Muhammad Qasim Khan

Headquarters At Finland

Contents
Brief History Of Nokia
Reasons For Selling Their Asset
Nokias Failure
SWOT Analysis
Competitor (Samsung) Got It Right
Market Share
Conclusion

Brief History Of Nokia

1865

Wood
Wood Pulp
Pulp
Mill
Mill

1871

Share
Share
company
company

1898

Rubber
Rubber
Business
Business

1902

Electricity
Electricity

1967

Nokia
Nokia
Corporation
Corporation

2012

Market Share
76.1

Market share (%)

41.8

38.5
25.6

23

5.9

GfK-Nielsen for March

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.

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.

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.

Journey towards failure

Year 2006:
Nokia is on a high. It enjoys 60% share of India's
mobile market and is the undisputed lead.
Year 2007:
June 29
Apple launches iPhone 3s.
Redefines smart phone and challenges category
leaders like BlackBerry and Nokia.

Year 2008
March
Micromax sets up handset business in India.

September
Samsung launches Omnia. Becomes dominant in
touch screen phones globally.

Year 2009
June
Android enters Indian market with HTC Magic 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.

Year 2011
February
Nokia announces Microsoft patnership, but it takes 8-9 months to
unveil products.
Meanwhile, Samsung consolidates position while Micromax,
Karbonn, Lava, Spice launch cheaper smartphones.

March
iPhone 4. The iPhone changed the industry in more ways than
one: apps, superlative design and accessories.
But Nokia is still struggling to find traction with Windows.

June
Nokia launches dual-SIM phones, becomes no.1 player in this
space, but it is 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 `7,830; strengthens position in
the low-end smartphone space.

Year 2012
January
Nokia fights back. Launches 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 claims 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 2012
January
Nokia fights back. Launches 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 claims 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 dwindles down to 7-9% as per IDC Asia
Pacific Mobile Tracker in Q4 2012.

March
Lumia 520 (Rs 10,000) launched but Samsung, Micromax move
ahead.

Reasons For Selling Its Assets

Net operating
loss

Loosing Market
Share

Strengths
Experience
Largest network of selling & distribution
Strong customer relation
Wide range of products for all class

Weakness
Low voice quality
Less stylish in low priced products
Heavy sets
Unlike iPhone Apple, Nokia N-series is
complex, tough and not user friendly

Opportunities
New growth markets
Concentrate on Smartphone's
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

Competitor (Samsung) Got It Right

Placed its bet on Android OS for

Smartphone

First to launch what many called an

iPhone look alike

Variety of Smartphone's for different

segment

Samsung Vs. Nokia Mobiles