Nokia Beginning to End Story

Ph.d Research Scholar at Nirma University, Ahmedabad, Gujarat, India à Nirma University, Ahmedabad, Gujarat, India
6 Aug 2016

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Nokia Beginning to End Story

  1. Prepared By Mr. Nishant Agrawal
  2. Nokia : History  Nokia Corporation multi national communications and information technology company, founded in 12th May 1865. (151 years ago)  In 2014, Nokia employed 61,656 people across 120 countries, did business in more than 150 countries and reported annual revenues of around €12.73 billion  The company has had various industries in its 150-year history, originally founded as a pulp mill, and currently focuses on large-scale telecommunications infrastructures, and technology development and licensing.
  3. Continue…  Nokia's dominance also extended into the Smartphone industry through its Symbian platform, but was soon overshadowed by competitors.  Nokia eventually entered into a pact with Microsoft in 2011 to exclusively use its Windows Phone platform on future smart phones.  Its mobile phone business was eventually bought by Microsoft in an overall deal totaling US $7.17 billion.
  4.  1865–1967  created a pulp mill near the town of Finland in 1965  second pulp mill was created in 1868  1871, Idestam together with friend Leo formed a shared company and called it Nokia  In 1922, Nokia was jointly-owned with a trio partnership with Finnish Cable Works and Finnish Rubber Works . Finnish Cable Works manufactured telephone and electrical cables, whereas Finnish Rubber Works created galoshes and other rubber products. Continue…
  5. Introduction  Nokia owns a company named Nokia Solutions and Networks, which provides telecommunications network equipment and services.  Nokia was the world's largest vendor of mobile phones from 1998 to 2012.  As of 2012, Nokia employs 101,982 people across 120 countries, conducts sales in more than 150 countries, and reports annual revenues of around €30 billion.
  6. History  1865: The birth of Nokia Fredrik establishes a paper mill at the south-western Finland, where the Nokia story begins.  1898: Finnish Rubber Works founded Eduard founds Finnish Rubber Works, which will later become Nokia's rubber business.  1912: Finnish Cable Works founded Arvid starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.
  7. Contd..  1937: Verner industry heavyweight Former Olympic Verner Weckman becomes President of Finnish Cable Works.  1960: First electronics department Cable Works establishes its first electronics department, selling and operating computers.  1962: First in-house electrical device The Cable Works electronics department produces its first in-house electrical device - a pulse analyzer for nuclear power plants.
  8. Contd..  1967: The merger Nokia , Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.  1981: The mobile era begins Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.  1982: Nokia makes its first digital telephone switch The Nokia DX200, the company’s first digital telephone switch, goes into operation.
  9. Contd..  1991: GSM – a new mobile standard opens up Nokia equipment is used to make the world’s first GSM call.  1992: Ollila becomes President and CEO Ollila becomes President & CEO of Nokia, focusing the company on telecommunications.  1992: Nokia’s first GSM handset Nokia launches its first GSM handset, the Nokia 1011.  1994: Nokia Tune is launched Nokia launches the 2100, the first phone to feature the Nokia Tune.
  10. Contd..  1994: World’s first satellite call The world’s first satellite call is made, using a Nokia GSM handset  1997: Snake – a classic mobile game The Nokia 6110 is the first phone to feature Nokia’s Snake game.  1998: Nokia leads the world Nokia becomes the world leader in mobile phones.  1999: The Internet goes mobile Nokia launches the world's first WAP handset, the Nokia 7110.
  11. Contd..  2002: First 3G phone Nokia launches its first 3G phone, the Nokia 6650.  2003: Nokia launches the N-Gage Mobile gaming goes multiplayer with the N-Gage.  2005: The Nokia N series is born Nokia introduces the next generation of multimedia devices, the Nokia N series  2005: The billionth Nokia phone is sold Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone subscriptions pass 2 billion.
  12. Contd..  2006: A new President and CEO Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens Networks.  2007 Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks commences operations. Nokia launches Ovi, its new internet services brand.
  13. Contd..  2008 Nokia's three mobile device business groups and the supporting horizontal groups are replaced by an integrated business segment, Devices & Services.  2011 In July 2011, Nokia was recognized as the best place to work in Central America and the Caribbean for its great culture and work environment. It was also selected for Economic Times Most Trusted Brand in India in 2010, at the number one position.
  14. WHEN DID NOKIA ENTER INDIA? • Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110 was made in 1998. • First phone with Hindi menu (Nokia 3210) was launched in 2000. • First Camera phone (Nokia 7650) was launched in 2002. • One of successful model of Nokia 1100 was launched in 2003. • First Wi-fi Phone- Nokia Communicator (N9500) was launched in 2004. • Local UI in additional local language was developed in 2005. • Nokia manufacturing plant was set up in Chennai in 2006.
  16. ANDROID ENTERS INDIA • Android entered the Indian market in 2008. • The first android handset to be launched in India was the HTC Dream. Specifications of HTC Dream: • Android Donut • TFT Capacitive Touch screen • QWERTY keyboard • Primary Camera: 3.15 MP, Autofocus • Internal Memory: 192MB RAM • Browser: HTML platform • Mp3 Player • Removable Li-Ion Battery • GPS
  17. Range Of Prodcuts Nokia E7Nokia N8 Nokia C6
  18. Nokia 5800 Navigation Edition Nokia Booklet 3G
  19. Nokia X6 Nokia X3 Nokia N97 mini
  21. Decline of NOKIA •Nokia was on a high. •Nokia enjoys 60% of Indian market share •Apple launches iPhone 3s. •Redefines smart phone and challenges category leaders like BlackBerry and Nokia.
  22. Decline of NOKIA…… cromax sets up handset business in India Samsung launches Omnia. Becomes dominant in touch screen phones globally.
  23. Decline of NOKIA…… •Android enters Indian market. •Android enters Indian market with HTC Magic at Rs 29,990.
  24. Decline of NOKIA….. •Samsung launched Galaxy S in India at Rs 31,500, its first smart phone. •Later, Galaxy-3 (Rs 12,300) & Galaxy-5 (Rs 10,200). Samsung's smart phone sales surge.
  25. Decline of NOKIA…. •Nokia launches C1 & C2—dual SIM phones. •Nokia market share crashed to 32.9%(according to IDC) Nokia launched dual sim phones (too late)
  26. Decline of NOKIA…. • Nokia announces Microsoft partnership • Meanwhile Micromax, Karbonn, Lava, Spice were producing cheaper phones • iPhone industry was on revolution • Nokia was still struggling to align with Microsoft
  27. Decline of NOKIA…. Samsung cheapest Galaxy at Rs.7,830 strengthen position in low end smartphone space •Nokia fights back. Launches first Asha, 200 for Rs 4,400. It is its first QWERTY dual-SIM device. •Nokia Market share is 22.2 % -19.2% in smartphones. Samsung's India Galaxy sales count crosses 1 crore. Microsoft bought NOKIA for
  28. What was wrong in the company’s reaction? • Very lately did the company woke up and launched their Asha series but by that time they had already lost the game. • Moreover, Nokia was strictly against adapting to the android platform. • Thus, in an effort to survive the competition, the company came up with the N series. • But no matter what, the N series failed to create the buzz among the customers which Apple could do. • The company made the biggest mistake to take a leap of faith in Windows in 2011. • At that point of time, the company already was in declining condition and trusting Windows which was new in the field to regain its status was the biggest mistake the company made. • All these phones which the company launched were comparable to other competitor devices but OS was the problem which lead to ultimate collapse of company. • Lack on focus on innovation was the second big reason of collapse.
  29. Redrafting Strategies • In 2011, Nokia joined forces with Microsoft to strengthen its position in the smartphone market. • The strategic partnership saw Nokia dump Symbian OS and adopt the Windows Phone operating system and establish an alternative ecosystem to rivals iOS and Android. But it was too late. • Under the leadership of the Stephen Elop, Nokia decided to stick to only and only Windows OS while Android was a free alternative. • Nokia launched Windows Phones series dubbed as the Nokia Lumia. Fast-forward to 2013, Nokia has a full portfolio of great Windows Phone 8 smartphones, from a 520 through the award-winning Lumia 920 and the ground-breaking Lumia 1020, which enables photography never seen before in a smartphone. EMSE 6005.10 Organizational Behavior for the Engineering
  30. What did Stephen Elop do wrong? Inspecting with the organization and human performance lens. EMSE 6005.10 Organizational Behavior for the Engineering Managers
  31. EMSE 6005.10 Organizational Behavior for the Engineering Managers Wrong decisions  While the entire smartphone OS industry was evolving, manufacturers moved on and adopted various operating systems like Android, Windows, Bada, Meego, Nokia decided to stick to Windows OS only.  As Android and iOS became more popular, Nokia and its windows phones failed to attract any attention. • Though the new technologies developed by Nokia were ground breaking, they were not promising enough.
  32. EMSE 6005.10 Organizational Behavior for the Engineering Managers Results  During the 3 years Elop was Nokia CEO, Nokia revenues fell 40%, Nokia profits fell 95%, Nokia market share collapsed in smartphones from 34% to 3.4%  Nokia's share price dropped 60% in value and Nokia's market capitalization lost a minimum of $13 Billion in value.
  33. REASONS WHY NOKIA FAILED • Nokia’s development process was long dominated by hardware engineers; software experts were marginalized. • Whereas, executives at Apple, in stark contrast, saw hardware and software as equally important parts of a whole; they encouraged employees to work in multidisciplinary teams to design products. • It also underestimated how important the transition to smartphones would be. It took the competition too lightly • Nokia overestimated the strength of its brand, and believed that even if it was late to the smartphone game it would be able to catch up quickly.
  34. • Nokia failed to respond to the iPhone and the shifting consumer demand that came with it. As the years passed, the Symbian platform aged, and that age really showed when compared to iOS and also Android. • Samsung chose Android at the right time, and it benefited from the maturation of that platform. Nokia, on the other hand, spent its time focusing on Symbian until the company’s recent partnership with Microsoft. • It was a good partnership on paper, but it was too late — over two years after the introduction of the iPhone and Android picked up market steam. • Nokia didn’t market itself as an innovator, and it hasn’t been doing much innovating anyway. At least not until it entered the Windows Phone space.