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NOKIA CORPORATION CASE STUDY

NOKIA CORPORATION CASE STUDY. Melisa Anderson Alex Amber Vivian . Introduction. Based in Finland Employ nearly 130,000 people in 120 countries 38% of market share in 3 rd quarter of 2009 Number one in the world for cell phone sales. History. Started as a paper mill in 1865

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NOKIA CORPORATION CASE STUDY

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  1. NOKIA CORPORATIONCASE STUDY Melisa Anderson Alex Amber Vivian

  2. Introduction • Based in Finland • Employ nearly 130,000 people in 120 countries • 38% of market share in 3rd quarter of 2009 • Number one in the world for cell phone sales

  3. History • Started as a paper mill in 1865 • Near bankruptcy after World War One-joined with rubber works and cable works • First electronic device-pulse analyzer • Kept diversifying product line-eventually producing radios, TVs, and computers • 1992-changed strategy and focused only on telecommunications

  4. Industry Analysis • Economy • People are saving money-spending less • 2009 first quarter cell phone sales down 8.6% from a year ago • Households omitting landlines-using only cell phones • Barriers to enter are high • Fierce competition

  5. Industry cont. • Companies struggling to expand • Nearly billion people own a cell phone • Motorola went from 2nd largest to 5th largest in 2007 • Health risks are threatening to industry as a whole • No proven facts that cell phones cause cancer • On-going studies conducted

  6. S.W.O.T ANAYSISStrengths • Nokia has ten series of cell phone; eight of them are used Symbian operating system. • all models in N series and E series are used Symbian S60 OS • Nokia Corporation purchased Symbian, Ltd in 2008 • High quality and solid shell • The funny Nokia 1100

  7. Weaknesses • Nokia’s market share in North America is only 10 percent. • Firstly, Nokia didn’t have so much advertisement in America • Secondly, more than 90% of Nokia’s cell phones are in GSM net. • Thirdly, Nokia’s designs are not suitable for American customers. •  The last but also the most important reason is telephone services providers. • Nokia in T-mobile

  8. Opportunities • Smartphone is the future trends of cell phone. • The future trends of Smartphone are Touch Screen Smartphone and QWERTY Keyboard Smartphone. • High price, high quality, high tech and numerous functions but also mean high profits.

  9. Threats • It is reported that Nokia’s market share of Smart phone was 35% in the third quarter of 2009. • Although an unlocked Iphone’s price is more than $700 dollars, but customers could only spent $199 dollars buy an Iphone with two years AT&T services.

  10. Current Situation • Great Reputation • New Attempts • New Competitors • Great Advantage on Market share

  11. Nokia in Europe • The Emergence of Competitors • Intellectual Property Disputes • Concern on Expanding Business

  12. Nokia in north America • Outmoded Design • Ineffective Cooperation with Operator • Losing the Smart Phone Market

  13. NOKIA IN ASIA • Nokia in China -3G market -Domestic Competitors • Nokia in India -Accusation of After Service -Walkout

  14. Apple Inc • April 1，1976 • Steve Job，Steve Wozniak & Ronald Wayne • Cupertino, California, United States • Revenue: US$32.48 billion (FY 2008) • Net income: US$ 4.83 billion(FY 2008) • Employees:35,000 (Q1 FY 2009) • Products • iphone (January 9, 2007)

  15. Apple Inc • Strength 1.Operating system 2.Design

  16. Motorola • 1928 • Paul Galvin & Joseph Galvin • Headquarters: Schaumburg, Illinois, United States • Revenue: US$ 30.146 billion (2008) • Net income: US$ -4.244 billion (2008) • Employees:64,000 (2008)

  17. 2006 Motorola • current situation

  18. Samsung • 1938 • Lee Byung-chul • Headquarters: Samsung Town in Seoul, South Korea • Revenue: US$ 173.4 billion (FY 2008) • Net income: US$ 10.7 billion(FY 2008) • Employees:276,000 (Q1 FY 2009)

  19. Samsung • Marketing Strategy • Sports marketing • 1988 Seoul （24th） • 1998Nagano（18th winter ） • 2000 Sydney（27th） • 2002salt lake city（19th winter ） • 2004Athens （28th） • 2006Turin （20th winter ） • 2008Beijing（29th）

  20. Short-term recommendation • Enhance Cooperation with Operators in North America • Smart Phone Market • Learn from Competitors

  21. Long-term recommendation • Enhance Cooperation with Operators • Changes on Operation System • Meet Consumer’s Needs • Diversity

  22. Conclusion Any questions? Thank you!

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