NOKIA STRATEGY

BY

ASHA priya goud

Gitam institute of management

Gitam university.

Nokia Corporation is a Finnish multinational communications corporation.

Focused on wired and wireless telecommunications.

It is the world's largest manufacturer of mobile telephones.

A leading end-to-end infrastructure supplier World's largest manufacturer of mobile

phones More than 55 000 employees Net sales USD 20 billion 1999 Market capitalization value over USD 200

billion

NOKIA CORPORATION

Industry: Telecommunications,

Internet, Computer software

Founded: Tampere, Finland

(1865)

Products: Mobile phones, Smart

phones, Mobile Computers,

Networks,

Services: Software, Online

services

Revenue: ▼ €40.99 billion (2009)

Operating income: ▼ €1.197

billion (2009)

Net income: ▼ €891 million

(2009)

Total assets: ▼ €35.74 billion

(2009)

Employees: 125,859 (March 31,

2010)

Nokia connects people to each

other

Nokia is a world leader in mobile

communications and

manufacturer

The information easy-to-use and

innovative products like mobile

phones, devices and solutions for

imaging, games, media and

businesses.

Nokia provides equipment,

solutions and services to network

operators and corporations.

It has held the most market share

since 1998.

In 2009, Nokia global annual

revenue of €41 billion and

operating profit of €1.2 billion.  

NOKIA SUCCESS STRATEGIES

Nokia's strategy has

always been built on looking

forward and trying to predict

the future.

The main strategy of the

Nokia Corporation is based on

growth, efficiency and

profitability and focuses on

several things.

It also emphasizes on

sustainable environmental

development that can be

used to offer the best

products to the final

consumer.

DRIVERS OF NOKIA’S SUCCESS

• Nokia’s industry dominance is behavioral, not structural

• Upstream innovation• Open standards, strategic coalitions, and skillful

supplier channel and partner management• Solidified own strengths and weakened powerful

competitors• Downstream innovation• Segmentation, branding and design Filled shelves

with new and innovative products to dominate categories, become ubiquitous, and used its brand to sell new products and help penetrate new markets

• Utilized preemptive strategies• Co-opted with most of its actual or potential

rivals

COMPETITION IN THE MARKET

With all the technology available in the communications market it is obvious that Nokia will have lots of competition they include: 

* Sony Ericsson 

* Samsung 

* Motorola 

* Siemens 

* Panasonic 

* NEG 

* Sagem and 

* Toplux 

sales occurred. 

1. Nokia 37.2% (34.7% 1Q02) 

2. Motorola 17.3% (15.5%) 

3. Samsung 9.8% (9.6%) 

4. Siemens 8.5% (8.8%) 

5. Sony-Ericsson 5.2% (6.4%) 

MOBILE MARKET SHARE

Nokia; 40.3

Samsung; 15.2Motorola;

9.3

LG; 9.2

Sony Er-icsson;

8.3

Others; 17.7

WHY NOKIA HAS FAILED????

#1: Failure of Symbian OS and Wrong Deal with Windows

#2: NOKIA Became Laggard in Smartphone Market

#3. Losing Market Share on Both Ends.

#4. Failure to Implement the Right Umbrella Branding Strategy

NOKIA’S CORE COMPETENCIES

Personality counts

Brand name/ Brand development

Research & development

Mass production

THE SECRET CODE?

Everyone wants to know the secret to Nokia’s success…

– Luck?– Brilliant management?– An organizational structure that makes it more

pragmatic, focused, and flexible.“As important as Nokia’s historical strategies

may be toillustrate its dogged persistence and innovation

and bold first mover strategy, they explain little of Nokia’s success.

Nokia’s secret code’ cannot be found in it historical strategies but in its strategic history.”

SWOTStrengths

o Brand awareness.o Technology leader

in manufacturing mobiles.

o Market leader.o Presence across

150 countries. Effective

advertising and market communication.

Weaknesso Not good at

software.o Performance of

symbian os is lackluster.

o Increasing dissatisfaction levels with its smart phone.

o Very weak in market share in terms of android.

o Service centers are very few in India

SWOTOpportunitieso Huge loyal customer

baseo Huge presence in

developing countries.o As standards of living in

India has increased, the purchasing power of people is increasing as well, so Nokia has to target right customers at right time to gain most out of the situation.

Threatso Rapidly changing

industry.o Chances of missing

inflection point is high.o Entry of new players.o Eg: google into nexus

Mircomax, karbon and lava.

o Increased use of android version

PESTEL ANALYSIS

BCG MATRIX

MICROSOFT'S NOKIA DEAL IS SMART - BUT IT PROBABLY WON'T SUCCEED

Smart phones are the future, and Nokia is basically nowhere in smart phones

Mobile is a platform business, and Microsoft's Windows Phone platform is basically nowhere

Nokia's business and culture are entirely different than Microsoft's, and Nokia is massive.

Nokia doesn't (yet) make tablets, which are another big growth area.

Nokia and Microsoft are both losing money on their mobile businesses.

Becoming a hardware maker is a major change of strategy for Microsoft, and it will likely kill any remaining hope that Windows can become a ubiquitous smart phone platform like Android. 

SUGGESTIONS… Limited Mobiles can be released. OS has to be user-friendly. More no of application have to be free of

cost. Upgrade their technology and also use

win-win strategy. Nokia should adopted the new

technology in touch plus making new application like android.  

Nokia should adopt the new styles and using fancy bodies for their mobile sets with beautiful colors.

CONCLUSION Too often, companies mistake their

values, assets or internal processes for a core competence

A core competence is a bundle of skills, technologies and/or strategic assets that is integral to success

Nokia focused on identifying its core competencies, looking for opportunities beyond the boundaries of its current

CONT.. Nokia’s core competencies of finding the

right person, brand development, R&D and mass production have played a vital role in their success

Its leadership position is a result of paying close attention to market needs and taking chances at the right time