Published on June 13, 2016
1. MARKETING STRATEGY
2. HISTORY OF NOKIA : • Founded on 1871 and Nokia began with making paper • In 1898 founds the Finnish Rubber Works • In 1912 sets up the Finnish Cable Works • In 1963 starts developing radio telephones • by 1987 Nokia is the third largest TV manufacturer in Europe.
3. The Mobile Era • Nokia in 1979 started radio telephone company Mobira Oy with Finnish TV maker Salora • in 1981 Nokia launched the Nordic Mobile Telephone (NMT) service • In 1984 Nokia launches the Mobira Talk man portable car phone • In 1987, GSM (Global System for Mobile communications) is adopted as the European standard for digital mobile technology.
4. NOKIA IN NEW AGE: • In 1992, Nokia launches its first digital handheld GSM phone, the Nokia 1011. • In 1994, Nokia launches the 2100 series, the first phones to feature the Nokia Tune ringtone. • The Nokia 2100 series goes on to sell 20 million phones worldwide. Nokia’s target was 400,000. • By 1998, Nokia is the world leader in mobile phones.
5. Competition… • While it was not totally unexpected, what caught Nokia off-guard is the rate at which competitors where innovating new technology.
6. Competition… Nokia primarily failed to innovate attractive technology and features. Newer concepts such as User Experience and User Interface were being neglected. Nokia was clinging onto Symbian OS for too long. It had reached its peak.
7. Redrafting Strategies In 2011, Nokia joined forces with Microsoft to strengthen its position in the smart phone market. • Under the leadership of the Stephen Elop, Nokia decided to stick to only and only Windows OS while Android was a free alternative. • Though Nokia is now reporting profits, it had lost its glory in the market it once dominated single-handedly.
8. Redrafting Strategies In September 2013, Nokia entered into an agreement with Microsoft whereby Microsoft would purchase substantially all Devices & Services.
9. Nokia’s factory, chennai…
10. The Nokia House, Nokia's head office located by the Gulf of Finland in Keilaniemi, Espoo, was constructed between 1995 and 1997.
11. What did Stephen Elop do wrong? • While the entire smartphone OS industry was evolving, manufacturers moved on and adopted various operating systems like Android, Windows, Bada, Meego, et cetera, Nokia decided to stick to Windows OS only. • As Android and iOS became more popular, Nokia and its windows phones failed to attract any attention.
12. Mistakes that lead to Nokia Failure 1. Failure of Symbian OS 2. Wrong Deal with Windows 3. NOKIA Became Laggard in Smartphone Market 4. Losing Market Share on Both Ends 5. Failure to Implement the Right Umbrella Branding Strategy
13. SWOT Strength • Brand name. • teaming up with Microsoft’s experts • higher re-sale value • easy to use • Price ranges Weakness •Poor after sales services. • Late comers to Smartphone market •Unaffordable for middle and lower class consumers
14. Opportunities •Microsoft-Nokia deal •Opportunities to expand using Windows OS. Threats •Strong competition from other Smartphone companies •Low-cost threat from China mobile companies SWOT Cont...
15. 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. From the organizational and people perspective, the new CEO’s attitude and competency proved to be fatal for the company.