The Rise And Fall Of Nokia

1. THE RISE AND FALL OF NOKIA
PRESENTED BY
SHANZA KAIM KHANI

2. OUTLINES
● EARLY HISTORY OF NOKIA
● NOKIA LOGOS
● GROWTH
● NOKIA UNDER CEO'S
● LACK OF INNOVATION
● OPPORTUNITIES AND THREATS

3. EARLY HISTORY OF NOKIA
1865 1960 1970 1971
NOKIACore
Business
Computers
Analog
Car
Radio-Tele
phones
Timber
Company

4. NOKIA LOGOS

5. GROWTH
□
● Eary Investments In GSM Technologies Made The Company The Largest Mobile Phone
Manufacturers.
● Between 1996 To 2001, Nokia Turnover Increased From ₤6.5 Billion To ₤31 Billion.
● The Growth Continued At Its Peak Until 2011.

6. NOKIA UNDER CEO'S
● Nokia under Kairamo (1977-1988)
● Nokia under Vuorilehto (1988-1992): Facing New Challenges
● Nokia under Ollila (1992-2006): A Mobile Communications Company
● Nokia under Kallasvuo (2006-2010): Chasing the Smartphone Revolution
● Nokia under Elop (2010-2013): Confronting the “Burning Platform”

7. Nokia under Kairamo (1977-1988): Growing by Acquisition
● From 1977 to 1988, Nokia was led by CEO Kari
Kairamo, a charismatic but mercurial engineer with
expertise in wood processing and the paper industry.
● It was an era of growth for the firm. In 1983, after
securing its position as the largest consumer
electronics company in Scandinavia, Nokia made its
first international acquisition, the Swedish consumer
electronics company Luxor AB.
● That year, Nokia introduced the first mobile
phone designed for the Scandinavian Nordic Mobile
Telephone (NMT) analoga network.

8. Nokia under Vuorilehto (1988-1992): Facing New Challenges
● In 1991, Nokia’s total sales dropped 31% from the previous year. The consumer electronics division witnessed
a particularly large drop as its color televisions sold poorly.
● Kairamo, who suffered from manic depression, committed suicide in December 1988.
● Despite these problems, Nokia’s telecom networking division was thriving.21 GSM network roll-out had begun
in Europe and demand for infrastructure for wireless networks was growing.
● GSM phones also contained a SIM card which users could simply remove and insert into a new phone for easy
phone upgrades. Operators could trace the location of SIM cards, as well.

9. Nokia under Ollila (1992-2006): A Mobile Communications Company
● Jorma Ollila was named Nokia president and CEO in 1992, when Vuorilehto stepped down.
● In 1992, Nokia launched the first mass-produced digital phone, the Nokia 1011, for GSM. Digital GSM handsets
were priced at €1,335 (FIM 7,013), far more than the €314 average manufacturer’s price for analog mobile phones
in competitive markets. While GSM handsets sales were growing, analog handsets remained more popular
worldwide.
● In the early 2000s, Nokia turned its attention to emerging markets. Nokia estimated that there were at least 600
million potential subscribers in China, India, and Russia.

10. Nokia under Kallasvuo (2006-2010): Chasing the Smartphone
Revolution
● Kallasvuo was named CEO in June 2006 when Ollila decided to step down after 14 years. Like Ollila before him,
Kallasvuo had been with Nokia for many years. He had been appointed assistant vice- president of Nokia’s legal
department in 1987.
● In 2006, less than a month into Kallasvuo’s tenure as CEO, Nokia and Siemens agreed to combine their network
infrastructure operations in response to low-price competition from Asia.

11. Nokia under Elop (2010-2013)
● In September 2010, Stephen Elop was named CEO, replacing Kallasvuo, who remained on the board of Nokia
Siemens Networks. Shareholders were unhappy with Nokia’s failure to release a product that could compete with
the iPhone.
● A New Operating System:
The company needed a change in direction, and Elop singled out the Symbian OS. Many critics believed Symbian
was partially to blame for Nokia’s struggles. It was described as clunky, and developers chose not to write
applications for it.

12. LACK OF INNOVATION
● The Symbian OS Was Outdated.
● Companies Like Apple And Samsung Was Ahead In Term Of Innovation.
● Nokia Focus Was Hardware Instead Of Software.

13. OPPORTUNITIES AND THREATS
Opportunities
● New Growth Markets
● Concentrate On Smart Phones
● Mini Notebooks
Threats
● China Mobiles, It Has Made Exact Copies Of
Nokia
● Competitors Like Samsung And Apple

14. THANK YOU