Project on Research Methodology

Topic
0 Downfall of Nokia Mobile Phones

Submitted To:
Miss Sana Ashraf
Submitted By:
Asim Javed
Bilal Wajid 3375

3374

Acknowledgement
It is our great privilege and opportunity to have a great professional as the
professor guide: Prof. Sana Ashraf, who gives us some quality time to guide
and encourage us in our project.
We would also like to thank the respondents for providing us all the required
information which helped us a lot in our project.
Finally, we thank Hajvery University for giving us the opportunity to do such
a project.

Executive summary
Researcher conducted the survey on reasons for Nokia mobile failure so
researcher finds some major reasons of failure. When every manufacturer is
busy in making touchscreen mobiles, Nokia felt that touch wouldnt have a
scope in the near future so researcher think that in the era of touchscreen
mobile it was a very big reason of destroyed . As mention before so now
researcher briefly discussed some other major reasons of failure in this survey
report.

Table of content
1. Acknowledgement
2. Executive summary
3. Topic
4. Prominent / appropriate finding
5. Introduction
6. Background
7. Methodology
8. Collection & analysis of data
9. Conclusion
10. Recommendation

Topic
Dawn fall of Nokia mobiles

Survey conducted
Survey was conducted on 22nd of March 2016 at Hajvery University
Euro and Main campus.

Prominent / Appropriate finding

o People aware Nokia as a brand
o Results shows that 91% people think Nokia is not a strong brand
anymore

o 82% people believes that Nokia is not describe high class

o And 92% people do not think that Nokia will be at boom in future
Introduction

Nokia is a multinational communications and information technology

company, founded in 1865. In 2014, Nokia employed 61,656 people across
120 countries, conducts sales in more than 150 countries and reported annual
revenues of around 12.73 billion. The company currently focuses on largescale telecommunications infrastructures, and technology development and
licensing. Nokia is also a major contributor to the mobile telephony industry,
having assisted in development of the GSM and LTE standards, and was, for a
period, the largest vendor of mobile phones in the world. Nokia's dominance
also extended into the smartphone industry through its Symbian platform, but
it was soon overshadowed by the growing dominance of Apple's iPhone line
and Android devices. Nokia eventually entered into a pact with Microsoft in
2011 to exclusively use its Windows Phone platform on future smartphones. In
September 2013, Microsoft announced that it would acquire Nokia's mobile
phone business as part of an overall deal totaling (US $7.17 billion). Nokia's
former CEO and several other executives joined the new Microsoft
Mobile subsidiary of Microsoft as part of the deal, which was completed on
April 25, 2014. Since the sale of its mobile phone business, Nokia began to
focus more extensively on its telecommunications infrastructure business. In
January 2016, Nokia acquired French telecommunications company AlcatelLucent to grow their innovation, network equipment, wireless technology and
services.

Methodology
Researcher used different methodology while doing our survey. Firstly
researcher collected primary data. Our sample size was 20. Researcher
collected the data through a questionnaire we designed.

Researcher collected all the data from the field directly because it saves time
and cost. Researcher divided the respondents into two different types like
current users, past users etc. The sample researcher selected belonged to our
institute Hajvery University and we divided it into two types accordingly.
Regarding the information relating to the company profile researcher took the
help of internet.

Data collection
Researcher filed experience was good because survey conducted from
university, so its a coeducation institution. Researcher has two kind of
respondent here, male and female students and they provide authentic
information to researcher about Nokia with their personal assessment.

Data analysis

Nokia Market shares

7
6
5
4

Apple

Samsung
Nokia

2
1
0
2010

2012

2013

Sales of Nokia phones

2014

9
8
7
6
5

smartphones

lumia

symbian

2
1
0
2011

2012

2013

2014

Results
Researcher asked total 18 questions, which we mainly close ended questions.
Out of 18, 8 were answerable in either Yes or No. And the remaining 10
questions had 3 to 4 options for each. The results of the question number 7, 8,
9, 13, 17 and 18which are answerable in either Yes or No are below.

QUESTION #

YES

NO

100%

---

98%

02%

97%

03%

09%

91%

11%

89%

18%

82%

10

50%

50%

11

16%

84%

14

13%

87%

17

02%

98%

o In question number 7 researcher asked that Nokia is a market leader in

the mobile handsets that provides same features as Nokia, but do you
prefer Nokia?
92 % people told that Nokia is a niche.
4 % people told that Nokia is a leader.
And 4 % people told that it is a challenger.
o In question number 8 researcher asked that is Nokia mobiles design
attract you more of other phone?
94 % people were disagreed.
And 6 % people were agreed that Nokia mobile design attract more
than Huawei.

o In question number 9 researcher asked that in your opinion, why Nokia

became decline?
89 % people told that Nokia technology is outdated.
6 % people told that innovation is a reason.
And 3 % people told that due to luxury phones.
o In question number 13 researchers asked that do you want any change
in Nokia software.
89 % people told that they want software similar with Android.
And 11 % people told that they want I.O.S in Nokia software.
o In question number 15 researcher asked that why people do not like
Nokia window phones?
50 % told that, due to Android (Samsung).
And 50% told that, they just like IOS (Apple).
o In question number 17 researcher asked that, what people think on
Nokia mobile for future?
91 % told that they just want creative phones and innovative software.
And 9 % told that, they want smart phone rather than windows phone.

o In question number 18 researcher asked that, is Nokia doing innovation

to make creative their software & technology?
92 % people told that, Nokia works on Android.
6 % people told that, Nokia working on slimmest phones.
And 2 % people told that, Nokia is working on 5G phones for near
future.

Conclusion
Researcher came to know that from near future people do not prefer Nokia
because of mainly its less up to date range of products, availability, durability
and user friendliness. It is facing high competition from other players like
iPhone, Samsung, Motorola etc. Researcher also came to know the strategies
adapted by Nokia to maintain its market position was totally worst strategies.
Researcher also came to know that Nokia brand name do not matters anymore
when person purchase mobile handsets. Other findings are discussed in details
in main body.

Nokia in new age

In 1992, Nokia launches its first digital handheld GSM phone, the Nokia
1011 and in 1994, Nokia launches the 2100 series, the first phones to
feature the Nokia Tune ringtone. The Nokia 2100 series goes on to sell 20
million phones worldwide. Nokias target was 400,000. By 1998, Nokia is
the world leader in mobile phones. Between 1996 and 2001, Nokias
turnover increases almost fivefold from EUR 6.5 billion to EUR 31 billion.

Nokia- The leader in mobile technology

In 1999, Nokia launches the Nokia 7110, a phone capable of rudimentary
web-based functions, including email. Then in November 2001 Nokia
launches its first phone with a built-in camera, the Nokia 7650, and in
September 2002 its first video capture phone, the Nokia 3650.
In 2002 Nokia 6650 is launched with the 3g technology. In 2005, Nokia
sold its billionth phone a Nokia 1100 in Nigeria, and global mobile
phone subscriptions passed 2 billion. Two years later, Nokia is recognized
as the 5th most valued brand in the world.

Why Nokia failed?

o Lunch of Symbian 60 series was the first big reason of collapse

Nokia launched its Symbian 60 series in year 2002 which initially had a
good market response. But in 2007 the introduction of Apple IOS and
Android in 2008, the OS race was completely taken over by the two giants.

The reason for collapse of Symbian OS is lack of applications and UI

(User Interface).
After facing competition from IOS and Android, Nokia continuously tried to
improve their Symbian OS but was not creating something unique. The
company made the biggest mistake to take a leap of faith in Windows in 2011.
At that point of time, the company already was in declining condition and
trusting Windows which was new in the field to regain its status was the
biggest mistake the company made. All these phones which the company
launched were comparable to other competitor devices but OS was the
problem which leads to ultimate collapse of company.

High competition from Samsung and Apple

o Lack on focus on innovation was the second big reason of collapse
Nokia seemed to be last in the race. Where Samsung from nowhere entered the
race and focused on innovation as its core competence to gain the market
share, Nokia was very late to realize this fact. Nokia not only failed to realize
competition from Apple, Samsung, Sony, Blackberry in high end smart
phones, they also failed to notice the high 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.

Time to build high brand strategy

o Failed to identifying this concept
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.

Nokia N series / Lumia series

Nokia N9 vs iPhone 4

Nokia N9

iPhone 4

N9 is a MeGo 1.2 based Smartphone

iPhone is a IOS 4 based Smartphone

N9 has larger screen ( 3.9>3.6)

iPhone has 3.6 larger screen

N9 has internal memory up to 64GB

iPhone 4 has up to 32GB

N9 has RAM memory 1GB

iPhone 4 has 512mb

N9 has class 33 EDGE/GPRS

iPhone 4 has class 10

N9 has HSDPA up to 14mbps

iPhone has HSDPA up to 7mbps

N9 supports Java

iPhone does not

Redrafting strategies
In 2011, Nokia joined forces with Microsoft

to

strengthen

its position in the smartphone market. The strategic

partnership saw Nokia dump Symbian OS and adopt the
Windows Phone operating system and establish an alternative
ecosystem to rivals IOS and Android. But it was too late. In September 2013,
Nokia announces that it has entered into an agreement with Microsoft whereby
Microsoft would purchase substantially all Devices & Services, the Nokia
business which makes mobile phones and smartphones.

Results
During the 3 years Elop was Nokia CEO,
Nokia revenues fell 40%, Nokia profits fell
95%, Nokia market share collapsed in
smartphones from 34% to 3.4%. Nokia's
credit rating went from AAA to junk,
Nokia's share price dropped 60% in value and Nokia's market capitalization
lost a minimum of $13 Billion in value. The Financial Times calculated that
Nokia shareholders ended up paying Elop a bonus of 1 million Euros for every
1.5 Billion in market capital that Elop was able to destroy while Nokia CEO.

Year 2013

Nokia's market share is down to 7-9% as per IDC Asia Pacific Mobile Tracker.