Contenu connexe


Plus de Hiba shaikh & Varda shaikh (20)



The Rise and Fall of Nokia By by Juan Alcacer, Tarun Khanna and Christine Snively

  1. Case study: The Rise and Fall of Nokia By by Juan Alcacer, Tarun Khanna and Christine Snively TEAM MEMBERS Mahgul Khan ______18S-MBA-BS25 Varda Shaikh ______18S-MBA-BS19 Hiba Shaikh________18S-MBA-BS28 Maryam Qazi_______18S-MBA-BS10
  2. Introduction of Nokia • Nokia provides telecommunications network equipment and services. • It was world’s leading manufacturer of mobile telephone handsets. BUT • Had to sale it’s assets to the Microsoft for $7.2 billion. • The sale marked as “sad ending to Nokia”.
  3. • founder of Nokia. • Nokia started as timber company. • He established wood-pulp mill in town of nokia, Finland. • Due to European industrialization and growing consumption of paper and cardboard Nokia soon became successful. Fredrik Idestam (1865) • Merged to “Nokia corporation”. • 5 core businesses i.e • Rubber. • Cable. • Forestry. • Electronics. • Power generation. Bjorn Westerlund (1960’s) Nokia’s Early History: 1865-1970’s
  4. Continue….. 1970 First mikro mikko office computer 1971 Telecom industry, first wireless phones After 1971 Engaged in supplying networking infrastructure
  5. Slide Title •Era of acquisition. •Largest consumer electronics company. •First mobile phone “mobira cityman”. •Buying binge, left company cash poor. Kari Kairamo (1977-1988) •Era of challenges. •Streamlined management and restructured the firm in 6 divisions. •Fall of soviet union affected profitability. •Banks hesitant to lend, left nokia dependent on its own cash flow. Simo Vuorilehto (1988-1992) •Implemented “ The Nokia Way”, highlighting core values. •Back to basic approach, can’t afford mistakes. Do small things correctly. •Firm reduced to 4 divisions. Jorma Ollila ( 1992-2006) •Regain market position. •Increased value of company from approx 1 billion to more than 10 billion. Rajeev Suri (2014-present) Nokia Under Different CEO’s
  6. NOKIA phones Nokia is a pioneer and also a world leader in mobile telecommunications Nokia 1011 Nokia first digital hand handled phone for GSM (Global System For Mobile Communications ) handsets sales were growing, in 1992 NOKIA had become the biggest producer of mobile phones in Europe, and second largest producer in the worldwide. Characteristics • NOKIA 1011 had an extendable antenna phones • have memory that could hold only 99 phone numbers. • Data inputs in numeric form though it has numeric key pad and also send and receive SMS. • TOW line display screen
  7. Evolving Consumer Market NOKIA expanded considerably in all areas to support customer needs and the growth of the telecommunications industry. NOKIA 2100 Series In the same year 1992, NOKIA extended series 2100 was the first smallest and lightest phones in 1992 it is designed as a user friendly that includes Features • 5 line LCD display • Soft touch keypad • Selectable ringtones that could be personalized • Phones become pocket sized
  8. NOKIA 8100 series In 1996 NOKIA 8100 introduced this model in MATRIX movie in Hollywood Features • Sliding cover. • Colored and exchangeable mobile covers. • Downloading of ringtones.
  9. • Nokia was the first to segment there product line. • First to build a brand identify. • First to understand that design was essential in this business. • First to take advantage in global manufacturing in a business. • Was the first mobile phone to offer web browsing. Nokia At Its Peak Invested in research and development also hired young art school designers to keep up with trends
  10. NOKIA’S EMERGING MARKET STRATEGY • In the early 2000s, turned attention to emerging market. • Estimated 600 million potential subscribers in china, India and Russia. • In 2002, Nokia reorganized itself into 4 division: 1. Mobile phones 2. Multimedia phones 3. Enterprise solution 4. Networks.
  11. • in 2004, Sales slowed developed markets. • Market shares fell from 35% to 28.9%. REASON: Failure to respond to new “ clamshells” or flip-phones. STRATEGY: Cutting price on selected handsets and eliminating some models.
  12. INCREASED COMPETITION • By the mid-2000s, the industry was increasingly competitive. • New competitors from Asia entered European markets. • Increased competition shortened the product life cycle, increased pressure on design, manufacturing and distribution. • Nokia maintained a significant advantage in economic of scale.
  13. Industry shift to software • Increased demand for new features and apps • Operating system became an important factor in a manufacturer’s strategy. • By the end of 2007, Nokia’s symbian operating system remained the most widely used in the world. • The success of Apple’s iPhone solidified the industry’s transition from handset-focused to software-focused.
  14. THE U.S. MARKET • In 2007, apple introduced the iphone, which ran on Apple’s proprietary operating system(iOS), first released in the U.S and available worldwide in 2008. • By 2007, Nokia remained the leader in the fastest- growing markets including China, India and southeast Asia.
  15. Nokia under Elop(2010-2013) • “The burning platform”
  16. In september 2010, Stephen Elop was appointed as CEO of nokia. As he was also the former president of Microsoft’s business division. He got to know about the nokia’s failure, reasons were: • To release a product that compete with the iphone. • Nokia’s profit margin had declined and market share dropped down 40.3% in global market. • Apple dominated the high end smart phone market. • Symbian applications were not so advanced like IOS and androids apps.
  17. Elop recognized the challenges and wrote a memo to their employees. Memo stated: “I have learned that we are standing on a burning platform and we have multiple points of scorching heat that are fueling a blazing fire around us and that needs to be changed”
  18. In September 2011, to come out from the burning platform the company took some bold steps: • Nokia and Microsoft announced plans to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile system. • In September 2013, nokia sold it’s devices and services business to microsoft and provided access to nokia’s patent for ten years in $7.2 billion. Eventually after the announcement of partnership, nokia’s share price increased 40%.
  19. Thank you for listening…