Noki The World Leader Of The Mobile Phone Market

Nokia’s Lumia series was launched with a bang, but didn’t click. Reasons can be its design, which wasn’t as attractive as Samsung phones or the iPhone. Today the sale of phones is dependent on how shiny or trendy it looks. Leave aside the looks, Nokia phones didn’t have the front camera, which makes it not even 3G enabled. And we are on the threshold of entering the 4G era. So, Nokia’s latest phones were feature ready, but not future ready. Nokia was solely dependent on Symbian till it entered into a partnership with Microsoft recently. But its shift to Windows was considered a tad too late as by then Apple and Samsung had established their dominance. The operating system space was nearly occupied by Android and iOS leaving not much role for Windows. But that cannot be translated into a failed partnership. “Nokia and Microsoft are no weaklings, they do have assets. We believe that there is a good chemistry there with that partnership, and ultimately long-term Windows Phone will be successful,” Wayne Lam, IHS senior analyst, was quoted by Wired. Nokia puts customers into the corridor of uncertainty. One thing that absolutely annoys customers to the extent that it makes them tear their hair out is to have such phones

For instance, Nokia Networks recently revealed the programmable 5G architecture infrastructure which is able to adjust automatically radio access and core network resources by meeting the needs of different services (Nokia, 2015). Being innovative in the telecommunication industry means for Nokia competing in a fast developing and booming networking sector, which generates most of the company’s revenue. Chaudhuri (2015) believes, that in Nokia’s case, presence in telecommunication industry is more profitable than mobile handsets manufacturing. This strategy shift may allow the company to win the game by redefining market orientation. To support this example, the author uses the Ericsson case, which illustrates the company's decision to sell its handset business to Sony, after it lost its ability to compete with other manufacturers. Ericsson's focus on mobile networks allowed the company to be

In carrying out analysis of Nokia, this paper has critically scrutinized the mobile phone industry, the external environment and the internal dynamics of Nokia Corporation. Initially Mobile phone Industry analysis is carried out to determine that it belongs to the matured stage of the lifecycle and also to

In spite of the decrease in market share, Nokia has much room to grow with their newfound alliance with Microsoft (Microsoft News Center, 2011). The collaboration with Microsoft will be used as a leverage to entice students with the Windows 8 OS platform. Furthermore, an improved management to meet consumer demands, and increased promotional campaigns to increase brand awareness.

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.

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.

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.

In 2011, Nokia joined with Microsoft to strengthen its position in the highly competitive smartphone market. Nokia adopted the Windows Phone OS for smart devices and through their strategic partnership Nokia and Microsoft set about establishing an alternative ecosystem to rival iOS and Android. In 2011, Nokia made number of changes to its operations and company culture in the course of two years lead to shortened product development times, improved product quality and better responsiveness to market demand.

Microsoft comes up against intense competition in all its operating segments. For example, in its phone hardware segments, it encounters stiff competition from Google’ Android and Apple’s iPhone. Kingsoft, IBM, Google, Apple and Oracle are some of its major competitors for its Microsoft Office products. In Microsoft’s computer and gaming hardware business, it competes with Nintendo and Sony. With fierce competition across all its business segments. Microsoft may be susceptible to market pressures, these results in a loss in the market share and a decline in its

Using a broad variety of academic and industry sources, our team has conducted extensive background research on Microsoft and its constituent operating units. On the basis of our analysis of the challenges facing these units, jointly and severally, we are proposing Microsoft immediately initiate a comprehensive shift in the strategic direction of its Entertainment and Devices business unit. Microsoft’s inadequate response to the iPhone-era mobile revolution has seen it languish behind its main competitors in the consumer electronics space; in Q2 of 2014, the Windows Phone accounted for only 2.5% of the 301.3 million unit shipments worldwide (IDC, 2014). Likewise, while Q4 2014 Xbox console sales were up 14% over Q3, the competing Sony platform sold 70% more consoles during the same period (Harradence, 2014; Nelva, 2014). Microsoft’s devices have failed to command sufficient market attention to ensure the company’s status as a major player in consumer technologies. Growing market share in mobile and gaming has become a strategic imperative of the highest importance.

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

We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.

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’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