NOKIA

ANALYSIS OF THE FALL AND RISE

ZEESHAN AHMED
CE-084/15-16
FALL SEMESTER, 2017
CONSTRUCTION MANAGEMENT (EVENING)
Content of Presentation

 Brief History of NOKIA

 NOKIA Logos
 NOKIA as a Company
 Competition in Market
 The Tumble down of NOKIA
 Causes of Fall
 Rebirth of NOKIA
 Porter’s Five Force Model
 SWOT Analysis
 Conclusion
Brief History of Nokia

Nokia became
world leader in
Nokia 1011 was mobile phones,
Launched, 1992 1998
3rd Largest TV
Manufacturer,
Nokia 1987
Corporation
Partnership with (1966-1992)
Finnish Cable
Nokia Pulp Mill Works and
on Nokianvirta Finnish Rubber
river, 1865 Works, 1922
NOKIA LOGOS

Nokia Osakeyhtiö logo, Finnish Rubber Works Nokia 'Arrows' logo, (1966-
1865 logo, 1965 1992).

Nokia introduced
Nokia updated the
its "Connecting People“ Nokia's current logo, 2011
slogan typeface in 2005
slogan in 1992
NOKIA as a Company

 Nokia Corporation, is a Finnish multinational communications, information

technology and consumer electronics company, founded in 1865.

 Nokia's headquarters are in Espoo, Uusimaa

 The company has had various industries in its 152-year history.

 It was founded as a pulp mill, but since the 1990s focuses on large-scale
telecommunications infrastructures, technology development and licensing.

 Nokia was for a period the largest vendor of mobile phones in the world, having
assisted in the development of the GSM, 3G and LTE standards
NOKIA as a Company

 In 2016, Nokia employed approximately 101,000 people across over 100 countries,
did business in more than 130 countries, and reported annual revenues of around
€23.6 billion.

 Nokia is a public limited company listed on the Helsinki Stock Exchange and New
York Stock Exchange.

 It is the world's 415th-largest company measured by 2016 revenues according to the

Fortune Global 500.
Competition in Market

 Competition started when Apple threatened Nokia by developing

the new iOS system for its I-Phones

 Nokia primarily failed to innovate attractive technology

 Nokia was clinging onto Symbian OS for too long

 The software being developed were old

 Newer concepts such as User Experience and User Interface were

being neglected

 As Android and iOS became more popular, Nokia and its windows
phones failed to attract any attention
The Tumble down of NOKIA

Competition Started
Competitors
took over
The Tumble down of NOKIA
The Tumble down of NOKIA
Causes of Fall

 Not prepared to Change from Hardware to

Software competence
 Lack of innovation
 Unlike iPhone or Samsung, Nokia Symbian was:
 complex, tough
 not user friendly
 Inadequate assessment of the market
 Symbian to Windows & not Android
 Afraid to publicly acknowledge the inferiority of
Symbian
 Nokia people weakened Nokia people
Causes of Fall
Elop Effect
 Stephen Elop took charge on September 21, 2010

 Stephen Elop was working with Microsoft’s Business

Division before moving to Nokia.

 During the 3 years Elop was Nokia CEO,

 Nokia revenues fell 40%

 Nokia profits fell 95%

 Nokia market share collapsed from 34% to 3.4%

 Nokia's share price dropped 60% in value

 Nokia's credit rating went from AAA to junk

Causes of Fall
Elop Effect
 In his era, Nokia decided to stick to only and only
Windows OS while Android was a free alternative.

 After the fall of Nokia, In 2013 Microsoft purchased

all the all Devices & Services business of Nokia

 While all this happened, Stephen comes back to

Microsoft as VP of Microsoft's Devices & Services
business unit and gets a signing bonus of $25
Million
Rebirth of NOKIA

 The Nokia returned to the mobile and smartphone market through arrangement with
HMD Global, a new company founded by former Nokia executive.

 HMD subsequently announced the Android-based Nokia 3, Nokia 5 and Nokia 6

smartphone, as well as a re-imagining of Nokia's classic 3310 feature phone.

 On 28 June 2016 Nokia demonstrated for the first time ever a 5G-ready network and
In February 2017 Nokia carried out a 5G connection in Oulu, Finland.

 Nokia is taking a ‘multi-pronged approach’, where not just a single line of products
will be a part of the plans in the near future.
Rebirth of NOKIA
Restructuring
 Some golden rules for the board work were laid.

 First - was to assume the best of intentions from others and to be honest about bad
news. (bad news is good news, good news is no news, and no news is bad news)

 Second - was to be a data-driven board and to work harder than normal boards do.

 Third - is that any meeting where we don’t laugh out loud is a complete failure.

 Currently the number of employees at Nokia are around 106,000, but over 99% of
them did not carry a Nokia badge just three years ago.
Rebirth of NOKIA
LOOKING FORWARD
Porter’s Five Force Model

Threat of Entry
Strong

Bargaining power of Intensity of rivalry Bargaining power

Supplier’s among Existing Firms of Buyers
Medium Strong Strong

Threat of Substitute
Products
Strong
SWOT Analysis
STRENGTHS WEAKNESS
• New Leadership • Complacency and arrogance
• Addition of new & creative employees • Need time to develop customer’s trust
• Strong brand name and history

OPPORTUNITIES THREATS
• The vulnerable markets in developing • Difficult to entre into smartphone market
countries, such as China, India • Strong competition in mobile industry
• Introducer of 5G network • Powerful Suppliers
• Need of a durable Android phone • Demanding Buyers
Conclusion

 Nokia’s downfall is a prime example of what other industries can learn from and
react to innovation coming from outside the industry.

 From Technology perspective, Nokia did not deliver as per expectations

 From the Strategy perspective, it lost in the race against time due to poor strategies
and crafty competition.

 From the organizational and people perspective, the new CEO’s attitude and
competency proved to be fatal for the company.

 However, with the acquisition of Nokia by HMD and the launch of Android based
Nokia handset in 2016, things are starting to progress towards betterment
Thank you
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