NOKIA

CREATED AND PRESENTED BY

DULVAN
INTRODUCTION TO NOKIA
Founder was Fredrik Idestem

Previously started as paper, rubber and

cable industry

In year 1967, electronic section was

founded

In late 1970’s, Nokia involved into

telecommunication industry
GROWTH OF NOKIA

Early investment
in GSM Between 1996 to
technologies made 2001, Nokia’s By the end of
the company the turnover Symbian was Nokia used Linux 2011, Nokia got
largest mobile increased from The growth This was Nokia’s Nokia’s smart in some internet into an alliance
phone £6.5 billion to £31 continued at its best-selling phone phone operating tablets and in the with Windows and
manufacturers. billion. peak until 2011. world wide. system until 2011. Nokia n900. Android.
CURRENT SITUATION OF NOKIA
Loss of market share in 2007, due to the official
launch of iPhone. Nokia continued to be outsold.

In 2010, 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.

CURRENT SITUATION OF NOKIA

Alliance with Android and Windows

Launch of Lumia came into existence in 2011.

Some phones of Nokia came with Android operating

system.

Alliance helped in increase in sales.

FINANCIAL CRYSIS IN NOKIA
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.
Company’s inability to foresee the
rapid changes in mobile industry were
on off their problems.
SWOT ANALYSIS
• Experience.
• Largest network of selling & distribution.
• Strong customer relations due to history of Nokia.
• Wide range of products for all classes of people.
• Most of Nokia’s highly qualified personnel have teamed up with Microsoft’s experts as a part of the
acquisition deal.

STRENGTHS
• The phones provided by Nokia have a much higher re-sale value compared to other mobile phone
brands.
• Many of Nokia’s products are easy to use and are usually coupled with a variety of handy accessories.
oPPORTUNITIES

• Low voice quality

• Less stylish in low priced Products.
• The company, is often criticized for poor after sales services.
• Took a long time to enter the highly productive and booming smartphone market. As a result the
company lost a lot of its once huge market share.
• Some of Nokia’s products are not affordable for middle- and lower-class consumers, which often
affects their searches negatively. T HREATS

WEAKNESS
• The Finnish mobile company has made comparatively lower profits due to drop in sales that result from
tough competition. According to statistics, the company’s profits have fallen by 7% in the second
quarter of 2014.
• There are slumps in the company’s development with its Windows Lumia range of smartphones
because of constant competition from rival's Android and iOS.
SWOT ANALYSIS
• The Microsoft Nokia deal is a win-win situation for both companies. The deal
possesses great opportunity if both utilize resources in a proper way.
• They have the to expand the range of products and their prices also bring in new
features and applications on to Windows OS.
• New growth markets such as smart tech.

S
TRENGTHS
oPPORTUNITIES • Concentrate on Smartphones more.

• Strong competition from other smartphone companies will make it hard for
Nokia to maintain and expand their market share.
• Low-cost threats by China mobile companies and others can cause big problems.

W EAKNESS
• China mobiles – It has made exact copy of Nokia
• Competitors like Samsung & Apple

THREATS
• Sales may decline due to global Economic downturn
• Standard & Poor downgraded Nokia with low grade.
PESTEL ANALYSIS
POLITICAL
ECONOMICAL
FACTORS
FACTORS
The company is based in the European nation of
Finland, but the Finnish government has refused to give
it a bailout or special favors. This forced Nokia into an
uneasy alliance with Microsoft that has since fallen
apart.
Nokia lacks strong government support because it is
based in a small country. This can both help and hurt the
company because it is not associated with a major
power, but it might lack the political clout of American-
or Chinese-based rivals.
Political unrest or other changes in China could disrupt
production and limit Nokia’s manufacturing capabilities
in that country. This could force it to move production
to higher-cost locations such as the United States.
Nokia suffered heavily from the European downturn of
recent years. Economic turmoil in Europe has hurt it badly
by limiting buying power in its home markets
Unlike Apple, Nokia has had a hard time tapping into the
fast-growing Chinese market.
Nokia also lacks the vast economic resources available to
some of its competitors, such as Google, Apple and
Samsung.
Nokia seems to lack the research and development
capabilities that have enabled these companies to develop
new devices and tap new markets.
One reason why it lacks those capabilities is that Nokia
simply does not have the money to finance extensive
research and developments efforts like its competitors do.
PESTEL ANALYSIS

TECHNOLOGICA
SOCIAL/CULTURAL
FACTORS

L
FACTORS
Major cultural factor that has hurt Nokia has
been the widespread adoption of smartphones
and the growing use of apps.
Many of the most popular apps, such as
WhatsApp, are designed for more popular
operating systems such as Google’s Android
and Apple’s proprietary iOS.
Nokia’s decision to utilize the Microsoft
Windows Phone instead of Android limited its
appeal to many customers.
The development of open sourced operating
systems such as Android and the invention of
apps radically changed the mobile phone market.
Mobile phones were transformed from simple
communications devices into handheld
computers.
The problem was compounded by Nokia’s
decisions to utilize the less popular Windows
Phone operating system and to stick with its own
operating system. This limited customers’ choices
and made it difficult to sell Nokia products to
younger consumers
PESTEL ANALYSIS
ENVIRONMENTAL
FACTORS
LEGAL
FACTORS
Nokia is faced with the problem of safely and
economically disposing of its used products in
an environmentally friendly manner
Another environmental concern that could
affect Nokia is increased costs for materials and
components, particularly lithium for batteries.
Increased demand for lithium for other uses
such as electric cars could limit its supply and
raise costs.
Nokia’s legal environment is extremely
challenging because it operates within the
European Union.
That body’s regulators have been investigating
Google’s use of Android for a possible antitrust
case. EU action against Google could lead to
radical changes in Nokia’s market, such as
Android being spun off into a separate company.
One possible game changer could be that popular
Google solutions such as Gmail could be taken
off of Android, which could limit its popularity.
INTERNAL ENVIRONMENT
Employees
Nokia company need to find the good suitable perfect staff
and should motivate those employees into their business.
Nokia company has main competitor like Samsung, Sony
Ericson, Apple Handset and due to the best employee
support the Nokia business get more increase in the
international business.

Shareholders
The Nokia greater business organizations
required good stakeholder to increase their
growth of the business economy, the
customer satisfaction also important factor
for the Nokia, The Nokia company giving
good share to their own employees and the
consumer.
INTERNAL ENVIRONMENT
Regulators
We have been in touch with the world environmental
organization to minimize the wastage and to recycle the
used/waste/old mobile phones where they have awarded us
for being non harmful to the environment and we have been
regulated for using nontoxic physical technology.

Strategic Partners
In recent years Nokia suffered many losses
due to lack of partners and for outdated
technology but we have changed, we have a
partnership with Google for sharing the
ANDROID OS technology and there are
more agreements we are going to plan to do
so in next year
NEW PRODUCT OFFER
& TARGET AUDIENCE
Objectives for the new product
offer target audience
Objectives New Product offer
Discover a better mobile experience
 Integrating key partnerships(Zeiss)

 Unique classic re-innovated classic product line & benefits

Deliver the extraordinary

 Integrating Network capabilities(5G/Industrial grade Private Wireless)

Enhancing Consumer Products

 (Health sector etc.)
NEW PRODUCT
OBJECTIVES
Focus on seamless Software
update/Enhance Performance
A Strong Product Offering at a
good price
Quick in getting the Product to
Market
Focus on Effective Partnerships
TARGET AUDIENCE
College Students & Millennials
between age 18-26 years

Trend setters
(Technology oriented, males want latest gadgets and
functions)

High-fliers
(Career oriented, people, want efficiency, heavy use of
text and data)

Social contact seekers

(Family and friends use mobile for personal use)

Posers
(Want to impress others, trendy, fun-loving)
 “OUR GAMEPLAN”

Marketing Strategy
Overview
Projected regains in Market share with a strong Strategic game plan.

Quality and affordability with advanced features on offer.

Positive Growth Potential based on target customer segments and Markets

Established,
Reputed, Positive
Growth

TARGET
POSITIO
N
Time
Product Strategy
Vision Mission
Connecting People Create a new world

Nokia’s
Nokia’s poor
poor product
product design
design which
which did
did
not
not attract
attract consumers
consumers

Shifted
Shifted focus
focus on
on windows
windows as
as its
its
main
main OS
OS

Strong
Strong Dependence
Dependence on
on brand
brand equity
equity

Changing
Changing technological
technological Enviroment
Enviroment
Delivers the Extraordinary

What we do?
“We create the technology (5G) to connect the world”.
360-Degree Live Experiences
Bandwidth
The enhanced bandwidth of 5G
supports data-intensive
applications such as augmented
and virtual reality
Virtual Reality (VR) Augmented Reality
User Experience Edge Computing
Ultra-reliable latency Nokia’s multi-access edge
communications (URLLC) and computing (MEC) platform
processes data at the edge of the
network slicing ensure a great user
network, reducing latency to
experience deliver optimal
In-vehicle Infotainment Road safety and Automated driving Managed Connectivity

Bandwidth Edge Computing

The enhanced bandwidth of 5G
New Radio enables richer
infotainment and more immersive
in-car entertainment experience
Nokia’s multi-access edge
computing (MEC) platform puts
processing power at the edge of the
network, for faster gaming and
higher quality video
 Revolution in Artificial Intelligence

Guaranteed Performance Massive connectivity Edge computing

For safety-critical applications, 5G 5G supports a much higher density of 5g inherently supports flexible,
enables service providers to connected devices, so robots and distributed could-centric
guarantee low latency and high process automation systems can scale networking
reliability out effectively.
 Improving patient outcomes with Connected Healthcare

Guaranteed Performance Ultra-wide bandwidth Massive connectivity

Using network slicing, operators can
guarantee bandwidth and low
latency, to enable remote surgery
and other performance-critical
applications
Support high-resolution video streams
using Mobile Broadband (Embb) to help
communications within the hospital, and to
bring connected healthcare to rural
communities
5G Supports a much higher
density of connected devices,
enabling patient monitoring and
robotics applications across the
entire hospital
Connecting homes and
businesses with 5G

Ultra-wide bandwidth
Enable data-rich applications and
compelling digital media in the
home

FIXED WIRELESS ACCESS

Low Latency
5G delivers the speed required for high-end
gaming, the most latency-sensitive
entertainment use case.

Save Money
No site visit required. Customer can install
their own routers, helping mobile operators to
connect customers more cost-effectively.
AUTOMATING
REROUTING MARKET
SHARE
Health-care
• Largest line of connected consumer healthcare
products
• Intermediate competition
• Partnered with renowned medical institutions
PRICING STRATEGY
• Pausing Quarterly Stock (NOK) Prices.
• Price Skimming
• Penetration Pricing
• Economy Pricing
PROMOTION STRATEGY
Nokia has invested in ensuring that their products reach their
target market is advertising. They use:

Electronic Digital Social

media media media

High customer satisfaction also gives them an

edge since it encourages word of mouth
marketing worldwide
PLACE STRATEGY
Partnerships with Dealers
Nokia has ensured that they have established partnerships
with various dealers across the country to make sure that the
customers get easy access to the phones of their choice.

Distribution Outlets
They have also established distribution
outlets across the country to make it easy for
the supply of the handsets to all corners and
to enable their customers to buy the products
without difficulty.
 Activation plan
and budget

• Current successful financial and non-financial Activators

• Objectives/Focus for YOY Growth

 FINANCIAL OBJECTIVE
PERFORMANCE
ACTIVATORS
Recent STATS & Performance 2019
Net Cash (Euro)
x
Non IFRS diluted EPS of EUR 0.22

1st Qtr
2nd Qtr Strong net sales and Operating margin
3rd Qtr inQ4
4th Qtr

Net Cash Flow of EUR 1.7B driven by Q4

Free cash flows of EUR 1.4B
 Click icon to add picture

• Strong momentum in Expansion

NON- • 5G deals of 66 commercial deals
FINANCIAL and 19 live networks
• Strategic focus Areas : Software and
Enterprise

• Year-on-Year operational
improvement expected
Win rate %
5G Powered by Reef shark
“Approximately 10% of our 5G
product shipments in Q4 2019”.
4th Qtr
2nd Qtr
5G Win rate
3rd Qtr
1st Qtr “end of Q4 outside China >

4G/5G Mobile radio market Share

“27% Peak”
OUR FUTURE FOCUS (YOY)

Execute Profitability in mobile access

Generate Cash

Secure long - term Value

1. Execute in Mobile Access

How?

Improve Operational/ Further Strengthen

Reduce Costs
Commercial Operational
E.g., Economical Maintaining Scale
Management Performance in
Pricing Strategies Services
Discipline
 Expected Full Year 2020 recurring

2. Generate Cash
free cash flow:

POSITIVE

How?
Recurring free cash flow
1. 2. 3.
Positive Expectations through Improvements in, Adjusted Net Working Restructuring
cash outflows
net profit Capital
Net working capital performance
Improved operational results
4. 5. 6.
Factors Interest Taxes Capex
received/
paid
 3. Secure long-term Value

How?
Leverage and Develop Assets

• Comprehensive Portfolio of Access

• Software
• Enterprise
• Patent Licensing
NET SALES

Financial Results Q4 & 2019

POSITIVE RATIO
BUDGET COST
(Euro in Million)
2018 2019 2020/2021

Networks 46 254 402

Nokia Software 1 7 10

Nokia Technologies 274 302 502

(Device Costs) & Other 83 100 203

Operating Margin % 10.4% 6.8% 12.4%

MARKETING RESEARCH METHODS
Having outlets in crowded places serving
questionnaires and trivial interviews.

Having customer care call in customers and other

people about what they would rather prefer and what’s
best for people.

Having online surveys where people can report in the

comfort of their homes or any location any time.
 Advertising

Television Newspaper Magazines

Billboard Internet Sponsored Events

MEASURES OF GAINING
STAKEHOLDERS
Stakeholders are the major part of an
organization, alas Nokia always tries to
negotiate with their customers, suppliers and
shareholders. The company policy tries to give
its shareholders bonus share, dividend and
premium share so that investors feel secured
about investments. Nokia tends to give its
suppliers advance payment, but with a
competitive price.
THANK YOU!
 REFERENCE

https://www.forbes.com/sites/charlesrtaylor/2019/12
/01/nokias-customer-focus-is-bringing-back-smartph
one-customers/

https://businessays.net/the-target-market-of-nokia/

https://www.econstor.eu/bitstream/10419/101414/1/
794346243.pdf