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Faster decision making Improved communication with its customers Better understanding of the market trends and tendencies Faster adaptability Reduction of innovation times Use lessons learnt

Competitors In general terms, Nokias competitors are as different as the mobile phones they sell. In terms of smartphones, companies such as Apple, Samsung, HTC, LG or even the Chinese ZTE have started to gain more market share in the high, medium and low-end device battle (Mukherjee, 2012). In developing countries such as India, where Nokia has the biggest market share, Android devices from Samsung and HTC are beginning to attract the attention of the smartphone customers by offering cheaper devices with similar capabilities of an IPhone (Simonite, 2011). Even Apple has seen the opportunity in these countries and has started to sell its IPhone 3G free of contract in countries like Brazil or Argentina, where prepaid is more popular than buying a phone with a contract (Chao, 2012). On the other hand, in developed countries, Nokias competes against the biggest names in the market. Apples IPhone has definitely gotten big popularity in Northern Europe and North America. However, the recent recognition of the Samsung Galaxy Series has also become a problem for Nokias new Lumia devices. Nevertheless, Nokia said brisk sales of its new Lumia phones lifted overall smartphone shipments for the first time in a year, even though shipments are still well below year ago levels (Grundberg, 2013). Some of the most augmented critics are based on the fact that Windows Mobile OS cannot compete with Apple and Androids apps stores. Nokia has put a heavy emphasis on the speed and quality of the Microsoft system -- which will better help it compete with Apple Inc.'s iPhone and devices powered by Google Inc.'s Android software -- company executives are putting an even bigger emphasis on enhancing the so-called Windows ecosystem of available apps and technology (Grundberg, 2012). Customers In recent years, Nokias customers have been puzzle by the constant changes of operating systems powering Nokia devices. Since 2010 until now, Nokia has had Symbian, Symbian Anna, Maemo and Meego running in their high-end smartphones. Most recently, Stephen Elop, Nokias new CEO, decided to make a

strategic alliance with Microsoft and bring Windows Mobile OS to Nokia devices (Lawton, 2010). However, new windows based devices such as the Lumia 800 launched with battery and camera problems. Though these were later cleared up with a software update, the problems left some customers frustrated (Zeman, 2012). In some countries Lumia devices are starting to sell with discount, in order to boost sales and attract more customers (Plumridge, 2012). Labor Markets Nokias sales problems have forced the Finnish company to look into its work force as a way to save some money. According to Nokia's spokesman Tapani Kaskinen, the lay-offs will last up to 90 days and will affect 20% of the staff at a time (Telecomworldwire, 2009). Even the legendary Nokia building has been sold to alleviate some of Nokias financial problems. Yet another set back to the iconic image of Nokia. Nokia has continued concrete action on its plans to reduce its workforce globally, with 4000 employees in Europe and Mexico to lose their jobs as the company moves its manufacturing to Asia. Nokia says it will accelerate the deployment of Windows Phone smart phones, and the surviving workforce will work to customize small batches of phones for mobile operators (Leung, 2012). Economics As economies crumble in fear for yet another new financial crisis, people nowadays are more careful in the way they spend their money. Back in 2008, the result for Q4 - 2008 in the Devices and Services division responsible for handset sales - was the worst on record during the current decade. Operating profit declined by around EUR 1,600 million to less than a billion euros, which represents a drop of more than 50% from the last three months of 2007 (Ojo, 2009). In general terms, this was the first warning for the need of rapid change in Nokias management. One of the main reasons for the weakened result from the Finnish company was the sudden slamming on of the brakes in handset sales from the early autumn onwards. Telecoms operators, wholesalers, and the large retail chains all responded to the economic bad news by pulling in their horns and reducing orders from manufacturers, and by attempting to whittle down their inventories. (PR Newwire, 2009). Another significant factor in Nokia's present problems is the rapid fluctuations we have seen in the currency markets, in part a knock-on effect of the nerve-racking economic conditions. For instance, Nokia has bought a lot of components from Japan in yen-denominated deals, and the Japanese currency has strengthened dramatically against the euro. By the same token, currency devaluations in emerging markets such as Brazil, Mexico, Indonesia, and Thailand forced Nokia into cutting prices in order that its phones would remain competitive to maintain

sales (Carmichael, 2009). Suppliers The need of more competitive and faster devices have made companies increasingly eager to use the same chip designs for a range of devices, such as TVs, media players, set-top boxes and laptops, which only increases the competition and pricing pressure as companies seek to win bids from tech and consumer-electronics companies (Lawton, 2011). Market struggles at Nokia have had ripple effects among the company's major suppliers that could reshape the global supply chain for smartphones. The emerging crisis among suppliers is one more sign of how the continued consumer shift from feature phones to smartphones is upending more mature tech-industry players and remaking the landscape beyond device makers (Lawton, 2011). As chip makers, for example, struggle to unhinge themselves from the sinking European handset giant, they are finding an even more competitive market beyond Nokia. That is because Apple Inc. and Samsung Electronics Co., the industry's two biggest smartphone players by volume, have locked them out of the market by designing and manufacturing chips for their devices on their own (Lawton, 2011). It isn't just Nokia suppliers that are hurting. The rise of Apple's iPhone and smartphones that run Google Inc.'s Android operating system have come at the expense of other manufacturers such as Canada's Research in Motion Ltd., which cut 2,000 jobs and reshuffled its management in July (Lawton, 2011).

SIMONITE, T., 2011. Nokia Sets Sights on Developing World. Technology review, 114(3), pp. 74-75. MUKHERJEE, W., 2012, Apr 11. Nokia's 'smart' viral campaign attack leaves Samsung fuming [Advertising]. The Economic Times (Online). CHAO, L. and COWLEY, M., 2012, Dec 20. IPHONE? Brazilian Firm Says It Was First. Wall Street Journal, B.6. ISSN 00999660. GRUNDBERG, S., 2013, Jan 10. Nokia Boosted by Brisk Lumia Sales. Wall Street Journal (Online), n/a. GRUNDBERG, S. and STOLL, J.D., 2012, Jun 22. Corporate News: Nokia Phone Sales Face More Hurdles. Wall Street Journal, B.4. ISSN 00999660. ZEMAN, E., 2012. Nokia's Informationweek - Online, . Lumia 'Not Good Enough' Say Carriers.

PLUMRIDGE, H., 2012, Jun 14. Nokia's Signal Is Fading Fast. Wall Street Journal (Online), n/a. LAWTON, C. and LUBLIN, J.S., 2010, Sep 11. Corporate News: Nokia Replaces CEO With Microsoft Boss --- Elop's First Task: Find iPhone Rival. Wall Street Journal, B.1. ISSN 00999660. LEUNG, I., 2012. Nokia dumps another 4000 employees. Manufacturers' Monthly, . Nokia plans lay-offs at Finnish plant. 2009. Telecomworldwire, . OJO, B., 2009. Nokia vulnerable to maturing mobile market. Electronic Engineering Times, (1558), pp. 8-8,10. Detecon Study: Large European and MENA Region Expert Survey on the Effects of the Financial Crisis on the Telecommunications Industry. 2009. PR Newswire Europe Including UK Disclose, . CARMICHAEL, J., 2009. Regulatory lessons from the crisis. InFinance, (5), pp. 5-7. LAWTON, C., 2011, Sep 27. Business Technology: Nokia's Troubles Hit Suppliers --- Ripple Effects Could Reshape Global Chain That Provides Phone Components. Wall Street Journal, B.8. ISSN 00999660.