Noki The World Leader Of The Mobile Phone Market

In 2013 Microsoft has announced a € 5.44 billion acquisition of Nokia’s hardware and services, including mobile phones, equivalent $ 7.2 billion. The deal was completed in the first half of 2014 and was supported by Nokia shareholders. Nokia's human resources operations in 50 countries around the world were available to Microsoft. There were also some factories with design, development, production, marketing and sales of smart devices, universal phones and services

Software: Microsoft dominated only 12% of the market with its Windows Mobile OS and BlackBerry OS held a meager 11%. It stepped up to refurbish its marketing attempts and provide end-to-end solution for its Windows Mobile enables phones with new user friendly features.

Throughout this essay I will explain why I believe that over time the smartphone market will become much more focused on the platform of which the devices are built around and less focused on the actual hardware of the phones. I will be explaining these points based on my understanding of economics thus far in my studies as well as researching to find points to support my arguments I put forward throughout the essay. The smartphone market is currently being dominated by many firms making this a monopolistic competitive market. The market became very popular in 2007 when Apple who, in August 2015, was recorded with a market share of 13.9% (IDC: Smartphone vendor market share) brought out the iPhone. Apples biggest rival is Samsung and Samsung was recorded with a market share of 21.4% at the same time who currently is the leader of the worldwide market. Google created the Android operating system (OS) in which Samsung currently uses. However, Samsung is not the only firm that uses Android OS as the platform for their smartphones, Google provides the operating system to other firms such as LG, HTC and Motorola.

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

They will focus on Nokia’s key business areas: high-end smartphones and mass-market mobile phones. Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.

One of the ways that cell phone companies maintain profits and increase assets is through the addition of new and emerging technologies to cell phones. Considering that computers and the Internet are highly sought after, the wireless companies incorporate access to fast-speed Internet through their

But, which are the main reasons Microsoft lost that relevance in the smartphone sector? And why are they still not able to develop a competitive smartphone? This paper presents a relation of causes and effects that lead

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

As mentioned above, major mobile phone manufacturers have come together, developing the Symbian OS as a barrier to entry to Microsoft. In that sense, with the major companies holding bulk of the market share, they stand to gain many

What this means for you is that one can’t simply judge an investment by its rate of return; the investment may be riskier than it should be for the return it generates.

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.

Although Microsoft was slow to join the cell phone war, and was unsuccessful in partaking in the market even with theier $7.2MM purchased of Nokia in 2013, our team believes the cell phone market is now ready for a Microsoft Surface cell phone. After all, Microsoft holds a solid reputation in operating and security software shouldn’t they be able to produce a desirable phone? Our team believes it can.

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

Today, Nokia is a famous leader in the technological world, offering different products regarding mobile phones, telecommunication networks, multimedia terminals and wireless data solutions. For more than ten years Nokia was unbeatable in the market, especially in a mobile phone industry. It started all the way from the classic, huge featureless cell phones all the way to Lumia and tried to compete with the market including the fancy Android operating system and iPhone but it seems little late decision for recovery. Somehow it seems like not a good decision to choose the windows phone in the competitive market of Android and iPhones (Siegal, 2014). A couple of years ago Nokia was acquired by the Microsoft as it was going through its tough years but this will never change the fact that Nokia was one of the most preferred phones over

For example, in Europe, Nokia’s market share in the European smart phone market has shown a huge decline in the past couple of years. The problem began with the introduction of the Iphone in 2007, 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 lost 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 European market. As Alison Donnelly (2008) points out the situation is already changed in late 2008. She stresses the fact that not so long ago it was very popular to own Nokia, but at this time the company was losing customers to rivals. The Finnish company had troubles adapting to the market changes, it did not recognize that the Iphone release in 2007 would create a new era into the mobile world. In a fast growing industry, time is a very expensive asset, as every company wants to possess the most innovative technologies and products before its