Nokia 's Competitive Advantages Of Nokia

The core competencies of any firm is to satisfy the customer needs and preferences so that it can gain more returns. This is achieved through change of business strategies to those which enable the firm become competitive through exploitation of core competencies in the individual products and services. Such strategies place a firm in a leader position in the industry it operates in relation to competitors as well as the five competition forces. To maximize profitability and boost competitiveness in the mobile phone and Smartphone industry, Apple and Samsung should employ strategies that ensure that they reach more consumers in the emerging markets.

Nokia, which overtook Motorola in 1998 to take the crown of biggest phone manufacturer of world, lost its prestigious crown after struggling for last 3 years. The 4 costly mistakes that lead to Nokia losing the battle are described in this article. Nokia launched its Symbian 60 series in year 2002 which initially had a good market response but with the introduction of Apple iOS in 2007 and Android in 2008, the OS race was completely taken over by the two giants. The reasons for collapse of Symbian OS is lack of applications and UI (User Interface). After facing competition from iOS and Android, Nokia continuously tried to improve their Symbian OS but it was mostly following the UI of Android and iOS and was not creating something unique. Secondly, the company failed to look into the need of available applications in gaining market share. The company made the biggest mistake to take a leap of faith in Windows in 2011. At that point of time, the company already was in declining condition and trusting Windows which was new in the field to regain its status was the biggest mistake the company made. tiff competition from Samsung and Apple, and lack on focus on innovation was the second big reason of collapse. Even if users could ignore the OS, the the hardware features which Nokia was rolling out were quiet late as compared its major competitors Samsung and Apple.

Nokia Company is a telecommunications company and Information Technology. They produce mobile phone. Nokia is very old company or we can say it a one of the best company in past. In this integrated research project, I will provide a lot of details of chosen industry, organization, a SWOT analysis highlighting issues or challenges that lead to proposed research objective. Also, I will identify three relevant CLOs from semesters 7 and 8. Then I will identify of the chosen issue or challenge with a clear objective or problem statement. Moreover, I will write details of research activities including the proposed methodology. (wikipedia, 2016)

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

Motorola, famous amongst mobile phones, and one of the top cellular phone companies in the world till late 1990, later it was captured by the company Nokia. While writing this case we have thrown light on the challenges and problems faced by Motorola around 2006-2007. One of the ideas incorporated in order to recapture the market in the year 2006 was to slash the prices of almost all the cell phones which impacted the returns of the company. Motorola did announce in the year 2007 that they will revive shortly and would have the market share back.

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.

Nokia has a long history of successful change and innovation, adapting to shifts in markets and technologies. From its humble beginning with one paper mill, the company has participated in many sectors over time: cables, paper products, tires, rubber boots, consumer and industrial electronics, plastics, chemicals, telecommunications infrastructure and more. Most recently, Nokia has been best known for its revolutionary wireless communication technologies, which have connected billions of people through networks and mobile phones. The predecessors of the modern Nokia were the Nokia Company, Finnish Rubber Works Ltd and Finnish Cable Works Ltd. The company's name came from the Nokia town and the Nokianvirta river. Nokia Company's history started in 1865 when mining engineer Fredrik Idestam established a ground wood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere, in southwestern Finland. In 1868, Idestam built a second mill near the town of Nokia, fifteen kilometers west of Tampere, by the Nokianvirta river, which had better hydropower resources. In 1871, Idestam, with the help of close friend and statesman Leo Mechelin, renamed and transformed his firm into a share company, thereby founding Nokia Ab. The new Nokia Corporation had five businesses: rubber, cable, forestry,

Nokia has been one of the brands that are in the last 20 years been synonymous with high-quality phones. Till 2007, Nokia had a market share of 80% in the smartphone market, and the main reason for losing ground during the “second coming of the smartphone age” was due to the weak position of Nokia in the “technological system” (or ecosystem).

In 2005 the Nokia sales in western countries of Europe and in America were largely poised at certain point, the company was not making any profit in these regions. The North American market creates roundabout 8% of sales for the company, Nokia was losing its grip on Europe, and the market share was dropping in from 42% in 2004 to 38% in 2005. The only opportunity for Nokia in this case was to develop rich market ground in developing countries.

This analysis will focus on the smartphone industry given that the global market, in terms of the major players involved and on the dynamics of the smartphone industry and the factors, that affects the change over the conditions of competition.

They created the first GSM telecommunication and make it commercial. It is namely as Nokia Protitype Phone and the first product was Nokia 1011. Eventhough they were still have many competitors like Erricson, Samsung, and Google at the time, Nokia still keep trying to do their best when their falling era. Because of their innovation in GSM Phone, Nokia can get more their market for telecommunication and spread their product to their market. In 1992, Nokia tried to do the agreement with Vodafone and successfully in improving the network roaming for its GSM as the dominant network standardization. In the end of 1990s and in the beginning of 2000s, Nokia is still in the inertia eventhough they have many innovation products on GSM but their competitor like Erricson also created the same mobile for the telecommunication so that they competed each other for controlling the

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

Let’s compare the figures in chart 1.6 and 1.7; in 2007, Nokia’s had a market share of 35.1% in the China mobile phone market (2G) which dominated the market. But in 2009, its market share dropped by 7% to 28.4%. Although Nokia’s sales in China have increased, but the rate of increase of its sales is slower than the market itself, hence the decrease on market shares. Like the CEO of Nokia, Olli-Pekka Kallasvuo said in 2010, “the global market has continued to grow at a healthy pace; the only problem for Kallasvuo is that while the market might be growing at a healthy pace, Nokia’s sales aren’t.

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