Rise And Fall Of Nokia

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The Rise and fall of Nokia CASE SYNOPSIS: Evolution Stages of Nokia Corporation: 1865-1970: Timber and Rubber Era Initially Nokia was not an electronic manufacture company. In 1865 Nokia started as Timber Company near the town of Nokia, Finland and then they started second paper mill when they grew significantly in their business over the period of time. The name Nokia is derived from the river called “Nokianvirta” which is in Finland. Paper was not the essential business style of Nokia. So therefore over the next 40 years Nokia expanded from large paper mill to working with the rubber, Electricity, Cables and Power generation and other multiple facilities. The first CEO of Nokia in that period was Bjorn Westerlund. Nokia merged…show more content…
During this period in the year 1977 Nokia selected a new Chief Executive Officer (CEO) Kari Kairamo who has new ideas about the growth of Nokia in international market. Under the leadership of Kari Kairamo in 1979 Nokia took its first step into a joint venture with Finnish maker “Salora” by creating the Radio Telephone Company called “Mobira”. They have also created the Nordic Mobile Telephone services which were later called as (NMT) network launched in 1981 which was the first telephonic services which was wireless. Nokia decided to increase its market presence into electronics so they started procuring the operations across Europe, U.K, Asia and North America and with increase market capitalization and as a result, their market revenue was up by 54% and posted €4.6 billion of business revenue. At this point Nokia became the largest electrical supplier of Finland. Nokia had yet to reach largely into the worldwide market and Kairamo thought that by communicating Nokia key assets like its technologies, brand name, and brand reputation- would help company to reach and sustain in the global…show more content…
With the Introduction of WAP services in handset the company also featured the Bluetooth Services in their cell phones. Nokia Emergence Market Strategy: In the early 2000s Nokia planned to step into the emerging market due to the market saturation in developed countries. Nokia estimated that they can get at least 600 potential consumer in the country like Russia, China, and India. Nokia enjoyed the growth in sales and profits. The company was expanding rapidly from European market to North American and developing market. Changing Market Dynamics due to Increased Competition 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. It was not easy for Nokia to penetrate in Asian market due to the Price competition and regional competitor’s brands such as TCL, Huawei, and ZTE were rapidly getting the attention of
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