Causes Of The Collapse Of Nokia

Threats: Nokia phones once dominated the phone market. However, it failed to see the threats from smartphone and the new phone manufacturer, and thus the brand Nokia faced serious strike and almost disappeared until recent.

Nokia’s aggressive strategy to dominate mobile communication cluster would be the main reason how Nokia could become a world leader in the sector among other reasons. Nokia’s passion for mobile communication industry was great enough to give up more than 40% of its revenue in is pre-owned communication industry to concentrate only in mobile communications. Nokia was also lucky enough to see the possibility of mobile communication early enough to predominate the industry and prevent any competition from

In terms of power for each company we should note that both companies have different resource powers that can be used. Microsoft has the money portion of power covered in order to purchase the supplies and resources needed to produce the phones. On the other hand, Nokia has power in regard to human capital who has extensive knowledge on their hardware as well as the critical services, which includes maintenance, repair and technical support.

Nokia, a company which was founded in 1865, set up wood pulp mills to rubber, cable, forestry, electronics and power generation. Upon entering the telecommunications equipment market in the 1960s, it concentrated in the producing radio transmission equipment. It started making phones in the 1980s and in 1991 the first GSM call was made with a Nokia phone and it supplied these GSM networks to other countries in Europe. But In the early 1990s investments in all industries except telecommunication operations were being divested, which led to Nokia being the world leader in the mobile phones industry for nearly a decade, one of its most popular phone being, the Nokia 3310, termed as “indestructible” by comedy website 9gag.com. Nokia

Nokia is one of the oldest companies that developed the mobile phones since the 20th century. It has taken a place on the top of most sold mobiles all over the world because it has a unique features, high quality products and affordable coasts. Suddenly after the smart phones established to the mobile market with new operating systems, Nokia was trying to follow up this evolution but unfortunately it has been beaten by its competitors whom are new in this market. Nokia and Microsoft made a deal to resumption the Nokia brand reputation as it was before as well Microsoft can use the large base of Nokia customers to enter this market.

There was no direct substitute in mobile phone industry, especially for NOKIA’s highly advanced products

From Nokia’s vision and mission statement it can be inferred that Nokia wants to be known for its credibility and to be a market leader again as it was before the year 2007 (Kess, 2014). Nokia understands that the company has to use innovation to offer products that are not yet

From a papermill company founded almost 150 years ago, Nokia is a multinational communications corporation that is headquartered in Finland and engaged in the market of manufacturing of mobile devices and

Ecobus Marketing Coursework - Nokia - The Wireless Giant Ecobus Marketing Coursework "Nokia - The Wireless Giant" Introduction & Purpose For this coursework, I have decided to study the wireless giant, Nokia. Nokia is, unarguably, the leader in the world of mobile communications. The brand boasts a significant number of users from around the world, ranging from Europe to the Americas, and from Africa to the Asia Pacific. Nokia's success has been aided by its experience, innovation and its user-friendliness and thus, has become the leading supplier of mobile phones and other related products around the globe.

The alliance between Nokia and Microsoft provides many benefits to both organizations. Nokia’s Chief Executive Officer (CEO) Stephen Elop initiates the alliance with Microsoft in order to grow after Nokia was losing market share to Google and Apple. The alliance was also appealed to Microsoft, since they were looking into the future of the smartphone industry and there particular industry. The current standing was that Nokia was still the market leader, even though they were losing ground to the competition due to the aging technology. At the time of the alliance was announced it is clear that both firms needed each other. Microsoft brought capital to inject into the alliance and technological advancements, while Nokia brought market share and brand reputations.

Nokia which is headquarters is located in Finland is a global telecommunications equipment manufacturer (Kwong & Wong, 2011). Stephen Elop the new CEO of Nokia announced a new mobile strategy to adopt Microsoft’s new but unproven Windows phone as its primary smart phone operating system (Kwong & Wong, 2011). The day of his big proclamation the stock market to a 14 cent dive. Vertu was the luxury mobile phone that was founded by Frank Nuovo in the 1990’s.

Microsoft is the most established software giant and Nokia is the company that is the icon for electronic and communication equipments. Microsoft had a partnership with the computer manufacturer IBM that made the software of Microsoft from DOS to modern Windows 8 famous and most used. The same underlying principle of symbiosis has been used inn this alliance. There are many reasons why Microsoft had to enter the cell phone industry. Arch Rival Apple came out with the iPhone and revolutionized the mobile world. Though the gadget was not a direct competitor, Microsoft was out of a huge potential market, namely the mobile segment.

As illustrated, failing to capitalize on the growing demand for smartphones, Nokia’s smartphone market share has been on a steady decline for the past 4 years in the smartphone-hungry North American market (Strategy Analytics, 2012).

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product

Nokia is a Finland- based company. They come into the field of telecommunication industry 1960. Since then, Nokia has grabbed their exclusive place as a market leader. Their incessant effort to grab their place in innovation and technology has helped them to attract customers like a magnet.