Nokia Corporation ( Nokia )

Nokia is producing basic products but also Nokia is producing smartphones which can customer play game, download and use million of application, use office tools, camera, music station, radio, web services, instant messaging, GPS, navigation, and maps. Nokia 's Smartphone history started with first Smartphone model called Nokai 9210 Communicator with using Symbian that is a mobile operating system and computing platform designed for Smartphones. It was a true smartphone with an open operating system, the Symbian OS. It was followed by the 9500 Communicator, which also was Nokia 's first camera phone and first Wi-Fi phone. The9300 Communicator was smaller, and the latest E90 Communicator includes GPS. The Nokia Communicator model is remarkable for also having been the most costly phone model sold by a major brand for almost the full life of the model series, costing easily 20% and sometimes 40% more than the next most expensive smartphone by any major producer. In 2007 Nokia launched the Nokia N95 which integrated a wide range of multimedia features into a consumer-oriented smartphone: GPS, a 5 megapixel camera with autofocus and LED flash, 3G and Wi-Fi connectivity and TV-out. In the next few years these features would become standard on high-end smartphones. The Nokia 6110 Navigator is a Symbian based dedicated GPS phone introduced in June 2007.In 2010 Nokia released the Nokia N8 smartphone with a stylus-free capacitive touch

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).

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.

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

The analysis of the current SWOT of NOKIA is as follows: strengths is its position as industry leader in the telecommunications and electronics industry. Also, it shows to the world the incredible ability to adapt to the market. Weakness may be that it has grown so huge, as the fifth most valuable brand in the world, that it cannot sustain its growth at its current rate. It still have some opportunities like Nokia's leadership in the area of mobile phones and its versatility open the company up to a wide variety of communications and mobile device possibilities -- markets that are growing throughout the world. Threats are that Nokia is facing a number of threats from companies such as Apple, Google, and Research in Motion, all of which are investing heavily in the mobile phone industry in an attempt to gain dominance.

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

Both sides had strong incentives to join forces. Nokia had lost significant ground in recent years to smartphone manufacturers, most notably Samsung and Apple, by failing to keep up with innovations such as touch screens.

Although Nokia is going through downturns in the recent years, Nokia was still encouraged itself to innovate in offering new products and developing new devices for their customers (Zacks, 2014). The most valuable key success factor of Nokia is the patents and mobile phone distribution network. Mass patents of Nokia are the function of the company in marketing competitions. In the meanwhile, the established global distribution network covers the different regions, which have long been efficient selling Nokia phones and help customers solve hardware

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

The term NOKIA can be defined as an “EVOLUTION” in global business. In the whole Nokia revolution, under Dan steinbock traces, Nokia has become the world leader with pinpoint details and maintained its position at the top of the head in such rapidly changing technology field. The miss-steps in the technology helped the technology of Nokia. And learnt some important techniques and lessons and came back with much more passion and lessons.

Due to the underestimate of the smartphone business, Nokia started to lose its market share and then it failed in the competition of smartphones. After several years flounder, Nokia’s mobile phone business was acquired by using 7.9 billion dollars by Microsoft in 2013. At that time, Nokia’s market share fell to 2.8% (Pearce, 2016).

Apple is one corporation that everyone is frighten of, they are a huge threat in the mobile market. Apple is one of the fastest growing corporations with a 3-year average for Revenue Growth is at 52%, while their Profit Growth is at 70% (Hein, B.). With all of their acknowledgement from the world, they are quite different then Nokia. One of the differences between these two corporations is their product range. Nokia has a huge range of products; this is because they date back to 1865, so they continually adding more and more to their collection (Nokia). Since Nokia has a large range of products it give consumers more of a choice in their discussion making process. Whereas Apple only has been around since 1977, so they only have

Hence, the highlight of the above analysis is Nokia weaknesses and threats. It can be seen that the main issues are coming from its former top management competencies to compete with the competitors (Scott, 2011a) and lack of awareness to follow the smartphone market trend (Auchard and Rosendahl, 2016). This resulted in the other process to fail in which the process of product innovation in Nokia affected, where its high investment in Research and Development (R & D) (See Appendix 3) (Statista, 2017) is not balanced with its R & D quality (Scott, 2011c), they still retained its outdated Symbian OS (Scott, 2011b).

The Investment decision to acquire a company like Nokia that has already been losing its shine among the customers for making no major improvement to tackle the competitor, creates serious doubts among the shareholders and the customers of the Microsoft. On any given day, a company would obviously prefer quick profits from their investments. By buying out Nokia, Microsoft clearly suggests that it is looking to broadening the business towards making its own mobile phone. Now what is the opportunity cost for the customer to buying a Windows smart phone? The good thing that happened from the acquisition is that the consumers have three major choices of Operating system to buy from. The opportunity cost of buying a NokiaWindows smartphone is the foregone cost of buying either an Android or iOS smart phone. The question is that to what extent the customers would prefer Windows smart phones over the likes of Android and iOS smart phones.

The main reasons behind the plummet of Nokia were due to lack of data concerning their competitors. The top level association had no data concerning how their competitor’s rank was that is IPhone. A researcher shouted Vuori said that top level association of Nokia got the wrong believed concerning the pace of progress that their competitor had and were managed to trust that the procedure that they were acting was adequate plenty to address to the menace that their competitor poses. So it is clearly described that due to their one unclear data they were drop dead. Journalist D. Bhatt (2001, page 68) quarels that “To capitalise on vision, an