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,

Nokia’s 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 smartphone’s

volume. The above statement means that Nokia’s profit dropped badly and was losing to most of the

mobile phone vendors especially those releasing smartphones.

3. NOKIA’S 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 Google’s 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 Google’s 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.