  Leader in converging Internet and
   communication ind...
Nokia – Description of company
  Manufacturer of mobile devices
  Leader in converging Internet and
   communication ind...
Nokia – Description of company
  Manufacturer of mobile devices
  Leader in converging Internet and
   communication ind...
Nokia Organization
Nokia Organization




Devices: Develops and manages the mobile device portfolio,
includes the sources of components.
Nokia Organization




Services & Software: Develops consumer Internet services
in 5 areas (music, maps, media, messaging ...
Nokia Organization




Markets: Manages supply chains, sales channel, brand and
marketing activities.
Nokia Organization




Corporate Development Office. Gives operational support
to the units and explores corporate strateg...
Nokia Organization




Nokia Siemens Network: Provides wireless and fixed network
infrastructure, communications and netwo...
Nokia Organization




NAVTEQ: Provides digital map data for automotive navigation
systems, mobile navigation devices, Int...
Nokia Organization
2008 Facts and Figures
2008 Facts and Figures




    Head office in   Finland
2008 Facts and Figures



World’s #1 manufacturer
    of mobile devices
2008 Facts and Figures




     39% share     of global device
             market in 2008
2008 Facts and Figures




Mobile device volumes
468 million     units
2008 Facts and Figures


               Net sales EUR
               50.7 billion
2008 Facts and Figures




Operating profit EUR   5.0 billion
2008 Facts and Figures




   128,445 employees
         at year end
2008 Facts and Figures



R&D investment EUR   6.0 billion
2008 Facts and Figures




Sales in more than   150 countries
2008 Facts and Figures
Strategic Objectives
Strategic Objectives
 Irresistible solutions and vibrant
 ecosystems
Strategic Objectives
 Irresistible solutions and vibrant
  ecosystems
 Direct and continuous consumer
  relationships.
Strategic Objectives
 Irresistible solutions and vibrant
  ecosystems
 Direct and continuous consumer
  relationships.
...
Strategic Objectives
 Irresistible solutions and vibrant
  ecosystems
 Direct and continuous consumer
  relationships.
...
Why Nokia, Why
Smartphones?
Why Nokia, why smartphones?
Why Nokia, why smartphones?




Smartphone segment is one of the rapidly growing segments
in the mobile handset industry
Why Nokia, why smartphones?
Why Nokia, why smartphones?


  Manufacturers        Market Share       YoY Growth Rate


 Nokia               44.3%      ...
Why Nokia, why smartphones?




        Nokia
Why Nokia, why smartphones?



 Nokia
Why Nokia, why smartphones?


               Strategy for
 Nokia         Nokia to jump to
               Star Category in...
Why Nokia, why smartphones?


               Strategy for
 Nokia          Nokia to jump to
                Star Category ...
Industry Analysis
Porter’s 5 Forces
Porter’s 5 Forces


                Competitive Rivalry
                     (Intense)

 •    Rivalry is intense among exi...
Porter’s 5 Forces



        Bargaining Power of Suppliers
                  (Moderate)

    •         Software provider
 ...
Porter’s 5 Forces


      Bargaining Power of Customers
                  (High)

 •   More choice of product and limited
...
Porter’s 5 Forces

        Threat of New Entrants
                 (Low)

 •      Huge capital requirements
 •          Ec...
Porter’s 5 Forces


         Threat of Substitute Products
                   (Moderate)

 • Depends on the impact of subs...
Porter’s 5 Forces
Complements (Moderate)
Complements (Moderate)
 Email
Complements (Moderate)
 Email
 Maps & GPS
Complements (Moderate)
 Email
 Maps & GPS
 Applications
  Music & other media related
   applications
  Utility appli...
SWOT Analysis
        Strengths                       Weakness
• Brand Awareness              • Not good at software
• Tec...
Strategic Diagnosis of
Nokia Smartphone
Industry
Product Analysis
Product Analysis
Product Analysis
               Nokia’s N97 is
               feature-richer
               than iPhone
Product Analysis
               Nokia’s N97 is
               feature-richer
               than iPhone
Product Analysis
               Nokia’s N97 is
               feature-richer
               than iPhone


              B...
Product Analysis
               Nokia’s N97 is
               feature-richer
               than iPhone


              B...
Product Analysis
               Nokia’s N97 is
               feature-richer
               than iPhone


              B...
Smartphone Satisfaction

          Platform   Satisfaction Index
iPhone               92%
Android              77%
Palm Pr...
Smartphone Satisfaction

          Platform   Satisfaction Index
iPhone               92%
Android              77%
Palm Pr...
Segmentation Analysis
Segmentation Analysis
               Entertainment
               Users
                N Series
Segmentation Analysis
               Entertainment
               Users
                N Series
               Communi...
Segmentation Analysis
               Entertainment
               Users
                N Series
               Communi...
Segmentation Analysis
               Entertainment
               Users
                N Series
               Communi...
Global Internet traffic
through smartphones
Global Traffic September 2009    October 2009
  By Platform       Share       ...
Global Internet traffic
through smartphones
Global Traffic September 2009    October 2009
  By Platform       Share       ...
Product-line analysis
Product-line analysis




         Broad
         range of
         products
Product-line analysis
NSeries launched since
2007: N76, N77, N81,
N92, N93i, N95
2008: N78, N79, N85, N96
2009: N86, N97, ...
Product-line analysis
NSeries launched since
2007: N76, N77, N81,
N92, N93i, N95
2008: N78, N79, N85, N96
2009: N86, N97, ...
Product-line analysis
            ESeries launched since
            2007: E51, E61i, E65, E90
            2008: E63, E66,...
Product-line analysis
                 ESeries launched since
                 2007: E51, E61i, E65, E90
                 ...
Product-line analysis
Product-line analysis
Product-line analysis
Product-line analysis
Product embraced by
the right consumer
Product-line analysis
            Product embraced by
            the right consumer
Product-line analysis
                          Product embraced by
                          the right consumer




Suffi...
Product-line analysis
            Product embraced by
            the right consumer




           Sufficient consumers i...
Product-line analysis
             Product embraced by
             the right consumer

         Nokia
       is doing con...
Product-line analysis
             Product embraced by
             the right consumer

         Nokia
       is doing con...
Value Chain
Value Chain
         Telecom operators
         exert control
Value Chain
         Telecom operators
         exert control




                  Telecom operators
                  in...
Value Chain
              Voice ARPU is going
              down
Value Chain
              Voice ARPU is going
              down




              The future is DATA!
Value Chain
Value Chain
Strategy
Formulation
Product differentiation
Product differentiation
 Applicactions are the product
 differentiatior
Product differentiation
 Applicactions are the product
  differentiatior
 Nokia’s OVI Store
Product differentiation
 Applicactions are the product
  differentiatior
 Nokia’s OVI Store
 Projection: in 2014 6.67 b...
Product differentiation
 Applicactions are the product
  differentiatior
 Nokia’s OVI Store
 Projection: in 2014 6.67 b...
Product differentiation
 Applicactions are the product
    differentiatior
   Nokia’s OVI Store
   Projection: in 2014 ...
Product differentiation
 Applicactions are the product
    differentiatior
   Nokia’s OVI Store
   Projection: in 2014 ...
Product differentiation
 Applicactions are the product
    differentiatior
   Nokia’s OVI Store
   Projection: in 2014 ...
Cost differentiation

    Mobile      Operating
 Manufacturer    Profits
Nokia           30.7
Apple           36.4
Samsung...
Cost differentiation
                             Nokia can set an
    Mobile      Operating    industry
 Manufacturer   ...
Cost differentiation
                             Nokia can set an
    Mobile      Operating     industry
 Manufacturer  ...
Cost differentiation
                             Nokia can set an
    Mobile      Operating     industry
 Manufacturer  ...
Cost differentiation
                             Nokia can set an
    Mobile      Operating     industry
 Manufacturer  ...
Cost differentiation
                             Nokia can set an
    Mobile      Operating     industry
 Manufacturer  ...
Competitive Strategy

          NOKIA
 Mass
Market                           Broad
          Low cost mass    differentiat...
Competitive Strategy


                         NOKIA
 Mass
Market                            Broad
          Low cost mas...
Competitive Strategy


                         NOKIA
 Mass
Market                            Broad
          Low cost mas...
Functional Strategy
Functional Strategy
 Reduce product portfolio
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
 information users
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
  information users
 Target specific customers...
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
  information users
 Target specific customers...
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
  information users
 Target specific customers...
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
    information users
   Target specific custo...
Functional Strategy
 Reduce product portfolio
 Opportunity for targeting
    information users
   Target specific custo...
Corporate Strategy
 Continue divestments
 Concentrate resources and energy in
 smartphone business
Corporate Strategy
 Continue divestments
 Concentrate resources and energy in
 smartphone business
Q&A
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Nokia Strategy Presentation

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Nokia Strategy Presentation

  1. 1. Strategic Analysis of Nokia’s Smartphone Market Corporate Policy and Strategic Management Group A
  2. 2. Content
  3. 3. Content 1. Smartphone – Introduction
  4. 4. Content 1. Smartphone – Introduction 2. Nokia – Description of company
  5. 5. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones?
  6. 6. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis
  7. 7. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces
  8. 8. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces 6. Complements
  9. 9. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces 6. Complements 7. SWOT Analysis
  10. 10. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces 6. Complements 7. SWOT Analysis 8. Strategic Diagnosis of Nokia Smartphone Industry
  11. 11. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces 6. Complements 7. SWOT Analysis 8. Strategic Diagnosis of Nokia Smartphone Industry 9. Strategy Formulation
  12. 12. Content 1. Smartphone – Introduction 2. Nokia – Description of company 3. Why Nokia, why smartphones? 4. Industry Analysis 5. Porter´s 5 Forces 6. Complements 7. SWOT Analysis 8. Strategic Diagnosis of Nokia Smartphone Industry 9. Strategy Formulation 10. Q&A
  13. 13. Smartphone - Introduction
  14. 14. Smartphone - Introduction No industry standard definition of a smartphone
  15. 15. Smartphone - Introduction Mobile phone offering advanced capabilities…
  16. 16. Smartphone - Introduction PC-like functionality
  17. 17. Smartphone - Introduction a phone that runs complete operating system software providing a standardized interface and platform for application developers
  18. 18. Smartphone - Introduction A phone with advanced features
  19. 19. Smartphone - Introduction
  20. 20. Nokia Description of Company
  21. 21. Nokia – Description of company Nokia envisions a world where connecting people to what matters empowers them the most of every moment Olli-Pekka Kallasvuo, Nokia CEO
  22. 22. Nokia – Description of company
  23. 23. Nokia – Description of company  Manufacturer of mobile devices
  24. 24. Nokia – Description of company  Manufacturer of mobile devices  Leader in converging Internet and communication industries
  25. 25. Nokia – Description of company  Manufacturer of mobile devices  Leader in converging Internet and communication industries  Wide range of devices
  26. 26. Nokia – Description of company  Manufacturer of mobile devices  Leader in converging Internet and communication industries  Wide range of devices  Major consumer segments
  27. 27. Nokia – Description of company  Manufacturer of mobile devices  Leader in converging Internet and communication industries  Wide range of devices  Major consumer segments  Music, maps, media, messaging and games
  28. 28. Nokia Organization
  29. 29. Nokia Organization Devices: Develops and manages the mobile device portfolio, includes the sources of components.
  30. 30. Nokia Organization Services & Software: Develops consumer Internet services in 5 areas (music, maps, media, messaging and games), and works to deliver the services in an easily, accessible manner to consumers.
  31. 31. Nokia Organization Markets: Manages supply chains, sales channel, brand and marketing activities.
  32. 32. Nokia Organization Corporate Development Office. Gives operational support to the units and explores corporate strategic and future growth opportunities.
  33. 33. Nokia Organization Nokia Siemens Network: Provides wireless and fixed network infrastructure, communications and networks service platforms and professional services to operators and service providers.
  34. 34. Nokia Organization NAVTEQ: Provides digital map data for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.
  35. 35. Nokia Organization
  36. 36. 2008 Facts and Figures
  37. 37. 2008 Facts and Figures Head office in Finland
  38. 38. 2008 Facts and Figures World’s #1 manufacturer of mobile devices
  39. 39. 2008 Facts and Figures 39% share of global device market in 2008
  40. 40. 2008 Facts and Figures Mobile device volumes 468 million units
  41. 41. 2008 Facts and Figures Net sales EUR 50.7 billion
  42. 42. 2008 Facts and Figures Operating profit EUR 5.0 billion
  43. 43. 2008 Facts and Figures 128,445 employees at year end
  44. 44. 2008 Facts and Figures R&D investment EUR 6.0 billion
  45. 45. 2008 Facts and Figures Sales in more than 150 countries
  46. 46. 2008 Facts and Figures
  47. 47. Strategic Objectives
  48. 48. Strategic Objectives  Irresistible solutions and vibrant ecosystems
  49. 49. Strategic Objectives  Irresistible solutions and vibrant ecosystems  Direct and continuous consumer relationships.
  50. 50. Strategic Objectives  Irresistible solutions and vibrant ecosystems  Direct and continuous consumer relationships.  Best devices  Broadening their geographic reach  Broadening their device base will grow their service business
  51. 51. Strategic Objectives  Irresistible solutions and vibrant ecosystems  Direct and continuous consumer relationships.  Best devices  Broadening their geographic reach  Broadening their device base will grow their service business  Smart services  Creating relevant and personalized services  Target: 300 million people using their smart services by 2012
  52. 52. Why Nokia, Why Smartphones?
  53. 53. Why Nokia, why smartphones?
  54. 54. Why Nokia, why smartphones? Smartphone segment is one of the rapidly growing segments in the mobile handset industry
  55. 55. Why Nokia, why smartphones?
  56. 56. Why Nokia, why smartphones? Manufacturers Market Share YoY Growth Rate Nokia 44.3% 10.4% Rim 20.9% 77% Apple 13.7% 62.6% Though Nokia is a market leader in the entire mobile industry, its performance in smartphone market is abysmal in comparison with its competitors
  57. 57. Why Nokia, why smartphones? Nokia
  58. 58. Why Nokia, why smartphones? Nokia
  59. 59. Why Nokia, why smartphones?  Strategy for Nokia Nokia to jump to Star Category in BCG Matrix
  60. 60. Why Nokia, why smartphones?  Strategy for Nokia Nokia to jump to Star Category in BCG Matrix  Focusing on external atributes
  61. 61. Industry Analysis
  62. 62. Porter’s 5 Forces
  63. 63. Porter’s 5 Forces Competitive Rivalry (Intense) • Rivalry is intense among existing players • No much differentiation in product features • Exit barriers have to be evaluated in correlation with value chain analysis
  64. 64. Porter’s 5 Forces Bargaining Power of Suppliers (Moderate) • Software provider • Hardware provider
  65. 65. Porter’s 5 Forces Bargaining Power of Customers (High) • More choice of product and limited differentiation • Elastic demand • Less asymmetric information • Less switching costs
  66. 66. Porter’s 5 Forces Threat of New Entrants (Low) • Huge capital requirements • Economies of scale • Product differentiation • Distribution channel • Absolute cost advantage • Governmental and legal barriers • Retaliation • Brand
  67. 67. Porter’s 5 Forces Threat of Substitute Products (Moderate) • Depends on the impact of substitute products • Variety of functions • Other substitute products: notebooks, PDAs, tablet PCs
  68. 68. Porter’s 5 Forces
  69. 69. Complements (Moderate)
  70. 70. Complements (Moderate)  Email
  71. 71. Complements (Moderate)  Email  Maps & GPS
  72. 72. Complements (Moderate)  Email  Maps & GPS  Applications  Music & other media related applications  Utility applications  Internet based …
  73. 73. SWOT Analysis Strengths Weakness • Brand Awareness • Not good at software • Technology leader in • Performance of Symbian OS Manufacturing Mobiles is lackluster • Market leader • Increasing dissatisfaction • Presence across 150 levels with its smartphone countries • Very weak market share in US Opportunities Threats • Huge loyal customer base • Rapidly changing industry • Huge presence in • Chances of missing developing countries Inflection point is high • Can use its infrastructure • Threat of entry from new business (Nokia Siemens players, Microsoft might Network) to reduce the enter smartphones market. bargaining power of mobile Google has just entered the operators market with Nexus One.
  74. 74. Strategic Diagnosis of Nokia Smartphone Industry
  75. 75. Product Analysis
  76. 76. Product Analysis
  77. 77. Product Analysis  Nokia’s N97 is feature-richer than iPhone
  78. 78. Product Analysis  Nokia’s N97 is feature-richer than iPhone
  79. 79. Product Analysis  Nokia’s N97 is feature-richer than iPhone BUT:
  80. 80. Product Analysis  Nokia’s N97 is feature-richer than iPhone BUT:  Nokia sold 1st qtr of launch: 500,000 phones
  81. 81. Product Analysis  Nokia’s N97 is feature-richer than iPhone BUT:  Nokia sold 1st qtr of launch: 500,000 phones  iPhone sold 1st week of launch: 1,000,000 phones
  82. 82. Smartphone Satisfaction Platform Satisfaction Index iPhone 92% Android 77% Palm Pre 77% Blackberry 73% Palm Treo 70% Symbian (Nokia) 66% Windows 66%
  83. 83. Smartphone Satisfaction Platform Satisfaction Index iPhone 92% Android 77% Palm Pre 77% Blackberry 73% Palm Treo 70% Symbian (Nokia) 66% Windows 66%
  84. 84. Segmentation Analysis
  85. 85. Segmentation Analysis  Entertainment Users  N Series
  86. 86. Segmentation Analysis  Entertainment Users  N Series  Communication Users  E Series
  87. 87. Segmentation Analysis  Entertainment Users  N Series  Communication Users  E Series  Information Users
  88. 88. Segmentation Analysis  Entertainment Users  N Series  Communication Users  E Series  Information Users
  89. 89. Global Internet traffic through smartphones Global Traffic September 2009 October 2009 By Platform Share Share Apple iPhone 43% 50% Symbian 29% 25% (Nokia) Android 10% 11% RIM BlackBerry 8% 7% Windows Mobile 5% 3% Others 5% 4%
  90. 90. Global Internet traffic through smartphones Global Traffic September 2009 October 2009 By Platform Share Share Apple iPhone 43% 50% Symbian 29% 25% (Nokia) Android 10% 11% RIM BlackBerry 8% 7% Windows Mobile 5% 3% Others 5% 4%
  91. 91. Product-line analysis
  92. 92. Product-line analysis Broad range of products
  93. 93. Product-line analysis NSeries launched since 2007: N76, N77, N81, N92, N93i, N95 2008: N78, N79, N85, N96 2009: N86, N97, N97 Mini
  94. 94. Product-line analysis NSeries launched since 2007: N76, N77, N81, N92, N93i, N95 2008: N78, N79, N85, N96 2009: N86, N97, N97 Mini In that same period, Apple released only one Smartphone: iPhone
  95. 95. Product-line analysis ESeries launched since 2007: E51, E61i, E65, E90 2008: E63, E66, E71 2009: E52, E55, E72, E75
  96. 96. Product-line analysis ESeries launched since 2007: E51, E61i, E65, E90 2008: E63, E66, E71 2009: E52, E55, E72, E75 In that same period, Blackberry has launched far fewer phones than Nokia.
  97. 97. Product-line analysis
  98. 98. Product-line analysis
  99. 99. Product-line analysis
  100. 100. Product-line analysis Product embraced by the right consumer
  101. 101. Product-line analysis Product embraced by the right consumer
  102. 102. Product-line analysis Product embraced by the right consumer Sufficient consumers in each segment
  103. 103. Product-line analysis Product embraced by the right consumer Sufficient consumers in each segment
  104. 104. Product-line analysis Product embraced by the right consumer Nokia is doing consumers in Sufficient each segment neither
  105. 105. Product-line analysis Product embraced by the right consumer Nokia is doing consumers in Sufficient each segment neither
  106. 106. Value Chain
  107. 107. Value Chain Telecom operators exert control
  108. 108. Value Chain Telecom operators exert control Telecom operators influence the total sales of smartphones
  109. 109. Value Chain Voice ARPU is going down
  110. 110. Value Chain Voice ARPU is going down The future is DATA!
  111. 111. Value Chain
  112. 112. Value Chain
  113. 113. Strategy Formulation
  114. 114. Product differentiation
  115. 115. Product differentiation  Applicactions are the product differentiatior
  116. 116. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store
  117. 117. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store  Projection: in 2014 6.67 billion applications would be downloaded
  118. 118. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store  Projection: in 2014 6.67 billion applications would be downloaded  Increase User Satisfaction Index
  119. 119. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store  Projection: in 2014 6.67 billion applications would be downloaded  Increase User Satisfaction Index  Alliance with software developers
  120. 120. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store  Projection: in 2014 6.67 billion applications would be downloaded  Increase User Satisfaction Index  Alliance with software developers  Increase community strengh of Maemo
  121. 121. Product differentiation  Applicactions are the product differentiatior  Nokia’s OVI Store  Projection: in 2014 6.67 billion applications would be downloaded  Increase User Satisfaction Index  Alliance with software developers  Increase community strengh of Maemo
  122. 122. Cost differentiation Mobile Operating Manufacturer Profits Nokia 30.7 Apple 36.4 Samsung 13.3 RIM 15.4 LG 4.2 HTC 5.1 Motorola -0.1 Sony Ericsson -0.1
  123. 123. Cost differentiation  Nokia can set an Mobile Operating industry Manufacturer Profits benchmark for Nokia 30.7 operating profits Apple 36.4 Samsung 13.3 RIM 15.4 LG 4.2 HTC 5.1 Motorola -0.1 Sony Ericsson -0.1
  124. 124. Cost differentiation  Nokia can set an Mobile Operating industry Manufacturer Profits benchmark for Nokia 30.7 operating profits Apple 36.4  Pressure on Samsung 13.3 competitors RIM 15.4 LG 4.2 HTC 5.1 Motorola -0.1 Sony Ericsson -0.1
  125. 125. Cost differentiation  Nokia can set an Mobile Operating industry Manufacturer Profits benchmark for Nokia 30.7 operating profits Apple 36.4  Pressure on Samsung 13.3 competitors RIM 15.4  Cost leadership LG 4.2 an invincible HTC 5.1 position against Motorola -0.1 competitors Sony Ericsson -0.1
  126. 126. Cost differentiation  Nokia can set an Mobile Operating industry Manufacturer Profits benchmark for Nokia 30.7 operating profits Apple 36.4  Pressure on Samsung 13.3 competitors RIM 15.4  Cost leadership LG 4.2 an invincible HTC 5.1 position against Motorola -0.1 competitors Sony Ericsson -0.1  Fight head-on with Apple
  127. 127. Cost differentiation  Nokia can set an Mobile Operating industry Manufacturer Profits benchmark for Nokia 30.7 operating profits Apple 36.4  Pressure on Samsung 13.3 competitors RIM 15.4  Cost leadership LG 4.2 an invincible HTC 5.1 position against Motorola -0.1 competitors Sony Ericsson -0.1  Fight head-on with Apple
  128. 128. Competitive Strategy NOKIA Mass Market Broad Low cost mass differentiation market strategy strategy Niche Market Focus Low cost niche differentiation market strategy strategy Cost Product Advantage Differentiation
  129. 129. Competitive Strategy NOKIA Mass Market Broad Low cost mass differentiation market strategy strategy Niche Market Focus Low cost niche differentiation market strategy strategy Cost Product Advantage Differentiation
  130. 130. Competitive Strategy NOKIA Mass Market Broad Low cost mass differentiation market strategy strategy Niche Market Focus Low cost niche differentiation market strategy strategy Cost Product Advantage Differentiation
  131. 131. Functional Strategy
  132. 132. Functional Strategy  Reduce product portfolio
  133. 133. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users
  134. 134. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users  Target specific customers and specific lifestyles
  135. 135. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users  Target specific customers and specific lifestyles  Connect emotionally with the target
  136. 136. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users  Target specific customers and specific lifestyles  Connect emotionally with the target  Define roadmap of Operating Systems (Symbian or Maemo)
  137. 137. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users  Target specific customers and specific lifestyles  Connect emotionally with the target  Define roadmap of Operating Systems (Symbian or Maemo)  Tight vigil on inflection points
  138. 138. Functional Strategy  Reduce product portfolio  Opportunity for targeting information users  Target specific customers and specific lifestyles  Connect emotionally with the target  Define roadmap of Operating Systems (Symbian or Maemo)  Tight vigil on inflection points
  139. 139. Corporate Strategy  Continue divestments  Concentrate resources and energy in smartphone business
  140. 140. Corporate Strategy  Continue divestments  Concentrate resources and energy in smartphone business
  141. 141. Q&A

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