Nokia Corporation ( Nokia )

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Introduction

Nokia Corporation (Nokia, or “the company), one of the largest world-class telecommunication companies, was established in 1967. The company operates through three businesses: Nokia Networks, Here and Technologies (Nokia websites). Nokia’s Networks segment primarily offers telecommunication infrastructure that concentrates on mobile networks and base station subsystem. This segment runs two businesses: global service and mobile broadband. Nokia’s Here System provides the mapping and local intelligence service for customers. This system has a massive database with over than 80,000 sources of data and offers maps for more than 190 nations. People can immediately search information what they need by using Nokia’s Here System
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Nokia had relatively strong bargaining abilities to its suppliers since it made a large scale of production. The management of the company also strictly controlled its manufacturing costs. The producing costs of the company were much lower than those of other competitors, such as Motorola. Nokia’s excellent research and development ability was the factor why the company could defeat other competitors as well. However, since Apple launched iPhone and Samsung cooperated with Google, the global mobile phone markets have significantly changed during these decades. The market share of Nokia had begun to decline. Its sale revenues and volumes also have sharply reduced. The management of the company tried to find strategies to address the dilemma which it faced: the sharply decreases in its profits and market values. Despite the relative responses which had been implemented, the performance of the company has still being falling during the recent years. Nokia announced its mobile systems, Meego and Symbian, to stop renewing applications in 2012 and 2013, respectively. In 2014, the company’s mobile phone segment and relative patents were sold to Microsoft. Investors and critics in capital markets argued what Nokia’s behaviours could improve its market value and operation performance. Before Apple and Samsung appeared, no one anticipated the telecommunication giant, Nokia, would fail
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