CASE APPLICATION REPORT ON NOKIA

Prepared by: Muhammad Hashim Memon (Manager QA

Karachi)
Submitted to:
Muhammad Ahmed Butt
Subject: Principles of Management
Program: EMBA (Project Management) Summer-2015
Case Application Report on Nokia

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Table of Contents
Acknowledgement
3
1. Introduction to the Case Application
4
2. History of the Case Application
4
3. SWOT Analysis
5
4. Management Objectives
6
5. Course of Action
7
6. Recommendation to the Management
8
Annex: A Nokias Contribution to Industry Sales Region Wise
9
Annex: B Cell Phone Satisfaction Rating
10

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ACKNOWLEDGEMENT
I have searched for the definition of success, in the
context of leading a successful life. It turns out that there
are as many definitions as there are seekers and that
success lies as much in the attempt as in the
achievement. - Robert Frost
Feeling gratitude and not expressing it is like wrapping a
present and not giving
it. - William Arthur Ward
First and foremost, I Thank the Almighty ALLAH for sustaining the
enthusiasm with which I plunged into this endeavor.

I avail this Opportunity to express my profound sense of sincere

and deep gratitude to many people who are responsible for the
knowledge and experience I have gained during this case
application report

Muhammad Hashim Memon.

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1. Introduction to the case application

The market share of Nokia in United States market has shown
huge decline 35% March 2002 to 7% only in June 2009.
2. History of the case application
Nokia is the world's largest provider of mobile devices; a leader in
equipment, services and solutions for network operators; and a
driving force in bringing mobility to businesses. Nokia is about
enhancing communication and exploring new ways to exchange
information. In short, Nokia is about connecting people.
The problem began with the introduction of the IPhone in 2007 by
Apple, which set a new trend in the market. In order to return to
the market leadership position, Nokia entered into partnership
with Microsoft. Threatened by the rapid loss of market share to
rivals, Nokia created series of Smartphones called Nokia Lumia.
Nokia bet on these products to regain its lost market share.
However two years after the partnership, with 9 Lumia products
out in the US market, the company has not achieved its goal.
Nokia admitted that their sales were slowing. The reasons for this
decline were various, some of which are listed below. They
contain lessons for any company, especially market leaders like
Nokia.
While Nokia still does well in other countries, it has recently
struggled in the US. Nokias biggest mistake in the US was
that it did not realize the change in the customers taste and
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the trends of shifting into smart phone. Nokia thought it

knew better what the customer wanted than the customers
themselves. Seeing the buzz created by the IPhone by Apple
in 2007, Nokia neglected the growing fondness for apps and
touch screens and believed that its products were superior.
Nokias second mistake is its ignorant attitude to
competitors. Despite the new competitors have entered the
market, Nokia was still using its old strategy without any
change or development process to it, and also did not offer
any new initiative phone to the consumers. It was just
forecasting the good to come and didnt anticipate any
competitor in its industry.
Another mistake has to do with the different technologies
used by cellphones (GSM vs. CDMA). Nokia was initially slow
to adapt to the technology currently used by a majority of US
cell phone users that is CDMA.
3. SWOT Analysis
SWOT analysis is a way to monitor companys internal and
external environment, it is the overall evaluation of the strengths,
weaknesses, opportunities and threats.
Opportunities
Economic condition of USA apparently will be moderately
stable in 2009.
Nokia is obliging existing laws
The policies being formulated by government related to
industry remain consistent.
The emerging market for high-end mobile phone such as
business user phone.
Nokia is one of the first companies to provide Windows
phone
Threats

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 Nokia is facing a huge competition in the Smartphone

market from Samsung, Apple, HTC and Motorola.
Lost Market Share
Industry is facing social shift in terms of lifestyles
The company is illiterate to take of social shift
The industry subject to frequent passage of industrialization.
Industry is facing fast transformation of technology
Nokia should be equipped to take cate of technological
transformation.

Strengths
Nokia has been one of the most respected and well-known
companies in the mobile phone market
Nokia is maintaining good company relationship with
suppliers
Nokia is maintaining good relationship with CBA (Collective
Bargaining Agent).
The production process and systems operation management
are up to the mark.
Decentralized company structure, innovative and creative
employees and Charismatic strong leader, such as: Jorma
Ollila.
Strong brand name and company image in the global
market.
Weaknesses
Customer have become savvy and they are migrating where
the can find a value.
Nokia is facing fierce competition.
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Nokias position against competitor is getting weak

Nokias global position is getting weak
There is complete mismanagement in the management
Management needs improvement
HR needs improvement

4. Management Objectives
This report begins by understanding the goals of the company in
the smartphone market. From this analysis it becomes clear that
one of the main objectives for Nokia is to regain its lost market
share, and return to the leadership position in the Smartphone
market. The company mainly counts on the partnership with
Microsoft, and on its Lumia smartphones to achieve this goal. The
analysis moves on to exploring the external and internal
environment of the company. Nokia has its main strength in its
brand and loyal customers, and it has opportunities in creating
innovative ecosystem with Microsoft. The company main threat
comes from the existing rivals in the industry.
From the analyses it becomes clear that for the introduction of
Lumia 920, Nokia has implemented differentiation strategy. Nokia
targets the mass market with differentiated marketing mix. This
strategy is successful as the product is much differentiated in the
product and price components of the marketing mix. The market
leader in Europe-Samsung also uses this strategy with its flagship
device. However compared to Samsung Nokia has not done so
well with its mid-price range devices. Lumia 820 and the rest of
the Nokia Lumia products seem to use the same introduction
marketing strategy. For these products Nokia has decided to use
segmentation strategy. This strategy implies that the company
targets smaller market segments, by recognizing the needs of
these groups of customers. However by looking at the marketing
mix it does not become clear, which market segments are the
different products targeting. Nokia has not positioned its products
well and customers may not be able to recognize, which product
suits them best.

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However, the overall management objectives should be included:

To provide products and services that meets the needs of
customers and consumers.

To make strategic partnerships with suppliers

To create an inclusive workplace that welcomes men and women
of different cultural or ethnic backgrounds, skills and abilities,
lifestyles, generations and perspectives.
To adhere to strict privacy standards when we store or process
personal data, and when we develop new products and services.
To minimize the environmental impact of products at every stage
of operations, beginning with the extraction of raw materials and
ending with recycling, treatment of waste, and recovery of used
materials.

5. Course of Action
The following two strategies are suggested:
To develop next-generation cell phones (Smart phones) for
US market.
To make strategic partnerships with suppliers.

6. Recommendation to the Management

In order to be successful, the management should develop nextgeneration cell phones (Smart phones) for US Market and to make
strategic partnerships with other suppliers to achieve the
management objectives that are to regain its lost market share
and position itself as market leader.

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Annex A: Nokias Contribution to Industry Sales Region Wise

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Annex A: Cell Phone Satisfaction Rating

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