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ALKESH DINESH MODY
INSTITUTE FOR FINANCIAL&
MANAGEMENT STUDIES
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ACKNOWLEDGEMENT
We would like to express our gratitude toProf. ANITA BOBDE who gave us this golden
opportunity to do this interesting project on
the topic :
SWOT ANALYSIS OF NOKIA vs.
SAMSUNG
This also meant that we got an opportunity
to enhance our knowledge in the subject
matter through a lot of Search & Research
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PRESENTED BY:
Sneha Ramesh (103)
Sumit Mehta (62)
Chinmay Save (84)
Siddharth Burman (113)
Manthan Sheth (97)
Khan Mohammed Imtiyaz (116)
Rachit Tiwari (109)
Guidance:
PROF. Anita Bobde
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HISTORY OF NOKIA
• Nokia's history starts in 1865, when it was established by
an engineer Fredrik Idestam.
• It first started as a paper manufacturing company
• Expanding into Electronics
After World War II the Finnish Rubber Works and the Finnish
Cable Works companies consolidated. In 1967 -the companies
were merged to form the NOKIA Group
Nokia is known today as the largest manufacturer of mobile
phones, having about 40 percent of the world market share inthe second quarter of 2008. This company is even the reason
why Finland is a prosperous country in which it is accounted for
about 30 percent of the nation's market capitalization. But
Nokia had a really humble beginning-it all started in 1865. In
1865, an engineer named Fredrik Idestam started a wood-pulp
mill and started manufacturing paper in southern Finland near
the banks of a river. Those were the days when there was a
strong demand for paper in the industry, the company's sales
achieved its high-stakes and Nokia grew faster and faster.
Nokia exported paper to Russia first and then to the United
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Kingdom and France. The Nokia factory employed a fairly large
workforce and a small community grew around it. In southern
Finland a community called Nokia still exists on the riverbank
of Emkoski.
Finnish Rubber Works, a manufacturer a Rubber goods,
impressed with the hydro-electricity produced by the Nokia
wood-pulp (from river Emkoski), merged up and started selling
goods under the brand name on Nokia. After World War II, it
acquired a major part of the Finnish Cable Works shares. The
Finnish Cable Works had grown quickly due to the increasingneed for power transmission and telegraph and telephone
networks in the World War II. Gradually the ownership of the
Rubber Works and the Cable Works companies consolidated. In
1967, all the 3 companies merged-up to form the Nokia Group.
The Electronics Department generated 3 % of the Group's net
sales and provided work for 460 people in 1967, when the Nokia Group was formed.
At the same time, new legislation allowed the Finnish
telecommunications authorities to set up a mobile network for
car phones that was connected to the public network. The
result was Nordic Mobile Telephony (NMT). Opening in 1981,
NMT was the world's first multinational cellular network.During the following decade, NMT was introduced in many
other countries and launched the rapid expansion of the mobile
phone industry. At the end of the 1980s a common standard for
digital mobile telephony was developed. This standard is
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known as GSM (Global System for Mobile Communications).
In
1991 Nokia made agreements to supply GSM networks to nine
European countries and by August 1997 Nokia had suppliedGSM systems to 59 operators in 31 countries.
In1988, in Nordic countries Nokia was a large television
manufacturer and the largest information technology company.
In 1980s nokia expanded their business sectors and products.
The strategy was to expand rapidly on all fronts. Nokia came to
its feet quickly as the company started streamlining its businesses. In May 1992 Nokia made the strategic decision to
divest its non-core operations and focus on
telecommunications. The company's 2100 series phone was an
incredible success. In 1994, Nokia sold 20 million handsets the
goal was to sell 500,000 units. It has been rumored that a
group of businessmen tried to offer Nokia to the Swedishtelecom company Ericsson during the recession (1990s).
In 1992, the company decided to focus more on the
telecommunications business. In the same year, Nokia launched
its first GSM handset, which is the Nokia 1011.
It was in 1994 that the Nokia tune was launched. It was the
Nokia 2100 that featured this famous classic phone tune. Thesuccess of Nokia continued until the world's first satellite call
was made in 1994 using a Nokia mobile phone. And in 1997,
Nokia introduced a classic game highly associated with the
company-Snake
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The middle Ages (NOKIA)
1960’s: Beginning of Nokia’s journey into telecommunications
as an extension into its research activity in semiconductors1970’s: Majority of telephone exchanges were electro-
mechanical analog switches. Nokia began developing the digital
switch (Nokia DX 200) equipped with high level computer
language and Intel microprocessors gradually evolved into the
multifaceted platform.
It is still the basis for Nokia's network infrastructure today.
Till now… (NOKIA)
• 1980’s: Nokia's operations rapidly expanded to new
business sectors and products. The strategy was to expand
rapidly on all fronts. A common standard for digital mobiletelephony was developed. This standard is known as GSM
(Global System for Mobile Communications).
1990’s: The telecommunications and mobile phones
divisions were the supporting pillars of the Nokia.
1992: Nokia made the strategic decision to divest its non-
core operations and focus on telecommunications.
1994: the goal was to sell 500,000 units. Nokia sold 20
million.
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• 2000’s -
2003 - First Made for India phone, Nokia 1100
2004 - Saral Mobile Sandesh, Hindi SMS on a wide rangeof Nokia phone
2004 - First Wi-Fi Phone- Nokia Communicator (N9500)
2005 – Local UI in additional local language
2006 – Nokia manufacturing plant in Chennai-----the story
begins
HISTORY OF SAMSUNG
• SAMSUNG first started as a small export business in
TAEGU, KOREA.
• It has grown to become one of the world’s leading
electronics companies specializing in digital appliances andmedia, semiconductors, memory and system integration.
• 2000s:TV Phone and Watch Phone Make Guinness Book
of World Records
• Unveils the World’s Fastest Graphics Memory Chip
•Samsung Electronics and Yahoo! Form Strategic Alliance
• Develops Unique All-in-one DVD Player
• Developed world's first 512Mb DRAM
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The middle Ages (SAMSUNG)
• 2005:Released the world's first 7 mega pixel camera phone
-Developed the world's first OLED for 40" TV
-Became the official sponsor of Chelsea, the renowned
English soccer club
-Developed the first-ever speech recognition phone
-Produced the first wrinkle-free steam washer
-Sold more than 20 million cellular phones in the U.S
-Developed the world's first 60-nano 8GB NAND Flash
memory chip
-Ranked top in mobile phone sales in Russia
Latest Milestone (SAMSUNG)
• 2009:Launched major restructuring of its businesses
-Cooperates in creating a foundry with Xilinx of the US
-Developed the world’s first 40 nanometer DRAM
-Announced its “Blue Earth” solar-powered phone
-Released its V-line Crystal Rose LCD TV
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-Samsung is found No. 1 in customer loyalty for 8 years
consecutively by Brand Keys of the USA
-Samsung Digital Imaging developed an innovative hybrid
digital camera
-Built the world’s largest mobile phone as recorded in the
Guinness Book of World Records
Nokia’s Strategy in India
Expand mobile voice
Drive consumer multimedia
Bring extended mobility to enterprises
Clearly defined objectives and goals
Right timing of decisions
Determination and risk taking
Foreseeing and using rising market opportunities
Creating the future
Product Innovations
• Nokia :
1) Nokia announced in August 2009 that they will be
selling a high-end Windows-based mini laptop called
the Nokia Booklet 3G.[
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2) On September 10, 2009, Nokia unveiled a new handset
7705 Twist, a phone with a sports square shape that
swivels open to reveal a full QWERTY keypad
Samsung’s Strategy in India
Aggressively hawking flip-tops and clamshells with
polyphonic ring tones and colour screens.
Nationwide distributor and retail presence in the
domestic consumer durables market.
Samsung has been associated with the Lakme India
Fashion Week (LIFW) for its Mobile Phones. TheCompany used the LIFW-2005 as a platform to launch
its D-500, World’s Best Mobile Phone in the Indian
market.
Set up a handset manufacturing facility in India
Product Innovations
Samsung:
1)Samsung Blue Earth Phone
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2)Samsung Navibot
Nokia vs Samsung
Nokia Samsung
Revenue 40.99 Bn
Euros
21 bn USD
NET
INCOME
891
million
Euros
2.3 Bn USD
FIRST
MOBILEPHONE
MOBIRA
CITYMAN
SC-100
Headquarters Espoo,
Finland
Suwon, South
Korea
Market
Share(India)
54.1% 9.7%
Employees 129746 276000(Samsung
Group)
Market Share 36.6% 21.9%
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(World)
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Market Shares In the World
Market Share
0.00% 10.00% 20.00% 30.00% 40.00%
Nokia
Samsung
LGMotorola
Others
Market Sha
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Market Share
Nokia
Samsung
Sony
Others
Market Share In India
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What is SWOT Analysis
It is a non-financial planning tool.
It links the analysis in terms of advantages anddisadvantages; and the internal and external business
environment (in a matrix format).
The Strengths and Weaknesses are defined by measures
such as market share, loyal customers, level of customer
satisfaction and product quality.
Opportunities are new potential areas for business in the
future, such as new markets, or new conditions in existing
markets.
Threats describe how the competition, new technology, or
other factors in the business environment may affect the
business's development.
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SWOT ANALYSIS
Advantages of SWOT Analysis
Consolidate strengths
Minimises Weaknesses
Helps to Grab Opportunities
Minimises Threats
Facilitates Planning
Facilitates Alternative Choices
Helps to Innovate
Ensure Survival & Success
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SWOT Analysis On Samsung and Nokia
Strengths of Samsung
New product concept to rollout in five months
Catching the pulse of the consumer, offering good designs
& understanding Emotions
Heavy investment in technology, product design, and
human resources
Focus on innovative products for the high-end market
Strengths of Nokia
Nokia has largest network of distribution and selling as
compared to other mobile phone company in the world. It is
backed with the high quality and professional team in the HRD
Dept. The financial aspect is very strong in case of Nokia as ithas many more profitable business.
The product being user friendly and have all the accessories one
want that is why is in great demand making it No-1 selling
mobile phones in the world. Wide range of products for all class.
The re-sell value of Nokia phones are high compared to other
company’s product
Strength of the corporate brand.
Complexity improves its Competitive position
Design, the branding and the technology
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Backwards compatibility - protection from a Japanese
onslaught
Lending personality to its products (fashion statement)
Effective advertisement and market communication
Not only a tool for business but being an item of everyday
convenience
Weaknesses of Samsung Not pro-actively coming out with newer models
Lack in product differentiation.
Different models at different price points
Focus on mass market instead of niche markets
Not very user friendly designs.
Weakness of Nokia
Nokia has many strengths and some weakness. Some of theweakness includes the price of the product offered by the
company. Some of the products are not user friendly. Not
concern about the lower class f the society people. Not targeting
promotion toward them. The price of the product is the main
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issue. The service centers in India are very few and scare. So
after sales service is not good
Lapse has opened up space for smaller competitors
Potential threat from Microsoft’s entry into mobile
telephony
Ericsson- king of wireless infrastructure
Design to market takes more time
Opportunities of Samsung
Distinguish its service from competitors.
Offer product variations
Demand for cell phones driven by the service providers or
carriers
Tie up with service providers
Lowering the price of a phone by just $20 in many
countries could increase its affordability by 43 %.( As per
a study report)
Opportunities of Nokia
Nokia has ample of opportunity to expand its business. With the
wide range in products, features and different price range for
different people, it has an advantage over the competitors
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around. With the opportunity like ‘Telecom penetration in India’
being at the peak time, Nokia has an opportunity to increase its
sales as well as the market share. As the standard of living in
India has increased the purchasing power of the people asincreased as well, so Nokia has to target right customer at right
time to gain the most out of the situation
Highest growth in markets such as China and Latin
America
Feature-loaded phones to act as an offset
Providing value at a reasonable lifetime cost
Life style marketing and segmentation
Building a worldwide supplier network
Preempting competitors in critical markets
Managing competitive interaction
Threats of Samsung
Motorola’s dominance in the U.S, Nokia’s popularity in the
European market competitors, including Sony, Ericsson,
and Siemens eating into its share, controlling more than
half of the world market
Aggressive.
Not keeping track of the new trends in the market
Not an accessory and fashion statement
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Threats of Nokia
Nokia has many threats to tackle to maintain its position asmarket leader. The threats like emerging of other mobile
companies in the market. The companies like Motorola,
Sony Eriksson, Cingular (U.S) etc. these companies have
come to the stand of tough competition with Nokia in the
field of Mobile Phones. Threats can be like providing cheap
phones, new features, new style and type, good after salesservice etc. So, Nokia has to keep in mind the growing
competition around. Nokia has to make strategies to tackle
problems in the present and the
near future. The growing demand of WLL network can
cause drop in sales for Nokia, as Nokia provides many less
CDMA phones to the
Biggest threat - “complacency”
“Inflection point” - a disruptive technological change
New competitors with different skills and potent brands
challenge
3G will increasing competition between suppliers
Cheaper midrange models from Motorola and other
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General : 2G network GSM 900/1800Size : Dimensions-106x46x15mm
Weight-73.7gDisplay : Type-TFT colour Size-120x180 pixelsSound : Vibration,Polyphonic,MP3 RingtonesMemory: Phonebook-upto 1000 entries,11mb user pace
Camera: 640x840pixels,video recordingFeatures: Messaging-Sms,Mms,EmailBrowser-WAP 2.0/HTMLAVA-MIDP 2.1
Voice memo
NOKIA 1680 CLASSIC
Product Features
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General: 3G network UTMS 850/2100Size : Dimensions -111x 45x13 mm
Weight-80 gDisplay:TFT colours-16m
Size – 240x320 pixels,2.0 inchesSound : Alert types-vibration, downloadable polyphonic,MP3 Ringtones
Speakerphone-YESMemory: Phonebook-Upto 2000 entries,internal-upto24mb
external- expandable upto 8gbGPRS-Class 32EDGE-Class 323G-yes
Features: Messaging – SMS, MMS, Push email
Browser:WAP 2.0 ,JAVA 2.0, MP3 ,MP4,eAAC+,Organiser, T9
Nokia 3120 Classic
General: 2G Network GSM 850 / 900 / 1800 /
19003G Network HSDPA 900 / 2100
Size: 103x55x18 mmWeight[ 112 g
Display: Type TFT, 16M colorsSize 240 x 320 pixels, 2.8 inches
Memory : Call records Detailed, max 30 daysInternal 16 GB storage, 128 MB
RAMC ard slot microSD, up to 32GB
Camera: Primary 5 MP, 2592x1944 pixels, Carl
Zeiss optics,autofocus, LED flash
Features : DVB-H TV broadcast receiver,Dual slide design,WMV/RV/MP4/3GP
video player - Kickstand
NOKIA N96
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Nokia 5800 navigation
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eneral:2G network GSM network 850/1100ize: 104x49x13 mm,68cc
Weight- 107gsplay: Type- TFT touchscreen, - Proximity sensor r auto turn-off
Accelerometer sensor for auto-rotateHandwriting recognitionATA : WLAN-Wi-fi802.11
Bluetooth-YESamera : Primary- 3.15 mp, 2048x1148 pixels pixels,
utofocus, LED flashVideo- Yes, VGA@30fps
eatures : OS- Symbian OS v 9.4 series 60lCPU -ARM 11 434 MHz processor WMV/RV/MP4/3GP video player MP3/WMA/WAV/RA/AAC/M4A music player Flash Lite 3.0
Nokia 5530
eneral : 2G GSM 800/15003G HSDPA 900/2100
emory Phonebook : Practically unlimited
Call records Detailed, max 30 daysInternal 81 MB storage, 128 MB RAMCard slot micros', up to 16GB, 8GB
ata: GPRS Class 32EDGE Class 323G HSDPA, 3.6 MbpsWLAN Wi-Fi 802.11 b/g, UPnP technology
eatures : Regional maps , Lifetime pedestrian and vehicleoice-guided navigation licenses
Car mount and car charger in retail package,MV/RV/MP4/3GP video player
attery Standard battery, Li-Ion 1320 mAh(BL-5J)Stand-by Up to 408 h (2G) / Up to 408 h (3G)Talk timeUp to 9 h (2G) / Up to 5 h (3G)Music play Up to 35 h
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eneral : 2G Network GSM 900 / 1800ze : Dimensions 57.5 x 41.1 x 12 mm
Weight 91.0 g
splay : Dimensions 57.5 x 41.1 x 12 mmWeight 91.0 g
eatures: MP3 player DictaphoneCurrency Converter Voice recognitionVoice memoT9
Samsung s9110
neral : 2G Network GSM 850 / 900 / 1800 / 1900
3G Network HSDPA 900 / 1900 / 2100ze : Dimensions 122.4 x 64.2 x 9.9 mm
Weight 119 gsplay : Type Super AMOLED capacitive touchscreen,M color - TouchWiz 3.0 UI
- Multi-touch input method- Accelerometer sensor for UI auto-rotate- Touch-sensitive controls- Proximity sensor for auto turn-off - Swype text input
mory : Phonebook Practically unlimited entries andds, Photocallernal 8 GB/16GB storage, 512 MB RAM, 2GB ROMrd slot micros', up to 32GB
Samsung I9000
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General : 2G Network GSM 850 / 900 / 1800 / 1900Size: Dimensions 104 x 53 x 11.9 mm
Weight 92 gDisplay: Type TFT resistive touchscreen, 256K
colors - Accelerometer sensor - Handwriting recognition- Smart unlock
Memory Internal 50 MBCard slot microSD, up to 16GB (verified),
buy memoryData: GPRS Class 12 (4+1/3+2/2+3/1+4 slots), 32 - 48kbpsEDGE Class 12WLAN Wi-Fi 802.11 b/g
Samsung s5230
eral: 2G Network GSM 850 / 900 / 1800 / 1900Network HSDPA 900 / 1900 / 2100e : Dimensions 118.5 x 58.3 x 16.4 mm
Weight 164 gplay : Type AMOLED resistive touchscreen, 16M colors (65Kctive)vanced R tilting touchscreen displayll QWERTY keyboardcelerometer sensor for auto-rotate
mory : Internal 8 GB storage, 256 MB RAM, 512MB ROMCard slot microSD, up to 32GB
a: GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbpsGEClass 10, 236.8 kbpsHSDPA 7.2 Mbps, HSUPA 5.76 Mbps
AN Wi-Fi 802.11 b/g, DLNAtures : Giorgio Armani fashion applications, Work & LifedeP3/WAV/e-AAC+/WMA/AMR player vX/XviD/MP4/3gp/H.263/H.264 player oto/video editor
Samsung B7620 GiorgioArmani
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Samsung S3650 Genio Touch
Conclusion
Although Nokia has an edge over
Samsung in terms of Market Share and
Revenue and is also the Market leader in
the mobile production and
communication business yet Samsung
over the past years has emerged as the
biggest competitor and its share andprofit is also rising . Hence Nokia should
be vary of Samsung and other
competitors .
General : 2G Network GSM 850 / 900 / 1800 / 19003G Network HSDPA 900 / 2100
Size : Dimensions 105 x 56.8 x 15.7 mmWeight 135 g
Display : Type TFT resistive touchscreen, 16M colorsSize :240 x 320 pixels, 2.8 inches, Full QWERTYkeyboard
Accelerometer sensor for auto-rotateMemory : GPRS Class 10 (4+1/3+2 slots), 32 - 48 kbps
EDGE Class 10, 236.8 kbps3GHSDPA 7.2 MbpsWLANWi-Fi 802.11 b/g
Camera : Primary 3.15 MP, 2048x1536 pixels, videoFeatures Geo-tagging, smile detection