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Nokia_Final (1)

The document discusses the rise and fall of Nokia Corporation over its history from 1865 to 2014. It provides an overview of Nokia's evolution from a timber company to a leading mobile phone producer. The case examines Nokia's successes in product innovation and flexibility, as well as its failures to take advantage of new opportunities like smartphones. Key issues explored include Nokia's management decisions, industry dynamics, competition, and the factors that ultimately led to its decline and acquisition by Microsoft.

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The Rise and Fall of Walid Aoude | Samantha Kussmann | Vanessa Lee | Marcus Parks | Oleksandr Surkov
agenda 1. History and Company Overview 2. Case Synopsis 3. Key Issues 4. Industry Overview 5. Competitive Landscape 6. Porter’s Five Forces Analysis 7. PEST Analysis 8. SWOT Analysis 9. What if Scenarios 10. Recommendations 11. Risks and Risk Mitigation 12. Suggested Areas of Exploration 13. Current Situation 14. Key Learning Outcomes
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1865 – Nokia Ab established as a timber company 1922 – industrial conglomerate of Nokia Ab, Suomen Gummitehdas, Suomen Kaapelitehdas 1967 – merger into Nokia Corporation 1987 – first mobile phone and GSM development in Europe 1998 – the world’s biggest and leading producer of mobile phones 2007 – the 5th global brand worth over $33 bln according to Interbrand 2013 - sold to Microsoft for $7.2 bln
case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview 1865 • Timber 1960s • Rubber • Cable • Forestry • Electronics • Power Generation 2002 • Mobile Phones • Multimedia Phones • Enterprise Solutions • Networks 2014 • Nokia Networks • HERE maps • Nokia Technologies 1865 - 2014 divisional structure
case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview products evolution 1987 • Nokia Cityman • €4,500 1992 • Nokia 1011 • €1335 1994 • Nokia 2110 • €703 1996 • Nokia 8110 1998 • Nokia 6160 • €834 1999 • Nokia 7110 • €464 2002 • Nokia 7650 • €185- 411 2003 • Nokia 1616 • €32 2004 • Nokia 7280 • ~€100 2005 • Nokia 8800 • ~€330 2007 • Nokia 6555 • ~€80 2008 • Nokia E90 • ~€400 2011 • Nokia 801T • ~€220 2013 • Nokia Lumia 1020 • ~€400
case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • The case focuses on evolution of over century old Finish communications and technology corporation, Nokia • It also provides insight into the role of top management (CEO in particular) in the performance of the corporation • This case explores the events and managerial decisions that resulted in Nokia’s spectacular rise and subsequent fall • While unraveling some of the techniques behind the corporations key successes, the case delivers information about the company’s major downfalls, which led to its eventual collapse and eventually being bought out by Microsoft at very discounted price • The case examines Nokia’s biggest successes: their product innovation (in style and fashion), flexibility, rapid responsiveness to market differences, their patent portfolio and targeting the low-end market • The case also examines their biggest faults: in relying too much on yesterdays success, blinding them from taking advantage of new opportunities
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings raising industry dynamics and competition corporate, organizational & change management issues costs & benefits of innovation and R&D aggressive business expansion through mergers and acquisitions
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings rapidly expanding in developed countries (North America, Europe, Asia) dominated by few players with growing competition from outliers multiple mobile networks present (GSM, CDMA) a shift in the industry focus the emergence of the smartphone outsourcing of large portions of production and manufacturing iOS, Google and Microsoft release operating systems rapid shortening in product life cycle
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings late 90’s – early 00’s
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 2012 global competition $881,000,000 $5,730,000,000 $1,820,000,000 $887,000,000 $21,720,000,000 $576,000,000 $62,000,000 MOTOROLA SIEMENS ALCATEL ERICSSON SAMSUNG HTC LG
history&company overview case synopsis key issues industry overview competition PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • Lost competitive position • Lack of innovation • Brand identity lost • Low product differentiation Competitive Rivalry Threat of New Entry • Proprietary knowledge • Software (OS, Apps, …) • Retaliation from others • High capital needed • Brand identity Buyer Power • Consumer volume up • Rapid changes • Decreased product differentiation • Changing carriers is hard Supplier Power • Hardware components • Multiple suppliers • Increased differentiation in hardware • Rapid changes Threat of Substitution • Limited phone substitutions • Many different phones • High price performance value Porter’s 5 forces
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Political • Limited government support • Government did not bail out Nokia in 2013 • European Union (free trade and single currency) Economic • Finnish economy recovering • Increase in mobile phone market world wide • Low interest rates Social • World population becoming more dependent on mobile devices • Social pressures to manufacture in an ethical manner Technological • Technology changing rapidly • 6 to 9 month product life cycles • Entry of competitors with advanced technologies
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1. Major mergers and acquisitions 2. GSM Network control 3. Vast number of patents 4. Large investments in R&D, manufacturing and production 5. Major divestment from non-core business units 6. High quality and tailored handset designs 1. Small product portfolio for CDMA network 2. Poor software development (OS) 3. Minimal focus on American market 4. Lack of smartphone development 5. Management conflicts strengths weaknesses
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1. American market – pairing with service providers 2. Rapidly growing smartphone market 3. Joint venture with software developer for OS (Google Android) 4. Moving in-house production to outsourced manufacturing/developing 5. Asian markets – develop/maintain network dominance (GSM) 6. Decrease product portfolio to focus on key and rapidly growing products 7. Increase European market share 1. Major software developers (Apple & Google & Microsoft) 2. Emerging Asian companies (HTC & LG & Samsung & Chinese companies) 3. Rapidly growing tech bubble in USA (Silicon Valley) – new software entrants 4. Increasingly globalized economy creating greater access to other mobile phone options 5. A shift from standard mobile phones to smartphones (not industry but the general public) 6. Japanese development of a local network (requiring phones for that specific network) opportunities threats
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT alternative scenarios recommendations risks mitigation suggestions 2016 key learnings best global brands by Interbrand #98 2014 lookback alternatives
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings why do you think Nokia has failed?
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings what were the alternative strategic decisions of Nokia management within the last 10 years?
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • did not keep on pursuing smartphone technology in early 2000s (they already designed touchscreen in 2003) • rejecting outsourcing and ODM model • blinded by success • US market specifics • software (OS) choice • managerial tensions • slow reaction to changing market bad decisions
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings focus on smartphones in early 2000’s considering ODM path of competitors focus on single open- source operating system partner with Microsoft earlier change management
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings from today’s perspective focus on other areas without reestablishing phones production/keep receiving royalties get prepared for later reestablishment own their own production/restrict brand name usage partnership/board place in the new devices producer/allow them using brand name Nokia has rich expertise in establishing modern networks experienced and creative tech personnel to pursue IoT and other latest technologies royalties for brand name usage as a bonus try another chance into becoming leading phones manufacturer "Nokia smartphones are amongst the top five considered brands for purchase by smartphone buyers" --Nokia,05/2016 still have connections with suppliers/have not been forgotten by former fans/have tech base follow ODM/OEM modeland have devices produced by Foxconn by having presence in top management, Nokia will be able to control quality and share expertise Nokia N1 tablet release in 2015 – rather successfulAndroid tablet available on Asian markets royalties for brand name usage as a bonus
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings partnership/board place in the new devices producer/allow them using brand name • outsourcing production to keep up with the competition due to lowering production costs • quality control by taking part in key decisions the best way for brand reincarnation by having presence in top management, Nokia will be able to control quality and share expertise • pursuing open source OS – Android • using popular ecosystem • already tested Nokia N1 tablet release in 2015 – rather successful Android tablet available on Asian markets • although the products won't have Nokia Corp. tag; with proper marketing, consumers will trust the products more leading to increased brand value royalties for brand name usage as a bonus
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • the option requires less investment than reestablishing Nokia’s own production • use of Android – familiar and very popular ecosystem • investing in market research • clear positioning of new devices • marketing campaign to remind consumers about Nokia • focus on the loyal markets (India, Asian countries) in the initial stages
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings invest in market research researchthe likely demand for functional phones in the future workout the strategy for entering US market keep on developing 5G technology & IoT - perspective market for next generation of devices
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings current structure Nokia President and Chief Executive Officer,Rajeev Suri Business Groups Units Mobile Networks Fixed Networks Applications & Analytics IP/Optical Networks Nokia Technologies Chief Financial Officer Chief Customer Operations Officer Chief Innovation & Operating Officer Chief Human Resources Officer Chief Strategy Officer Chief Marketing Officer Chief Legal Officer
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 19 15 29 30 32 0 5 10 15 20 25 30 35 2012 2013 2014 2015 2016 Nokia Market Capitalization 2012 - today
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Microsoft has just released the latest Nokia feature phone, with target market in India. The phone sells for only $37. The company owns Nokia brand name until Q4 2016
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings “Nokia signs strategic brand and intellectual property licensing agreement enabling HMD global to create new generation of Nokia- branded mobile phones and tablets” – Nokia Corporation, 18 May, 2016
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings + released 2015 Nokia N1 Tablet
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • aggressive expansion and acquisition of the companies specializing on supplemental products (networks, cables, communications) allowed Nokia to create a market for its products • sticking to core values is likely to bring success in the long run • focus on highly performing company products and strengths proved to be beneficial for Nokia • successful utilization of emerging markets in global economy • R&D as well as innovation are the engine of any successful tech company rise of Nokia
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • slow decision are very costly in today’s dynamic world • “vertical business model” is no longer an option on this market – leading industry players partner with Asian OEM/ODMs who benefit from enormous economies of scale • Nokia missed the key shift in the industry – the role of software and consumer devices ecosystem • tensions within company management eliminate the most valuable resources – time & money. Nokia has lost focus • brand value is highly fluctuating dimension, especially in the 21st century • North-American CEO didn’t fully understand European and Asian phone markets and their perception of Nokia fall of Nokia
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings flashback
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Thank You
history&company overview case synopsis key issues industry overview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • http://company.nokia.com/en/our-businesses/nokia-technologies/hello-again • http://company.nokia.com/en/news/press-releases/2016/05/18/nokia-signs-strategic-brand-and-intellectual-property-licensing-agreement- enabling-hmd-global-to-create-new-generation-of-nokia-branded-mobile-phones-and-tablets • http://www.forbes.com/sites/ewanspence/2015/06/19/nokia-android-smartphone-2016-confirmed/#35be307d3d13 • http://www.forbes.com/sites/ewanspence/2014/04/21/three-vital-signs-of-life-and-death-to-watch-for-as-microsofts-7-5-billion-purchase-of- nokia-is-finalized/#790e133e30a7 • https://www.quora.com/Why-did-Nokia-fail-to-compete-with-Samsung-Apple-etc-despite-being-the-giant-of-the-mobile-phone-industry • http://www.rankingthebrands.com/Brand-detail.aspx?brandID=11 • http://www.bloomberg.com/news/articles/2013-10-03/the-most-valuable-brands-in-america-2000-to-2013 • http://www.cio.com/article/2849223/nokias-n1-android-tablet-is-actually-a-foxconn-tablet.html • ttp://nokiamuseum.info/category/launching-year/1987/ • http://www.ibtimes.co.uk/nokia-1011-20-years-old-history-mobile-403478 • https://www.amazon.co.uk/Nokia-2100-Grey-SIM-Free/dp/B00009XLN8 • http://company.nokia.com/en/news/media-library/image-gallery/item/nokia-8110-gsm-handportable-1996 • https://www.iretron.com/Cell-Phones/Nokia/Nokia-6160;3332 • https://uk.webuy.com/phones/product.php?mastersku=SNOK7110#.V-hl9skpftQ • http://www.cnet.com/pictures/nokia-a-long-and-innovative-history-photos/11 • http://www.cellphones.ca/cell-phones/nokia-1616/ • http://latest_mobile_reviews.mobighar.com/nokia_phone_reviews_and_specifications/nokia_7280_old_mobile_phone_full_review_specific ations.html • http://www.refurb-phone.com/product/nokia-phone/nokia-8800-mobile-phone/ • http://www.gsmarena.com/nokia_6555-2071.php • https://en.wikipedia.org/wiki/Nokia_E90_Communicator • http://nokiamuseum.info/nokia-801t/ • https://www.sarchecker.com/smartphone/nokia-lumia-1020/ • http://www.gsmarena.com/nokia_7280-884.php • https://www.aliexpress.com/price/nokia-7280_price.html • http://company.nokia.com/en/about-us/our-company/our-structure • http://mynokiablog.com/2014/04/29/nokias-new-ceo-rajeev-suri-effective-may-1st/ • http://www.huffingtonpost.com/william-morrow/7-proven-ways-to-accelera_b_10042372.html • https://www.citelighter.com/technology/technology/knowledgecards/technology • http://www.mobolize.com/can-mobile-networks-keep-up-with-demand/ • https://itunews.itu.int/En/4958-Mobile-broadband-smartphones-apps-fixed-networks.note.aspx • http://www.optimisationv.com/category/google-analytics • https://www.sdxcentral.com/articles/news/nokias-post-merger-plan-bodes-well-for-nuage-networks-so-far/2015/10/ • http://www.informationweek.com/it-life/nokia-ozo-virtual-reality-camera-aimed-at-film-pros/d/d-id/1321521 • http://en.uaezoom.com/chief-financial-officer-cfo-salary-in-the-uae/ • http://www.cco-exchange.com/ • https://www.linkedin.com/topic/value-innovation • http://www.rc-hr.com/contactus.aspx • http://www.business2community.com/content-marketing/5-key-elements-successful-content-marketing-strategy-0947654 • http://bushmarketing.ca/what-is-the-marketing-funnel/ • http://v-a-l-s.org/ • http://company.nokia.com/en • https://ycharts.com/companies/NOK/market_cap web sources

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Nokia_Final (1)

  • 1.
    The Rise andFall of Walid Aoude | Samantha Kussmann | Vanessa Lee | Marcus Parks | Oleksandr Surkov
  • 2.
    agenda 1. History andCompany Overview 2. Case Synopsis 3. Key Issues 4. Industry Overview 5. Competitive Landscape 6. Porter’s Five Forces Analysis 7. PEST Analysis 8. SWOT Analysis 9. What if Scenarios 10. Recommendations 11. Risks and Risk Mitigation 12. Suggested Areas of Exploration 13. Current Situation 14. Key Learning Outcomes
  • 3.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1865 – Nokia Ab established as a timber company 1922 – industrial conglomerate of Nokia Ab, Suomen Gummitehdas, Suomen Kaapelitehdas 1967 – merger into Nokia Corporation 1987 – first mobile phone and GSM development in Europe 1998 – the world’s biggest and leading producer of mobile phones 2007 – the 5th global brand worth over $33 bln according to Interbrand 2013 - sold to Microsoft for $7.2 bln
  • 4.
    case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview 1865 • Timber 1960s • Rubber • Cable • Forestry • Electronics • Power Generation 2002 • Mobile Phones • Multimedia Phones • Enterprise Solutions • Networks 2014 • Nokia Networks • HERE maps • Nokia Technologies 1865 - 2014 divisional structure
  • 5.
    case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview products evolution 1987 • Nokia Cityman • €4,500 1992 • Nokia 1011 • €1335 1994 • Nokia 2110 • €703 1996 • Nokia 8110 1998 • Nokia 6160 • €834 1999 • Nokia 7110 • €464 2002 • Nokia 7650 • €185- 411 2003 • Nokia 1616 • €32 2004 • Nokia 7280 • ~€100 2005 • Nokia 8800 • ~€330 2007 • Nokia 6555 • ~€80 2008 • Nokia E90 • ~€400 2011 • Nokia 801T • ~€220 2013 • Nokia Lumia 1020 • ~€400
  • 6.
    case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings history&company overview
  • 7.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • The case focuses on evolution of over century old Finish communications and technology corporation, Nokia • It also provides insight into the role of top management (CEO in particular) in the performance of the corporation • This case explores the events and managerial decisions that resulted in Nokia’s spectacular rise and subsequent fall • While unraveling some of the techniques behind the corporations key successes, the case delivers information about the company’s major downfalls, which led to its eventual collapse and eventually being bought out by Microsoft at very discounted price • The case examines Nokia’s biggest successes: their product innovation (in style and fashion), flexibility, rapid responsiveness to market differences, their patent portfolio and targeting the low-end market • The case also examines their biggest faults: in relying too much on yesterdays success, blinding them from taking advantage of new opportunities
  • 8.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings raising industry dynamics and competition corporate, organizational & change management issues costs & benefits of innovation and R&D aggressive business expansion through mergers and acquisitions
  • 9.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings rapidly expanding in developed countries (North America, Europe, Asia) dominated by few players with growing competition from outliers multiple mobile networks present (GSM, CDMA) a shift in the industry focus the emergence of the smartphone outsourcing of large portions of production and manufacturing iOS, Google and Microsoft release operating systems rapid shortening in product life cycle
  • 10.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings late 90’s – early 00’s
  • 11.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 2012 global competition $881,000,000 $5,730,000,000 $1,820,000,000 $887,000,000 $21,720,000,000 $576,000,000 $62,000,000 MOTOROLA SIEMENS ALCATEL ERICSSON SAMSUNG HTC LG
  • 12.
    history&company overview case synopsis key issues industryoverview competition PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • Lost competitive position • Lack of innovation • Brand identity lost • Low product differentiation Competitive Rivalry Threat of New Entry • Proprietary knowledge • Software (OS, Apps, …) • Retaliation from others • High capital needed • Brand identity Buyer Power • Consumer volume up • Rapid changes • Decreased product differentiation • Changing carriers is hard Supplier Power • Hardware components • Multiple suppliers • Increased differentiation in hardware • Rapid changes Threat of Substitution • Limited phone substitutions • Many different phones • High price performance value Porter’s 5 forces
  • 13.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Political • Limited government support • Government did not bail out Nokia in 2013 • European Union (free trade and single currency) Economic • Finnish economy recovering • Increase in mobile phone market world wide • Low interest rates Social • World population becoming more dependent on mobile devices • Social pressures to manufacture in an ethical manner Technological • Technology changing rapidly • 6 to 9 month product life cycles • Entry of competitors with advanced technologies
  • 14.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1. Major mergers and acquisitions 2. GSM Network control 3. Vast number of patents 4. Large investments in R&D, manufacturing and production 5. Major divestment from non-core business units 6. High quality and tailored handset designs 1. Small product portfolio for CDMA network 2. Poor software development (OS) 3. Minimal focus on American market 4. Lack of smartphone development 5. Management conflicts strengths weaknesses
  • 15.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 1. American market – pairing with service providers 2. Rapidly growing smartphone market 3. Joint venture with software developer for OS (Google Android) 4. Moving in-house production to outsourced manufacturing/developing 5. Asian markets – develop/maintain network dominance (GSM) 6. Decrease product portfolio to focus on key and rapidly growing products 7. Increase European market share 1. Major software developers (Apple & Google & Microsoft) 2. Emerging Asian companies (HTC & LG & Samsung & Chinese companies) 3. Rapidly growing tech bubble in USA (Silicon Valley) – new software entrants 4. Increasingly globalized economy creating greater access to other mobile phone options 5. A shift from standard mobile phones to smartphones (not industry but the general public) 6. Japanese development of a local network (requiring phones for that specific network) opportunities threats
  • 16.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT alternative scenarios recommendations risks mitigation suggestions 2016 key learnings best global brands by Interbrand #98 2014 lookback alternatives
  • 17.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings why do you think Nokia has failed?
  • 18.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings what were the alternative strategic decisions of Nokia management within the last 10 years?
  • 19.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • did not keep on pursuing smartphone technology in early 2000s (they already designed touchscreen in 2003) • rejecting outsourcing and ODM model • blinded by success • US market specifics • software (OS) choice • managerial tensions • slow reaction to changing market bad decisions
  • 20.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings focus on smartphones in early 2000’s considering ODM path of competitors focus on single open- source operating system partner with Microsoft earlier change management
  • 21.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings from today’s perspective focus on other areas without reestablishing phones production/keep receiving royalties get prepared for later reestablishment own their own production/restrict brand name usage partnership/board place in the new devices producer/allow them using brand name Nokia has rich expertise in establishing modern networks experienced and creative tech personnel to pursue IoT and other latest technologies royalties for brand name usage as a bonus try another chance into becoming leading phones manufacturer "Nokia smartphones are amongst the top five considered brands for purchase by smartphone buyers" --Nokia,05/2016 still have connections with suppliers/have not been forgotten by former fans/have tech base follow ODM/OEM modeland have devices produced by Foxconn by having presence in top management, Nokia will be able to control quality and share expertise Nokia N1 tablet release in 2015 – rather successfulAndroid tablet available on Asian markets royalties for brand name usage as a bonus
  • 22.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings partnership/board place in the new devices producer/allow them using brand name • outsourcing production to keep up with the competition due to lowering production costs • quality control by taking part in key decisions the best way for brand reincarnation by having presence in top management, Nokia will be able to control quality and share expertise • pursuing open source OS – Android • using popular ecosystem • already tested Nokia N1 tablet release in 2015 – rather successful Android tablet available on Asian markets • although the products won't have Nokia Corp. tag; with proper marketing, consumers will trust the products more leading to increased brand value royalties for brand name usage as a bonus
  • 23.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • the option requires less investment than reestablishing Nokia’s own production • use of Android – familiar and very popular ecosystem • investing in market research • clear positioning of new devices • marketing campaign to remind consumers about Nokia • focus on the loyal markets (India, Asian countries) in the initial stages
  • 24.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings invest in market research researchthe likely demand for functional phones in the future workout the strategy for entering US market keep on developing 5G technology & IoT - perspective market for next generation of devices
  • 25.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings current structure Nokia President and Chief Executive Officer,Rajeev Suri Business Groups Units Mobile Networks Fixed Networks Applications & Analytics IP/Optical Networks Nokia Technologies Chief Financial Officer Chief Customer Operations Officer Chief Innovation & Operating Officer Chief Human Resources Officer Chief Strategy Officer Chief Marketing Officer Chief Legal Officer
  • 26.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings 19 15 29 30 32 0 5 10 15 20 25 30 35 2012 2013 2014 2015 2016 Nokia Market Capitalization 2012 - today
  • 27.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Microsoft has just released the latest Nokia feature phone, with target market in India. The phone sells for only $37. The company owns Nokia brand name until Q4 2016
  • 28.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings “Nokia signs strategic brand and intellectual property licensing agreement enabling HMD global to create new generation of Nokia- branded mobile phones and tablets” – Nokia Corporation, 18 May, 2016
  • 29.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings + released 2015 Nokia N1 Tablet
  • 30.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • aggressive expansion and acquisition of the companies specializing on supplemental products (networks, cables, communications) allowed Nokia to create a market for its products • sticking to core values is likely to bring success in the long run • focus on highly performing company products and strengths proved to be beneficial for Nokia • successful utilization of emerging markets in global economy • R&D as well as innovation are the engine of any successful tech company rise of Nokia
  • 31.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • slow decision are very costly in today’s dynamic world • “vertical business model” is no longer an option on this market – leading industry players partner with Asian OEM/ODMs who benefit from enormous economies of scale • Nokia missed the key shift in the industry – the role of software and consumer devices ecosystem • tensions within company management eliminate the most valuable resources – time & money. Nokia has lost focus • brand value is highly fluctuating dimension, especially in the 21st century • North-American CEO didn’t fully understand European and Asian phone markets and their perception of Nokia fall of Nokia
  • 32.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings flashback
  • 33.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings
  • 34.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings Thank You
  • 35.
    history&company overview case synopsis key issues industryoverview competition Porter’s 5 forces PEST analysis SWOT lookback alternatives alternative scenarios recommendations risks mitigation suggestions 2016 key learnings • http://company.nokia.com/en/our-businesses/nokia-technologies/hello-again • http://company.nokia.com/en/news/press-releases/2016/05/18/nokia-signs-strategic-brand-and-intellectual-property-licensing-agreement- enabling-hmd-global-to-create-new-generation-of-nokia-branded-mobile-phones-and-tablets • http://www.forbes.com/sites/ewanspence/2015/06/19/nokia-android-smartphone-2016-confirmed/#35be307d3d13 • http://www.forbes.com/sites/ewanspence/2014/04/21/three-vital-signs-of-life-and-death-to-watch-for-as-microsofts-7-5-billion-purchase-of- nokia-is-finalized/#790e133e30a7 • https://www.quora.com/Why-did-Nokia-fail-to-compete-with-Samsung-Apple-etc-despite-being-the-giant-of-the-mobile-phone-industry • http://www.rankingthebrands.com/Brand-detail.aspx?brandID=11 • http://www.bloomberg.com/news/articles/2013-10-03/the-most-valuable-brands-in-america-2000-to-2013 • http://www.cio.com/article/2849223/nokias-n1-android-tablet-is-actually-a-foxconn-tablet.html • ttp://nokiamuseum.info/category/launching-year/1987/ • http://www.ibtimes.co.uk/nokia-1011-20-years-old-history-mobile-403478 • https://www.amazon.co.uk/Nokia-2100-Grey-SIM-Free/dp/B00009XLN8 • http://company.nokia.com/en/news/media-library/image-gallery/item/nokia-8110-gsm-handportable-1996 • https://www.iretron.com/Cell-Phones/Nokia/Nokia-6160;3332 • https://uk.webuy.com/phones/product.php?mastersku=SNOK7110#.V-hl9skpftQ • http://www.cnet.com/pictures/nokia-a-long-and-innovative-history-photos/11 • http://www.cellphones.ca/cell-phones/nokia-1616/ • http://latest_mobile_reviews.mobighar.com/nokia_phone_reviews_and_specifications/nokia_7280_old_mobile_phone_full_review_specific ations.html • http://www.refurb-phone.com/product/nokia-phone/nokia-8800-mobile-phone/ • http://www.gsmarena.com/nokia_6555-2071.php • https://en.wikipedia.org/wiki/Nokia_E90_Communicator • http://nokiamuseum.info/nokia-801t/ • https://www.sarchecker.com/smartphone/nokia-lumia-1020/ • http://www.gsmarena.com/nokia_7280-884.php • https://www.aliexpress.com/price/nokia-7280_price.html • http://company.nokia.com/en/about-us/our-company/our-structure • http://mynokiablog.com/2014/04/29/nokias-new-ceo-rajeev-suri-effective-may-1st/ • http://www.huffingtonpost.com/william-morrow/7-proven-ways-to-accelera_b_10042372.html • https://www.citelighter.com/technology/technology/knowledgecards/technology • http://www.mobolize.com/can-mobile-networks-keep-up-with-demand/ • https://itunews.itu.int/En/4958-Mobile-broadband-smartphones-apps-fixed-networks.note.aspx • http://www.optimisationv.com/category/google-analytics • https://www.sdxcentral.com/articles/news/nokias-post-merger-plan-bodes-well-for-nuage-networks-so-far/2015/10/ • http://www.informationweek.com/it-life/nokia-ozo-virtual-reality-camera-aimed-at-film-pros/d/d-id/1321521 • http://en.uaezoom.com/chief-financial-officer-cfo-salary-in-the-uae/ • http://www.cco-exchange.com/ • https://www.linkedin.com/topic/value-innovation • http://www.rc-hr.com/contactus.aspx • http://www.business2community.com/content-marketing/5-key-elements-successful-content-marketing-strategy-0947654 • http://bushmarketing.ca/what-is-the-marketing-funnel/ • http://v-a-l-s.org/ • http://company.nokia.com/en • https://ycharts.com/companies/NOK/market_cap web sources