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NAME: OKEY IKECHUKWU

DEPARTMENT: COMPUTER SCIENCE


MATRIC NUMBER: 2010/1282
COURSE CODE: GES 501
SOLUTION
NOKIA CASE STUDY OF ENTREPRENUER
BREIF HISTORY OF NOKIA: Nokia Corporation is a Finnish communications and
information technology plus a multinational corporation that is headquartered in Espoo,
Finland. It was originally founded as a paper manufacturer by Fredrik Idestam in the year
1865. After the successful establishment of two paper mills both in South-western
Finland and a nearby town of Nokia, Ideastam along with close friend Leo Mechelin
transformed the firm into a share company, thereby founding the Nokia Company.

PROBLEMS FOUND IN CASE STUDY:


1. DRASTIC DECREASE IN NET CASH AND OTHER LIQUID ASSETS: According to
MicroeconomicsPro blog, Nokias financial statement from 2011 to 2012 shows that
there has been a drastic decrease in net cash and liquid assets which dropped
down to 24% which means that year by year the net cash and other liquid assets
will decrease by 2 billion. If this decrease in net cash and liquid asset continues
Nokia could go bankrupt in two years or less.
2. POOR SALES OF PRODUCT [MOBILE PHONE]: The MicroeconomicsPro blog
shows that the average sales price of the mobile phone dropped by 18% which is
worse than the decrease in the smartphones volume. The above statement means
that Nokias profit dropped badly and was losing to most of the mobile phone
vendors especially those releasing smartphones.
3. NOKIAS LATEST PRODUCT WHICH IS THE LUMIA: Since the release of the
Nokia Lumia, customer are yet to be impressed by the product.

ALTERNATIVE SOLUTIONS:
1. The company should migrate to the Googles Operating System known as
Android in order to increase sales.

2. Nokia should end their partnership with Microsoft since their alliance is not yielding
much results.

RECOMMENDED SOLUTION:
The company should migrate to the Googles Operating System known as Android in
order to increase sales because of the following reasons:
1. Android is an open source platform, meaning that it is very easy to develop and
implement changes to apps. The changes and developments can be undertaken
and implemented immediately, unlike with Apple and Windows.
2. The Android market also benefits from the open source nature of Android, once an
app has been developed the app maker has the freedom to distribute the app
openly on the internet. This creates an enormous audience, allows you to develop
and publish at your own free will and is continuing to grow and dominate
the mobile world.
3. Android applications are rich with multimedia capacity and they have superior

guarantee.