Nokia - Future ?
Transcript of Nokia - Future ?
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DOES IT
HAVE A
FUTURE
NOKIA
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Nokia is a Finnish multinational communications and
information technology corporation headquartered in
Keilaniemi, Espoo, Finland.
Principal Products are Mobile Device & IT Devices.
Nokia has around 122,000 employees across 120
countries, sales in more than 150 countries and annual
revenues of around 38 billion.
Nokia was the world's largest vendor of mobile phonesfrom 1998 to 2012.
Free-of-charge digital map information and navigation
services through its wholly owned subsidiary.
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Nokia offers a wide range of mobile devices with the
experience in music, video, imaging, gaming and a lot
more.
. It also provides the services for network operators.
Company offers its products in 150 countries.
Nokia has ajoint venture with Siemens, Nokia Siemens
Networks, which provides telecommunications
network equipment and services.
It is the World's 143rd-largest company measured by
2011 revenues according to the Fortune Global 500.
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In 1865, mining engineer Fredrik Idestam sets up his
first wood pulp mill at the Tammerkoski Rapids in
south-western Finland.
A few years later he opens a second mill on the
banks of the Nokianvirta river, which inspires him to
name his company Nokia Ab in 1871.
In 1898, Eduard Poln founds Finnish Rubber Works,
which later becomes Nokias rubber business, making
everything from galoshes to tyres.
Nokia rubber boots become a bona fide design
classic.
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In 1912, Arvid Wickstrm sets up Finnish CableWorks, the foundation of Nokias cable and
electronics business.
1960s, Finnish Cable Works already working
closely with Nokia Ab and Finnish Rubber Works
starts branching out into electronics.
In 1962, it makes its first electronic device in-house:
a pulse analyzer for use in nuclear power plants.
In 1963, it starts developing radio telephones forthe army and emergency services
Nokias first foot into telecommunications.
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1987, Nokia became the
third largest TV manufacturer in Europe.
Having been jointly owned since 1922, Nokia Ab,
Finnish Cable Works and Finnish Rubber Works
officially merge in 1967.
The new Nokia Corporation has five businesses:
rubber, cable, forestry, electronics and power
generation.
As the 1980s come into view, its an entirely new
industry that makes Nokia a household name
around the world.
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As of 2012 it is the Worlds second largest mobilephone maker by unit sales (after Samsung), with a
global market share of 22.5% in the first quarter.
Global mobile handset shipments (Q1) for 2012
COMPANY Units (millions) Market share
Samsung 93.5 25.4%
Nokia 82.7 22.5%
Apple 35.1 9.5%
Other 156.7 42.6%
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In 1999, Nokia were number one with 27% of the
market, Motorola at 17%, Ericsson
[ not yet formed with Sony ] came third at 11%,
Panasonic were 4th and Samsung were 5th at 6%.
Nokias peak was at 2008, rising to over 40% globalmarket share.
In comparison, 105 million less phones have been
sold in 2009 than in 2008, with Nokias numbers
reducing in Market share, Smartphone share and OSshare.
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Company Units (millions) Market share
Nokia 2.8 Billion 34%
Motorola 1.1 Billion 13%Samsung 1.0 Billion 12%
Sony Ericsson 600 million 7%
LG 500 million 6%
Other branded 1.8 Billion 22%
Unlicensed 500 million 6%
TOTAL sales (2000-2010) :- 8.3 Billion
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1992: Nokia decided to focus on its
telecommunications business
.Most important strategic decision in its history.
1992: Nokias first GSM handset [ Nokia 1011 ]
1994: Nokia Tune is launched [ Nokia 2100 ]
1994: Worlds first satellite call
[ Nokia GSM handset ]
1997: Gaming-snake [ Nokia 6110 ]
1992: Nokia launches 3G [ Nokia 6650 ]
1999: The Internet goes mobile
[ Nokia 7110-the worlds first WAP handset ]
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2005: The Nokia N-Series is born.
Nokia introduces the next generation of multimedia
devices.
2005: The billionth Nokia phone is sold
[ Nokia 1110 in Nigeria]
2006-2008:
Nokia, the 5th most valued brand
in the world
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Finnish Company turned itself into the worlds
leading mobile phone company in the 1990s.
So Nokia has already been through one
(successful) change programme, turning itself froman unfocused conglomerate into a focused mobile
phone producer.
Can it change again?
Global market leader in mobile phones
but not smart phones .
Still profitable, but revenues under pressure
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September 2010:
Appointed new CEO - Stephen Elop - to
drive strategic change.
Elop issued the famous
burning platform memo
bluntly explaining the serious strategic
challenges facing Nokia.
Elop outlined results of his strategic review on Feb 11
2011 Making it clear that Nokia had to undergo a
substantial programme of change.
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We fell behind, we missed big trends, and we lost
time. At that time, we thought we were making
the right decisions; but, with the benefit of
hindsight, we now find ourselves years behind.
There is intense heat coming from our
competitors, more rapidly than we ever expected.
Our competitors arent taking our market sharewith devices; they are taking our market share with
an entire ecosystem.
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Nokia had missed the major change in its market the
Smartphone revolution
Nokia had continued to focus on mobile phonedevices [hardware] rather than mobile phone
applications [software]
.Business had become too product-led rather than
customer-led; a missed opportunity
Poor leadership and complacency
[Bred from success in non smart-phones]
Lacking innovation and entrepreneurial spirit
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The product life cycle of Nokias products had
shortened dramatically as others
(Apple, Google Android) developed Smartphone
platforms and an associated ecosystem of apps.
The consumer transition from traditional mobile
phones to smart phones has been dramatic, and
caught Nokia off-guard.
Nokia has faced intense competition from mobilephone producers in emerging markets who can make
fast, cheap handsets at the lower end of the mobile
phone market.
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New leadership (internal causes of change):
An outsider arrives to shake up the way Nokia does
business!
Retrenchment (closing down Symbian) followed by
strategic partnership with Microsoft(another major internal cause of change)
Strategic decision-making / corporate planning:
Nokias decision-making had become ineffective - too
slow; inconsistent
Technology (Smartphone ecosystems) as a source of
change: consumers no longer buying a handset; they
are buying apps that run on phones
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Impact of competition from emerging markets: the
effect of faster, cheaper competitors
Globalization of markets: Nokias new objective ofsupply the next 1 billion mobile phone handsets
resulting from rapid demand growth in emerging
economies
Analyze Business and the competitive environment:Emergence of stronger, more successful competitors
(Apple, Samsung, RIM, Google, LG)
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It never jumped on the flip-phone bandwagon
It continued to ignore the U.S. market:
It failed to recognize the threat of the iPhone
It clung to Symbian too long
It chose the wrong next-generation platform to back
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February 2011, Nokia has had a
strategic partnership with Microsoft
Incorporate Microsoft's Windows Phone operating
system replacing Symbian.
With Microsoft to build a global mobile ecosystem
Leverage the expertise on hardware optimization,
software customization, language support and scale.
Eg Nokia Maps would combine Microsoft assets like
Bing and AdCenter
Nokia's application and content store would be
integrated into Microsoft Marketplace
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New leadership team, operational structure
Two distinct business units Smart Devices and Mobile
Phones
Under Smart Devices
- Symbian Smartphones - MeeGo Computers
-Strategic Business Operations
Manufacturing, IT and logistics headed by Niklas
Savander Etc..
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Nokia unveiled its first Windows Phone
handsets, the Lumia 710 and 800, in October
2011.
With OS Windows, Nokia have came up
with new features and technology to enhance
its market share.
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Better Hardware
Enterprise Ready
New Preloaded Apps
Background Multitasking
Focus on NFC
Lenses
Turn-by-turn navigation
User interface
Web browser
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Contacts
Multimedia
Games
Office suite
Multitasking
Updates
Advertising platform
Bluetooth
Sky Drive integration
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Focus on competitive operating system.
Efforts to capture us market.
Phones to satisfy the current customer need.
Ensure better promotion strategies.
Should come up with better technology.
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Growing and developing from time to
time.
Did not believe in product
customization.
Started with candy bar phone and
enjoyed the market share.
Blind towards the threat of competitors.
Lost the share price and market share.
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Focus on hardware rather than
software.
Stuck with Symbian.
Joint partnership with Microsoft to enter
smart phone arena.
Windows phone ecosystem.
Came up with Asha series and Nokia Lumiaphones
Future growth depends on Lumia and Asha
phones.
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