MIRANDA, SHARMAINE C.

BSA-2A

1. Draw the product life cycle of Nokia cellphone. (10 pts)

INTRODUCTION (1995 GROWTH (2003 – MATURITY (2009 – 2011) DECLINE ( 2011 Q3 –

– 2002) 2009) PRESENT )
• Sales now increase
• Nokia products were • Nokia sales start to slowly. • Sales starts falling
launched in the grow rapidly. • Intense competition in having decrease in
market. • Persuasive the market. demands.
• Sales grew slowly as advertising may be • Competitive or • Nokia product loses
people are not used. promotional pricing its appeal to
familiar with the • Prices may be may be used. consumers
newly branded reduced as new • Advertising • Stiff competition in
products in the competitors enter expenditure at its the market.
market the market. highest to sustain • Advertising is reduced
• Informative • Profits start growth. and then stopped.
advertising was used coming. • Profits may soon start • Production may be
with no to fall as the product stopped in the
profit. enters the saturation future.
stage.
DESCRIPTION:
1. Introduction- The company is to begin with able to urge a sense of how shoppers react to the item, on the off
chance that they like it and how fruitful it may be. Be that as it may, it is additionally regularly a heavy-spending
period for the company with no ensure that the item will pay for itself through deals. Since the company is in the
beginning of their market, profit may not be recognized immediately as their main focus is to build their product’s
image to the consumers. During the Nokia’s introduction stage, Nokia did not launch the variety in models due to
its less demand in the market and sale. It shows its Entering to India in 1995, Launched very few models due to
lesser demand & innovation, sold both GSM & CDMA phones, launched 1st model Nokia 2110 with Nokia tune,
2110 was 1st model capable of sending/receiving SMS and Competed with the then market leader ‘Motorola’.

2. Growth- During this stage, after the lot of research in market, Nokia launched Its first phone without an antenna,
name as Nokia 3210 in 1999. With more than 150 million units sold this model is one of the most popular and
successful phones in history. This handset had better feature like ergonomic keypad, alarm, games, display, etc. It
was the Nokia growth stage in which it also faces some competitors like Samsung, iPhone, that time Nokia came
up its new product like N95 to compete with them in the market without negotiation in market share. Nokia launched
phones without external antenna Had better features like games, alarm, ergonomic keypad, display etc. Models
like Nokia 3310/3315 marked beginning of growth stage Launched models.

3. Maturity- The sales of Nokia mobile phone are at its peak when they start to introduced launching in the market
a lot of touch screen models, one of which was N-97 which has combination of qwerty and the touch which has a
huge success in the market and the most profit was gained, which make good battle with his competitor Samsung
which launched the Samsung Corby that time which still struggling with the n-97. But iPhone was a league ahead
with his iPhone in market which create another league for him in market. N-97 was failed against the iPhone in
market of smartphones. But it became a most popular with his combo of both QWERTY and touch screen in market
which make him success.

4. Decline- Nokia focus on his Poor design which didn’t attract the consumers and having its main focus on
windows as its OS strong dependence on brand equity, lead to its decline. Nokia is going through this stage now.
Nokia didn’t want to with the android OS which was popular that time which comes up the latest software’s and
applications to make his favorable presence between the consumers, which consumer will like it most still now.
2. Answer the following questions. (10 pts)
a. What caused the rise and fall of Nokia? Why? (5 pts)
It helped develop the first GSM network with the German company Siemens. This joint enterprise was later
made into currently existing Nokia Siemens Network. Maintaining the lead, Nokia launched its 1011 mobile phone
model, as the first commercially available GSM mobile phone, in 1992. Soon enough, Nokia dethroned Motorola
to become the best-selling mobile phone brand in 1998. And soon after that, produced its 100 millionth mobile
phone. The rise in Nokia’s popularity was primarily because of their approach towards the younger and fashion-
oriented user base. Continuing its winning streak, Nokia introduced the next big shot in its arsenal. The Symbian
operating system for PDAs and mobile phones as a next level solution for higher-end devices. It was the successor
to their existing operating system. The introduction of Symbian OS enabled a new era of more capable and
popular phones. It also helped establish the company as a successful and innovative manufacturer of camera
phones. When it came to mobile gaming, Nokia stood among the pioneers due to the popularity of Snake which
came pre-loaded in its phones. Nokia enjoyed all around success, high revenues and market leadership. With its
new series of touch-enabled smartphones and next-gen software until Nokia became a pioneer in mobile phone
manufacturing.

Nokia’s decline in mobile phones due to many reasons, they make a contract with the Microsoft for the OS
for few years in which he did not collaborate with another OS provider (Google’s, android) which was one of the
large reasons to put him to decline stage. They have showed management decisions, dysfunctional organizational
structures, growing bureaucracy and deep internal rivalries all played a part in preventing Nokia from recognizing
the shift from product-based competition to one based on platforms. Due to their poor strategic decisions, where
once companies embraced new ideas and experimentation to spur growth, with success they become risk averse
and less innovative. Some events happen by late 2010, Nokia was sluggish due to some recent failures and some
unwanted occurrences like when Apple had just come out with its revolutionary iPhone in 2007. The windows
phone market share had started improving with blackberry a close second to it and Google began to emerge as
a strong force among all the competition with its Android platform. Original Equipment Manufacturers (OEMs)
such as Samsung & Sony Ericsson and started adopting the Android platform for their devices. They grew fast
enough to a 30% market share out of Nokia’s share. All of Nokia’s efforts proved futile as its Symbian-run phones
were being described as outdated, un-resourceful and difficult for the developers. This scenario became more
threatening by the improved and more capable software provided by Apple and Google. It was fresh and more
user & developer friendly.
 b. What could be possible solutions for Nokia to be known again? (5 pts)
If they want come back, they need to do lots of research of the market and came up with the new innovations to
attract the customer towards him to make a position in the market. Nokia is known for the reliability, durability,
price ranges, re-sale values, strong brand name. People still trust on Nokia wait for his step, if Nokia make them
happy with his new product, he will make his position in market.
First, Nokia needs to power up the brand strategy, "Connecting People," that's perfect for the lower-end
smartphones market. It can also act as a lens helping Nokia see choices through the smoke, be able to review
business options, including partnerships, and act as a decision-making tool, for example, in innovation, a key area
where Nokia struggled to produce the right goods at the right time. This has been compounded by Nokia’s
marketing myopia and inability to handle multiple tactics from a single brand strategy, for example, retail.
Second, to get customers engaged Nokia needs to inspire an authentic community who like Nokia and
rapidly mobilize a colossal resurgence of its customer base. Elop could make it happen, but he’s the CEO, not
the consumer, and it is a very large ship to turn; ratings agency Fitch said on Friday that Nokia had little time left
to turn itself around.
Lastly, a reputation for solid manufacturing infrastructure and excellent risk management and supply-chain
principles worked in the past to increase customer satisfaction and revenues, but they need the power of brand
to save them now. “Connecting People” is one of the best brand ideas you can get, and needs to empower the
brand with that halo to support the new business plan (with Microsoft). For it to succeed Nokia needs a new, more
revolutionary idea to whip up support from the media, inspire their customer base and spur growth. "Connecting
People" would be the optimum place to start.
2. Please do not forget to cite you references.

References
Crutchfield. (2012, June 12). Forbes. Retrieved from Nokia: Four Steps to Brand Revival:
https://www.forbes.com/sites/deancrutchfield/2012/06/20/nokia-four-steps-to-brand-revival/#68e5a152204e

Garg, V. (2019, October 7). The Rise And Fall, And Revival Of Nokia. Retrieved from 9changes.com: https://www.9changes.com/the-rise-and-
fall-and-revival-of-nokia/

Griffin, L. (2918, July 29). medium.com. Retrieved from The Rise and Fall of Nokia: A cautionary tale for innovation programmes:
https://medium.com/@leanne.m.griffin/the-rise-and-fall-of-nokia-a-cautionary-tale-for-innovation-programmes-59d1bcdc9516

Tanmoy Roy . (2015, December 14). Product life cycle of nokia mobiles. Retrieved from slideshare.net:
https://www.slideshare.net/TanmoyRoy15/product-life-cycle-of-nokia-mobiles