NOKIA

s
FALL

Gaurav Singh 2013IPG047

Nivedita Bhadauria 2016MBA017
Shrahi Singh Karanwal 2016MBA028
Pooja Karmakar 2016MBA020
Shailendra Arya 2016MBA028
Palash lalit Malvi 2016MBA018
Nokia

The company was founded in 1865 in Finland and was named Nokia
in 1871. Last President and CEO of Nokia Corporation at the
moment is Stephen Elope.
Nokia serves World wide demand for its products, which are feature
phones and Smart phones and other devices.

Nokia has been the pioneer of mobile telephony in India, the

existence here is from 1994.
The first ever GSM call in India was made on a Nokia 2110 on its
own network.
The problem faced by Nokia was highly competitive environment in
the industry. Powerful global players like Motorola, Siemens, Sony
and Ericsson already had there presence in India in consumer
durables, electronics and engineering sectors, and hence were
aware conditions prevailing in Indian market. However, overcoming
all odds, Nokia India came out as the market leader with 56% share
in 2003-04 and still continues to lead with 80% in 2007.
Problems faced by NOKIA
Losing Market Share on Both Ends
Nokia not only failed to realize competition from Apple, Samsung, Sony,
Blackberry in high end smart phones, they also failed to notice the stiff
competition in the lower segments of phones.
Failure to Implement the Right Umbrella Branding Strategy
Nokia used to have used an umbrella brand in the N series and recently
the Lumia series, but they failed to create buzz among customers which
Apple created.

Redrafting Strategies

Under the leadership of the Stephen Elop, Nokia decided to stick to only
and only Windows OS while Android was a free alternative..
PEST Analysis of NOKIA

Political Factors:

It has to follow Indian regulations to operate

effectively.

Nokia observes health and safety regulations, to

avoid industrial actions and maintain good
relationship with the government.

Nokia must adhere to the minimum wage laws,

which dictate what the least paid worker should
earn
Economical Factors:

It can control the production, how the products

should be produced and target market that uses
the end products.
Knowledge about the economy condition
such as inflation rate, currency exchange
rate,
to improve the venture to achieve
personal and financial security with future

The price of the mobile phone is no longer a key

factor when consumer selecting the phone.
Social factors:

All level of social class use different model of

mobile phones frequently to meet their personal
needs
Mobile phones now become a fashion element or
decoration so that Nokia had launched more and
more fashion phone such as Lumia series mobile
phone.
Can show personal identity and communicate with
each other even it can show each person's life.

Nokia has been advertising on social network such

as Facebook and Twitter
Technological factors:
Nokia must ensure that their Smartphone is at the
highest level of innovation. Camera, Internet,
social networking and e-mail functions, all
necessities Smartphone that Nokia will have to
consider other features to help differentiate and
stand out from its competitors.

Nokia launched Lumia Smartphone that powered

by Windows 8 with unique camera technology,
exclusive Live Tiles and design features.

Besides, Lumia Windows Phone 8 Smartphone

comes with full-versions of Microsoft Office,
Outlook and Internet Explorer 10. So user can
create and edit Microsoft PowerPoint, Excel and
Word documents that make user easier to browse.
1.They are currently promoting their products to a
market that is verging on saturation- Nokia need to
re-launch some of the older models to a different
market and only promote new products to the
existing market segment.

2. Their wage costs are already high, and are

always rising.

3. High import charges are being implemented by

the government.
Experience 142 years of history of Many flop handsets
Nokia Low voice quality
Expertise Less stylish in low priced products
Knowledge of customer Heavy sets
Distribution Network Slow reaction to the competition
Reputation Poorly designed smartphones
High resale value

S W

Ever growing market O T

Growing demand for smartphones
Strong competitors
Adaptation of Android
I phone's popularity
Well designed and styled sets
Samsung ,Motorola and Sony
Improvise on quality of camera
Adaptation to Android
New entrants
MARKETING STRATEGIES
Nokias Strategy:.
Knowing that Indian market is very different
from other markets it was already operating in,
Nokia came up with an Indiaspecific strategy
or a global strategy. It adapted to Indian
conditions by launching new products and
enhancing the products with features designed
specifically for local customers, as well as
promotional campaigns targeted at Indian
audience to gain a foothold in the market.
Here, to discuss the strategy, we consider the
simple concept of 4 Ps, namely; product, price,
place and promotion.
PRODUCT:
Features: Each set of Nokia has its own
features. The models of Nokia are based on
features.
PRICE:
Nokia has areasonable price for
everyseries. Their focus was to
provide service to all income groups.

4 Ps
PROMOTION:
Advertising

Though TV, Signboards,Bill PLACE:

boards,Radio
andNewspaper,Broachers,Posters,
Dummiesanddisplaystands
Channels: Nokia > Distributer >
Whole seller > Retailer > Customer
Coverage: Nokia is widely available
all over India.
 ALTERNATIVES

LEADERSHIP,BELIEVEANDPASSION

When Elop joined Nokia from Microsoft, it was in

trouble, and he made no attempt to sugarcoat it.

Speaking to Nokia employees in 2011 he said that

Nokia was standing on "a burning platform" that
had "multiple points of scorching heat that are
fueling a blazing fire around us."
TURNINGWEAKNESSTOSTRENGTH

Keeping its core competencies alive

Continuing with the featured phones

Continuing with android like the rest

competitors

Innovation in its own operating system

 What did Stephen Elop do
Result: wrong?

During the 3 years Elop

was Nokia CEO, Nokia
revenues fell 40%, Nokia
profits fell 95%, Nokia
market share collapsed in
smartphones from 34% to
3.4%
Nokia's credit rating went
from AAA to junk, Nokia's
share price dropped 60% in
value and Nokia's market
capitalization lost a
minimum of $13 Billion in
value.
Conclusion
From Technology perspective, Nokia did not deliver as per expectations
based on previous performance
From the Strategy perspective, though Nokia did eventually come up with
nice lucrative products, it lost in the race against time due to poor
strategies and sly competition.
The entire Rubik of Organization , people and strategy failed to deliver for
Nokia.

In 2011, Nokia signed up with Microsoft to use the Windows phone platform,
to develop an alternate operating system to compete with Android and iOS.

In 2013, Nokia sold its famed mobile business to Microsoft for over $7.2
billion
THANK
YOU