- Mr.B.

Prem
 ESTABLISHMENT OF
NOKIA
FOUNDER WAS FREDRIK IDESTEM.

PREVIOUSLY STARTED AS PAPER, RUBBER

AND CABLE INDUSTRY.

IN YEAR 1967, ELECTRONIC SECTION WAS

FOUNDED.

IN LATE 1970S, NOKIA INVOLVED INTO

TELECOMMUNICATION INDUSTRY.
 THE FIRST DIGITAL
SWITCH USED BY NOKIA
ONE OF THEIR PHONES
IN LATE 1970-1980S.
 GROWTH

EARLY INVESTMENT IN GSM TECHNOLOGIES

MADE THE COMPANY THE LARGEST MOBILE
PHONE MANUFACTURERS.

BETWEEN 1996 TO 2001, NOKIAS TURNOVER

INCREASED FROM 6.5 BILLION TO 31
BILLION.

THE GROWTH CONTINUED AT ITS PEAK UNTIL

2011.
NOKIAS BEST SELLING
PHONE WORLDWIDE
 OPERATING SYSTEM
SYMBIAN WAS NOKIAS SMART PHONE
OPERATING SYSTEM UNTIL 2011.

NOKIA USED LINUX IN SOME INTERNET

TABLETS AND IN THE NOKIA N900.

BY THE END OF 2011, NOKIA GOT INTO AN

ALLIANCE WITH WINDOWS AND ANDROID.
LOSS OF MARKET SHARE

IN 2007, OFFICIAL LAUNCH OF iPHONE

CONTINUED TO BE OUTSOLD.

IN 2010, DRASTICALLY THE SHARE OF MARKET

DROPPED WHEN ANDROID AND iOS CONTINUED
TO GAIN THE MARKET SHARE.

SYMBIANS SHARE IN THE MARKET DRIPPED TO

32% BY 2010.
CORPORATE AFFAIRS
Nokia Leadership Team (as of May 2014)
Rajeev Suri (Chairman), b. 1967
President and CEO since 1 May 2014
Joined Nokia on 1995

Samih Elhage
Executive Vice President and Chief Financial and
Operating Officer of Nokia Networks
Joined Nokia Networks 2012
Michael Halbherr, b. 1964
CEO of HERE
Joined Nokia 2006, Nokia Leadership Team member
since 1 July 2011
Timo Ihamuotila, b. 1966
Executive Vice President and Group Chief Financial
Officer
With Nokia 19931996, rejoined 1999, Nokia
Leadership Team member since 2007
Henry Tirri, b. 1956
Executive Vice President and Acting Head of Nokia
Technologies
Joined Nokia 2004, Nokia Leadership Team member
since 22 September 2011
 ALLIANCE WITH ANDROID
AND WINDOWS

LAUNCH OF LUMIA CAME INTO EXISTENCE IN

2011.

SOME PHONES IN NOKIA CAME WITH ANDROID

OPERATING SYSTEM.

ALLIANCE HELPED IN INCREASE IN SALES.

 FINANCIAL DIFFICULTIES

In 2012, Nokia shut down its production and

research sites in Finland, Germany and Canada.

By the end of 2013, 24,500 employees were laid

off.

Companys inability to foresee the rapid changes in

mobile industry were on of their problems.
 SALE OF BUSINESS TO
MICROSOFT
ON 2ND SEPTEMBER 2013, MICROSOFT ANNOUNCED
A DEAL WORTH 3.79BN, ALONG WITH ANOTHER
1.65BN TO LICENSE NOKIA'S PORTFOLIO OF
PATENTS FOR 10 YEARS, A DEAL TOTALLING
AROUND 5.4BN. ($.7.1 billion)

MICROSOFT ACQUIRED ASHA AND LUMIA

BRANDS.

THE FUTURE LUMIA DEVICES ARE BRANDED WITH

MICROSOFTS NAME AND LOGO.
SOME OF THE MICROSOFT
PHONES

LUMIA 535 LUMIA 830

LUMIA 1520
Downfall of
Nokia
A glance look!
 Why Nokia failed?
One of the giants in mobile manufacturers sold
itself to Microsoft. Is it a sign of failure or its
inability to maintain a firm. No doubt its a
failure to properly manage.
So, why do you think Nokia failed?
Be attentive to know the reasons behind failure
of Nokia's marketing strategy and what can be
learnt from it.
 How Nokia failed in connecting 'to'
people?
Apple redefined smart phones with touch screen and Blackberry with
email. Android proved that software matters more than hardware.

Nokia was slow to respond to these trends.

In India, local brands stole the lead on dual SIMs, low-end Qwerty and
long-battery-life phones.

In a nutshell, that's how Nokia, which enjoyed a 60% market share in

India, ended 7-9% as per IDC Asia Pacific Mobile Tracker in Q4 2012.
 Android weakened roots of Nokia?
In 2008, brands like Samsung, HTC, and Sony
found roots to extend their market.
Samsung's Android phones are user friendly and
budget friendly too.
When every manufacturer is busy in making
touchscreen mobiles, Nokia felt that touch
wouldn't have a scope in the near future but
customers overwrote their expectations.
Nokia's entrance into Windows platform is quite
late
Finally Nokia gave up for a $.7.1 billion to
Microsoft.
 Mistakes that lead to Nokia
Failure
1. Failure of Symbian OS:

Nokia launched its Symbian 60 series in year 2002 which initially had a
good market response.

The introduction of Apple iOS in 2007 and Android in 2008, the OS race
was completely taken over by the two giants.

The reasons for collapse of Symbian OS is lack of applications and UI

(User Interface).

After facing competition from iOS and Android, Nokia continuously tried
to improve their Symbian OS but was not creating something unique.
 2. Wrong Deal with Windows
Customers were waiting for Android phones from
Nokia. But the company made the biggest mistake
to take a leap of faith in Windows in 2011. At that
point of time, the company already was in declining
condition and trusting Windows which was new in
the field to regain its status was the biggest mistake
the company made.

All these phones which the company launched were

comparable to other competitor devices but OS was
the problem which lead to ultimate collapse of
company.
 3. NOKIA Became Laggard in
Smartphone Market
Stiff competition from Samsung and Apple.

Lack on focus on innovation was the second

big reason of collapse.

Nokia seemed to be lagging in the race.

Where Samsung from nowhere entered the
race and focused on innovation as its core
competence to gain the market share, Nokia
was very late to realize this fact.
Below is the diagram showing how sales dipped
from Q4 in 2010 to Q4 in 2012.
4. 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.

The company which used to have epic models like

Nokia 1100 suddenly started losing at lower ends
too.

Very lately company realized this thing and

launched their Asha series but by that time they had
already lost the game.
 5. 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 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.

The company which is missing the constant innovation has the high
probability of getting punished from the customer.
 SWOT
Strength Weakness

Experience Low voice quality

Largest network of selling & Less stylish in low priced

distribution products

Strong customer relation Heavy sets

Wide range of products for Unlike iPhone Apple, Nokia

all class N-series is complex, tough and
not user friendly
SWOT Cont...
Opportunities
New growth markets
Concentrate on Smartphones
Well designed and styled set
Mini notebooks
Threats
China mobiles It has made exact
copy of Nokia
Competitors like Samsung & Apple
Sales may decline due to global
economic downturn
Standard & Poor downgraded Nokia
with low grade
 Journey towards failure
Year 2006:
Nokia is on a high. It was enjoying 60% share of
India's mobile market and was the undisputed lead.

Year 2007:
June 29
Apple launched iPhone 3s.
Redefined smart phone and challenged category
leaders like BlackBerry and Nokia.
Year 2008
March
Micromax came up with handset business in
India.
September
Samsung launched Omnia. Became dominant in
touch screen phones globally.
Year 2009

June
Googles Android entered Indian market with the
help of HTC Magic and Vodafone at Rs.29,990.
Year 2010
June
Samsung launched Galaxy S in India at
Rs.31,500, its first smart phone.
Later, Galaxy-3 (Rs.12,300) & Galaxy-5
(Rs.10,200).
Samsung's smart phone sales surge.
August 30
Nokia launched C1 & C2 phones
Nokia market share in India for 2010 (Jan-
Sept), according to IDC, crashes to 32.9%
Year 2011
February
Nokia announced Microsoft patnership, but it took 8-9 months to unveil
products.

Meanwhile, Samsung consolidated position while Micromax, Karbonn, Lava,

Spice and launched cheaper smartphones.
March
iPhone 4. The iPhone changed the industry in more ways than
one: apps, superlative design and accessories.
But Nokia was still struggling to find traction with Windows.
June
Nokia launched dual-SIM phones, became no.1 player in this
space, but it was 18 months late. This delay cost Nokia.
November
Samsung's Galaxy Note, iPhone 4S launched.

December
Nokia's Lumia 800 (Rs.29,000)
Lumia 710 (Rs.19,000) launched.
Samsung's cheapest Galaxy at Rs.7,830; strengthend position
in the low-end smartphone space.
Year 2012
January
Nokia fought back. Launched first Asha, 200 for Rs.4,400. It is
its first QWERTY dual-SIM device. Strong product, but dual-
sim market is past its peak.
June
Full-Touch Asha 305 launched. Nokia claimed it's largest-selling
smartphone; but rivals and some tracking agencies don't
consider Asha a smartphone.
September
Nokia Market share is 22.2 % and 19.2% in smartphones.

November
iPhone 5 launched.

December
Samsung's India Galaxy sales count crosses 1 crore.
Year 2013
Nokia's market share dwindled down to 7-9% as per IDC Asia
Pacific Mobile Tracker in Q4 2012.

March
Lumia 520 (Rs.10,000) launched but Samsung, Micromax
moved ahead.
Thank
you
- King Prem
Kumar