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NOKIA CASE STUDY

SUBMITTED BY :
KEERTHANA B S SHARAN G
SOWMYA C L VARUN B
AKSHAY M R SAMBIT MISHRA
GAWLI SOPAN BALIRAM
Nokia History
Long history of successful change and innovation
Adaptable to shifts in markets and technologies.

Humble beginning
One Paper Mill
Cables
Paper Products
Industrial Electronics
Telecommunication
Timeline
Nokia first entered the telecommunications equipment market
Electronics department was established at Finnish Cable.
1960

Nokia took its current form as Nokia Corporation


rubber, cable, forestry, electronics and power generation.
1967

Nokia introduced the first fully-digital local telephone


exchange in Europe.
1982
Nokia made a strategic decision to make telecommunications as a core
business.
1990 Goal of establishing leadership in every major global market.

The first GSM call was made with a Nokia phone over the Nokia-built
network of a Finnish operator called Radiolinja.
1991

Nokia was the world leader in mobile phones, a position it enjoyed for more
than a decade
1998

Nokia joined forces with Microsoft to strengthen its position in the highly
competitive Smartphone market.
2011
Nokias Entry in India
Nokia entered India in 1995.

Nokias arrival came a year after Indias telecom sector


opened up to private companies and the first cellular
services licenses were given out.
Nokia Success story
First Indian ringtone Saare Jahan Se Accha on
1998 a Nokia 5110 handset.
The ring tone was popular at that time.

2000 Introduced its first phone with a user menu in


Hindi, in Nokia 3210 handset.

2002 Introduced its first camera phone Nokia 7650.

2003 Introduced its Nokia 1100 the companys first


made-for-India phone.
Nokia introduced text messaging in Hindi.
2004 Introduced the first Wi-Fi enabled phone Nokia
Communicator N9500

User interfaces in other Indian languages.


2006 First firm to set up a manufacturing unit for mobile
phones at Sriperumbudur, Chennai.

Launched its first regional news portal in India


2007 In May 2007, Nokia chose India for the global
launch of its handset Asha 501.
It launched Nokia Life information tools on
mobile phone handsets for the first time in India.
2009 Nokia had 500 million mobile subscribers in
India.
Strengths
1. Experience
2. Largest network of selling & distribution
3. Strong customer relation
4. The biggest strength of the company is their brand name.
5. Wide range of products for all class
6. High Resale value compared to other competitors
7. Durability
8. Long battery life
Weakness
1. Low voice quality.
2. Less stylish in low priced products.
3. Heavy sets.
4. Unlike I phone apple, Nokia N97 is complex, tough and not
user friendly.
5. Took a long time to enter the highly productive and booming
Smartphone market.
6. Some of Nokias products are not affordable for middle and
lower class consumers.
Opportunities
1. New growth markets.
2. Well designed and styled sets.
3. Increase their presence in 3G & edge market
4. Mini notebooks
5. The Microsoft-Nokia deal is a win-win situation for both
companies. The deal possesses great opportunity if both
utilize resources in a proper way.
6. Opportunities to expand the range of products and their
prices. Also bring in new features and applications on to
Windows OS.
Threats
1. China mobiles It has made exact copy of Nokia N96 and they
provide more features in less cost.
2. Sales may decline due to global economic downturn
3. Strong competition from other Smartphone companies will
make it hard for Nokia to maintain and expand their market
share.
SWOT Analysis of Nokia Models
Failures Of Nokia
Failure of Symbian OS : - lack of applications and UI (User
Interface).
Wrong Deal with Windows : - Windows which was new in the
field to regain its status was the biggest mistake the company
made.
NOKIA Became Laggard in Smartphone Market : -
Stiff competition from Samsung and Apple, and
lack on focus on innovation was the big reason
of collapse.
Contd
Failure to Implement the Right Umbrella Branding Strategy:
Apple was the first phone to use the strategy of umbrella
branding using iPhone as an umbrella brand and then building
subsequent models each year. Samsung was quick in identifying
this concept and they started building their high end phones with
Galaxy S series.
Nokia on the other hand used an umbrella brand in the N series
and recently the Lumia series, but they failed to create buzz
among customers
Make In India
A major new national program. Designed to facilitate investment.
Foster innovation. Enhance skill development. Protect intellectual
property. And build best-in-class manufacturing infrastructure.
There's never been A better time to make in india.
Wow ! Made In India
1. Giant assembly plant of VIs and component suppliers, by hand
with cheap labour
2. 8,000 full time jobs out of a figure of 30,000 ; mostly women
3. Effective transportations cost, flown via cargo jumbo jets
4. Jijits and widgets from Shenzhen and Dongguan in China
5. India production share ; cardboard packets i.e. less than 5% of
unit cost
6. Even components as simple as keyboard and charger and
other low tech items are not in fortune of Sriperumbudur
plant.
Sriperumbudur Plant Assets Freeze
Timeline Of Chennai Issue

8-Jan-13 21-Mar-13 17-Apr-13


Indias Income The Income Tax The Delhi High court
Tax department Department issues Rs asks the Income Tax
inspects the 2,080 crore tax Department to re-
Chennai factory demand (later examine its claim
rectified to Rs 2,649 against Nokia and not
crore) on Nokia India. to take any further
coercive action.
8-May-13 31-May-13 3-Sep-13 25-Sep-13
At Nokia Indias The Nokia Indias
request, Finland Commission announces Income Tax
invokes the Mutual er of Income that it Department
Agreement Tax intends to freezes all
Procedure (MAP)
under the DTAA,
(Appeals) sell its assets of
asking the dismisses Devices & Nokia India
competent Nokia Indias Services
authorities in India to appeal division to
seek an agreement Microsoft
on the application of
the DTAA
12-Dec-13 12-Feb-14 14-Mar-14
The Delhi High Nokia India Indias Supreme
Court agrees to announces it will Court dismisses
unfreeze Nokia appeal the Nokia Indias asset
Indias assets in decision of the freeze appeal,
return for the Delhi High Court allowing the Delhi
deposit of Rs to the Indian High Court order
2,250 crore into an Supreme Court to stay in force.
escrow account
21-Apr-14 25-Apr-14 6-Oct-14 31-Oct-14
Nokia confirms Nokia globally After Microsoft The last
that the Chennai completes the ends its working day
factory will be sale of transitional of the
excluded from substantially all services Chennai
the Microsoft of its Devices & agreement (TSA) factory.
deal, due to the Services , Nokia
asset freeze business to announces from
imposed by the Microsoft. November 1
Income Tax operations will
Department be suspended
Conclusion
Nokia has been an industry leader for many years however the
market has changed quickly and Nokia must right itself.
There is a significant risk for Microsoft it should deliver a world
class OS or otherwise the customers will turn to Apple and
android.
The main reason for why Nokia Cant MAKE IN INDIA
is the Chennai Scam.
Thank you