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

1. NOKIA’s
ComebackRising from The Ashes

2. W E L C O M E
Group members
Bijay Ghimere
Lalita Shrestha
Bikash Dahal
Dilisha Shrestha

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. ANY
QUERIES??

18. T H A N K
YOU